The California Reinvestment Coalition released the results from a survey of 38 mortgage counseling agencies, finding that foreclosure was again the most common outcome during the month of December.
Despite recent seemingly positive reports from groups like Hope Now, the CRC claims that “servicers are simply not helping California borrowers to avoid foreclosure to any significant degree.”
The survey respondents noted that more could be done to help borrowers stay in their homes, but a lack of mortgage lender responsiveness complicated matters, and when they did respond, only short-term modifications would be offered.
Of the 38 groups surveyed, 26 said that foreclosures are a very common outcome for their clients, up from 19 four months ago when the previous survey took place.
And a combined 34 groups, or 94% of those reporting, said that foreclosures were a “very common” or “somewhat common” outcome for borrowers.
At the same time, only 6 counseling agencies, or 17% of groups reporting, said that loan modifications are a “very common” outcome for borrowers, while 14 groups, or 44% of those reporting, said that loan modifications are “not common.”
Short sales were the second most common outcome, with 88 percent of the groups combined saying they were “very common” or “somewhat common”.
Carrington, HomeEq, and GMAC received the worst marks, with most finding them unresponsive and/or willing to work with at-risk borrowers.
Washington Mutual and HomeEq were found to be the most difficult to work with, followed by GMAC, and then Countrywide and Wells Fargo.
Here are some assorted comments from housing counselors that were included in the report:
“World Savings will not modify loan if the clients have been late within the past 12 months. WAMU continues to heavily market their OPTION ARM, which is not designed for first time home buyers. Countrywide is not willing to modify any of their rates in my experience.”
“1. They do not return calls; 2. Take 30-60 days to give us a written answer; 3. Require their own authorization to release information forms; 4. Take too long to assign cases; 5. Keep changing officers when cases are assigned; 6. They give wrong information regarding the loan; 7. Always have to refax and explain the situation to different people; 8. Customer Service sends us to the wrong department; 9. They hang up; and 10. Never willing to work any details—they always have new personnel.”
The CRC also noted that most of the loan modifications carried out are simply repayment plans, which they feel will just delay the inevitable.
The coalition’s recommendations include streamlined, long-term loan modifications, foreclosure sales to nonprofit groups, bankruptcy reform, and strong anti-predatory lending legislation to ensure the same events don’t recur.
Identity thieves are almost always opportunistic—but the crimes they commit feel very personal. Unauthorized credit card charges, bogus loan applications, missing money, and other financial violations make fraud a major nightmare. To keep fraud in check, you need to know how to check your credit report for identity theft, and how to deal with problems when they arise.
In this post, we’ll talk about the warning signs of identity theft—and then we’ll show you how to stamp out fraud before it starts.
Warning Signs of Identity Theft
How Do I Check My Credit for Identity Theft?
To avoid falling victim to identity theft, examine your credit report regularly. You can access a free copy of your credit report from all three bureaus—Equifax, Experian, and TransUnion—once a year. (Through April 2022, you can get free weekly copies of your reports.) You can also use a tool like Credit.com’s Credit Report Card or ExtraCredit to monitor your credit.
When you download your credit report with ExtraCredit, you’ll see a list of positive accounts, late accounts, collections, public records, inquiries and account balances. Your credit report contains a lot of information about you and about your financial habits, and if that information changes unexpectedly, it can indicate identity theft. Here are five of the biggest fraud warning signs to watch out for.
Warning Sign 1: Incorrect Personal Information
Sometimes, incorrect personal information is the result of an innocent mistake. Other times, it means something sinister is going on. If you see your name misspelled, a wrong phone number or address, or an incorrect Social Security number on your credit report, investigate immediately.
I just watched a documentary on the dark web, and I will never feel safe using my credit card again!
Luckily I don’t have to worry about that. I have ExtraCredit, so I get $1,000,000 ID protection and dark web scans.
I need that peace of mind in my life. What else do you get with ExtraCredit?
It’s basically everything my credit needs. I get 28 FICO® scores, rent and utility reporting, cash rewards and even a discount to one of the leaders in credit repair.
It’s settled; I’m getting ExtraCredit tonight. Totally unrelated, but any suggestions for my new fear of sharks? I watched that documentary too.
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Warning Sign 2: Lender Inquiries You Don’t Recognize
Credit bureaus keep the details of companies who ask for information about you on record for at least two years. Promotional inquiries and account review inquiries are nothing to worry about, because they’re preapproved credit offer inquiries or inquiries by companies you already do business with.
Hard enquiries from companies you don’t recognize are a different matter. Sometimes, fraudsters make a lot of credit card and personal loan applications in a short period of time, so if you see a recent list of unknown inquiries, someone might be trying to steal your identity.
Tip:Sometimes, the name of a financial institution doesn’t precisely match the name of the company checking your credit. Car dealerships, for example, sometimes run a series of credit checks via different finance companies—so it’s worth double checking before filing a fraud complaint.
Warning Sign 3: Accounts You Never Opened
Only your own accounts—including accounts that you’ve cosigned and for which you’re an authorized user—should appear on your credit report. If you find an unknown account on your credit report, one of two things has happened:
Your credit information has been commingled with someone else’s information by mistake
Your credit has been compromised by a fraudster
If you find an unknown account on your credit report, contact the relevant lender right away and tell them what’s going on.
Warning Sign 4: You Credit Utilization Goes Up
If you suddenly owe more than before and you haven’t changed your spending habits, someone else might be splurging on your behalf. Check your credit card statement very carefully and flag any suspicious transactions straight away. Most credit card companies have a maximum 120-day limit for chargebacks, so it’s important to review purchases regularly.
Warning Sign 5: Your Score Goes Up or Down Unexpectedly
Credit scores change over time. When negative information falls off your credit report after a certain period of time, your score increases. On the other hand, if you apply for too many loans or credit cards in a short space of time, your credit score could take a hit. If your credit score changes dramatically—especially if it’s for the worse—dig deeper.
Warning Sign 6: Public Records You Don’t Recognize
Negative public records can substantially impact your creditworthiness. Bankruptcies, for instance, often remain on record for up to a decade. If you see public records you don’t recognize, alert the issuing agency without delay.
Tip:Liens and civil court judgments used to appear on credit reports, but credit bureaus no longer collect information about those types of public records. Bankruptcies are now the only public records included on credit reports.
Can Someone Steal Your Identity with Your Credit Report?
Your credit report contains a lot of personal information, so it’s a goldmine for identity thieves. With a copy of your report in hand, a potential fraudster might be able to see:
Full name
Birth date
Social Security number
Current and past home addresses
Phone number
Accounts held in your name
Payment records
Public records, including bankruptcies
Many other valuable personal and financial details
Credit report content sometimes varies according to the credit bureau.
If thieves need more information after accessing your credit report, they often choose to misrepresent themselves to get it. Phishing and smishing scams are when criminals pretend to be legitimate financial institutions—or government agencies like the IRS—to get personal information from victims via email or text.
What Is the Safest Way to Check My Credit Report?
You can check your credit report quickly and easily with Credit.com’s ExtraCredit monitoring service. ExtraCredit includes five helpful tools, which help you monitor, build, earn, protect, and restore your credit profile. Two tools in particular can help you avoid or combat identity fraud: Track It and Guard It.
Track It
With ExtraCredit’s Track It tool, you get access to all three credit bureau reports. You can also monitor 28 FICO® scores—the real scores lenders see when they consider auto loan, credit card, and mortgage applications. Track It also includes a helpful credit monitoring tool, which gets updated every month. If something suspicious happens, you’ll notice right away.
Guard It
Many hackers sell consumer information on the dark web. Nefarious individuals use software, specific net configurations, or special authorizations to access the dark web. Thankfully, ExtraCredit’s Guard It tool actively monitors the dark web for consumer information and sends out security alerts when data breaches happen. You also get a $1 million ID insurance policy when you sign up with ExtraCredit.
Get Identity Theft Protection
Identity theft is a big problem in the United States. There were 650,572 cases of identity theft in America in 2019—and over 270,000 of those cases involved credit card fraud. If you see an unknown address or notice an unknown credit card on your credit report, flag it up right away. Tools like ExtraCredit from Credit.com make it easier to monitor your report on a monthly basis, so you can rest more easily.
Congratulations! You’re officially an adult. Turning 18 opens a world of possibilities and freedom, but it also comes with additional responsibilities. One important responsibility to start thinking about is building your credit profile.
Credit can be a critical resource. A good credit score helps you get approved for loans and credit cards. It also helps reduce the expense associated with your debts, as you’re more likely to get approved for lower interest rates if your credit is better.
Your credit score and history can also help—or hinder—you when you’re applying for certain types of employment, a new apartment, utilities, or auto insurance. Find out more about credit and how to build credit at 18 in the guide below.
How to Start Building Credit at 18
1. Learn How Credit Works 2. Monitor Your Credit Score and Reports 3. Sign Up for ExtraCredit 4. Become an Authorized User 5. Get a Secured Credit Card 6. Apply for a Credit Builder Loan 7. Understand How Student Loans Can Help Your Credit 8. Don’t Try to Overdo It 9. Make a Budget and Stick to It
1. Learn How Credit Works
You know that knowledge is power, and understanding how to get credit and how it all works can make a big difference. Here are a few basics.
Your Credit Score
There are multiple scoring models, but they all work to provide a numerical score that tells lenders how likely you are to pay back your debts. Higher credit scores are more attractive to lenders and creditors. Five main factors influence your score:
Your Credit Report
Your credit reports are maintained by three major credit bureaus—Experian, TransUnion, and Equifax. They contain data on your current and past debts, payment history, residential history, and other information about your credit history. This data is supplied by lenders, creditors, and businesses where you have accounts. The information on these reports is fed into the credit scoring models to determine your credit score.
Here’s where it starts getting complex. The information on those reports isn’t always the same. Some businesses and lenders only report to one or two of the credit bureaus. Some don’t report to any.
So, your credit report can be a little different with each of the bureaus. That means your credit score can also vary depending on which report and scoring model is being used.
2. Monitor Your Credit Score and Reports
Once you understand some basics about credit, you should take a look at your own credit reports. Monitoring your credit is one of the best ways to learn what will positively or negatively impact your scores. It also helps you catch inaccuracies or signs of identity theft sooner. Is there an account on your report that’s not yours? It could be bringing your score down even before you learn how to start building credit! If you find inaccurate negative information on your credit report, you can challenge it.
There are a few ways to check your credit reports.
AnnualCreditReport: You can request one report per year from each of the three bureaus at AnnualCreditReport.com. The bureaus are allowing you to request your reports weekly due to the effects of coronavirus through April 2022.
Credit Report Card: You can also get information about your credit reports via the free Credit Report Card at Credit.com. This is a breakdown of how you’re doing with each of the five major factors that impact your credit score. Your personal Credit Report Card can help you understand where you might need to work to positively impact your credit.
ExtraCredit: If you’re really serious about understanding your credit reports and scores, sign up for ExtraCredit. The Track It feature lets you see 28 of your FICO® scores and credit reports from all three credit bureaus. These scores are ones that lenders look at when making approval decisions.
ExtraCredit does more than just show you your credit scores. Have you recently started paying rent or utilities? The Build It feature lets you add them as tradelines with the TransUnion and Equifax credit bureaus. That means you’ll get credit for bills you’re already paying—building your credit profile each month that you pay those bills.
This is important, because rent and utility payments don’t usually show up on credit reports. That’s simply because utility companies and landlords don’t tend to bother to report them. ExtraCredit helps you ensure you’re getting credit for those on-time payments anyway.
4. Become an Authorized User
If a friend or family member has a credit card and is an account holder in good standing—meaning they pay their bills on time—ask if they’ll add you as an authorized user. Make sure that their credit card company reports to the credit bureaus for authorized users first or this is a pointless exercise.
You don’t even need a card or to use their account. If the credit card company reports on authorized users, you’ll get their on-time payments posted to your credit reports if your friend or family member makes them.
If you’re looking for how to start building credit at 18, this can be a quick method. However, it does come with some potential risk. If that person doesn’t pay on time or runs up their credit card balance, your credit score could suffer from the negative reports too.
5. Get a Starter Credit Card
For those who want to know how to start credit building without someone else, a secured credit card might be a good place to start. Some credit card companies also offer unsecured credit cards for those with no credit. These tend to have low credit limits and may have high interest rates.
If you can’t find an unsecured credit card, though, a secured card is much easier to get in general. You have to secure it with a deposit—typically in the amount of the credit limit. For example, if you put down a $250 security deposit, your initial credit limit is $250.
You build credit by using the card and paying the bill on time each month. Make sure you opt for a credit card that reports to all three of the bureaus to maximize the benefits to your credit history. Usually after a certain number of timely payments, you get your security deposit back and may even be eligible for an increase in credit limit.
Two options you might consider are the OpenSky Secured Visa and UNITY Visa Secured card.
OpenSky® Secured Visa® Credit Card
No credit check to apply and find out instantly if you are approved
OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years
Get considered for a credit line increase after 6 months, with no additional deposit required
You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months
Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card. Easy application, apply in less than 5 minutes right from your mobile device
View your FICO® Score through your OpenSky account, an easy way to stay on top of your credit
Nearly half of OpenSky cardholders who make on-time payments improve their FICO score 30+ points in the first 3 months
Your refundable* deposit, as low as $200, becomes your OpenSky Visa credit limit
Offer flexible payment due dates which allow you to choose any available due date that fits your payment schedule
*View the cardholder agreement
UNITY® Visa Secured Credit Card – The Comeback Card™
Unlike your Prepaid Card, UNITY Visa secured card can help you build your credit. Apply online in less than 5 minutes, and you could be approved today!
No Minimum Credit Score required; low fixed interest rate of 17.99%; Fully refundable FDIC security deposit* required at time of application; if you have a min of $250 to deposit immediately, you can start now!
No application fee or penalty rate
Monthly reporting to all 3 major credit bureaus
24/7 online access to your account
*See the Cardholder Agreement for more details.
6. Apply for a Credit Builder Loan
Remember that credit mix is important to your credit score. That means you can’t just have one type of credit—such as a credit card—for maximum impact. You may also want an installment loan on your account.
A credit builder loan is one way to get an installment account on your credit history. These work like a traditional loan in reverse: if you’re approved, your funds get placed in a secured certificate of deposit and are given to you after you’ve paid off the loan.
>> Read our Review of Self Credit Builder Accounts
As you pay the loan as agreed, you’ll enjoy the benefit of positive payment history building on your credit report. Once you pay off the loan, the savings account is unlocked and you gain access to the money.
7. Understand How Student Loans Can Help Your Credit
If you have a student loan in your name, you may already have an installment loan on your credit history. This is true whether your parents acted as guarantors or cosigners or not, but it’s not true if your parent simply took the loan out for you. In that case, the lender would only report on your parent’s credit history.
As with any type of debt, student loans can help you start building credit if you pay them on time. So make sure you keep up with your loan status. If you use options such as deferment—especially during COVID-19—keep an eye on your credit report. Make sure your lender doesn’t report you as paying late when you’re within an agreed-upon deferment period.
8. Don’t Try to Overdo It
Building credit is a marathon, not a 100-yard dash. While some actions can positively impact your credit quickly, as a young person you’re unlikely to have a super robust credit history in just a few months.
Take your time and don’t try to engage in every credit-building tactic at once. You certainly don’t want to max out your debt in an effort to build credit. That could leave you unable to make your payments, which tanks your credit score before you have time to really build it.
9. Make a Budget and Stick to It
Finally, make a budget and stick to it. Spend what you can afford, and don’t take on debts you can’t pay fairly easily. You have years to continue building your credit, and a history of smart decisions and timely payments is one of the best things for your score long-term.
Start Building Credit Now
Building your credit at 18 is possible. It just takes time, commitment to making smart money decisions and an understanding of how credit works.
Vehicles are expensive. For many people, a car or truck is the biggest purchase they’ll ever make other than a home. And monthly car payments reflect that fact.
As the price of cars rises, those monthly payments are getting higher. In fact, around 15% of people who financed a new car — and 5% of people who financed a used car — in the latter part of 2022 are paying $1,000 or more per month on those loans. So, it’s no surprise some individuals are struggling to make their car loan payments every month.
Whether you ended up with a larger payment than you planned or a drop in income is making your vehicle loan hard to keep up with, you aren’t alone. And you do have options. Find out how you can shed the responsibility of a car payment by using the tips below to transfer the car loan to another person.
In This Piece
Can Someone Take Over My Car Payments?
It’s unlikely that someone can simply step in and take over your car payments as the new owner of a vehicle. In most cases, car loans aren’t transferable. That means you can’t simply sign the loan over to someone else and call it done.
In theory, you could let someone drive your car and make the payments. However, the car—and the responsibility for it—still belongs to you. You might need to keep insurance on it, and if the person doesn’t pay the loan payments as you agreed, the fallout happens on your credit report, not theirs. In potentially rare cases, your car loan might be transferable. Check your loan contract to find out if this is the case.
How to Transfer a Car Loan to Another Person
What happens in those cases where a car loan is transferable? If you want to pass your car and loan along to someone else, you must do so by working through your lender. The potential new loan holder must fill out an application with your lender and meet criteria before you sign your title over.
The steps to transfer a car loan to another person will vary slightly depending on the lender. However, you can expect a process similar to the one described below.
Determine whether your loan contract allows for the loan to be assumed by or transferred to someone else. Start with your contract, but you can also call your lender to find out.
Get next steps from your lender for the process, if it’s allowed. Ask about fees associated with a car loan transfer, and make sure you know exactly what the assumption criteria are for new loan holders.
Have the new loan holder follow the required steps to apply for a car loan with the lender. If the individual desires to take over the payments with similar rates and terms, they’ll need to meet the required creditworthiness for the loan.
After the new loan holder is approved, the title can be modified. Your lender may help with this process, or you may need to go to your state’s Department of Motor Vehicles to have the title transferred. Be sure to transfer the title as soon as possible to avoid the potential for future liability.
Don’t forget that the new loan holder will need to show proof of auto insurance.
How Does Transferring a Car Loan Affect Credit Scores?
When you transfer your car loan, you technically close that account. It gets reported to the credit bureaus as a closed account, which can impact your credit. Specifically, it changes both your credit mix and credit age—both factors in how your credit score is calculated. Because of this, you might see a temporary drop in your credit score when closing an account.
The impact can be even more serious if you fall behind on your car payments before you transfer the loan. Payment history is the biggest factor in your credit score. So, falling behind by a month or more on your auto loan can cause a substantial drop in your score.
Other Options Instead of Transferring a Car Loan
Transferring a car loan can be difficult and isn’t always possible. Whether you want to keep your vehicle or simply need a more practical way out of the loan, there are other options.
Refinancing
In some situations, it’s the loan and not the car that’s unaffordable. For example, say you originally applied for the car loan when you only had fair credit. Now you have good credit and might qualify for better rates and terms, which could lower your monthly payment.
Another way to shed the financial burden associated with your car or truck is to sell it. If you can sell the vehicle for more than you owe on it, you might even end up with some extra cash in your pocket.
Voluntary Repossession
If you fail to make your vehicle loan payments long enough, the bank will repossess the car. That means it takes the vehicle and sells it to try to recoup its losses. Before you get to this point, though, you have a series of late payments tanking your credit.
In cases where you know you’re unable to catch up on payments, you might talk to your lender proactively. You can voluntarily surrender the vehicle to avoid the unpleasant forced repossession process. However, this still shows up on your credit report as a serious negative mark. And if the lender can’t sell the vehicle for what you owe, you might have to pay the difference.
Refinance With a Cosigner
Another way to keep your car while also making the loan payments more affordable is to refinance the loan with a cosigner. If the cosigner has good or excellent credit, you might get a lower interest rate and/or longer terms—both of which can reduce your monthly payment.
Can a Cosigner Take Over a Car Loan?
If you don’t pay the loan as agreed, the lender looks to the cosigner to make good on the loan. However, the cosigner can’t just decide they want to be the primary borrower, take over the loan and take ownership of the car. They’d still have to go through proper processes with the lender to refinance or transfer the loan, and you’d need to be involved.
Bottom Line
You generally can’t slide your auto loan booklet over to a friend and assume the matter is handled. However, if you can’t pay your monthly car payment, you may have some options. Research those options and speak to your lender as soon as possible to avoid potential financial hardship.
Saving for a rainy day can be a tall order, especially if you have recently experienced a financial setback. Taking even small steps can help you work toward the larger goal of building up your emergency savings.
When you think âcredit score,â you probably think âFICO.â The Fair Isaac Corporation introduced its FICO scoring system in 1989, and it has since become one of the best-known and most-used credit scoring models in the United States. But it isn’t the only model on the market. Another popular option is called VantageScore, the product… Read More
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The following is a guest post from The Savvy Couple. As much as we donât like to admit it, money is a very important tool that can be used to better our lives. So why donât we take better care of managing it? Luckily, there are some savvy money moves that you can make this… Read More
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Between Santa shenanigans, special foods, long-distance travel and treats, holiday spending adds up quicklyâand so does holiday debt. In 2019, shoppers in the US spent 3.4% more than they did in 2018. Unsurprisingly, they also ended up owing 8% moreâroughly $1,325 per adult in 2019 versus just over $1,000 per adult in 2018. Unfortunately, holiday… Read More
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