The Leadership Institute hosted its second Chapter After Workshop on Wednesday, Oct. 28. This virtual seminar talked about the importance of understanding credit as well as general financial literacy. The workshop also gave insight about certain myths with credit cards as well as some tips and tricks on how to start building credit straight out of college for students to build up their credit scores.
Why is it important to understand financial literacy? So students can understand the value of a dollar to save up for a new car or potentially buy a house. Without financial literacy, it can get really easy to get into trouble with not paying bills or other essential needs. This type of education is crucial to help people save money to avoid high levels of debt which may result in bankruptcies, defaults, and foreclosures.
This is where having a good credit score comes into place. Having a good credit score will help banks and other lenders determine risk management with lending money and qualify for low interest rates making them a desirable consumer. Employers may also request to see a candidate’s credit score to see if they are a low-risk for their company when hiring new people. However, having a bad credit score may impact people in the future if they decide to take out a loan for school or want to buy a fancy car making them a high risk of not paying back their money.
Haithem El Gobji, a guest speaker at the workshop talked about how a credit score is basically a report card of how somebody is doing with their finances.
“It’s not about how much money you owe. It’s a report card. A credit report is more of a report card of how you are doing and how you are using your financial access to money. Whether its a credit card, loans, or a bill that needs to be paid off, its a report card since you started credit and it never stops,” said El Gobji.
The seminar also talked about the use of credit cards and how they can build up a credit score if done right. Banks give credit cards to people who filled out an application for them and are qualified after providing a proof of income. Every month, the bank issued with the credit card sends out a statement saying the transactions that have taken place in the last month as well as how much money is owed after using the card. Paying it off on time allows the user’s credit score to go up but putting it off for too long may cause it to go down.
All of this sounds like a great idea to pay off a tv or buy a new computer in installments instead of all at once. Credit cards are basically money a bank is loaning to the user. It is up to the user to make sure it gets paid back on time otherwise, they may face the consequences. If a balance is not paid off right away, the bank has the right to add on interest charges making those purchases cost even more than before at the end of each billing cycle. That interest charge is based on a credit card’s interest rate as well as the total balance on the card that is owed. Both of these rates can fluctuate so it is important to check them regularly.
One may get caught up with the freedom of having a credit card so it is important to make the best investments instead of buying things that my not be as needed. Having a “good” credit score will help people in the long run compared to not paying bills and having a “bad” credit score. If not abused, credit cards do have plenty of financial benefits but they are not a substitute for cash. Having more credit is not always a good thing so it is important to build up funds that do not have to rely on credit.
“It’s not about just paying everything with cash having no debts and thinking you are ok. Credit is a good thing and it is how you use credit that people look at. If you have no credit that you are using or not using, how can a bank or anybody looking to lend you money judge you?” said El Gobji. “There needs to be a credit history built and it always important to start small like having only at least one credit card while in college is recommended.”
The workshop hopefully made students realize how to better understand the financial system and the importance of financial literacy as well as the use of a credit card. When applying for a credit card and finally receiving it, students are reminded that the longer it takes to pay the money back to the bank, the more it will cost in the long run.
Facts Every Applicant Needs to Know – The Black Chronicle
Army veterans have some glorious choices in relation to their looking for a mortgage to purchase a house. Even when the veteran has a poor credit score document, there are nonetheless choices. For one, getting a VA dwelling mortgage with a bad credit score is thought to be essentially the most accessible choice.
That is definitely true, with the Division of Veteran Affairs (the VA) basically guaranteeing a share of the mortgage loan utilized for, enormously serving to to safe approval regardless of a bad credit score. However there are components that anybody contemplating making use of for these loans ought to concentrate on.
Traditionally, these VA dwelling loans solely took place on account of the 1944 GI Invoice, which was launched to assist conflict veterans settle again into civilian life. By the VA guaranteeing these mortgages, veterans had a greater likelihood of getting their very own dwelling. However there are nonetheless standards for candidates to fulfill.
The Worth of a VA Assure
The largest drawback for mortgage candidates is convincing lenders that they may get their a refund. Even when looking for a VA dwelling mortgage with a bad credit score, the lender must know that the borrower could be trusted to make the repayments that must be made. Since VA loans include a assure, that safety is supplied.
Unsurprisingly, the backing of the VA is a large increase to anybody seeking to safe approval regardless of a bad credit score. And for the debtors, a assure from the VA additionally removes the necessity for a big down cost, and usually signifies that the rate of interest charged is decrease.
However the VA shouldn’t be keen to ensure 100% of the sum being borrowed – actually, it solely covers 25% of the worth of the house. So, whereas the curiosity on a VA dwelling mortgage is decrease, and a down cost is often not wanted, there’s nonetheless 75% of the sum borrowed that’s not assured.
Qualifying For A VA Mortgage
Since a VA mortgage is reserved for navy veterans, qualifying for a VA dwelling mortgage with a bad credit score depends on assembly some strict standards. In fact, there are fundamental situations to satisfy too, like age and nationality, however the VA want affirmation of navy rank and deployment historical past earlier than they’re keen to ensure the mortgage.
There are monetary situations too. For instance, candidates can’t have defaulted on a mortgage with any lenders inside the earlier 12 months, and can’t have been declared bankrupt at any time inside the earlier 24 months. In spite of everything, lenders are solely keen to grant approval regardless of a bad credit score if they are often certain repayments shall be made.
One other situation to fulfill earlier than qualifying for a VA dwelling mortgage embody proving they’ve full gainful employment. As with every different mortgage, repayments need to be revamped many years, so monetary safety is essential.
Put together Your Software Correctly
Lastly, it’s tempting to consider that it’s straightforward to get a VA dwelling mortgage with a bad credit score, however the reality is that there isn’t a assure that approval shall be given. Many navy veterans are rejected as a result of their software was deemed unconvincing.
Keep in mind that the VA solely agrees to ensure a 25% share of the mortgage after the lender has authorised the appliance. The precise software is submitted to the lender, so securing approval regardless of a bad credit score relies on their evaluation.
There are methods to enhance a credit score rating, and so decrease rates of interest, like utilizing a consolidating mortgage to clear present loans in a single go. When an effort is made, a lender is extra comfy granting a VA dwelling mortgage.
A principal learned one student’s family is getting evicted. Now she’s working to find them a home
CAPE CORAL — A school principal is working this holiday season to find a home for some of her students.
Shelly Homan posted a plea to Facebook after she learned one of her students’ families was being evicted with nowhere to go. Homan is the Principal here at Heritage Charter Academy. She was helping families in need by telling them about the turkey giveaway sponsored by Cape Coral Police, when she met Vincent Ponzo’s grandchildren.
“When I asked them about the Thanksgiving dinner that the police department was giving away, I found out that they were also going to be homeless,” said Homan.
Ponzo has been looking for a new home for months, but he has bad credit, and doesn’t have enough saved for first and last month’s rent plus a security deposit.
“We’re just running out of time and options at this point, and we’re not bad people. We work hard. I’m the general manager at a restaurant, my wife works for Instacart. My daughter is trying to raise her three kids in our home,” said Ponzo.
So Homan posted an SOS on Facebook, looking for a landlord willing to rent to them. It got a lot of attention.
“Shelly called me, and I was like what did you do? And she was, oh I just put a post out, and next thing you know I’m getting all this feedback from it,” said Ponzo.
“My focus is that the kids are in a home for the holidays. So whatever, whatever I have to do to reach out. The worst people can say is no I can’t help,” said Homan.
But Homan said people have already reached out trying to help. Ponzo said he hopes he can find a home soon, but he also said his story is just one of many this holiday season.
“This takes a lot for me to stand in front of everybody and go this is what’s going on, but if I don’t do it, maybe some other guy wishes somebody did that’s about to get kicked out of his house because he’s going through the same thing or worse,” said Ponzo.
If you are interested in helping Ponzo and his family, you can call the Heritage Charter Academy at (239) 223-7530.
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