Tips to help you get approved for a Loan

There are many reasons to seek credit; ranging from car loans, to mortgages, to simple payday advances. If you are aiming to get approved for a personal loan, then there are a few steps that you can take in order to improve your odds of success. These include:

 

• Check Your Credit Score. You must know your own strengths and weaknesses in order to apply for the right types of loans, and this means checking your credit score. The three major credit bureaus in the United States are TransUnion, Equifax, and Experian: you can acquire your current score through any of these company’s websites. In addition to giving you a good idea of where you stand, having a credit report will also allow you to report any errors (which are more common than you might think) thus allowing you to boost your score instantly simply by correcting mistaken information.
• Take Steps to Improve Your Credit Score. Knowing your score will give you a good idea of how much funding you should aim to acquire, and at what interest rate you can expect to be given a loan. All the same, you should make an effort to maximize your score in order to maximize your chances of acceptance. Good ways of doing this include making on-time payments, reducing your amount of debt owed, and consistently maintaining a few simple lines of credit (such as credit cards) in order to build a strong financial “reputation.”
• Choose Lenders Wisely. Many payday advance companies and other “easy-approval” lenders are predatory and downright unethical in their lending practices: be sure to research any potential lenders carefully in order to make a choice that truly works for you.
• Consider Your Debt to Income Ratio. The more debt you currently owe, the more difficult it will be to get approved. The higher your income, the easier it will be to get approved. Understanding this dynamic can help you put yourself in the best position to get approved for the loan you need.

 

Reducing debt owed improves your odds of approval! Visit Madison Monroe and Associates online today to learn more about how you can lower the amount of money that you owe quickly and permanently!

 

 

The Hidden Costs of Vehicle Ownership

Owning a car offers freedom, convenience, and maybe even a bit of status. But it also comes with costs -- some of which are not always so obvious at first glance. So when deciding how much you can afford to spend on that new ride, be sure to take in the costs that go beyond the initial sticker price. Here are just a few common factors to consider.

 

• Interest. Keep in mind that, should you finance your vehicle purchase by taking on debt, you will be paying more than just the sticker price that you see advertised. The interest that you pay on such purchases can easily add up to an additional 25% of the cost of the car itself. (Which, of course, depreciates the moment that you drive away with it, which can make selling off a car later in order to get out of debt problematic.)
• Insurance. Driving without insurance is both illegal and financially reckless, so you should calculate monthly insurance payments when considering what kind of car you can afford.
• Maintenance. Vehicles are bound to experience problems from time to time -- be it as simple as a broken windshield wiper or as complex as a blown motor. Because of this, maintenance costs can vary greatly. It’s wise to always be prepared, and maybe even keep a separate maintenance fund for rainy days.
• Paperwork. Keeping title, registration, and any other relevant paperwork for your vehicle up to date is going to require administrative expenses from time to time: be prepared to shell out about 100 bucks per year on this, depending on what kind of vehicle you use and what purposes you use it for.
• Gas. Fuel-efficient cars aren’t popular just because people want to reduce their carbon footprints -- they are also gaining traction because most American households spend upward of two hundred bucks per month on motor fuels.

 

Are you having trouble keeping up on car payments or other important financial responsibilities? If debt has taken control of your life, it is important to understand that you have options. Visit Madison Monroe and Associates online today to learn more about how you can get out of debt quickly and effectively.

Two Major Credit Reporting Agencies Have Been Lying to Consumers

In personal finance, practically everything can turn on one’s credit score. It’s both an indicator of one’s financial past, and the key to accessing necessities—without insane costs—in the future. But on Tuesday, the Consumer Financial Protection Bureau announced that two of the three major credit-reporting agencies responsible for doling out those scores—Equifax and Transunion—have been deceiving and taking advantage of Americans. The Bureau ordered the agencies to pay more than $23 million in fines and restitution.  

In their investigation, the Bureau found that the two agencies had been misrepresenting the scores provided to consumers, telling them that the score reports they received were the same reports that lenders and businesses received, when, in fact, they were not. The investigation also found problems with the way the agencies advertised their products, using promotions that suggested that their credit reports were either free or cost only $1. According to the CFPB the agencies did not properly disclose that after a trial of seven to 30 days, individuals would be enrolled in a full-price subscription, which could total $16 or more per month. The Bureau also found Equifax to be in violation of the Fair Credit Reporting Act, which states that the agencies must provide one free report every 12 months made available at a central site. Before viewing their free report, consumers were forced to view advertisements for Equifax, which is prohibited by law.

That these credit agencies would abuse their power to mislead Americans attempting to take a more active role in monitoring their financial health is not only a violation of trust, it is dangerous.

These agencies—along with a third, Experian—make up the nation’s credit-reporting industry, and, as such, they wield a significant and unique influence over America's’ financial health. Many lenders use only the data from these providers to determine whether someone can get a loan and how much interests he will pay. “Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them,” said CFPB Director Richard Cordray in a statement. Credit-reporting agencies keep track of an individual’s overall debt picture, how much credit they have access to, and how frequently payments are late, among other things. They then assign a score ranging from 300 to 850, which is consulted before one rents an apartment, gets a loan, opens a credit card, buys a car, or even gets a cellphone.

Much of an individual’s ability to improve his or her finances is predicated on his or her ability to maintain a high credit score. To do that, he or she needs to be able to see accurate credit reports that reflect the information that lenders see when they assess them. The actions of Equifax and Transunion prevented that. And that’s especially troubling because the American credit system is a reinforcing cycle. Good credit often comes from having enough money to pay bills off in a timely manner, which raises one’s score and provides access to more credit at better interest rates. That can amount to tens of thousands of dollars in savings on mortgages, business loans, and credit- card interest. And having good credit means that a person’s score can sustain the decline that comes with lender inquiries for new credit cards or loans, which then gives them access to more credit—and raises their score once again. For Americans with bad credit and little income, the system works in exactly the opposite manner, and leaves people relegated to pricey and predatory options for basic financial needs. In 2010, the CFPB found that 26 million Americans had no credit history, and another 19 million had such limited credit history that they were considered unscorable. These groups were primarily made up of low-income and minority households.


Credit scores and the agencies that provide them have long been a point of contention among consumer advocates, not only because the system further marginalizes those who are already struggling, but also because it offers very limited opportunities to improve one’s financial standing. Even obtaining, understanding, and correcting official credit reports can be tricky, time-consuming, and, in some cases, costly.  As a result, consumer advocates have called for greater accessibility and pushed  alternative credit indicators. That two major providers of score data have been intentionally deceiving Americans confirms what those advocates have been saying all along: This is a deeply dysfunctional system that is hurting the Americans who can least afford it.

Is That College Degree Really Worth It?

The cost of higher education seems higher each and every day -- and it is no secret that student debt is a growing problem. In fact, as of 2017, more than 40 million Americans have at least some student debt. Worse still, there is a substantial amount of former students among these 40 million people who find themselves in serious economic trouble because of the debt that they have taken on. All this has many people asking the obvious question: is a college degree really worth it? In this article we will break down the numbers and offer a general answer, keeping in mind that everyone's situation is a bit different.

 

The average cost of attendance at an in state university in the United States is roughly $9,650. Of course, the average cost of private and out-of-state schools is much higher -- $24,930 for out-of-state public schools, and $33,480 for private schools, to be exact.  And this doesn't take into account the fact that many students pay for living expenses through loans as well. Finally, it is also worth considering that with accumulating interest, most former students end up paying far more than the original cost of the education.

 

So, just to maintain a healthy dose of skepticism, let's assume that your entire college education puts you $200,000 in the hole. (Which, let’s be clear, isn’t the most likely of scenarios.) Surely, this cannot be a wise decision, can it?

 

Well, according to a study, the average college graduate earns, over the course of their life, roughly 1 million dollars more than the average non graduate. So the bottom line is that your bottom line will likely improve over time if you decide to attend college -- even though such a decision can sometimes cause temporary hardships, especially when debt piles up.

 

Student debt got you down? No worries. You are an educated and capable person who clearly has potential for the future. The mere fact that you have attended college is a good indicator of this. If you find yourself concerned about your finances, the most important thing you can do is to take action. Visit Madison Monroe and Associates online today to learn more.

 

Should you Buy or Rent

Home Ownership Vs Renting

 

 

For decades, home ownership has been considered an integral part of the American dream. But does all that hype really add up to a good investment, or could renting actually be the smarter financial decision in some cases? The answer...is complicated. In this article, we’ll take a look at the pros and cons of both owning your own home and renting.

 

 

• Stability or Flexibility. The first question that you will need to answer when considering home ownership is how much you value stability versus how much you value flexibility. If you dream of settling down and spending a large part of your life in the same neighborhood, then purchasing a home is a great way to accomplish this goal in a comfortable and financially sound manner. If, on the other hand, you enjoy regular changes in scenery, if your line of work requires you to change location frequently; etc, then renting may offer the flexibility that you need. After all, the costs associated with changing apartments at the end of a lease pale in comparison to the costs and hassles of selling a home.
   
• Equity vs. Low Expenses. The age old argument for home ownership is that each payment you make on your home contributes to your purchase of a major asset. (The house itself.) However, it is important to consider that, while this is true to an extent, there are also many additional expenses that you take on with home ownership, such as maintenance, homeowners association fees, property taxes, and, most importantly, the interest on your mortgage.(which can sometimes nearly equal the value of the house you are buying!)
   
• Choosing your Responsibilities. Owning a home also tends to entail more responsibilities: maintenance, lawn care, homeowner’s association meetings, etc. tend to eat up a great deal of time -- this is one reason why some working professionals opt to rent instead of own.

 

 For more useful financial tips, visit the Madison Monroe and Associates blog today!

Must-knows when someone in the relationship has unfavorable credit

Are wedding bells in your future? Thinking about popping the question to the love of your life? Now that you and your partner have decided to share your lives with one another, finances also come as a part of the life that you’ll share.

Until now, maybe you haven’t considered how your future spouse’s credit history will affect your financial future. If you’re curious, this post may answer a few of your questions about credit before you say “I do.”

Q: Will my spouse’s credit score impact my credit score?

A: Your credit score is, well, yours. The day you say “I do” isn’t going to automatically merge your credit score with your significant other’s, according to Experian.

However, if you and your spouse have different credit backgrounds and you apply for a loan together, your spouse’s history could impact your interest rate and the amount you qualify for. If their past has left their credit in a not-so-good place, but you have stellar credit, their credit could prevent you from qualifying for a loan altogether. Or you could end up paying a higher interest rate for financing, according to MyFICO. Carefully consider each other’s credit history and plan strategically when applying for credit after marriage.

Q: Will my partner’s debt become my debt, and vice versa?

A: It depends. When you were single, if you took out loans or accumulated debt, these are typically still your financial obligations, even in marriage. (The same goes for your spouse, too.) The accounts you opened before marriage usually only impact your credit score, too—that is unless your spouse adds their name to your accounts. Your spouse might do this if you have excellent credit and they have poor credit. Having their name associated with accounts in good standing (meaning minimum payments are always made on time) may help them improve their credit, according to Experian.

Now that you’re in this life together, you can work on paying off debts together, but that doesn’t mean you inherit each other’s debt.

Q: Can I apply for a loan without my partner when we’re married?

A: Of course! Say you want to get an unsecured loan, but your spouse has bad credit. It’s OK to apply for a loan solely under your name. According to the Consumer Finance Protection Bureau, creditors cannot even ask if you’re married, unless you are applying for a secured loan or joint loan.

The exceptions are community property states. If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, your spouse’s poor credit could affect your ability to get a competitive loan as creditors will most likely look into both credit histories. Alaska couples can also choose to opt-in to this system.

States with this law view couples as a “community,” or one entity. The community automatically shares incomes and debts during the marriage, in most instances. Each state has variances on this law, which you can find on IRS.gov. Couples may also draft contracts before getting married (or after divorce) to create their own rules for splitting debts and assets.

Q: How can we work together to keep our credit in good standing?

A: When both of you know your account balances, spending patterns, and due dates, this knowledge can help ensure you don’t overspend—and that you pay your bills on time. Communication will help you keep your joint accounts in good standing. After all, when you always pay your minimum balances on time, over time, this could improve your credit score.

You’ll also want to check your credit report annually to look for suspicious activity.

Start the conversation about credit and finances in your relationship.

Talking about how to manage joint accounts, incomes, and debts is important. Ask each other, “Who will be responsible for monitoring accounts, paying bills, and budgeting?” Traditionally, one spouse handles the majority of this task to prevent overlap or confusion. However, couples with excellent communication skills can split the share of financial responsibilities. Budgets can be made together, accounts can be monitored by one or the other or both—and bill paying can also be shared or one person’s task. Also, decide if you want to join forces to tackle debts or unfavorable credit standings. Coming to a mutual agreement in this area may not only improve your finances, but also ensure your relationship is on the same page financially. Money isn’t the most romantic topic to discuss. But a well-planned financial future for you and your spouse means your relationship has a good foundation for happiness in the coming years.

 

This article was originally written by Premier Bank

Quick Money Saving Tips from Madison Monroe and Associates

Common Sense Money Tips

 

People from all walks of life occasionally have trouble successfully managing their money. That’s why a little advice can always come in handy. Here are 4 tips that can help you make smarter choices in the future.

 

1. Make a Budget. Knowing where your money is coming and going is essential to building good financial habits. Without awareness to how much you are allocating to each aspect of your life, you put yourself at risk of overspending. Be sure put some of your money into savings. Short term and long term goals can put you in a good place to start taking control of your finances.
2. Take Care of Your Health. Getting sick costs you money and opportunities. Good health keeps insurance premiums low and medical bills down. Not only that, you can save money on your grocery bill by opting for healthier choices such as vegetables and fruit. Maintaining your health improves quality of life and keeps you happy and more focused on what is important.
3. Don’t Skip Out Insurance. On a somewhat related note, insurance can be an important financial investment. If something goes wrong, it can set you back and put you into the kind of trouble that may take years or even decades to dig your way out of. On big purchases and important areas of life, such as health, housing, and automobiles - it’s worth it to invest that little bit of money in just in case.
4. Beware of Credit. Make sure to take your credit score seriously. This score affects many aspects of life including car and home loans, renting an apartment, or obtaining credit cards. It is important to build credit in order to make such purchases -- but be careful of borrowing too much. Falling into debt can place a serious and unnecessary burden upon you.

 

Having Financial Trouble? Are you in debt and feeling trapped? Contact Madison Monroe and Associates today to learn how you can get back on your feet  (877) 346-2797 We are here to help you.