Related Consumer Finance Programs - The following sub-directories of companies offer a wide variety of financial programs to assist you with the management of your finances. Consolidate debt with a consolidation loan or use a debt counseling service or mortgage refinance for help with the consolidation of your charge card debt and other monthly payments.
- Credit Card Debt Settlement - Too much debt? List of companies providing this alternative to bankruptcy that provides for debt negotiation and arbitration services for those that need to eliminate debt.
- Debt Management Counseling - Having trouble keeping up with your monthly credit payments? Compare debt management companies in this online list that can try amd help you get a grip on your personal financial situation.
- Personal Loan Financing - This type of lending is most often structured as an unsecured debt. This means your personal property or house will not used as collateral. Your approval (or denial) will usually be based upon your payment / credit history and your ability to repay the loan. This type of credit is also often called a signature loan.
Avoiding Costly Banking Mistakes: No Trivial Pursuit
Here are clues to preventing expensive errors with your checking account, credit card or other financial services. After all, this isn't play money!
Not reviewing your credit report
Many people never or rarely look at their credit report (a history of paying debts and other bills) or their credit scores (numerical ratings of credit reports) until they apply for a loan or they have been denied a loan. By then, it's often too late because inaccurate or missing information in your credit report could raise your borrowing costs or cause delays when you're in a rush to make a major purchase, like a new home.
Example: The home of your dreams just went on the market, so you apply for a mortgage. You're sure your credit record is in great shape so there's no need to worry about getting a good deal on a loan. But then you're quoted a rate on a mortgage loan that is much higher than you expected or, worse yet, you are denied a loan! What went wrong? It could be that your credit report contained incorrect information. By the time you can get your report corrected and your credit score increased, it's possible that your dream house was sold to someone else.
Solve this problem by taking advantage of your right under federal law to obtain one free copy of your credit report each year from each of the three nationwide credit bureaus (Equifax, Experian and TransUnion). Periodically review your report and correct any omissions or errors, especially before you apply for a home loan or seek some other benefit where your credit report could affect the outcome. Doing so can boost your credit score enough to save you hundreds of dollars each year in interest or other charges.
"Some people who get 'subprime' loans, which cost a lot more than most loans, would qualify for lower-cost prime-rate loans if errors in their credit reports were corrected," said Mira Marshall, an FDIC Senior Policy Analyst on consumer protection issues.
Another benefit of reviewing your credit report is that you'll be better prepared to protect yourself from "predatory" lenders who try to trick cash-strapped consumers into accepting high-cost home loans. "Some people who don't know they have a good credit history can be deceived into believing an expensive loan is their only choice," Marshall explained.
Kincaid added that if you apply for insurance or a job, the insurance company or future employer can review your credit report as part of its consideration of your financial responsibility. "You wouldn't want to lose a good job opportunity or a low premium on an insurance policy because of some erroneous information on your credit report," she added.
For more information about ordering your free report, go to www.AnnualCreditReport.com or call toll-free 1-877-322-8228.
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
FDIC Consumer News is produced quarterly by the FDIC Office of Public Affairs in cooperation with other Divisions and Offices. It is intended to present information in a nontechnical way and is not intended to be a legal interpretation of FDIC or other government regulations and policies. Mention of a product, service or company does not constitute an endorsement.
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Last updated on 11/08/2006