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‘I have $4 to my name.’ An extended eviction ban isn’t enough for some struggling renters | US & World News

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(CNN) — Millions of struggling renters will likely be protected from eviction — at least for another month.

The stimulus bill that was signed into law by President Trump late Sunday night extends a national ban on evictions until January 31. The moratorium, which was put in place by the Centers for Disease Control and Prevention in September to stop the spread of the coronavirus, was initially set to expire at the end of this month.

The package also provides $25 billion in emergency rental assistance.

Should the package go through, neither of the measures will likely be enough to keep the most at-risk renters in their homes past January.

“While extending the CDC eviction moratorium for just one month is insufficient to keep people housed for the duration of the pandemic, the extension provides essential and immediate protection for millions of renters on the verge of losing their homes in January,” said Diane Yentel, president and chief executive of the National Low Income Housing Coalition.

An estimated 9.2 million renters who have lost income during the pandemic are behind on rent, according to an analysis of Census data by the Center on Budget and Policy Priorities.

Once the moratoriums are lifted, many of these renters will be expected to pay their entire back rent or come up with some sort of payment plan with their landlord — or they could face losing their home.

CNN Business spoke with several renters who have been struggling to afford their monthly payments as a result of the pandemic.

‘Money is piling up against me’

Kelly Green, who lives in a $1,429-a-month apartment in Daytona Beach, Florida, has not been able to pay rent since September.

“The only reason I have a roof over my head is because of the eviction moratorium,” Green said.

Green makes her living selling rhinestone- and sequined-biker apparel at motorcycle rallies and other festivals.



'I have $4 to my name.' An extended eviction ban isn't enough for some struggling renters

Kelly Green said she has a roof over her head only because of the CDC eviction moratorium.




After the shutdown in March, there were no festivals, no events and she had no income. Still, she cobbled together her savings, stimulus payment, rent relief and unemployment insurance payments and managed to get current on her rent through July. But she didn’t know how she’d make ends meet after the $600 a week supplemental unemployment support ended.

Green heard about a coronavirus-related rent relief fund offered by Volusia County, where she lives. She applied for assistance and was awarded $4,500 for three months’ rent.

“I thought, ‘Great!’ that will pay a few months’ rent, and I can move out in November when my current lease is over and I’ll still have a good credit rating that will allow me to rent myself another apartment,” she said.

But there was a snag: The Volusia County rent assistance program requires tenants to have been current on rent as of March 13, 2020. Green was behind on her rent in February and, as a result, her apartment complex wouldn’t accept the aid.

Without that money, Green was unable to pay full rent for October, November or December. And since she overstayed her lease in November, she’s now on a month-to-month lease that is $500 more expensive a month.

“Even if the moratorium is extended, money is piling up against me,” she said. “What would help me the most is if I receive a check for rental assistance for three months, that they take it.”

She knows it doesn’t make sense to stay and watch the amount she owes grow, but she said she doesn’t know where she’ll go without putting friends and family at risk of coronavirus exposure.

“It totally depresses you,” she said. “You feel like giving up. Where will I go when the CDC order expires, and I have this eviction on my record?”

Have to be out by Christmas

Mercedes Darby lives in a three-bedroom apartment in Nashville with her three high school-aged children and her daughter, Princess Thomas, who is in college. The two usually split the rent. But since both were laid off in March, they have not been able to afford the $1,250 a month rent since April and currently owe $9,000 in back rent and fees.

Even though Darby provided her landlord with a CDC declaration, which protects the family from being evicted for non-payment, they are now being evicted for a separate lease violation — Darby’s name is not on the lease.

Darby says the lease is in Thomas’ name, but she has been living there since they got the apartment a year and a half ago together and she has been making payments all along.

After missing a December 15th eviction court date, there was a default judgment giving the family 10 days to leave. So Darby is packing everything she owns to put in storage.

“We have to be out by Christmas Day or they will have the sheriffs in here,” Darby said after the ruling. “With no money, I have to find a temporary place.”

Darby was laid off from her job handling member services at a large insurance company in March. She had been looking for a new apartment since July. But even after paying the application fees, she was repeatedly turned down because of her credit history and a prior bankruptcy. Now her daughter is likely to have trouble, too, because of this eviction.

In November, Darby was rehired to a similar job and money has been coming in again. But she now has to pay a lot more in fees and deposit money for an apartment because of her history.

“I have a good paying job,” she said. “I make enough, if you didn’t want triple the amount upfront.”

For the time being, she’s looking for a place for her family to stay through the holidays while she finds a more permanent home and prepares for her court date in February on the back rent she owes.

“We don’t have anywhere to go,” she said. “We don’t have family here and our friends can’t take all of us. I’m going to try to find a hotel. But that will take all the money I have to put toward another apartment.”

Waiting for rent relief

Bryan Clift’s work as a waiter in suburban Minneapolis dried up last March, at the same time school for his 10-year-old daughter Iyla moved online. Iyla’s mother, who she did not see regularly, died a few weeks ago. Now Clift is about $2,000 behind on rent and they are in danger of facing eviction.

“My daughter is everything I got,” he said. “I put her ahead of everything. Making sure she has a roof over her head and food on the table is the most important thing.”

They fared okay through the summer, with the unemployment insurance payments he received. But when the $600 in weekly supplemental payments expired, he feared he would fall behind on his $1,500 a month rent for the two-bedroom apartment.

“When I saw my savings go down I went to talk to the leasing people, who I’ve always had a good relationship with,” he said. “I said I’m going to try to do my best. They suggested I apply for some rent relief.”



'I have $4 to my name.' An extended eviction ban isn't enough for some struggling renters

Bryan Clift with his daughter Iyla. Clift has been out of work since March and is behind on rent on his apartment in the suburbs of Minneapolis.




He has applied for and expects to receive relief money from Prism, a local social services nonprofit. But it is not in hand yet.

“It is a waiting game,” he said. “If you’re going to ask for any aid right now it will take a while.”

With this anticipated support, he’s hoping to bridge the gap in income until he can work again.

“I could go get a job now,” he said. “I want to. I don’t like sitting around. But without the schools open, I can’t go to work. If something doesn’t change for me in the next few months, what am I going to do? I pushed back every bill that I can. And this rent relief will help, but for how long?”

Any additional help from the government is welcome, he said, but, “I could do without the stimulus check if I had better unemployment, because you can stretch that out longer.”

Evicted despite CDC protections

The worst already happened to Jordan Mills and Jonathan Russell and their two-year-old daughter Valkyrie.

Even though they were protected by the eviction moratorium, a court granted an eviction anyway.

Mills thought she did everything right. She provided the CDC declaration form protecting her from eviction to her landlord. She applied and received rent relief money from the city of San Antonio. She even made a payment plan.

“People like me are still being evicted for non-payment,” she said.

She made a payment arrangement with her landlord, but fell behind by about $450. The property owners filed for eviction citing a violation of one part of the CDC declaration in which Mills agreed to use “best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit.”

Mills drove to the courthouse to appear at her eviction hearing, but says she was unable to attend because she did not have money to pay for parking.

“I couldn’t afford parking, it is all $20,” she said. “I’m literally living hand-to-mouth. I got paid yesterday. I have $4 to my name.”

In May, Mills, who is an assistant manager at a payday loan company, had seen her hours cut. She realized her family was not going to be able to pay their rent along with their high utility bills during the Texas summer.

She applied for and received rental assistance money, a lump sum of $3,500 for three months rent.

When Mills contracted coronavirus, she said, their child care provider dropped them as a precaution and her husband left his job as a security guard to care for Valkyrie full-time, further cutting their income.

After the court ordered their eviction in November, they didn’t wait for the sheriff to arrive. Mills borrowed $1,400 from her mother and moved her family out of the three-bedroom, single-wide mobile home they rented for $1,175 a month and into a 470-square-foot, one-bedroom apartment in San Antonio.

The family’s new apartment is in a building known as “second chance” leasing, for people with evictions or bad credit.

Mills paid dearly for that second chance. In addition to the $750 a month rent, a $299 deposit and a $300 pet deposit, she also had to pay a $650 risk fee because of her history.

“The worst has happened,” she said. “But I’m still afraid how it will affect me when I go to rent somewhere bigger, somewhere more safe. We have roaches. I don’t want to stay here.”

While she appreciates the rent relief they received, she said more rent assistance should go directly to landlords.

“If there was something for them, they wouldn’t be so quick to turn on the tenants.”



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Is The No Credit Check Loan The Best Option For You? | Branded Voices

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If you need extra cash and have considered applying for a loan even with a bad credit score, you might have already heard about the no credit check loan.

Image by Bermix Studio 

Many people opt for a no credit check loan as their last resort. Like any other loan options, a no credit check loan has its pros and cons. Knowing if this is the best option for you allows you to go consider both its advantages and disadvantages. 

But is it your best option? Is there another way to acquire cash without looking into your credit record?

The Advantages

Here are the other advantages of a no-credit loan:

No Credit Checks

You are considering this loan option because the lender will not bother to check your credit report. It doesn’t matter whether you have a good or a bad credit score as long as you are eligible and can comply with their requirements. 

This benefit is one reason why this loan option attracts many borrowers, especially those who don’t have an impressive credit score and those who are still building their credit records.

Other loan options will require you to provide a good reason why you are acquiring the loan. 

For example, lenders will ask you how you will use the loaned money aside from knowing your capability to repay the money you owe.  But with the no credit check loan, lenders will ask you this kind of question during your application. 

The Disadvantages 

Just like any other options available out there for you, a no credit check loan also has its disadvantages. These things may be huge factors for some consumers, while to others, they’re just minor inconveniences you need to deal with. 

Higher Interest Rates

One of the most common and obvious disadvantages of a no credit check loan is its higher interest rate. Since the lenders will not bother looking at your credit history and rating, they will impose a higher interest rate on your loan. 

The higher interest rates imposed are due to risks they take in lending you their money without even knowing if you can pay it back. This is a common rule for all lenders who offer a no credit check loan. 

Required a Minimum Loan Amount 

If you only need a small amount, a no credit check loan may not be the best option for you. Lenders require a minimum loan amount when you apply for a no credit check loan. Most personal loans with no credit check will require you to loan a higher amount than other loan options such as payday loans and single-payment loans. 

May Require A Collateral

Lenders may require you to have collateral as an assurance for the money you are borrowing from them. It is also to secure their part if ever you cannot pay back the cash you borrowed from them. If you default on your loan, the lender will forfeit the collateral. Collateral can be in the form of any valuable assets such as a house, vehicles, and jewelry.

Quick Process 

Another positive thing when acquiring a personal loan with no credit check is the speedy process. You can get the money in just a few minutes or hours as long as you comply with all of their requirements and are eligible for the loan.

Reminders Before Applying for This Loan 

There are things that you should watch out for when opting for this loan type, especially if you do it online, such as:

  • Watch Out For Fake Lenders

This is the risk associated with a no credit check loan. Some criminals use this to lure their victims for phishing and identity theft. Make sure that you choose a legitimate lender and never give out personal information prematurely. It is best to ask someone you trust for a recommendation or for help with securing a loan from a trusted lender.

  • Prepare The Requirements Ahead Of Time 

It is best to prepare all the requirements before applying for the loan to help you acquire the money quickly. Check your chosen lender’s website or print ads for a list of requirements they will need. 

Even though this loan option does not require a credit check, it does not mean you are guaranteed approval. If the lender finds out that you are not eligible for a loan, your application will be denied. 

Takeaway

Asking yourself if a specific loan option is good for you is one of the proper ways to assess if you should apply for it or not. This practice should be observed in applying for no credit check loans and other loan types available. Remember, not all loans are suitable for you. One loan may work better for others but may not work the same for you. Hence, be prudent and choose the loan option that suits best with your financial needs.

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Learn to avoid these credit card habits before you regret making costly mistakes

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Picture used for illustrative purposes only. Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt.
Image Credit: Reuters

Dubai: Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt. Here we discuss some lessons many regretted not learning before making mistakes that proved costly.

Although credit cards offer convenience, security, and rewards, overspending with a credit card and the interest and fees can bury you financially. So it’s important to know whether you possess such habits in the first place.

Four questions to ask yourself first

If you don’t know whether you have a bad credit card habit here are four questions to ask yourself to find out. If the answer to any of the below is yes, you are inching towards a credit card debtpile.

1. Do you pay only interest fees or minimum payments when you send in your credit card payment?

2. Have you ever paid your credit card late because you didn’t have the money for the payment?

3. Do you use your credit card when you don’t have enough cash?

4. When your issuer raises your credit limit, do you spend more because you can?

Bad credit card habits

While common mistakes include habitually paying your credit card late and taking out costly cash advances on your credit card, here are some uncommon-yet-dire mistakes that may slip under any user’s radar.

Habit #1: Missing out unauthorised or fraudulent charges

Keep in mind that one of the main benefits to reading your credit card statement is, it is one of the best ways to catch unauthorised charges and billing errors.

Don’t check your credit card statement for your balance and payment information, review the entire statement to verify your account activity.

By routinely checking your online or physical statement, you can also find out well before hand if your credit limit was lowered since you last checked – as it can change because of your credit habits or your credit history.

Habit #2: Paying only the minimum can cost you dearly

It is evidently easier to make the minimum payment and this is a habit credit card companies profit from as well.

Although paying just the minimum is more convenient than to figure how much extra you can pay towards your outstanding credit card bill, keep in mind that when you’re making only the minimum payment, you’re not making much progress toward paying off your credit card bill.

Moreover, unless you have a very low balance or a zero per cent interest promotion, you’re probably paying much more in finance charges than you have to.

Habit #3: Using your credit card more than your debit card

While it’s recommended you use your credit card to amass cashback rewards or points and also pay off your credit card balance every month, you shouldn’t opt to use your credit card over your debit card, if those aren’t the reasons why you would go about using them.

Your debit card is your direct access to the funds you should use for everyday purchases, like groceries, gas, clothing, and other expenses. If you use your credit card, it should be a decision with a plan for paying off what you’re charging on the card.

Habit #4: If you are transferring balances just to avoid payments

Although promotions like balance transfers are a widely recommended strategy to pay off a high-interest rate balance on your credit card, matter experts reveal that if you’re in the habit of pursuing such promotions to avoid paying payments on your credit card, this leads to amassing long-term debts.

Financial planners reiterate that many don’t realise that balance transfers typically have fees that will increase your overall balance if you’re never making payments toward the transfer. Moreover, if you’re making purchases on the card with such a promotion, the problem gets bigger.

Expert tips to take control of these credit card habits

Lesson #1: Pay your credit card in full each month

The best way to keep your credit utilisation ratio low and avoid costly interest charges is to pay your credit card balance in full each month – which also means you also don’t incur any large due.

It’s effective to control spending by not spending more than you can comfortably pay down each month, as this helps you reduce the likelihood of developing long-running credit card debt.

If you want to take in one step further, setting a monthly spending limit that’s well within your budget increases the chances that you’ll actually be able to zero out your monthly balance and avoid interest charges.

Lesson #2: Keep your credit utilisation ratio low

What it means by ‘credit utilisation ratio’ is essentially the link between your credit card balances and your aggregate spending limit. For example, a Dh2,000 balance on a credit card with a Dh5,000 credit limit equates to a 40 per cent credit utilisation ratio.

As a rule of thumb, your credit utilisation ratio shouldn’t exceed 40 per cent, and keep in mind that high ratios may adversely impact your credit score.

Financial advisors recommend aiming for a 30 per cent credit utilisation ratio, as that gives you some leeway to cover urgent one-off expenses, which can come unexpectedly as a result of maybe losing your job during the ongoing pandemic.

Lesson #3: Setting up customised spending alerts

If controlling your credit card spending is burdening you, it has been widely advised to set up customised spending alerts.

This will let you know when you’ve made an abnormally large payment or exceed a certain balance threshold and you also can pair these data alerts with security alerts to help flag any sham spending patterns.

Lesson #4: Using credit card rewards and points to your advantage

If you have a rewards credit card, you can use it to your advantage. If you have a pure cash back credit card, use any cash rewards you receive to put toward your account balance or directly deposit it into your savings account.

Alternatively, if you have a rewards points credit card, you can use your rewards to buy discounted gift cards to the stores you know, which will help save on future purchases without having to use your credit card.

If not, you could always redeem your reward points for cash redemption to put into savings or towards your account. However, ensure you know when your rewards expire to get the most out of them financially.

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When Can I Get an Auto Loan After a Repo?

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There’s nothing saying you can’t apply for an auto loan immediately after a repo, but the tough part is actually being able to qualify for the loan. Since many auto lenders don’t approve borrowers with a repo that’s less than a year old, you may have to consider in-house financing.

Repossessions and Your Next Car Loan

Unfortunately, most traditional auto lenders don’t work with borrowers that have a recent repo on their credit reports. When we say traditional, we’re referring to lending institutions such as banks, credit unions, online lenders, and the captive lenders of some automakers. These lenders often require a good credit score and clean credit reports.

Where does that leave you? Well, likely in-house financing is the next logical step if you need a car loan after a repossession.

More on In-House Financing

Buy here pay here (BHPH) dealerships use in-house financing. This way of auto financing involves working with the dealer who’s also your lender. There’s no need to find a third-party lender or preapproval – the dealer takes care of all that. This setup can be convenient, and often, borrowers are able to walk away with a vehicle the same day they first set foot on the lot.

Since these dealers may not check your credit reports to determine your eligibility for auto financing, your recent repossession generally isn’t an issue. If you can meet income requirements, prove you have stable work, secure auto insurance, and prove your identity, you might get into a vehicle after a repo with in-house financing.

Here are a few more details on in-house financing:

  • Used cars only – BHPH dealers only offer used vehicles. However, used cars are a good option for bad credit borrowers. They’re almost always less expensive than a brand-new car, and affordable is a good price when you need to get back on your feet after a repo.
  • Anticipate a higher interest rate – Without a credit check, lenders are taking a risk approving a car loan without knowing much about your credit history. To make up for this, they tend to assign higher interest rates. A high interest rate may be considered a good trade-off for an auto loan with bad credit in many cases, especially if you heavily rely on a vehicle to get by.
  • Credit repair may not be an option – If you get an auto loan with a lender that doesn’t check your credit, it’s a possibility that your on-time payments aren’t going to be reported to the credit bureaus. If you want to repair your credit with a car loan, ask the lender about their credit reporting practices before you sign on the dotted line.
  • Down payments are required – Few things are certain in the auto lending world, but one thing you can count on is needing a down payment if your credit is less than perfect. BHPH dealers often require a down payment of up to 20% of the vehicle’s selling price.
  • Prepare your documents – While a BHPH dealer may not check your credit, they’re likely to ask about your income and possibly your work history. You need proof of income to qualify for a car loan, no matter what lender you work with, so prepare at least a month of computer-generated check stubs. If you don’t have W-2 income, have copies of your last two to three years of tax returns.

Looking Forward After a Repo

When Can I Get a Car After a Repo?After one year, your auto loan options open up a little bit more and you’re more likely to qualify for a subprime car loan. Subprime lenders are equipped to assist bad credit borrowers. These lenders offer you a chance for credit repair because they report their loans and work with poor credit borrowers.

If you need a vehicle quickly, a BHPH dealership could be your first step in getting back on the road. Once some time has passed, and your repossession loses some impact on your credit reports, you can try for an auto loan that has the potential to repair your credit.

Here at Auto Credit Express, we know a thing or two about bad credit auto loans, and we have a nationwide network of dealerships that assist bad credit borrowers. We aim to match consumers to dealers in their local area that help with credit challenges. If you’re in need of auto financing, start right now by filling out our free auto loan request form. We’ll look for a dealer in your local area at no cost and with no obligation.

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