Eric Mitchell Real Estate

Building Credit Without Credit Cards A credit card is one of the main ways to build credit. By using a credit card wisely and not running up huge bills and paying them off in full on time, consumers can improve their credit score. A good credit score can make getting a home, car and other loans easier, and at better interest rates. Some people who have poor credit may have difficulty improving their credit score fast enough, and others may not even want a credit card. A credit card isn’t the only way to build credit. Here are some other ways: Get a small loan Apply for a small loan from your bank or credit union. If you’ve had an account in good standing for a few years, you should be able to get a small loan. Some banks may only offer secured loans, meaning you’ll have to come up with some collateral such as a car to qualify for the loan. However you get a bank loan, pay it back on time and your credit score should improve. Monitor student loan payments You shoul...

Understanding Car Title Loans, and Why You Should Avoid Them If you’ve seen advertisements by lenders saying “No credit, no problem,” then you may have heard of car title loans. And chances are, you could end up with a problem. Like their maligned brethren payday loans, car title loans prey on the poor and underbanked, offering loans of $1,000 or less with an annual percentage rate of 200 percent or more on the loan. A car title loan does just what the name implies — it uses your car as collateral if the loan isn’t paid, which means that a missing payment could lead to repossession. Worse yet, the loan can be rolled over monthly indefinitely as the borrower pays only interest each month. If you own your car outright, you can sign over the title to the lender and then get it back once your loan is repaid. Typically, up to 25 percent of the car’s value can be borrowed in a title loan. According to the Pew Charitable Trusts, the typical car title loan is $1,000. Payment is...

Growth vs. Value Investing: Know the Differences Your investing style and tolerance for risk can help determine what type of stock mutual funds you invest in. The two main types of funds — growth and value — have different characteristics that can match your investing style. Owning a mix of both funds is probably a smart move, but it can still be worthwhile to understand how each fund works. Here are some short explanations of growth vs. value funds: Characteristics Growth businesses are likely to reinvest profits, instead of paying out dividends to shareholders, as a way to grow. Growth stocks can be seen as expensive and overvalued. Growth stocks tend to be newer companies with products that are expected to be in high demand in the future. Value funds are stocks that are undervalued by the market, meaning their prices don’t reflect their fundamental worth. They can trade at a lower price when compared to their fundamentals. Value stocks can be undervalued for vari...

How to Negotiate a Clean Credit Report A late payment on a credit bill or other debt such as a mortgage can have a significant impact on your credit score. And the higher your credit score is to begin with, the more it can fall after a late payment. Paying your bills on time is the best way to avoid this. If you don’t make your payments and your account is turned over to a collections agency, you won’t be able to get that account current again. Late payments can stay on a credit report for seven years. Before it gets to that point, there are four ways to remove late payments from your credit report so that your score isn’t affected: Ask for a Goodwill Adjustment Creditors can remove a late payment as a “goodwill adjustment” if you write a forgiveness letter explaining why you were late and asking that they forgive it and adjust your credit report. You’ll likely be successful if you have a good payment history with the creditor and haven’t asked for an adjustment previou...

Money Matters for Millennial Parents As a young parent, you may just be learning about all the responsibilities parenthood requires. When it comes to financial planning, setting your sight on the future can help immensely. Demolish debt.  Slaying your own debt will positively impact your family’s financial future. While it may take years to pay off those student loans or credit card debt, creating a plan can help. Tackle your lowest balance first to gain momentum then take on the next smallest. Additionally, pay attention to higher interest rates that are costing you a lot of money. Build a budget.  Creating a budget doesn’t have to be hard. There are many budgeting apps available on the market to help you track your expenses, or you can try the trusty envelope system with monthly allowances for groceries, entertainment, utilities, etc. Build an emergency fund.  Setting a fund for potential emergencies will never backfire. Aim for a small, achievable goal as...