Grey Sky Enterprises LLC "On Air": What's Your Credit Score‪?‬ Grey Sky Enterprises LLC : What's your credit score?

Want to skip credit scores? Then get comfortable using cash.
Kalen Omo, of Omo Financial Coaching, gave us a slightly rosier idea of living without credit:

“I believe people today can absolutely live without a credit score. If mom and grandma could do it, why can’t I? As long as cold hard cash is the primary mode of payment for goods and services, you can live without a credit score.”

Omo went on to offer some common issues you might run into when living without credit and how you could handle them:

“Buying a home: The best way to buy a home without a credit score is either through a process called manual underwriting, the way mom and grandma used to get mortgages, or the one hundred percent down plan (aka buy a house in cash).

“Buying a car: If you’re wanting to buy a car, the best way to do exactly that without a credit score is saving up your money over time and buying it with cash. Also, because you are a cash buyer, you are also in a better negotiating position with the dealership, as you have walkaway power, and are not held to a car loan or its interest rate.

“Renting a car: The best option is to do your research and find a rental car company that takes a debit card instead of a credit card. You may need to have a deposit put on your checking account, but as long as you bring the car back in the shape you left it in, you’ll get that back.”

So to sum it up, your life is going to look a lot like a cash-only venue.

But if you do want to fix it
As we said above, life will be easier with good credit. Even Shvartsman, who was doing really well with no credit history, eventually hit a point where he needed a decent credit score. But how can you go from no credit to good credit?

One of the most reliable ways is to get a secured credit card. That’s a credit card that requires a cash collateral but is much easier to qualify for. Then you just have to use about one-third of your credit limit each month and pay your bill in full and on time.

Source: https://www.opploans.com/oppu/articles/bad-credit-is-one-thing-can-you-make-it-life-with-no-credit/


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A good credit score gives you access to premium credit cards, better loan products and more favorable interest rates.

But if you have a bad credit score — somewhere in the FICO range of 300 to 579 or VantageScore range of 300 to 600 — you’ll miss out on these deals and often pay much higher in interest on credit cards, loans and mortgages.

A bad credit score can make life difficult in a number of ways, and it can even delay retirement by costing you more money over time. But improving your credit score is about much more than luck, and it’s only possible if you understand just how much your credit score impacts your life.

Since banks like Citi, Bank of America and Discover have rigorous standards for determining who qualifies for lending, you might not qualify for traditional loans or credit cards when you have a bad credit score.

“The practical effect of having a poor credit score is that your access to mainstream funding is limited or nonexistent,” Ulzheimer tells CNBC Select.

But before you seek lending from less-than reputable sources like payday loans, pawn shops and title loan companies, Ulzheimer stresses the importance of reading the fine print.

Payday loans, for example, are an easy way to get fast cash if you’re in a bind, but they come with disclosures stating that the APR can be as high as 400% to 700%. These should be avoided if at all possible, explains Ulzheimer.

“If you’ve got a choice between a $10,000 personal loan from Wells Fargo or a loan from ‘Joe’s title loan,’ reading the disclosures and agreements will make it very obvious that the mainstream lender will give you a better deal — that’s just mathematics,” he says.



2. You pay more for your loan

Not only will a good credit score help you bank with more reputable institutions, but it also gives you the best interest rates on loans.

According to Ulzheimer, consumers get the best deals on APR for auto loans with a score of 720 or higher, and for mortgages, 750 or higher.

Let’s say you’re applying for a mortgage with a FICO score of 620. For a $300,000 house, you might pay about 4.8% in interest with the current rates, whereas a buyer with a score between 760 and 850 would borrow at roughly 3.2% APR.

A 1.6% difference sounds small, but in this case your lower credit score would increase your mortgage payment by about $275 per month — costing you $99,000 over a 30-year term.



Article : https://www.cnbc.com/select/side-effects-of-bad-credit/

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A payday loan is a type of short-term borrowing where a lender will extend high-interest credit based on your income. Its principal is typically a portion of your next paycheck. Payday loans charge high interest rates for short-term immediate credit. They are also called cash advance loans or check advance loans.

KEY TAKEAWAYS
Payday loans are short-term, very-high-interest loans available to consumers.
Payday loans are typically based on how much you earn, and you usually have to provide a pay stub when applying for one.
A number of laws have been put in place over the years to regulate the high fees and interest rates with payday loans.
Understanding Payday Loans
Payday loans charge borrowers high levels of interest and do not require any collateral, making them a type of unsecured personal loan. These loans may be considered predatory lending, as they have extremely high interest, don’t consider a borrower’s ability to repay, and have hidden provisions that charge borrowers added fees.1 As a result, they can create a debt trap for consumers. If you’re considering a payday loan, then you may want to look first at safer personal loan alternatives. Investopedia.com

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The term annual percentage rate of charge, corresponding sometimes to a nominal APR and sometimes to an effective APR, is the interest rate for a whole year, rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc. It is a finance charge expressed as an annual rate. Wikipedia



What Is Annual Percentage Rate (APR)?
Annual percentage rate (APR) refers to the yearly interest generated by a sum that's charged to borrowers or paid to investors. APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment. This includes any fees or additional costs associated with the transaction but does not take compounding into account. The APR provides consumers with a bottom-line number they can compare among lenders, credit cards, or investment products.  www.investopedia.com



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Consumer credit is an important element of the United States economy a consumers ability to borrow money easily allows a well-managed economy to function like officially and stimulates economic growth the presentation will discuss some of the features of the US consumer credit system as well as some of the laws which protect consumers in the market for credit Source: Federal Trade Commission

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Manny your face with the obstacles of living with a low credit score and not having access to lower interest rates when it comes to loans and vehicle purchases the rule of thumb is The lower your credit score the more you pay. Let our Coaching Advocates teach you how to get and maintain a score of 700 www.greyskyonline.com

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