More Than a Score

If you are looking for a new credit card, maybe to use for a balance transfer or to simply spread the cost of a large purchase, then it’s worth bearing in mind that lenders look at other factors alongside your credit score. So, even if you consider yourself to have a good credit rating, you may find that your application is refused.

For example, many lenders will look at your spending habits alongside your financial history and they can get this information by examining the ways in which you have utilized credit in the past. So if you currently have a balance on your credit card but you do not still use that card for new purchases then this can potentially work against your application. This is bad news for those wishing to transfer a balance to another card with a better interest rate.

Spending habits can also affect you if you are looking to take out a new card to spread the cost of an expensive item, particularly if you are already in possession of one or more credit cards. For example, you may currently possess a card that has a zero balance but you have not been using it because of it’s high interest rate and so you are looking for a card with a lower rate of interest. This seems like a perfectly reasonable way to manage your finances but it can work against you in two ways. Lenders may look at your spending habits and refuse you on the grounds that you do not regularly utilize your available credit lines, else they may refuse you on the grounds that you already have a reasonable amount of credit available to you.

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Taking Out a Secured Home Loan

padlockDo you own your home? If you do, you could be accepted for a secured home loan.

Got bad credit? That’s ok, most lenders will still over a loan for up to 85% of your home value for up to 35 years!

That sounds like good news, right? Well, what if the lender forced you to sell your home in order to recoup their money?

A homeowner loan means that the loan is secured against your home. So there is barely any risk for the lender, and you take on all the risk. Even if you don’t pay, the lender knows it can get their money back by taking control of the house and selling it. While it’s not an ideal situation for them, it’s better than giving unsecured loans which they would have little defense against if you stopped paying and filed bankruptcy.

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If You Have Kids You May Qualify for These Four Tax Breaks

Young boy at pier viewfinder

By H&R Block’s Leigh Mutert, CPA and hrblock.com Community Manager

These child tax credits and deductions can mean a tax refund for you!

There are many money-saving tax credits and deductions that can reduce the tax burden on families with children. The Child Tax Credit, Child Care Credit and the Earned Income Credit can all mean tax savings for families with one or more children. Remember, a tax credit is a dollar-for-dollar reduction of the taxes you owe.

 

 

Child Tax Credit

The maximum Child Tax Credit is $1,000 each qualifying child under 17. Because this is a partially refundable tax credit, even taxpayers who do not owe taxes are eligible if they have earned at least $3,000 in 2010. If you have four children, the credit can cut your tax bill up to $4,000.

Income Requirements: When income exceeds $110,000 (married filing jointly), $55,000 (married filing sep.) and $75,000 (all others) the child tax credit begins to phase out. If parents are divorced or separated, the parent who claims the child as a dependent is eligible to claim the child tax credit. This is true even if the parent’s filing status is married filing separately. The Child Tax Credit Table can help you determine if you are eligible for the full credit amount of $1,000.

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