CREDIT » Credit Scores & Reports

For the first time since the financial crisis, people with a credit score below 680 are able to get their hands on new car loans again. Some are even obtaining loans for larger amounts than in previous years. While it’s great that individuals in need have access to reliable vehicles again, some concern has been expressed over the possibility of more loan defaults as a result of the increased leniency in borrowing standards.

Is it possible that loosening up too much result in more people taking on debt they can’t handle? Could giving people with lower credit scores access to a subprime loan cause more problems than it fixes?

Wouldn’t it be great if you could pay a couple of bucks to make your credit woes disappear? Well, there’s an entire industry out there that claims to do just that. In her video above, Erica Sandberg, contributor to Go Banking Rates, outlines why this may not be your best option. Here’s why:

This article was written by Odysseas Papadimitriou, CEO of CardHub.com, a website that helps consumers compare credit cards, store credit cards, and gift cards.

If you have bad credit, it might feel as if you’re out of options. Your credit score is so important (most lenders and even some employers use it as an evaluative factor) that having a low score could seem almost like an invisible jail cell, trapping you and preventing you from getting a new car, apartment or job.

Worrying about how finances need to be managed is a common beginning-of-the-year concern. Many people create their New Year’s resolutions with personal finance somewhere in the picture, which is actually a great idea. The only problem is if money was their enemy in the past, the idea of making new financial decisions can feel overwhelming.

A great way to overcome this feeling is by creating a love affair with finances. By thinking about the great benefits that money provides and how paying bills can make life easier–not more difficult–along with what it is doing for you instead of to you, you could very well fall in love with your finances.

Struggling with bad credit can be daunting and frustrating. The negative impact on your financial future can overwhelm even the most optimistic of people. Don’t lose hope; there are legal ways to get back on track and improve your credit score. Read on for some helpful information.

Are There Laws Related to Credit?

Those in the market for a new home will receive an addition to their mortgage loan applications starting Jan. 1, when lenders begin including information regarding how individual credit scores might affect mortgage interest rate quotes and terms.

This is good news for individuals looking to purchase a new home, as they will not only have a chance to compare rates and price mortgage loans, but will also have an opportunity to make changes to their credit before agreeing to a mortgage.

By Casey Bond

This is the fourth installment of our financial myth-busting series. Today, we will be targeting typical misconceptions about credit. Be sure to check out the rest of the series.

We’ve watched the quick rise and fall of the Kardashian Kard, a prepaid credit card that was promoted by the Kardashian sisters, only to be pulled from the market after a few short weeks. So why was this card considered  to be predatory, and even when dealing with legitimate credit products, is it ever a good idea to allow type of card–or even a standard credit card–to be used by children? If so, how young is too young?

Why the Kardashian Kard Was Considered Predatory

This post comes from Michael, chief editor of DoughRoller.net, which helps consumers find the best online banks available today.

Don’t worry, we’re not pitching a scam. This article isn’t about creating a new credit card from scratch, just designing a cooler credit card than one you have in your wallet right now!

The term “sub-prime” refers to borrowers who do not qualify for the lowest, or “prime” rate of interest on a loan. Therefore, sub-prime mortgages are a class of loans offered at a higher rate of interest to borrowers who are unable to qualify for lower-interest home loans from conventional sources.

The reasons why a home buyer would be unable to qualify for a conventional loan vary, but generally, it is because lending to the borrower is viewed as a risk due to a poor credit rating or an inability to prove income. For example, someone with a credit rating below 620, a spotty work history and/or a lack of tangible assets would be considered a risk and would most likely be unable to qualify for a prime rate loan through a traditional lender therefore, need a sub-prime mortgage.