The Definition of the Perfect Reverse Mortgage Customer

By Kablamn Vanrock

As a mortgage professional working only with reverse mortgage customers, I am constantly contacted with a myriad of different scenarios. Some are true potential customers, some should think of other options.

I don't paint a blue sky picture for each of these potential customers. They are owed truthful advice. And to some I advise to go elsewhere.

If I were going to place a ranking on how good the reverse mortgage is for customers I'd say it would be bad, okay, good, and great. People fit into all ranking. Let's talk about great.

One of the most important things I like to cover are really two things: Closing costs and length of the mortgage. I want to know the lenght of time the client expects to live in the home.

Most important in my mind is to help my customer understand that their will be a fairly high cost to get the mortgage. My efforts are to ascertain the customers needs relative to cost.

Of all responses i prefer them to say something about being carried out in a box. From a reverse mortgage perspective, from the customer's viewpoint, this is best as the cost to money gets less and less as the lengh of the mortgage extends.

If you ever apply for a reverse mortgage the lender will furnish you with a disclosure detailing how much the loan costs you over time.

It will show various years down the line. You'll notice the further away you get from the day you close the cheaper it is.

One other trait of the perfect reverse mortgage client would be one with a static income unable to pay current bills or medical. Additionally, it appears this income can't increase from family or some other source.

The fixed income customer actually makes up most reverse mortgages.

I'd say the final attribute of the perfect candidate is that of not having a vital interest in leaving a large inheritance to the kids. This group is thinking about the rest of their own lives rather than the rest of their kids lives.

The very nature of a revese mortgage doesn't work very well with those who must leave inheritance to the kids. The mear thought of interest accumulating and eating away at the kids inheritance makes them very standoffish.

So, we want 3 vital traits to come up with a perfect candidate: 1. Staying until death 2. Fixed income which doesn't cover their needs 3. The desire to use the equity of the home on their lives rather than their kid's lives.

About the Author:

Texas reverse mortgage facts can be found at this website convering many questions. Additionally, tons of good stuff covering the texas reverse mortgage can be had by following this link.

Reverse Mortgage Money Now Accessed for Investments

By Diogie Vanrock

It's no secret that the stock market is down some 30% over the last 12 months. With so many seniors with money in the market I'm starting to get a bunch of calls from a subset of this group.

They are looking to get a reverse mortgage. Of course the planets have to match up to their particular situation for me to entertain this with them.

When evaluating whether a reverse mortgage is the proper financial tool for any individual or couple I look at how long the borrower plans on staying in the home. This is important as the cost to obtain the mortgage are costly for short term reverse mortgages.

The longer one holds a reverse mortgage, or in a practical sense, stays in the home the cheaper the mortgage becomes on an annualized basis.

What some of these folks are wanting is to use proceeds to invest either back in the market or into other investments outside the market.

One of the teasers the reverse mortgage has for these folks right now is very low interest rates on the adjustable rate option.

As of this week the ARM is just under four percent. In the short run this makes this loan pretty nice. In the longer run it's average is in the six percent range.

In my dealings with people, although I do not have fiduciary responsibility, I have to point out that they best be getting a better return on whatever else they are getting involved in than the average.

One important item in the discussion is how rates, although quite low, will go back up to meet the averages. The current rate is a tease.

Many in the marketplace are taking the position that rates will be low for some time with so much pressure to keep them low.

The powers that really want to keep rates low are the major companies. The want to be able to borrow at low interest rates. Do they shape policy? Of course.

We'll have to see. My concern for some of these people is that some of these folks are not taking into consideration to true cost of getting this money to make their investments.

Whichever investment the borrowers choose should have very good returns to not only beat the interest rate on the money, but the cost of getting the reverse mortgage in the first place.

About the Author:

Get twenty California reverse mortgage Q&A's the majority of seniors want to know right here. And this.... Get a guide emailed to you about the California reverse mortgage including five big pitfalls revealed.

Considering Credit Counseling?

By Rob Kosberg

If you considered repairing your credit yourself, but decided that this was not for you, a credit counseling agency may be your choice. Sometimes you may be feeling so guilty and emotional about your debt and poor money management that you have to get help from someone else.

When you explore outside agencies, you will immediately notice that there is a plethora of credit repair companies promising you the moon and the stars. Sure, credit repair in 24 hours sounds great, but you can be sure that it's not going to happen. This kind of claim can be easily dismissed. Also, the internet will offer to have several agencies contact you. They will (in 5 months) and/ or they will make some possibly nasty phone calls to you. Avoid these offers.

This third party choice will require some sleuthing on your part before you can comfortably make a selection. Comparison shopping skills are in order for this venture. Before you make your choice you need to ask some questions.

For example, if you contact an agency simply for initial information about their services and costs, and they ask for your information before they will provide answers to your questions. If you are not given the answer to your request for information, stay away from such an agency.

Any agency that you contact should be more than willing to explain how they operate, the services they provide, cost structure, any other available help without knowing any of your personal information.

Once you locate agencies that provide you the initial information, you are going to want more questions answered. You will need to hear the effect this process will have on your credit report, the debt management services offered, possible money management workshops or seminars. You must know how the agencies will keep you apprised of their activities.

One of the most important pieces of information you will need to know is about any FEES CHARGED by the agency. Some may require large sums of money upfront along with large monthly fees. How could this work for you if you already can't pay your debts. Make sure you can handle any fees charged even if the agency says it is not for profit.

Your reward for doing all this preliminary searching will be that you will locate an appropriate credit counseling agency to match your needs.

About the Author:

With never before seen challenges in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.

Why Is It Essential To Have A Good Credit Score?

By Graham Webb

A healthy credit score is principal in our financially driven order. This count tells creditors, employers and business organizations that a individual is dependable and pays their accounts on time. This type of data is in use in all walks of life. Most individuals don't recognize that Receiving a good credit history can aid them with employment opportunities, applications for credit cards, buying a new house or even a new automobile.

If you wish to buy a new home or automobile, then your credit history must be in healthy standing. To be able to buy luxury items like holidays on your charge card, you must first fix any credit problems you may have if you desire, long-term fiscal freedom. You can pick up this data without too much trouble and the good news is, it's free.

Each individual can find out exactly what their credit scoring is when they locate free business organizations on the web. There are businesses that will provide people with their credit score for free on an annual basis. After a few simple questions that the person would surly know off the top of their head, they can view their credit marking and any outstanding debts they may have. If an person sees that they have horrible credit or the credit marking will not allow them what they desire, there are various methods to remedy this situation.

One of the first things an person can do to increase their credit score is to clear any old bills. Even if this was for 10 years ago, it will assist in credit individual's credit scoring immensely. Once the bills are entirely wiped clean, an individual can begin obtaining a no credit or bad credit Master Card or Visa. This will be helpful for a individual to begin acquiring a fabulous credit grade and be able to purchase their dream home or vehicle. This can help a individual to increase their credit mark, which will enable them to purchase a new car or their dream house. Paying off any old debts will aid a individual increase their credit grade and assist them to buy luxury items on the credit.

It doesn't take too long to damage your credit rating, but it can take a number of years to get your credit grading back. Begin by purchasing one or two items on the new card and then paying it off instantly. Once you have shown your credit card business that you can pay off the balance rapidly, they will increase the amounts you can spend and at the same time step-up your credit rating.

Every individual runs into hard times in their life. Paying your bills for a couple of months may be a problem. All Of A Sudden your credit history starts to fall, this is when many people have problems with debt. You your credit mark once again and there are many methods to do this. Just because you have found a few problems in your life it doesn't mean that you will never be able to purchase items on credit.

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personal credit checks is important and for more information on credit scoring.

Finding right Houston Home Builders

By J. Kim

When we are looking to find a good contractor to complete some work on our homes we need to take certain things into consideration. It doesn't matter if you live in Houston or another US city there are always going to be plenty of contractors to choose from to hire. However, choosing the one that is right can be difficult and below we offer a few tips that will make finding good Houston Home Builders much easier for you.

1. You should never select the Houston home builder who comes in with the cheapest price. If you do then the standard of work that they produce may not be as high as you would expect. In fact it is far better to go through there quotations with the others and make a decision on which one offers the highest level of work for the most reasonable cost.

2. If you are going to have any major work carried out on your home then always arrange to get more than one quote, in fact it is better to get 3 or 4. Doing this you can compare each one carefully and make a more informed decision as to who offers value for money. Also only use quotes from Houston home builders who will arrange to visit your home to inspect the work.

3. Spend time looking into each home builders background before making the final decision as to which one you employ. Contact the licensing board for contractors in the state where you live. This way you will discover if there are any complaints outstanding against the holder of the license. Plus also contact the Better Business Bureau (BBB) to discover if they have any complaints against any of the contractors on file.

4. It is crucial that when you arrange to have contractors visit your home to inspect potential work that you interview them thoroughly. Find out what type of insurance they have to protect their employees and you. Ask them to provide you with not just their policy number but the contact details of the insurance company who provides their insurance cover. By doing this you can verify everything beforehand and so make sure that you will not be liable to for any injuries that occur whilst the project is running. Also you need to make sure that they have a general liability policy as well.

About the Author:

To find the best Houston Home Builders, please review Houston Home, and Houston Home Builders

Finding Personal Loans When You Have Bad Credit

By Trinity Hall

People that have bad credit often have a lot of difficulty getting approved for loans. Going into a bank can often be an embarrassing experience for such individuals. If you have a low credit score, you may not be able to get a loan and even if you do, you can expect to pay interest that's much higher than a person with good credit would have to pay.

Lenders have slowly started to accept the fact that for many people, their credit scores are the result of mishaps that happened as many as six years ago. There are instances where people have flawless credit histories for over a five year period, and have low credit scores because of issues from many years ago.

Now that banks are starting to loan more to individuals that have bad credit, it has made life a lot easier. There are now bad credit loans available for cars, homes, recreational vehicles, businesses, and for a lot of other things. It has never been easier for people with bad credit to get loans.

If you have some kind of collateral, you will have the easiest time getting bad credit personal loans. Collateral such as a car or a home can help lower the bank's risk. An asset can be retaken by the bank if you fail to repay your loan.

If you have bad credit, getting an unsecured personal loan probably won't be possible. Banks especially won't be willing to offer this type of a loan because of excessive risk. The only bad credit loans that are offered to bad credit people are payday loans.

The bottom line here is that if you have bad credit, you should take a look at assets you have that can be used as collateral. If you don't have assets that can be used, you should go through the process of finding a cosigner.

About the Author:

Dave educates helps people on how to use guaranteed personal loans. Information about personal loans with bad credit can be found on his company's site.

What Does It Mean to Be a Private Money Lender?

By Tomasheus Privetsky

In fact, a lot of people can potentially become very successful investors in real estate, but very few people actually try. Most do not try to get rich this way because they think they can't; they don't have the money to invest in properties and they believe they cannot get financing by going to a bank for a loan. However, there is a better and easier way for you to finance your properties if you want to become a real estate investor. You do this through what are called private money lenders.

What Are Private Money Lenders?

A private money lender is an individual who has extra money to lend and who wants to make a pretty decent profit off of that money. This is the most flexible way to finance properties for real estate investors. As a real estate investor, you get to borrow money from a single individual, who isn't affiliated with any institution. Instead, they're just like you and me; therefore, the process can be much less impersonal and formal. While banks and lending institutions have rules and regulations that have to be followed when lending out money, private money lenders do not have the same restrictions.

Finance Your Properties Through a Private Money Lender: a Better Way

As previously mentioned, unlike banks and other traditional lending institutions, private money lenders are not bound by strict rules and regulations imposed by a board of directors or harsh credit standards imposed by Fannie Mae and Freddie Mac. Instead, private money lenders have the option to choose who they want to invest in, regardless of an investors financial statements or credit ratings.

Benefits of Using a Private Money Lender

As an investor, you can appeal and make your case to a private money lender, explain to them why they should invest in your property, and allow them to come to their own conclusion. But the benefits of a private money loan do not end there. If the lender is interested in your offer, the two of you can then work out a financing and repayment arrangement that benefits both parties. You and the lender can both state your expectations and agree on an interest rate and payment schedule that makes both of you happy.

A private money loan is a short-term loan and therefore, the private money lender may be willing to wait until after you have refurbished and sold the house to receive any payments. This lets you focus on fixing and selling the property instead of having to worry about paying for a property that hasn't actually made you any money yet.

The Downside of Traditional Hard Money Loans

While private money loans can be of benefit to both the borrower and lender, bank loans usually only benefit the lender. That's because the banks get to set the standards and are the ones who set the interest-rate and other fees as necessary. You also can't negotiate payment arrangements or other adjustments with them. That means that even if your credit history is perfect, and even if you're pretty sure you can get financing from a traditional lender, going through a private money lender will likely still be of greater benefit to you.

Summarizing the Benefits of Working with a Private Money Lender

Private Lender can lend freely and does not have to abide by tough rules and restrictions. Allows real estate investors with problematic personal credit histories to secure financing for their properties.

Opens the lines of communication between lender and borrower. Borrower can negotiate an interest rate or flat fee that is almost guaranteed to save money over a traditional loan.

Both the borrower and private money lender can negotiate payment arrangements that will benefit both of them. The lender may even be willing to forgo payments until the borrower has sold the property.

In general, you don't need any financial application to borrow money from a private money lender. Instead, you can talk directly with the lender to try and convince him to take a chance on you and on the property in question.

The private money lender has the opportunity to see the borrower as an individual with goals instead of simply seeing the paper application that does or does not pass rigid, predetermined guidelines.

All of the above benefits mean that private money loans are often the most flexible and beneficial funding options for those who wish to invest in real estate. As a real estate investor, working with a private money lender gives you a number of options to work with and also opens the door to the opportunity of investing in real estate when it might otherwise not be available to you in the event you would have to go through a traditional lender to obtain your financing.

About the Author:

There is more to getting money for real estate than filling out a bank loan application. Financing your bargain real estate deals though a Private Money Lender is easier than ever.

Want To Know What Penny Stocks To Buy? Look Inside....

By Sam Lockwood

Since the 19th century, penny stocks have been part of the American investment world. This is where the stocks got their names, since modern penny stocks almost never cost a penny. They're usually more like ten cents to five dollars. Now, let's look at the risks of working with penny stocks, then the opportunities they can provide.

Penny stocks are share offerings to investors made by companies either too new or too small to be listed in major stock exchange listings. There's a big potential for growth for relatively small investments initially, but pump and dump schemes are a real risk in this area. Just like anything else that has to do with the OTC (over-the-counter) market, buyers should remember to beware.

Buying penny stocks reasonably means that you need to get the company's business model independently appraised. Just like when you buy shares of any other company that's being publicly traded, you must understand the company business model, what the company does or makes, who their competition is, and what they have to offer.

One of the things that makes penny stocks so appealing is the fact that most of the businesses offering them are extremely simple. One typical kind of penny stock is a mining company that profits only when the price of the material it extracts goes above a certain level. There are also some oil exploration stocks that are valued in the same way.

Penny stocks are rated as a high risk vehicle by the Securities and Exchange commission. Some of the risks you'll encounter when dealing with these stocks include incomplete and indirect financial reporting, limited liquidity and even complete fraud. People who are playing with a day trading strategy will find that sudden demands for penny stock creates enormous volatility. Penny stocks are hard to short sell for this reason.

The financial reporting guidelines on penny stocks are actually pretty loose. Unlike the national exchanges, not much is required of companies that list this way - in fact, sometimes these stocks will just de list for a few days! In the investment type called Pink Sheets, penny stocks have nearly no regulatory requirements at all, including few to no minimum accounting standards or reporting guidelines.

Because these stocks aren't standardized and don't have an generally accepted requirements for accounting, they can be extremely vulnerable to being manipulated or even just plain fraud. People posing as independent observers can encourage people to run up the price, then they sell and de list the stock. This is the classic pump and dump scam.

Now, that doesn't mean you should be scared off of these stocks entirely. There are lots of real, legitimate start up companies, and they have to get going somewhere. Anyone who can pick a winner will get a handsome reward.

If you have the ability to spot companies that have promise, your payout will be huge. Even if you lose on most of your stock picks, the single winner will be such a big gain that you'll forget about the ones that didn't work.

About the Author:

For more penny stocks tips have a look at our website - it's there for people who want to make money! Click Here for a proven penny stock system that delivers phenomenal results!

Understanding Credit Score Ratings

By William Blake

It is important to improve or protect your credit scores. To do this you have to have some knowledge of where this number comes from. It is a complex system that is used to determine a persons credit scores. But it is helpful to try to understand it.

How Credit Scores are Composed

Many factors go into to composing your credit score. Credit companies review your entire financial history, looking at what debts you have had and your record of payment. They look at the amount of debt you have. Having a lot of debt will bring your credit scores down. They also look at how much credit history you actually have. If you are just beginning to build your credit you will have a lower score until they have more information to evaluate.

Other Factors That Affect Your Score

Credit companies also want to see how much credit you are applying for. If you have filled out a number of credit card applications this will reflect poorly on your credit report. Also having a lot of outstanding debt with large balances and/or high rates of interests will bring your credit scores down.

Do You Have an Excellent Credit Score?

Any score that is 700 or above is considered a great score. If you have a score with 700 or above, you will have no problem getting credit at a great interest rate. A score of 650 and below defiantly has room for improvement. A score between 650 and 450 needs to be worked on. You will probably have a harder time getting a loan or any type credit without securing it. This means that any loan that you apply for will need to have some kind of collateral in place to secure it. If you have a score of 450 or below, then you desperately need to get some help with your credit. It is likely that you will not get any type of credit or loan unless you receive some form of counseling to improve your score.

Get the Help You Need

Credit counseling is readily available free of charge to any who desire to better their credit scores. They educate you on what you need to do to have a better credit rating and make wise decisions so as to keep your credit rating high. This will be a big help to you in putting yourself in a better financial situation and maintaining it.

About the Author:

Can cancelling a credit card help you get your debt paid off faster? Get the inside scoop on the Debtopedia website at http://www.debtopedia.com where you'll get your free copy of my report Secrets Of Credit Card Debt

Selling Indianapolis Home

By Ok Kim

A large number of people tend to decide to sell their homes in the spring as they feel this is the best time. Normally they do this because they feel that they are able to show their home off better. However, whether you are selling an Indianapolis home or a home in any other place in the US there are other factors which can influence when is the best time to sell.

In this article we look at a few of the factors which can help you to sell your home more quickly and at the best price possible.

1. If you can the best time to put your home on the real estate market to sell is when there are very few properties of a similar style and size to yours. Not only does this put you in a stronger position when it comes to the negotiations, but many buyers are willing to make sacrifices if they see a home they like at a price they can afford.

2. If you are considering selling your home when the real estate market is strong (lots of properties on offer) carry out some research before you actually get it listed. Look to see just what price houses of a similar style to yours have recently sold for. Also spend time looking for Indianapolis homes that have been taken off the market because the sale is pending.

If you know the ratio of pending sales to properties that are still available you will be able to see how fast the market is moving. The lower the number of pending sales to properties that have recently been listed means the market is slow and it may be worth your while holding off putting yours on the market.

3. Weather can be a big influence when you decide to put your Indianapolis home up for sale. A lot of people choose spring to put their home up for sale as the weather tends to be far better. But have you ever considered putting it on the market later in the year. There are a number of incentives for both you as the seller and the buyer which can increase the chances of your home selling at this time. If you are able to complete the sale of your home by the 31st December then there are certain deductions which you can make to your income tax return the following year.

About the Author:

If you want to sell your Indianapolis Home quickly, please review Indianapolis Home, and Indianapolis Home

Orchard Bank Credit Cards

By Daniel Moskel

The Orchard Bank credit card is issued by HSBC Bank. This is a sub prime credit card.

They have a unique application process. They will match your credit score with one of four cards they offer.

These cards include three unsecured cards and one secured card. Your score depends upon what card is offered to you. However you have a very high likely hood of being approved for a new line of credit.

If you have made many mistakes then you will likely be issued the secured card. With this card you must secure it by making a deposit between $200 and $15,000, your credit limit will be equivalent to your deposit.

This card will work just like an unsecured card, meaning you will have monthly payments. Your APR will be between 8.9% and 14.9%. This is lower than most bad credit cards that carry an APR of roughly 19%.

If you have limited damage to your credit score then you will be approved for an unsecured card. If you want to have the secured card instead you can still be issued that card.

The unsecured cards have an APR between 8.9% and 18.9%. One of the unsecured cards will carry a $19 account set up fee and you will have to pay a low annual fee.

However the fees with the Orchard Bank cards are dramatically less than any other available bad credit cards. In addition they offer considerably lower APR's too.

All of these cards will report to the three major credit bureaus. With responsible use of your card you can build a positive payment history on your credit report.

This is an important factor when your score is being calculated. It makes up approximately 30% of your score.

In addition these cards will improve your ratio of available credit to debt. This factor weighs roughly 30% of your credit score. It is how the bureaus judge if you can financially handle another credit line.

It has been learned that once a negative item on your credit report ages four years it has much less impact on your score. We do still suggest removing negative items from your report, in addition to opening a new line of credit.

In sum no matter what your credit history is; bankruptcy, judgments, charge offs, collections you can be approved for an Orchard Bank credit card. This card can be used to repair your credit score by creating a positive payment history and improving your ratio of available credit to debt.

About the Author:

For more about the Orchard Bank Credit Card or for a review of the Tribute MasterCard another unsecured credit card visit us.

Retirement Planning - A Career Worth Considering

By Michael Geoffrey

As baby boomers begin to reach retirement age many are not thinking about swapping the office desk for a rocking chair and are looking for a change of pace once they hit retirement age. Many are being welcomed into retirement planning careers to put the skills they learned throughout their working life to use to benefit younger workers. With more companies offering 401K retirement plans in addition to other retirement benefits many workers are lost when it comes to how best insure they have enough money to live on after retirement.

You do not have to be a financial wiz or even have experience as a financial advisor to have a career in financial planning. Companies are looking for people with valuable skills in accounting, communication and other fields. These skills can't be built upon and with a bit of training a person can become very skilled creating financial plans for individuals and companies.

A career in retirement planning means working along with businesses to establish a plan for their employees and helping their employees benefit from the retirement plan provided.

retirement planning careers include planning with employers of the types of retirement services available and how to make the plan meet the best interests of their employees. While planners meet directly with companies about the plans, those in marketing and sales work with other in the business to provide sales support for potential customers.

Learning New Trends In Financial Services

In addition to setting up and maintaining plans, financial consultant services handle the disbursing of retirement funds and possible loans that may be option under certain retirement plans. The financial world is ever changing and that includes types of retirement investment plans. A financial consultant will keep the company informed as changes and new plans become available and help companies decide how they should respond to these changes.

The skills that a person has obtained through working for many years can be put to good use by retirement planning companies. In every aspect of the services they provide they benefit from the knowledge of those who have experience in different areas. For this reason there continue to be more opportunities made available for people getting close to retirement who would like to start a new career in financial planning.

So if you are nearing the age of retirement but are not quite ready to leave the working world a career in financial planning may be worth considering. The opportunities are out there and you may find this new career very fulfilling.

About the Author:

Before you decide to cut up credit cards to help you get out of debt, you'd better understand how it can affect your credit. Find out what you'd better know first on the Debt Smackdown website at http://www.debtsmackdown.com

Madison Wisconsin Home

By Won Kim

When you are trying to find the ideal Madison Wisconsin home to buy it becomes difficult if you don't know exactly what you want from yours. You may have an idea of what you want, but you need to make a decision on those things that are necessary and those which are not, and this is when the selection process becomes a little more difficult.

If you have a family then the first thing you should be doing is sitting down with them and discussing what you all want from your new home. It is at this stage you should be defining what it is you want and what it is you need from the new home you intend to buy.

If you are unsure then this can be what turns you away from the one property that really could have been your ideal home. Below we offer a few tips to help you when trying to find the Madison Wisconsin home of your dreams.

Tip 1 - Make a sensible list of the things that you will need in your new home. So if you need 3 bedrooms and 2 bathrooms then put this at the top of your list. Plus if you have children and what to be in close proximity to the schools then make sure that this included in your list of essential needs.

By being able to identify what you really need from your new Madison Wisconsin home then you can better convey this to your realtor. This will enable them to quickly identify properties that they feel are suitable and eliminate those that aren't. Once you have listed the essential requirements then you are able to move on to those which aren't.

Actually finding a home that meets all your needs and wants will not be that easy. In fact you will often find that there are plenty of others who are looking for what you want in the same price bracket as you. Certainly the smarter home owners have made vital changes to their homes in order that they are more able to meet their buyer's requirements.

Tip 2 - If you can before you start looking for your ideal Madison Wisconsin home it is a good idea to get the funding in place first. This way you won't find yourself being pipped at the post and lose out on the house of your dreams as you weren't able to get the funding in place quick enough. If you have your mortgage pre-approved then the whole process of finding and buying your dream home becomes much easier.

About the Author:

Best tips on buying a Madison Wisconsin Home, please check out Wisconsin Home, and Madison Wisconsin Home

Advanta Credit Card Scam

By John Monderine

I sit at my desk completely frustrated with Advanta. I opened up a business credit card with them 3 years ago and made a purchase of $6500 to help build my business credit for Rapid Recovery Solution, my Collection Agency. I have paid more then the minimum every month, on time. Three months ago I noticed that my interest rate seemed a little high. No where on my statement did it say the actual interest rate so I called the company. After 10 min or so I get a live rep on the line and they tell me it is 36.1%. Are they kidding, this must be a mistake. I have over a 750 score and never missed a payment. They said they sent me a notice in Aug that they are doing this due to a change in there lending methods. It turns out this is the second time this year they did this. I went from 8.99% in Jan 08 to 18.99 in Feb 08 to 36.1% in Aug 08.

Now, being in the industry for over 10 years I know that I need to watch my credit. I look for charges I didn't make and it is tough to scam me. I have seen it all but this takes the cake. They told me I am now at a high risk for default so that is why they raised my interest rate? That doesn't make any sense. They should lower my rate if they think I will default on my credit card. How will an increase in what you are charging me keep me from defaulting. Luckily, I have the ability to pay off this card today but I want everyone to realize that these companies have you by the short-n-curly's. Watch your statements and lookout for this scam.

FYI, In NY, the maximum interest rate is 30%. They are charging me more then the maximum allowed in my state. I will send a letter to the BBB, the NY Attorney General, the UT Attorney General and the Department of Consumer Affairs.

As a nation we are in deep trouble. If a credit card company can just raise my rate because they feel like it I am positive that 99% of their customers are also paying 36.1%. How many other credit card companies are doing this to innocent people? We need to fight back. I am going to tell as many people as I can.

Unfortunately, there is nothing we can do except payoff the card. I was told I am a high credit risk. I paid the bill in full after I realized the rate was so high and the next month I received another bill for more finance charges for about $255. I paid that bill in full. I just received another bill in the mail for $5.65 and my rate was changed to 37.99%. Another point higher.

Just for cookies and giggles I called again to see why the rate went up again and they said "Sir, you have been classified as a very high credit risk and as a company we can't risk you not paying your bill with us." I said "I just paid my bill in full with your company, I have never had a late payment with your company in three years, I have one mortgage on my house for $290K, 25 years left at a fixed rate of 5.375% and it is worth over $500k and almost zero credit card debt personally. I am in the fastest growing industry right now, CNBC expects the debt collection industry to grow at 25% a year for the next decade. What else would I have to do to receive a better rate?" The extremely rude lady said "Sir, you would need to send a letter to Santa Clause and maybe he can help you out."

The Government should put a maximum rate in place for the next year or so on all credit card debt. If the credit card companies are truly worried about consumers defaulting on their obligations, wouldn't it make more sense to lower the rate so we can continue to make the payments? By raising the rate, it only makes it harder to pay and more likely that a consumer will default. The credit card companies are preying on the weak right now hoping you don't pay so they can pound you with the highest interest rate. When you do default, they now have a higher balance to sell to a collection agency. In my eyes, this is a crime.

The Government doesn't care either. Instead of giving the banks 350 billion dollars, They could have sent $1151.98 to each US citizen to pay towards credit card debt. The banks still get the money but we the people get a little break on our bill. The average family of four would receive $4607.92 to pay off a credit card. They reason that the banks need the money so they can lend money again to us? Are they crazy? All the banks did was raise the interest rates on our cards and pocket the money without ever having to say what the money went towards. No accountability!

Now the geniuses in Washington are considering giving billions to the auto industry so they can produce more shit cars that we can't afford. How about giving the money to everybody with a current auto loan so we can pay for the car we already have. The money would still flow to the banks and auto makers via we the people.

Good luck America, your gonna need a miracle.

I feel better now. I was very upset prior to writing this blog. I hope everybody reading this realizes that if it can happen to me it can happen to anybody.

John Monderine Rapid Recovery Solution, Inc.

About the Author:

John Monderine is the President of Rapid Recovery Solution, Inc. a Debt Collection Agency. If you need help getting your Bad Debt collected go to his Collection Agency website for a free quote.