Rebuilding Credit After Foreclosure
The following post is by Kevin from CreditShout, a personal finance site dedicated to helping people save money with credit cards.
Foreclosure is devastating not just because of the loss of your house, but also because of the damage to your credit. AS such, just like you would after a bankruptcy, you need to rebuild your credit after foreclosure. In fact, in many ways, foreclosure is very similar to bankruptcy as both stay on your credit report for up to 10 years and drag your FICO score down during this time period.
How to Rebuild Credit
The only real way to rebuild credit is with time. If you already have a credit card or other types of debts, you are well on your way towards rebuilding credit. The key is simply to pay each and every one of your debts on time every time. Over time, these creditors will report your on time payments, boosting the payment history section of your credit report. The payment history section accounts for 35 percent of your score, so this component is essential to rebuilding credit. If you use a cash back credit card or gas credit card, never ever carry a balance – the amount you end up paying in interest will essentially nullify any rewards that you earn.
Paying down debts can also dramatically raise your credit score, as your debt-to-credit utilization (or the amount of available credit you have actually used) makes up 30 percent of your score. It is likely you probably racked up significant debt in the months leading up to your foreclosure while you tried to make your house payments. Be aggressive about paying this down and get your balances to 30 percent or less of your available credit.
Secured Cards
If you do not have a credit card or other debts, you need to get one. With the foreclosure on your record, a secured credit card may be your only option. This is a card wherein you put down collateral in the form of a cash deposit. Your credit line is usually equal to the amount of cash that you used to guarantee the card.
Secured credit cards charge fees and have a high interest rate, so don’t carry a balance- instead, make sure the card holder reports to the three major credit bureaus and begin making small purchases that you pay off in full each month. Slowly, this will allow you to build up a record of on time payments.
Other Bills
It is also essential to pay any and all other bills on time. Paying your rent is crucial, but also think of utility bills, cell phone bills and other such related items. It may be hard for you to find a landlord who is willing to rent to you with the foreclosure on your record, and you may also have to put down larger deposits with utility companies. As such, building up a cash cushion to pre-pay rent and put down those deposits is important when you know you will be foreclosed on.
How Long Will it Take to Rebuild Your Credit?
Rebuilding credit is a slow process and there is no magic trick to getting things back on track. The more aggressively you pay down your debt and the more reliable you are with making payments on time, the faster your credit will begin to improve.
If you want to buy a new home, you may also wish to consider programs such as FHA or VA backed loans if you are eligible. Under FHA guidelines and rules, as long as your most recent foreclosure or bankruptcy is at least two years old, you may be eligible to qualify for a new mortgage. The interest rates for an FHA loan after foreclosure may be significantly less than going through a private lender. A larger down payment will help here as well, as it can make you a better bet as a borrower if you put down more cash.
Discover Bank CD Rates
Current Discover Bank CD Rates
Updated As of February 16, 2010:
| Rate Chart | As of 02/16/10 | |
|---|---|---|
| Term | Interest Rate | APY** |
| 3 Months | 0.75% | 0.75% |
| 6 Months | 1.00% | 1.00% |
| 9 Months | 1.09% | 1.10% |
| 12 Months | 1.69% | 1.70% |
| 18 Months | 1.78% | 1.80% |
| 24 Months | 2.13% | 2.15% |
| 30 Months | 2.18% | 2.20% |
| 3 Years | 2.47% | 2.50% |
| 4 Years | 2.62% | 2.65% |
| 5 Years | 3.15% | 3.20% |
| 7 Years | 3.34% | 3.40% |
| 10 Years | 3.63% | 3.70% |
Discover Bank is much more well known for the Discover Card credit card, but the Discover Bank CD rates are attractive. Discover Bank offers certificates of deposit accounts with terms from 3 months to 10 years. Its bank CD rates are worthy of reviewing.
This review of the Discover Bank CD rates is aimed at helping you find the best certificate of deposit term length at Discover Bank. It will also explain some of the important things you need to know about the Discover Bank certificates of deposits.
Current Discover Bank CD Rates
As mentioned above, Discover Bank CDs come in terms as short as 3 month CDs to 10 year CDs. The current Discover Bank CD Rates are as follows:
As of: December 30, 2008
| Term | Interest Rate | APY1 |
|---|---|---|
| 3 months | 1.49% | 1.50% |
| 6 months | 1.99% | 2.00% |
| 9 months | 2.28% | 2.30% |
| 1 year | 2.72% | 2.75% |
| 1½ years | 2.72% | 2.75% |
| 2 years | 3.06% | 3.10% |
| 2½ years | 3.11% | 3.15% |
| 3 years | 3.40% | 3.45% |
| 4 years | 3.69% | 3.75% |
| 5 years | 3.93% | 4.00% |
| 7 years | 4.17% | 4.25% |
| 10 years | 4.17% | 4.25% |
Best CD Rates
If you are looking for the best CD rates being offered by Discover Bank, the 4.00% 5 year CD looks to be the most attractive rate. However, if you are looking for a shorter term CD, if I had to choose one of the above, I would choose the Discover Bank 2 year CD with 3.10 % APY CD interest rate.
Are Discover Bank Certificates of Deposits FDIC Insured?
Yes, Discover Bank CDs are FDIC insured up to the FDIC limits. I would never deposit money in any CDs that are not FDIC insured.
Discover Bank CD Minimum Deposit Requirements
Discover Bank CD Accounts require a minimum deposit of $2500 to purchase a certificate of deposit. I typically like banks that require less of a minimum deposit. You can find banks with $500 minimum deposit requirements.
I hope that you found this Discover Bank CD rates review to be helpful. If you have any questions about the Discover certificates of deposits or about Discover Bank generally, please leave them in the comments below.
Ally Bank Rates November 2009
Ally Bank has just released its November 2009 bank rates. We here are Online Banks Blog are always happy with the Ally Bank Rates and the Ally Bank Rates for November 6, 2009 are equally attractive.
Ally Bank CD Rates
3 Month – 1.10%
6 Month – 1.45%
9 Month – 1.50%
12 Month – 1.95%
18 Month – 1.94%
2 Year – 2.20%
3 Year – 2.55%
4 Year – 2.75%
5 Year – 3.10%
All of the Ally Bank CD rates are better than the nationwide average CD rates. If you are looking for a 5 year CD, the 3.10% is a really good CD rate.
Ally Bank No Penalty CD Rates
9 Month – 1.49%
Ally Bank Savings Rates
The Ally Bank savings rate for November 2009 is 1.55%. Ally continues to have one of the highest savings rates in the nation.
Because bank rates change frequently, always check out the current Ally Bank Online website to find its latest bank rates. If you want to visit the Ally Bank site, click that link.
Chase Bank Overdraft Protection
The Chase Bank overdraft protection program is undergoing a huge change. Overdraft protection has been both a curse and a boon for many Chase debit card users. While it is nice to not get turned down for a transaction because of insufficient funds in one account when you have money in another account at the same bank, these overdraft protections have come with a high fee. Now, Chase Bank is changing its Chase overdraft protection to be more consumer friendly.
Chase has announced two major changes to overdraft protection. The biggest change is the overdrafts in the amount of $5 or less will no longer be charged a fee. This is a great change. There is nothing more frustrating than overdraft on one purchase and then have a whole bunch of tiny purchases rack up overdraft fees.
The second change to that Chase Bank is making is that Chase debit card holders will not be automatically be opted in to the Chase overdraft protection. Instead, debit card holders will have to proactively sign up for overdraft protection. This will help to make sure that people will only be allowed to withdrawal more money from their Chase checking account if they want to. Otherwise, their purchase will be declined.
These changes to the Chase Bank overdraft policies are very interesting. There is a lot of scrutiny right now about banking practices. I think that Chase Online Banking is trying to get ahead of the coming regulatory curve. What do you think of these Chase Bank overdraft protection changes?
Best Visa Credit Card
The best Visa credit card for any particular consumer would depend on their individual spending habits and credit score. The higher the credit score of the individual wanting a credit line with a financial institution, the more options there are.
If you would like to skip the rest of this article and just find the best credit card offer, go to this page – Best Credit Card Offers . Definitely check out the Visa Black Card offer.
For applicants with a credit score above 720, the full spectrum of the best Visa credit card offers are open to them. If the balance is to be paid in full each and every month then the best Visa credit card offer would be a cash back reward program. This way the card holder can earn money as a reward for each purchase. But this is only beneficial if the balance is paid off each month and no interest is paid.
The best Visa credit card program for those applicants that wish to carry a revolving balance, then an account with a low interest rate is best. There are zero percent rates that for an introductory period. Unless the balance can be paid off within the time limit of the introductory time, this offer should be bypassed in favor for one with a long term low interest rate.
The best Visa credit card offer for those with bad or poor credit is a secured Visa credit card. This is a program is where the account holder has placed a deposit with the financial institution that has given them an account. This is not a line of credit but an opportunity to build a good credit history. With a good credit history, an account holder can upgrade their account from a secured credit card account to an unsecured Visa credit card with a bonus program.
The best Visa credit card program is dependent on not only the credit score of the applicant but the spending habits of the applicant.
Visa Credit Card Offers
US Bank Online Banking
U.S. Bank Online Banking also provides a free service that allows for payment of bills by either withdraws from your checking account or from your credit card. The payments are guaranteed to be on time and in full as long as you have the necessary funds. When paying bill this way, there is an electronic history that can be viewed at the customer’s convenience. There is also post dated bill paying so the money will only be withdrawn when you decide. A whole month’s of bills can be done at one time with payments scattered throughout the month.
For security, the U.S. Bank Online Banking system takes ever effort to prevent fraud. This service is provided with a risk free guarantee. If there is ever unauthorized online use of your account, your scheduled payments are guaranteed to be paid on time or U.S. Bank will cover any fees associated with late payments.
Accounts and security alerts can be accessed or sent to you immediately. Your primary email address is where security alerts will be automatically sent in the case of any security issue or changes involving any of your accounts. This is another of the free services associated with U.S. Bank Online Banking.
US Bank Online Banking is protected as a member of the FDIC so safety and security are assured.
Barclays Online Banking
Barclays online banking is a United Kingdom financial institution that has over 3.5 million registered users. Despite being a UK bank, Barclays online banking is making in roads as a United States bank.
Barclays Bank Security
With 3.5 million active accounts, security is of the upmost importance. For this reason Barclays online banking has installed software from the world’s leader in digital security, Gemalto. This security software was tailor made to not only strengthen online user authentication for this vast online banking system but the system as a whole.
The security of the Barclays Online Banking system is guaranteed 100% from online fraud. Some of the features of this security system include a secure 128 bit encrypted server, and the system itself logs customers off after an idle time of 10 minutes. There is also a special way to log in with drop lists of letters to guard against viruses and your access will be disabled if several log in attempts fail.
To assist with the security system at the server level, Barclays Online Banking also provides its customers with Kaspersky internet security suite software for their home computers. This is provided free of charge with an online account at Barclays Bank.
Barclays Online Banking Website
This online banking system provides Barclays customers with access to all of their accounts. Some of the service provides are online bill paying, money transfers and the ability to view transfer and bill payment history. Other online services are monthly statements, and the ability to apply for personal loans.
Barclays Online Banking has advanced to the level that anything a Barclays branch office can provide is now available online in a secure and safe manner.
Barclays Online Banking Customer Support
For those customers that need help with this vast system, there is a 24/7 helpline available.
Move into the future of banking today with the most advanced and secure network available with Barclays Online Banking.
Barclays Credit Cards
Barclays also offers credit cards. Check out this page to find the Best Credit Card Offers.
Business Credit Card Consolidation
One of the many reasons this can work is due to the fact that by reducing the number of bills. This will reduce your workload and give you more time to concentrate on the job of running your business. Another benefit is that with your debts consolidated under one loan, you will have more power to negotiate a lower interest rate and possible longer term. By doing this your monthly payments would be reduced freeing up more of a cash flow for your business to operate.
By free up your cash flow your business will not suffer either in inventory or daily expenses that are need to keep the business running properly.
By consolidating your debt and avoiding bankruptcy, your credit score and credit lines will remain intact. This will make it possible for future growth once the business debt is lowered to a more manageable level.
If you are unable to either negotiate a fair term for a consolidation loan, then a debt consolidation firm may be useful for you to utilize. These companies are experts at dealing with credit card companies and other financial institutions to help business out of debt. These debt consolidation firms’ sole purposes to it help you stay in business and manage your debt.
That does cost a little bit of money so the best option is for you to handle your business dept with a business credit card consolidation loan thru a company you already have an account with.
American Express Savings Account
An American Express savings account is a financially sound way to save money for your future with an established financial institution. American Express has been in business for decades with a great track record of being financial sound and known for having a solid business plan. But, just recently they started American Express Online Banking.
Customers have known for years that their money will be safe and secure with an American Express credit card. But, now you can save your money with American Express Bank.
An American Express savings account is easy to open and will give the customer the safety and security need to save without worries. The high yield of the savings account will give the consumer the return needed for their future needs. This account has no minimum and there are no hidden fees for online transfers.
The interest today is at 2.00%, but this is a variable rate and will adjust with the market. This is a savings account that offers more than most savings accounts with other financial institutions like allowing 6 withdraws per month without penalty. Withdraws are conducted electronically with an account that is linked to your American Express savings account.
Interest to your savings account is compounded daily and is credited to your account on a monthly basis.
Fees associated with this type of account include a $5 charge for duplicate statements, an $8 charge for a return on a deposit item. There is also a $15 charge for any outgoing wire transfer and a $25 charge for when there are insufficient funds in the account.
Customers will have 24/7 access to their accounts online. The American Express Bank Online Website is perfect for handling your online banking needs. This is after the account holder goes through the” set up online portion” on the American Express home web page.
If you are looking for safety and security while earning a high yield, you should check out an American Express Savings Account today. Check out the American Express website for the most current savings account rates.
