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Two lawmaker-landlords and two philosophies on housing policy

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Jacqueline Rabe Thomas :: CtMirror.org

A house for rent in the South End of Hartford. Lawmakers in Hartford are considering legislation that would allow landlords to require more than two months rent for security deposits.

To understand the philosophical tug-of-war over how to make more affordable rental housing available to Connecticut residents, one need look no further than a recent exchange between two state lawmakers who also happen to be landlords.

The exchange took place during a recent public hearing of the Housing Committee, which was  hearing testimony on a bill that would allow landlords to ask for larger security deposits. Currently, landlords are not allowed to ask for more than two months rent.

Sen. Rob Sampson, a Wolcott Republican who launched the legislature’s Conservative Caucus and is the proponent of the bill, was there to lobby the committee to scrap the current law.

Democratic Rep. Brandon McGee – co-chairman of the Housing Committee and leader of the legislature’s Black & Puerto Rican Caucus – began pressing Sampson to explain why the law should be changed.

“It’s a private contract and it should be determined by market forces,” Sampson responded. “That is America. That is what was envisioned by our founders. It is what made this country great and amazing: to give each of us the opportunity to live fulfilling lives.”

McGee wasn’t buying it.

“I’ve got to tell you, America has not always been too kind to many people. And as a black man, it has not been too kind to me,” McGee said. “So what I am getting at is… ”

Before he could finish, Sampson interrupted to ask, “What does that have to do with any of this?”

“It has everything to do with it,” McGee shot back.

At issue is whether state laws aimed at helping provide low-income residents access housing – such as the one that caps how much a landlord can charge for a security deposit – are helping or hurting.

Connecticut has among the most expensive rental housing in the country and one of the highest rates of residents who spend more than half their income on rental housing. In the Fairfield County area, for example, 30% of renters are spending more than half their income on housing, while in the New Haven and Hartford areas, one-quarter of residents are, according to the Joint Center for Housing Studies of Harvard University.

Sampson believes such measures are stifling opportunities because a landlord cannot agree to take a larger deposit from someone with bad credit to offset that increased risk. McGee believes such allowances will lead to discrimination – certain people could be asked to put more down – or put housing out of reach for those who can’t afford more than two-months rent.

“It’s a matter of us both understanding different perspectives when it comes to housing discrimination,” McGee said. “If we didn’t need rules, people would be all peachy keen and everything would be great. … We can definitely agree to disagree. I am a landlord just like you, and I appreciate your prospective.”

Sampson seemed unmoved, responding, “My position is contained in the Declaration of Independence.”



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Young Entrepreneur is Proof That Age Does Not Matter in Obtaining a Successful Credit Score

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Credit score specialist Alex van Hulle runs a company that helps individuals and families find support to create a strong, long-lasting financial record. Alex has spent many years researching and understanding the crux of financial management. His dedication has paid off, enabling him to secure a solid future for generations to come.

Today, through Credit Alleviation, Alex uses his knowledge to help others benefit from the lessons he learnt. The company offers valuable practical tools and resources to clients who require help in managing their finances and maintaining a good credit score.

We designed the UCES Protection Plan to support our client’s financial opportunities by implementing positive habits to create and maintain a strong financial future. Our unique collection of services has been carefully selected to provide protection and opportunity over the many aspects of the client’s finances – all combined into one easy-to-use system”, says a spokesperson for Credit Alleviation.

Despite being young in years, Alex has accomplished much and continues to create an impact in the financial world. His most recent decision to provide premium education and motivation free of cost has singled him out in the industry. Alex has a strong commitment to see people be inspired to pursue a positive healthy financial lifestyle. He hopes that through this people would make the right decision for their finances.

Alex made up his mind to do this because he noticed that most people who want a buy a house, get a new job or upgrade their car get turned down because of bad credit. Lack of proper education and understanding of financial management is the main reason for their failure”, says a spokesperson for Alex van Hulle.

Through Credit Alleviation, Alex hopes that people would understand how valuable it is to take the financial matter seriously. Alex believes that if he can help people realize that securing a solid future and building wealth starts at a young age, it will lead to great things. Just like himself, others too can live debt-free and remain confident as they grow. He shares many years of experience in the industry and delivers professional advice almost daily to thousands of people.

This is why I continue to post more engaging content on my Instagram page, to encourage people to take their financial life seriously and build a better future”, says the young businessman and aspirant, Alex van Hulle.

Through his Instagram page @credit.alex, Alex van Hulle inspires his followers with motivational quotes, tips, and the latest credit score and finance information. Followers get advice on topics like debt, credit score factors, tax, credit restoration, loan payments, emergency funds, credit card management, creditworthiness, budgeting, etc.

Alex continues to influence many people, both old and young, to make wise financial choices. He uses a creative style of communication with his followers and viewers. It is no wonder this has made him a favorite avenue for getting financial tips that have helped the lives of thousands.

For more information, please visit: https://creditalleviation.org/

Instagram – @credit.alex

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Company Name: CREDIT ALLEVIATION
Contact Person: Alex van Hulle
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Phone: 813-503-9562
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Website: https://creditalleviation.org/

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4 reasons why your mortgage application could be rejected

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Check yourself if you want to ensure your loan application is approved. (iStock)

When the Federal Reserve lowered interest rates to near 0% last year, mortgage rates followed suit. The average 30-year fixed-rate mortgage hit 2.65% at its lowest, and the average 15-year fixed-rate mortgage bottomed out at 2.16%. At publication, the 30-year FRM sat at 2.96%, and 15-year FRMs averaged 2.30%.

Despite economic uncertainty brought on by the pandemic, these low-interest rates increased enthusiasm in the housing market for potential home buyers. As more people flock to apply for mortgage loans, lenders are tightening their restrictions.

SHOULD YOU CONSIDER A 15-YEAR MORTGAGE? HERE’S WHAT YOU SHOULD KNOW

Unfortunately, many potential borrowers have been or will be denied a mortgage loan. Lenders consider several factors when deciding whether to loan money to a borrower. Not only do mortgage lenders consider income, but they also look at debt, credit score, and lifestyle factors. Within such a competitive market, you’ll want to make sure everything lines up if you’re going to get approval. (If you want to get a sense of what preapproved rates you’d get in today’s mortgage rates market, you can check out Credible’s lender marketplace).

There are a few primary reasons your mortgage loan application could be turned down in 2021:

1. Poor credit

One key factor that lenders consider when approving or denying a home loan is credit history. Your credit score is a quick way for lenders to decide whether you represent a trustworthy buyer. The minimum credit score required to purchase a home depends on the type of loan you want. You may qualify for an FHA loan with a score as low as 500 with a 10% down payment. If you want a conventional loan, you’ll need a score of between 620 and 660, and a jumbo loan requires a minimum score of 700. 

As lenders tighten their restrictions, borrowers who may have qualified in the past may find themselves shut out of a mortgage loan. 

In addition to your credit score, a lender looks at your credit report. You may not qualify for a loan if you have a history of missed or late payments, recent bankruptcy or foreclosure, or wage garnishments. In order to qualify, you’ll need to work on improving your credit score.

BUYING A HOME AMID THE PANDEMIC? HERE’S THE CREDIT SCORE YOU NEED

If you’re worried that your credit score is too low, you can potentially improve that bad credit by using Credible’s marketing partner Experian to boost your credit. You can add bills like rent and your cellphone payment to your credit score.

2. New or unsteady job

Lenders want to give money to people who have the income to make their monthly payments. They look for employment history and annual or monthly income history to determine if you can afford a mortgage. Ideally, you’ll have employment dating back at least two years. Lenders will want to see pay stubs and tax statements. 

However, if you’ve changed jobs recently or your work is more fluid (like freelancing), you may have to provide additional documentation to show that you can afford to make the mortgage payments. Alternatively, you could offer a larger down payment rather than a low down payment. 

Common ways to show income include:

  • Tax returns
  • Pay stubs
  • 1099 forms
  • Statements from investment income
  • Alimony or child support statements

When you’re looking for a loan, make sure to take advantage of an online mortgage calculator to help determine potential monthly payments. The loan payoff calculator can help narrow down your budget, so you choose a loan you can afford.

SHOULD I REFINANCE MY MORTGAGE TO CONSOLIDATE DEBT?

3. Large, unknown deposit

While having a sizable down payment can make getting a loan easier, having a history of large deposits into your account without records does not. It is perfectly acceptable for someone to gift you money, but you’ll need to provide documentation. If you have a family member or friend who contributes a large sum of money to your purchase, you’ll need to have them complete a gift letter stating the details of the transaction. 

When you’re ready, you can explore your mortgage options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today. 

4. Last-minute spending on a credit card or change to credit report

One of the most common reasons lenders deny a mortgage loan is a change in the credit report. Your lender can deny your loan up until you sign the final paperwork. If you’re approved for a mortgage loan and then use your credit card to purchase furniture for your home, the lender could deny your loan application.   

You can prevent having your loan rejected this way by planning. Avoid taking out any loans – like personal loans, auto loans or student loans – or spending too much on your credit card a few weeks before you apply for a mortgage loan. Additionally, don’t make any major purchases until after you sign your final loan documents and the key to your new home is in your hand. 

HOW MISSING A MORTGAGE PAYMENT CAN IMPACT YOUR CREDIT SCORE

Are you ready to see if you qualify for a mortgage loan? Explore your mortgage options by visiting Credible to compare rates and lenders. 

Obtaining a home mortgage loan this year could be challenging. But, if you manage your spending, work on your credit score, and keep good financial records, you can substantially improve your chances of approval. 

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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Can You Get A Student Loan With Bad Credit?

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Borrowing a student loan with bad credit can often be a challenge, but it is possible. If you have bad credit, federal student loans are a great place to start, but you can also look into getting a co-signer or finding a lender that uses other factors to determine your eligibility. Here’s how to start.

Options for student loans with bad credit

When you’re shopping for educational loans, any options you review will fit into one of two categories: federal student loans or private student loans. As a borrower with bad credit, you’ll encounter different benefits and drawbacks with each loan type.

Federal student loans

Federal student loans are a form of education financing that’s funded through the U.S. Department of Education. You can use the proceeds from federal student loans to help cover expenses such as:

  • Tuition.
  • Fees.
  • Books.
  • Room and board.

If you have credit problems, federal student loans are typically the best place to start. Most federal student loans do not require a credit check to qualify for financing, so bad credit won’t be an obstacle in most cases. PLUS loans are the one exception; these loans will check your credit, although they’re only looking for an adverse credit history and don’t have minimum credit score requirements.

Federal student loans do feature borrowing caps. As a result, these loans might not be sufficient to cover all of your educational costs.

Private student loans

Private student loans are a type of education financing that’s available through private lenders. Online lenders, banks, credit unions and even colleges and universities themselves may offer private student loans.

With a private student loan, the lender will almost always check your credit as part of the application review process. When you have bad credit, securing a private student loan may be a challenge. Bad credit can also impact the interest rate and loan terms a lender offers you — potentially making it more expensive to borrow money if you qualify for financing.

Many private student loan lenders will require you to have a minimum score in the mid- to high 600s to qualify for financing. However, the lender may allow you to apply for a private student loan with a co-signer if you are worried that you won’t be eligible on your own. Just keep in mind that co-signing for student loans comes with its own drawbacks, such as the risk of credit score damage for your loved one.

Most of all, it’s important to conduct your own research if you’re considering a private student loan for bad credit. Comparing offers from multiple lenders has the potential to save you money on interest rates, especially with bad-credit student loans. Over time, those savings could add up to a significant amount of cash.

How to improve your credit score before applying for a private student loan

Because your credit plays a key role in the approval process, it’s wise to make sure that your credit score is in the best shape possible before applying for a new private student loan. Better credit may improve your approval odds and could help you secure better rates and terms when you borrow money.

Here are four steps you can take if you want to improve your credit.

  1. Check your three credit reports. As you review your credit reports, make a list of any information that seems inaccurate and any negative items you need to address. You can claim a free copy of each of your three credit reports weekly at AnnualCreditReport.com.
  2. Dispute credit errors. Millions of Americans have errors on their credit reports. Some credit reporting mistakes have the potential to damage your credit score. If you discover errors on your credit report, it’s wise to dispute them right away.
  3. Lower your credit card utilization. A high balance-to-limit ratio on your credit cards can be bad for your credit score, even if you make your payments on time. You can lower your credit utilization rate (and likely save money in interest) by paying down your credit card balances. A credit limit increase is another out-of-the-box way that could help you to lower your credit utilization if you can’t afford to pay off all of your balances at once.
  4. Establish positive credit. If your credit report is thin, adding some new positive accounts to it might benefit you over time. Keep in mind that you may want to start with accounts you’re likely to qualify for despite having bad credit or no credit. Secured credit cards or credit builder loans may be worth considering here.

The bottom line

Can you get a student loan with bad credit? There’s a good possibility that you can, and your best bet is starting with federal student loans. But if you need private student loans to help finance your education, bad credit could make borrowing money more difficult and more costly.

Focus on improving your credit as much as possible before you apply for financing. And remember, if you decide to accept an interest rate that you’re not thrilled about now, you can always refinance your student loans in the future.

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