Credit Report

The Wall Street Journal has a good piece by IP and Hilsenrath, How Credit Got So Easy
And Why It’s Tightening
.  I’d focus a bit more on real factors rather than the Fed but they hit all the right points.

The Economist says it’s A Good Time for a Squeeze but wisely they do not neglect to mention that being a credit snob is still a bad thing (yes, yours truly gets a nod.)


Dante is closer to the accurate presentation of the issue, but 7th circle? A bit harsh.

One thing that I would like to see explained is why lenders would ever load to people they don't have confidence will be able to pay them back in the first place.

Lenders can lend to people who can’t afford to repay the loan and pay for the necessities of life if they guarantee they will be paid first. That’s what payday lenders do. Somebody had posted a scenario where an unemployed person was get a loan to keep the utilities going and would pay it back with the new job he was just starting. This what payday lenders don’t do because you need to two pay stubs. I stopped by one and read the rules.

The center for responsible lending makes a number of recommendations for emergency loans

- A minimum loan term of 90 days to enable borrowers to
recover from financial emergencies;
– Repayment in installments (with no prepayment penalty) to
enable borrowers to get back on their feet incrementally;
– Full consideration of borrowers’ ability to repay the loan;
– No use of personal check (or electronic equivalent) as loan
collateral to stop punitive civil collection actions and
accumulation of bounced-check fees, and to remove fear of
criminal prosecution;
– Meaningful limits on rollovers, extensions, and back-to-back
transactions to stop loan flipping; and
– No mandatory arbitration clause.

The first three are definitely present in the South Africa example. I think it is almost certain that the fourth and fifth conditions were also meet.

Desiring regulation to protect poor people from predatory lending doesn’t make a person a credit snob who doesn’t think they can’t handle debt.

There are a few items I call "credit report killers" that your clients should be aware of that can adversly affect their credit report and credit scores.

There really isn't too much room here to explain in detail but I have actually made a video about the top 10 credit report killers. This video was made form the .pdf version which I wrote.

In this video I answer the most common questions I get about information that appears on credit reports.

Specifically I cover information on Charge-offs, Collection Accounts, Judgments, Inquiries, Bankruptcies, Delinquencies,and more...

In the video Your clients will learn what each of these items are and how they can affect their credit report, as well as how long each item can remain on your credit report.

The video is very informative and is solid content for your readers and clients.

The Video is Free to Watch Here

The .pdf version you can download here Free

Credit Expert Frank Bruno

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