Category: Building Your Credit

How can a cosigner be removed from a student loan?

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Getting a cosigner on your student loans can make it possible for you to qualify for a lower interest rate than you would on your own.

But for your cosigner, the loan shows up on their credit report as if it’s their own, increasing their debt-to-income ratio and potentially making it difficult for them to get credit for themselves. What’s more, they’re equally responsible for paying back the loans, which can cause trouble if you’re struggling to keep up with payments.

Fortunately, it’s possible to release your cosigner from their obligations. Here’s what you need to know.

How to remove a cosigner from a student loan

You have two simple options if you’re looking to tweak your cosigned loans.

  1. Apply for a student loan cosigner release
  2. Refinance your student loans

1. Apply for a student loan cosigner release

Some private student loan companies offer a cosigner release program, that allows you to keep your loans and remove your cosigner.

The requirements to qualify for cosigner release can vary. But in general, you need to make a certain number of consecutive on-time payments, then undergo a credit history review. If you meet the lender’s criteria, your cosigner will be removed and you can continue making payments as the sole borrower.

The process for applying for co-signer release depends on the lender. Call your lender directly to understand the steps and how long the process takes.

Unfortunately, cosigner release programs can be difficult to qualify for. According to a 2015 report by the Consumer Financial Protection Bureau, 90% of borrowers who applied for co-signer release were rejected. That said, if you’ve worked on growing your income and improving your credit, you may have a good chance of removing your cosigner, relieving them of their obligation and the credit implications of being on your loans.

2. Refinance your student loans

If your lender doesn’t offer a cosigner release program or you haven’t met the payment requirements, consider refinancing your student loans instead. The credit requirements will likely be similar to a cosigner release program because, in both instances, the lender wants to ensure that you can qualify on your own.

If you can qualify for a student loan refinance at a lower rate than you’re currently paying, there are often no downsides to refinancing. You can use Credible to compare student loan refinancing rates from multiple private lenders at once without affecting your credit score.

With refinancing, though, you may be able to take advantage of some other benefits that you can’t get with a cosigner release. In addition to releasing your cosigner from their obligations, refinancing can also make it possible for you to get a lower interest rate than what you’re paying now. This is especially possible if market interest rates have dropped or your credit and income have improved significantly.

Refinancing can also give you a little more flexibility with your monthly payments. For example, if you can afford a higher monthly payment, you may choose a shorter repayment period and eliminate your debt early. Alternatively, if you need some room in your budget, you can request a longer repayment term, which makes your monthly payments more affordable.

See what your estimated monthly payments would be with a refinance using Credible, which allows you to compare rates from up to 10 student loan refinance companies.

However, refinancing isn’t for everyone. It can be difficult to get approved for favorable terms, especially if it hasn’t been long since you needed a cosigner for the original loans.

During the process, make sure you’re comparing apples to apples with fixed interest rates and variable interest rates. While variable rates start off lower, they can increase over time.If you’re considering refinancing your student loans, visit an online marketplace like Credible to compare lenders side by side. Simply share a little information about yourself and your student loans, and you’ll be able to view loan offers with just a soft credit check.

While you’re at it, use a student loan refinancing calculator to get an idea of different repayment options and how that impacts your monthly payments and total interest charges.

The bottom line

If you have a cosigner on your student loans, the faster you can release them from the debt, the better. Not only will it make it easier on them in terms of credit and financial obligations, but it can also relieve stress with the situation.

If you’re hoping to drop your cosigner from your loans, consider a cosigner release program or student loan refinancing. Both options have their benefits and drawbacks, though, so do your research to determine which path is the best for you.

And if you’re considering refinancing, make sure to compare student loan refinancing rates before you apply, so you can make sure you find the best deal for you.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.

Jump-Start Your Credit: Get Your Credit Reports

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Credit scores are designed to help lenders understand how likely they are to repay borrowed money. Credit-scoring companies apply a mathematical formula to data about how you’ve handled credit in the past — and that data comes from your credit reports.

You have a right to see your credit reports, and taking a look at them is a key part of working on your credit. It lets you verify that the information is accurate and timely, and also gives you an idea of how potential lenders or even employers might view you.

Here’s what to know about your credit reports and how to get them.

What’s a credit report?

A credit report is a record of your credit accounts and how you’ve paid them, plus information to establish your identity.

When you use credit, or simply apply for it, that information can go into files maintained by the three major credit-reporting agencies: Equifax, Experian and TransUnion. Lenders and credit card issuers can report to one, two, or all three credit bureaus. The bureaus collect that data, plus some identifying information and sometimes debt information from public records. It’s strictly factual information, with no interpretation.

Your reports typically vary a bit between credit bureaus, because reporting is voluntary, and not every creditor reports to every credit-reporting agency. If you have no experience with credit, you shouldn’t have a credit report. (If you do, it suggests identity theft.)

Your credit report information may be shared, with your permission, when you apply for credit, a job, a rental, or utilities. Lenders and credit card issuers typically check your credit to decide whether to approve your application and on what terms.

What’s the difference between a credit score and a credit report?

A credit report isn’t the same as a credit score, and reports don’t include your score.

Credit bureaus sell credit report access to credit-scoring companies, who run some of the data through proprietary formulas to produce credit scores.

So, a credit score is a number designed to help a lender or card issuer gauge the risk involved in lending to you, while a credit report contains the data used to calculate that number. And because credit bureaus don’t have exactly the same data, you’re likely to have slightly different scores depending on which set of data was used in the calculation.

You may have credit report access already

If you’ve checked your free credit score, you may also have access to a credit report. It will be an abbreviated version of your full credit report, and it will come from the same credit bureau as your free score. You can use that information to stay on top of your payment history, credit utilization, recent applications, and more, but it won’t be as detailed as your full credit report, which will likely go back further in time and include a list of who’s viewed your report.

If you’ve signed up for a free score from NerdWallet, you’ll find your credit report information under “Credit factors” at the bottom right of NerdWallet’s credit score page. You can see details about your credit accounts, current balances, and payment history.

A screenshot shows impact and notes about payment history, credit utilization, age and mix of account, balances and recent inquiries.

How to get all 3 free credit reports

The Fair and Accurate Credit Transactions Act gives consumers the right to see their credit report at no charge from each of the three major credit bureaus at least once a year. That information is available by using AnnualCreditReport.com. Credit bureaus are currently allowing weekly access through April because of the pandemic. Once you get a report, it’s smart to print it out or keep an electronic copy.

When requesting reports through that website, you’ll need to fill in your name, Social Security number, birth date, and address, including the four-digit suffix to your ZIP code. You’ll need to list your previous address if you’ve been at your current one less than two years.

After that, you’ll be asked questions to verify your identity. Each credit bureau has its own questions, so if you’re requesting all three credit reports, you’ll have three sets of questions. The questions can be hard, such as the county you lived in 30 years ago, which bank issued a card that was opened 10 years ago in a particular month, or the approximate amount of a car payment. Learning the basics of corporate taxes can help you land a job in private or public accounting. Become proficient in corporate tax preparation and filing to increase your job prospects.

If you have a previous credit report, you may want to refer to it to help answer questions. However, you may get a question that can’t be answered by referencing old reports, says Shaundra Turner Jones, director, corporate affairs and communications at TransUnion. “We understand some may find it frustrating to go through the authentication process, but it’s essential to protect the privacy of your information,” she says.

If you’re unable to correctly answer, you’ll be given instructions for how to request your credit report by mail and what documentation will be required. You may also be able to verify by phone.

You’re likely to see offers for additional information or services, often at a cost, but your credit report itself is free. Just decline those offers and the site will let you complete your requests at no charge.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.

U.S. Consumers Rack Up $11.9 Billion in Overdue Credit Card Debt

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After an increase of 11.5% in the fourth quarter of 2017, credit card debt is now up to $11.9 billion.

According to LendEDU, The improving economy hasn’t seemed to help U.S. consumers from posting the highest amount of overdue credit card debt in seven years. The level of debt for people who are behind on credit cards or who are lumped in a distressed category increased by 11.5 percent during the fourth quarter of 2017, up to $11.9 billion, Financial Times reported.

That’s Not the Only Troubling Figure

Mortgages appear to be giving U.S. consumers trouble as well as their credit card debt. The number of U.S. homeowners struggling with their mortgage payments increased by 5.2 percent during that quarter as well. The troubled or distressed mortgage holders held a collective $56.7 billion in debt.

But there is one silver lining – the amount of distressed industrial and commercial loans decreased by 8.5 percent during that quarter, down to $18.1 billion.

These numbers were recently released by the Federal Deposit Insurance Corporation. It underscores the concern some people are feeling that middle-class Americans are still suffering even as the economy improves. According to dedicated websites like doug constable, the credit card debt could be interpreted as a sign many Americans are using their credit cards to get by.

Credit cards are big business, but they aren’t the biggest piece of the pie for the banking sector. Credit cards comprise only 9 percent of the banking sector’s annual $17.4 trillion in business. But credit card debt made up 59 percent of all loans issuers considered uncollectable in that quarter.

Consumer Tips for Budgeting, Refinancing, and Paying Down Debt

Consumers who are struggling with their finances certainly aren’t alone, and they can improve their situation with hard work and some valuable tips.

First of all, everybody should take a hard look at their finances and come up with a budget that keeps them from spending more than they earn.

After the budget has been set, they should look at ways of either earning additional money or cutting back on expenses so they can send more money to their consumer debts, like credit cards or vehicle loans, and that’s why is better look for debt consolidation services to help with this, which you can find in sites like https://www.debtconsolidation.com online.

Knowing which loan to pay off first can set consumers up for success. They may want to tackle the payment with the highest interest rate, or they could opt for paying off the smallest balance first. They should use whichever method they find more motivating and easier to pursue. It’s especially important for borrowers to avoid taking on more credit card debt while they’re trying to pay off their other debts.

One way to handle out-of-control credit card payments may be to pursue refinancing. If consumers have home equity they can tap into, that might be a good way to go as long as they don’t overextend themselves and risk losing their home. Otherwise, they might consider applying for a personal loan if it has a lower interest rate than what their credit card carries.

According to recent reports from Credit Sesame, consumers can also try to work out a special payment plan with their credit card issuer, but they should be aware that it might have an impact on their credit scores.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


Avoid overspending this holiday season

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Overspending during the holiday shopping season can lead to financial hardship come January.

Financial planner Paul Oster says that he is in favor of using gift cards to shop for loved ones for the holidays.

“Once you pick a budget for the people you’re going to shop for, buy a gift card to use and once that gift card is done, you’re done shopping for that person or group,” he says.

Oster says that other ways to avoid overspending during the season include putting money aside in advance and using cash or debit cards. Studies show that consumer spend less than using cash than with credit cards.

He also suggests considering a gift exchange instead of buying a gift for everyone.

“If you’re shopping for a group that’s more than two or three people, I would suggest doing some sort of Secret Santa model. You don’t have to buy gifts for everyone in the group, because everyone feels the same way you do.”

Oster also says that “regifting” is OK as long as it is a nice gift and you don’t give it back to the person who gave it to you.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


Paying off holiday shopping debts

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With the holiday season over, many New Jersey residents are starting 2018 with more debt than they bargained for.

A survey finds that shoppers charged about 5 percent more this holiday season than previous years. More than half of those surveyed say that they will still be paying off the bills by the spring.

But consumer experts say that there are some ways to cut down the post-holiday financial troubles.

Certified financial planner Paul Oster says that consumers should come up with a debt consolidation plan to pay off their debts.

“You should focus on one credit card at a time, the one with the highest interest rate,” he says. “It’s called debt stacking. Mathematically proven.”

But what if you have a lot of credit cards, and just making the minimum payment is hard?

Experts recommend an approach called “pyramiding.” Consumers should pay off the card with the smallest balance first; this will free up some money, which can then bus used to pay off cards with a bigger balance. Consumers should keep doing this until all the debt is paid.

Oster cautions consumers against looking for a quick fix to pay off debts. He says that they should avoid using companies that offer to settle debt for less than is owed.

“You would actually have to let your cards go into default. They would settle with them for 4- to 50 cents on the dollar. But think about the effect that will have on your credit score.”

The average New Jersey family has more than $8,000 in credit card debt, according to the federal government. It would take 10 years to pay off that balance if only minimum payments are made.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


Plan Ahead, Pay Cash For Holiday Shopping, Expert Says

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NEW YORK (CBSNewYork) — Whether you’re doing your holiday shopping in stores or online, consumer experts stress caution.

For many Americans, those holiday deals add up to a mountain of debt come January.

“They don’t plan,” Eric Stuerken, a consumer credit expert and co-founder of Better Qualified, told CBS2’s Jessica Layton.

He said his office is always buzzing with clients after Christmas.

“One of the biggest mistakes is they don’t buy on cash. They’re going into their credit lines or their credit cards,” he said. “Thirty percent of our credit score is based on what we use. It’s called utilization. So if you’re using more than you’re used to and you max out your card near 100 percent, your score is going down 30 percent.”

Stuerken said in most cases, cash is king. It keeps people within their financial means.

What about those store credit cards that offer big percentages off when you open them? He says that depends on how good you are at paying off your purchases.

“In the end of the day, you’ll probably have an interest rate somewhere in the high 20s. And if you can’t pay it off and you’re making the minimum payment, that purchase you thought you were saving 50 percent on – it goes back to what you purchased and sometimes even more,” said Stuerken.

Beware of your personal shopping habits. Starting too early may mean you spend too much over the next month. Start too late, and you could splurge on something unnecessary.

Just as Santa Claus makes a list, you should write down exactly what you can afford and stick to it. You can also check out hot europe deals to ensure that you’re getting the best price on the market.

“The numbers sink in and you’re not waking up in January to a reaction where it’s, ‘Oh my god, I did this,’ and now the rest of your month is a panic mode of how you’re going to start to pay this stuff,” Stuerken said.

Bottom line: being generous does not mean over-spending.

Equifax hack: What to do now

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Hackers breach Equifax’s data putting personal information of millions at risk

According to the Better Qualified President Paul Oster, someone could be walking around right now, pretending to be you.

He says that everyone should be changing passwords and pins to their accounts after the reporting agency Equifax announced that 143 million people could be affected by a recent data breach in which hackers stole information, including addresses and social security numbers.

“What happened now is that that information is going to get sold on the black market and the people who buy that information are going to create false identities under your social security number,” says Oster. “So this is the time to change all your pins and passwords and change your information access to all your accounts at this point in time.”

Oster says people should not blame Equifax for the hack.

“No one can protect all of their data 100 percent. A lot of people are mad and say if they knew about this in May, July why are they telling us now? And that’s actually under the discretion and guidance of the federal law and enforcement agencies,” says Oster.

He says hackers are so sophisticated that they can disguise links as legitimate work emails, invoices, and documents.

“People think they get a link and they click on it and try to go back that it won’t affect them but the second you click on that, it’s over,” says Oster.

He recommends everyone checks their credit score, accounts and change their passwords and pins immediately.

Equifax also has a link on their website for consumers to determine if their personal information was impacted.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


Taking a trip you can’t afford? Join the club

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Taking a trip you can’t afford? Join the club

You may have earned a vacation this summer for all your hard work, but have you earned enough money to take one?
Family vacation, motorhome trip.

In a national survey from financial planning company LearnVest, 74 percent of respondents said they’ve gone into debt to pay for a vacation. On average, that debt topped $1,100.

While two-thirds of Americans said a week-long vacation would cost more than their monthly housing expenses, more than half have forgotten or failed to include a vacation as part of their annual budget.

Paul Oster, president of credit repair company Better Qualified in Eatontown, said folks who’ve spent beyond their means for a trip — or plan to do so this summer — should set up an “aggressive post-vacation payment plan” to avoid getting buried with fees and interest down the road.

“You should have a plan in place to pay off any of the expenses that you’ve incurred within a six-month period of time for sure,” Oster said. “One thousand dollars on a credit card can quickly become $1,200, $1,500, $1,700 and even $2,000.”

Oster said a repayment plan could mean cutting back on other, smaller expenses, such as the daily coffee run on the way to work, or buying lunch.

Read More at NJ1015.com: Read More

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


What’s The Deal With Credit Inquires

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As a certified FICO Pro, I get this question on a daily basis. There is so much confusion surrounding the topic of inquiries. It is very important that consumers understand how this process really affects your credit score.

What is an “inquiry”?

When you apply for credit, you authorize those lenders to ask or “inquire” for a copy of your credit report from a credit bureau. When you later check your Credit Report, you may notice that their credit inquiries are listed. You may also see the inquiries by businesses that you don’t know. But the only inquiries that count toward your FICO Scores are the ones that result from your applications for new credit.

How much will credit inquiries affect my score?

The impact from applying for credit will vary from person to person based on their unique credit histories. In general, credit inquiries have a small impact on one’s FICO Scores. For most people, one additional credit inquiry will take less than five points off their FICO Scores. For perspective, the full range for FICO Scores is 300-850. Inquiries can have a greater impact if you have few accounts or a short credit history.

Large numbers of inquiries also mean greater risk. Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries often can play a part in assessing risk, they play a minor part. Much more important factors for your scores are how timely you pay your bills and your overall debt burden as indicated on your credit report.

FICO Scores ignore inquiries made in the 30 days prior to scoring. So, if you find a loan within 30 days, the inquiries won’t affect your scores while you’re rate shopping. In addition, FICO Scores look on your credit report for rate-shopping inquiries older than 30 days. FICO Scores calculated from the newest versions of the scoring formula, this shopping period is any 45-day span.

Soft credit inquiry: When you look at your credit report, you may see inquiries from businesses with whom you didn’t apply for credit. While this may seem odd, it happens, for example, when creditors send you pre-approved credit card offers. To do these actions, they need to have a private investigator look at your report to determine your creditworthiness or as a background check for work. While they are listed on the version of the credit report that you (but not other businesses) can view, soft credit inquiries do not affect your credit score.

Hard credit inquiry: When businesses look at your credit report because of an application you made, these inquiries are known as hard, or voluntary, credit inquiries. These are the types of inquiries that can impact your credit score, and are the ones that potential creditors or lenders will see when they look at your credit report.

Inquiries are a core necessity in the lending world. The fact is that your it is worth your time and effort to shop around. The inquiry itself will have little or no effect on your credit score. Multiple inquiries can be explained to any lender, so the risk is nominal. The reality most scores drop because of missed payments, high revolving balances, and a lack of positive credit history.

About the author:

paulPaul Oster, FICO Pro is considered the “Nation’s Credit Repair Man”. A credit expert who has appeared on numerous network radio and TV shows (FOX BUSINESS NEWS, CBS, ABC, NBC, FOX, PIX11). He has also written for Kiplinger’s, WSJ, and the Daily News. Mr. Oster is the founder and President of Better Qualified, LLC. Paul has over 20 years of experience in both the insurance and banking industries and, has dedicated his life as a consumer advocate. Paul is also proud to serve on the Board of Directors for the American Red Cross. His humor and intelligence is highly sought-after from executives in the C-Suite of major corporations, Realtors, and banks.

Need Help?

If you still need help with controlling your debt and/or improving your credit, fill out the form below and get a free credit consultation from a credit expert at Better Qualified.


 

How police identify dealers who use the ‘darknet’ to buy, distribute drugs

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Did you know there’s a Craigslist-type of hidden network used to sell illegal substances?

If you think you know about the dangers lurking on the internet, you may think again after hearing about the ‘darknet.’

“It’s a series of numerous websites that were built kind of specifically for people to be able to browse anonymously,” cyber specialist Paul Oster of Better Qualified explained. “Anything that you want to buy is for sale on the darknet.”

According to Oster, the program’s anonymity makes it difficult for law enforcement to track criminals when they use it, forcing officials to rely on delivery companies to try and track the say of illicit products.

New Jersey police were able to track down 28-year-old Chukwuemeka “Emeka” Okparaeke from Kearny using this technique. Okparaeke was arrested earlier this week for allegedly obtaining large quantities of fentanyl on the darknet.

Fentanyl is one of the most powerful painkillers available.

“The alleged scheme combined one of the gravest current threats to public health—highly addictive and potentially lethal opioids—with a very modern criminal tool, the darknet,” the acting United States attorney of New York said in a statement

Oster says it is incredibly easy to get these illegal substances on the darknet.

“Whether it’s fentanyl, cocaine, any black market drug can be purchased through the darknet,” he said.