Vital Financial Updates Credit – Is it good or bad?

New credit score myths and why you shouldn’t believe them

Myths and folklore endlessly evolve as cultures change, technologies emerge and societies grow. Some myths – like the one that warns against washing Pop Rocks down with Coke – are chuckle-worthy. Others, such as fallacies about how credit scores work, can be downright detrimental.

Thankfully, some credit score myths seem to be fading, such as the mistaken belief that your credit score is beyond your control. In fact, 94 percent of respondents to a 2013 survey by the Consumer Federation of America and VantageScore Solutions, a credit score development company, knew that making on-time loan payments helps improve your credit score. New myths, however, seem to constantly emerge.

Here are five new credit scoring myths and the truths that debunk them:

Myth No. 1: When applying for a job, a bad credit score can count against you.

The truth: While many employers do consider credit when evaluating job candidates, they are looking at a modified version of credit reports. Not credit scores. Whats more, potential employers cant even look at a candidates credit report unless a candidate gives express permission. And finally, if the employers decision is adverse to the applicant, in most cases they must provide a copy of the report before taking any adverse action based in whole or in part on the report.

Myth No. 2: Closing a credit account is always good for your credit score.

The truth: While closing an account might make sense for your own personal financial situation, it also might count against your credit score. For example, if you pay off a credit card and choose to close the account, youve reduced your overall debt (which is good) but also reduced your amount of credit available for use (which may not be good for your score). How closing an account impacts your credit score will depend on how much other credit you have available on your other accounts and the general makeup of your personal credit history.

Myth No. 3: Anyone can submit information to the credit bureaus about you.

The truth: Lenders and other organizations such as collection agencies and even some landlords report unpaid debts, payment information and balances to the three national credit reporting companies (CRCs): Equifax, Experian and TransUnion. By law, only companies that meet responsibilities mandated by the Fair Credit Reporting Act (FCRA) for accuracy may provide data to the three national CRCs. All organizations furnishing credit data to the credit bureaus must respond in the event that there is a dispute.

Myth No. 4: Your social media activity can affect your credit score.

The truth: While its true that some lenders have begun reviewing social media accounts as a way to market their products and services more effectively, nothing you do on social media is included in your credit reports at the three national CRCs. And mainstream credit score models used by lenders only use information that resides in these reports.

Myth No. 5: You only have one credit score.

The truth: You may actually have many – dozens, in fact. Although most people are familiar with the three national CRCs that gather credit information and use it to assign credit scores, there are actually many credit scoring companies. Your score may also vary depending on which CRCs data is used. Whats more, different types of financial organizations may use different models to evaluate you. For example, your mortgage company may use a model that they custom-built based on their own business strategy. In addition, how credit scoring models interpret information in credit files varies.

To get a true picture of your credit status, its best to review your credit reports and credit scores from multiple sources. Test your knowledge about credit scores at www.CreditScoreQuiz.org, which was created by VantageScore Solutions along with its partner, Consumer Federation of America. Both the online quiz and a corresponding brochure are available in Spanish at www.creditscorequiz.org/Espanol. With first-hand knowledge of your own score, you wont need to worry about credit myths – old or new.

-Brandpoint

Editor’s Note: This content is made possible by Brandpoint. It is not written by and does not necessarily reflect the views of The San Antonio Express-News or mySanAntonio.coms editorial staff. Learn more about our advertising products at www.hearstmediasanantonio.com.

ICICI, Axis cut home loan rates

Home finance companies, Indiabulls Housing Finance (IBHFL) and Dewan Housing Finance Ltd (DHFL) also reduced floating rate on home loans to 9.90%.

National Financial Educators Day Honors Prominent Teachers of Personal …

WASHINGTON, April 24, 2015 /PRNewswire/ — The second annual National Financial Educators Day is set aside to honor those individuals who work to improve the lives of people in their communities by teaching vital financial capabilities. This special day of recognition falls on the last Friday of each April; this year it will be held on April 24, 2015.

Since the day was first designated in 2014, National Financial Educators Council has commemorated educators and advocates from 44 states who have contributed to the financial literacy movement. Honorees have included traditional educators, volunteers, financial professionals, concerned citizens, and authors.

Financial Educators Day (http://www.financialeducatorscouncil.org/financial-educators-day/) is also an opportunity for the NFEC to recognize the one individual who has made such significant contributions to promoting financial wellness that he or she is selected to receive the Financial Education Instructor of the Year award. Recipient of the 2015 Financial Education Instructor of the Year award is Sharon Lechter. Lechters history of delivering practical financial education programming, raising mainstream awareness, and promoting legislation to encourage improved financial competency among our nations citizens strongly aligns with the NFECs award criteria.

The NFEC contends that people with a passion for promoting financial education are the true leaders of the financial literacy movement. Its the financial professionals, teachers, volunteers and concerned citizens who are driving financial education initiatives in their communities, states Vince Shorb, CEO of the NFEC. Financial Educators Day recognizes their efforts and commitment.

Financial Educators Day philosophy centers on the principle that educators are the single most important influence on participant success.Distinguished financial education instructors are not merely dispensers of knowledge; they are learning facilitators who can mold and modify participants behavior to guide them toward financial wellness.

The National Financial Educators Council is a personal finance company dedicated to creating a world where people are informed to make qualified financial decisions that improve their lives, the lives of their loved ones, and the lives of people they influence around the globe. The Framework for Teaching Personal Finance, developed by the NFEC, breaks down teaching financial literacy into 22 components recognized as best industry practices. This research-based set of components aligns with InTASC standards and is grounded in a constructivist view of learning and teaching. Learn more at http://www.FinancialEducatorsCouncil.org/

Media Contact: Trevor Stoll, 775.549.0213 ext 7010

SOURCE National Financial Educators Council

Related Links

http://www.financialeducatorscouncil.org

New Data Offers Mixed View of Homebuyer Financial Power

When it comes to plumbing the financial wherewithal of today’s potential homebuyers, a trio of new data reports finds bad news and good news…and more bad news.

The latest financial literacy report conducted by the National Foundation for Credit Counseling (NFCC) found that among the major life-altering events in an adult life, home purchasing was the area where most people were least prepared. Indeed, 41 percent of respondents stated there were not financially ready to buy a house, compared to 35 percent that were unprepared for retirement, 12 percent for raising a child and 12 percent for financing a college education.

“Buying a home is the most significant financial commitment one may make in their entire lifetime,” said Bruce McClary, NFCC vice president of public relations and external affairs. “Being prepared and making the right choices can lead to a more satisfying purchase and a stable financial future.”

However, those individuals that were prepared are finding it somewhat easier to get a mortgage. The latest quarterly Zillow Mortgage Access Index (MCAI) report, covering the fourth quarter of 2014, registered at 69.4, which is 2.1 points below the third quarter of 2014 but more than 18 points from the fourth quarter of 2013.

Zillow also found that due to a lowering of credit score requirements in 2014, it was easier for borrowers with low credit scores to get conventional loans than it had been since 2008. But Stan Humphries, Zillow’s chief economist, noted that lenders are not rushing forward to secure a mass quantity of new borrowers.

“After several years of rapidly increasing access to home loans, lenders are taking a pause,” said Humphries. “With the mini-boomlet in refinance activity late last year, perhaps there was less business imperative for banks to attract new customers with looser lending. Dont expect this trend to continue though. Instead, credit access should continue its slow normalization, although its doubtful it will ever return fully to where it was pre-bubble. The new normal likely lies somewhere between current conditions and those of the early 2000s.”

But whether potential borrowers have enough money saved up for a down payment and the other costs of the home purchase transaction is still uncertain. New data released day by the US Department of Commerce’s Bureau of Economic Analysis found that personal income increased $6.2 billion, or less than 0.1 percent, and disposable personal income increased $1.6 billion, or less than 0.1 percent, in March.

Personal consumption expenditures increased $53.4 billion, or 0.4 percent. Wages and salaries increased $16.3 billion in March, compared with an increase of $24.2 billion in February, while 

Buddy Caldwell to hold free personal finance workshop in Covington

Louisiana Attorney General Buddy Caldwells office will partner with the Louisiana Bar Foundation and several other organizations to offer a series of free workshops on mortgages and personal finance, the last of which will be held inCovington on April 30. The statewide financial education tour kicks off on April 22 in Shreveport and in Lake Charles.

Other cities on the tour are Alexandria, Amite, Baker, Baton Rouge, Carencro, Covington, Gray, Lafayette and Monroe, according to a news release from Caldwells office. The Covington session will be held at 1 pm on April 30 at the Council on Aging St. Tammany Covington Senior Center, located at Starlight Baptist Church, 513 W. 28th St. All seminars are free and open to the public.

Caldwell is partnering with the bar foundation, Louisiana Appleseed, Louisiana Legal Services and the Louisiana Civil Justice Center to offer LMAP: Getting Your House in Order. The statewide tour is being held in conjunction with Financial Literacy Month, which is observed each year in April.

Experts from the banking, real estate and legal fields will offer input on first-time home buying, refinancing, reverse mortgages and other financial matters along the various tour stops, Caldwell said.

The Louisiana Mortgage Assistance Program, or LMAP, is designed to provide financial information and counseling on foreclosure prevention, wrongful foreclosure, loan modification, principle reduction, refinancing and related services.

Click here to see the entire schedule of workshops.

National Debt Relief Shares An Easy Budgeting Technique

National Debt Relief recently shared in an article how consumers who hate budgeting can deal with it in the simplest way possible. The article aims to share a budgeting technique so simple that people who hate it and even those that are doing it for the first time can easily budget their finances.

Miami, FL (PRWEB) April 11, 2015

National Debt Relief recently shared in an article published April 2, 2015 how consumers who hate budgeting can deal with it in the simplest way possible. The article titled “Budgeting For People Who Hate Budgeting” aims to share a budgeting technique so simple that people who hate it and even those that are doing it for the first time can easily budget their finances.

The article starts off by explaining that there are people who do not think about their household budget. They oftentimes put it off the last minute because they despise dealing with the numbers. These are usually those that try to list down all the single expense items they have made in the last month down to that gum they bought in a convenience store.

They also try to allocate funds from their pay to cover all their expenses and are struggling with the fact that they can not seem to make ends meet. They either are left with so little at the end of payments or sometimes, none at all. This is why they do not like to budget and would rather wing it when it comes to their finances.

The article shares a relatively easy budgeting technique specifically for people who hate to budget. It can also be used by those that are trying to put together their budgets for the first time who are usually those fresh graduates and might already be overwhelmed with their income and expenses. This budgeting program is called the”60% solution.”

From the actual name of the technique, it simple means fitting all the normal monthly expenses into 60% of the net income every month. These would usually cover a consumer’s housing expenses which could be mortgage or rent, insurance, food expense for the entire family, internet or cable tv, and transportation or car loan payment.

The article explains that it is a lot easier to work with a percentage rather than nitpicking every movement with their money. The remaining 40% needs to be used to strengthen the financial standing of the consumer. They are to be equally divided into four financial needs. The first one would be putting money into the retirement fund. The rest are to be placed in long long-term savings, emergency fund and even fun money.

To read the full article, click this link: [http://www.nationaldebtrelief.com/budgeting-for-people-who-hate-budgeting/

For the original version on PRWeb visit: http://www.prweb.com/releases/easy/budgeting_technique/prweb12633052.htm

Oman: Meethaq signs pact for Zawaya projects

Muscat: Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, and Zawaya Development signed a memorandum of understanding (MoU) to provide attractive Meethaq home finance for Al Taif 2 and Al Hilal 6 residential projects. Sulaiman Al Harthy, Group General Manager – Islamic Banking, and Waleed Al Kindi, Executive Partner of Zawaya Development, signed the MoU at the banks head office.

Sulaiman Al Harthy said: Meethaq is proud to be associated with Zawayas Al Taif 2 and Al Hilal 6 projects and facilitate attractive home finance in line with Sharia principles. The real estate sector is a major component of the national economy and Meethaq Islamic Banking is committed to extending all support aimed at offering citizens easy access to Sharia based home finance.

Premium series
Al Taif 2 is Zawayas second project of the recently introduced premium series (Al Taif) in Baushar with excellent style and attractive pricing. Al Hilal 6 is the latest project of the affordable series (Al Hilal) with a good location and smart layouts in Al Khoud.

Waleed Al Kindi said: We are happy to join hands with Meethaq Islamic Banking to provide attractive home deals for citizens. The association between the two institutions will give a boost to the real estate sector and benefit citizens across Oman to fulfill their dream homes.

Meethaq home finance is designed to help families fulfill their dream homes. Meethaq offers attractive Sharia based finance to suit everyones needs with simplified documentation and processing across the network of branches in Oman.

Residential segment
The residential segment of the real estate sector in Oman assumes importance in light of the growth in population as well as the buoyant economy. The deregulation granting property ownership rights to Gulf Cooperation Council (GCC) nationals and expatriates has also attracted Oman as an investment destination.
Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry.

Every Meethaq product goes through the process of Sharia compliance certification by the Sharia Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.

Empty pockets? Try these 20 money-saving tips

These days, in our world of instant gratification, its more important than ever to be able to stay focused on saving money any way you can. So to help you monitor your spending habits and cut expenses, here are 20 easy ways you can save every day–starting right now. Hows that for instant gratification?

Mobile Phones Are Revolutionizing Personal Finance In Sub-Saharan Africa

Until a few years ago, three-quarters of people in sub-Saharan Africa were cut off from the financial system. They had no relationship with a bank, making it difficult to send and receive money, or to get credit. But then a new, cheap device came along and quickly began improving the financial lives of millions of people. In a short span of time, mobile phones have radically altered personal finance in the region.

Twelve percent of all adults in sub-Saharan Africa use their phones for non-bank financial transactions, by far the highest rate of any region in the world, according to a report released Wednesday by the World Bank.

The mobile revolution there is part of a broader trend of democratization of finance around the globe thats giving far more people a first step into the financial world. The number of adults worldwide with a bank account grew by 700 million between 2011 and 2014, according to the World Bank, an 11 percentage point rise to 62 percent of all adults.

These figures come from the World Bank’s Global Financial Inclusion database, known as the Findex. Its composed of over 100 indicators and is based on interviews with about 150,000 adults across 143 countries. That makes it by far the largest and most comprehensive study of financial inclusion the marker for whether people are connected to the formal financial system.

Financial inclusion means having an account of some sort, either at a traditional institution like a bank or credit union or through a mobile money account. (Mobile money accounts are phone-based services, untethered to a financial institution, for paying bills and sending cash.) Either method allows people to pay bills more efficiently; to send and receive remittances; and to take the first step toward accessing credit to make larger purchases or start a business.

The growth of financial inclusion has led to a 20 percent drop since 2011 in the number of adults without access to a bank (down to 2 billion worldwide). While growth has been strong, wide gaps remain. In the richer developed economies, some 94 percent of adults have an account, while in emerging economies only 54 percent do. The Middle East lags all regions with only 14 percent of adults having an account in 2014.

In sub-Saharan Africa, two-thirds of adults still don’t have an account. But the growth of financial inclusion in the region is a success story: The overall share of adults there with any type of financial account jumped to 34 percent in 2014, from 24 percent in 2011.

And nearly all of this growth can be attributed to mobile money accounts. Worldwide, about 2 percent of adults have a mobile money account. But in sub-Saharan Africa, nearly 12 percent do.

There are 13 countries worldwide where 10 percent or more of adults have a non-bank mobile money account, and they’re all in sub-Saharan Africa. While it’s an impressive phenomenon for the entire region, the country-level figures are stunning. Kenya is a huge outlier with 58 percent of adults there having a mobile money account. In five countries Côte d’Ivoire, Somalia, Tanzania, Uganda and Zimbabwe more adults have a mobile account than a traditional one.

The latest World Bank report does not examine why this growth in mobile money accounts has been so strong in the region. But one explanation might be microfinance, the practice of making very small loans to entrepreneurs, often in developing economies. In 2007, Safaricom launched M-PESA, a pioneering microfinance program built on mobile cash transfers. It has since grown to be the dominant payment technology in Kenya and Tanzania.

With the spread of microfinance came the need for a better payments technology suited to the needs of the region. Mobile money accounts are cheap, easy and (with the ubiquity of phones) accessible.

Brookwood High School wins state personal finance contest

Students from Brookwood High School won first place in the Personal Finance Challenge State Championship on April14. The students will represent Alabama in the national competition in Kansas City, Mo., in May. From left: personal finance teacher Jackie Emplaincourt, students Senna Marchant, Erica Webb, Edie Osuma and Brady Cain, and State Treasurer Young Boozer.

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