The Fed Proposes New Restrictions for Credit Cards

The Federal Reserve, acting in conjunction with the National Credit Union Administration and the Office of Thrift Supervision, recently proposed new rules and restrictions that target what they consider to be “unfair” practices currently in use in the credit card industry.

Aspects targeted by the proposed rules include:
- The length of repayment periods
- The allocation of payments
- Methods for computing balances
- Reasons for adding new fees
- Reasons for increasing annual percentage rates

Full article: Government moves to rein in unfair credit card practices

Reaction to the proposals is mixed, as it remains to be seen how many of the proposed rules and restrictions will become a reality. The changes could be finalized by the end of the year, at which time it will be easier to predict how the typical credit card user will be affected.

Make your next financial decision a knowledgeable one. Be sure to utilize the tools and resources available in our knowledge center to stay on top of your personal finances. Analyze your credit card situation with our credit card calculators or visit our credit card tips and advice center for answers to common questions related to credit cards.

Posted in News, Credit Cards, Personal Finance | Permalink

Changes in the student loan industry

A recent article detailed the current state of the student loan industry in relation to the credit market turmoil and also what it all means to current and potential student loan borrowers. It is a must-read for anyone currently seeking student loans.

Many lenders are currently cutting back on all or some of their student loan offerings, tightening their credit standards and/or raising interest rates. Some of these moves are directly connected to the state of the credit market at the present moment. All in all, it is getting tougher to find funding and options are getting slimmer.

See full article: Navigating student loans tricky in the wake of credit crunch

If you are currently seeking student loan funding or will be in the near future, it is recommended to stay on top of the situation by following the news and frequenting reliable sources of information on the topic. Good places to find this type of information are listed below.

Student Loan Resources

FAFSA - Free Application for Federal Student Aid
Find out what information you’ll need to apply, fill out the application and view your results online.

NSLDS.gov - National Student Loan Data System for Students
Provides a centralized place where students can access and inquire about their loans and/or grant data.

Student Aid on the Web - Federal Student Aid on the Web
Information, from the U.S. Department of Education, about preparing for and funding edcuation.

In addition to the above student loan resources, you can also make use of our student loan calculators and student loan advice center. Make your next student loan decision a knowledgeable one. A little research can help in many different ways.

Posted in News, Loans, Personal Finance | Permalink

Savers now feeling the credit crunch

A recent article detailed how yields on savings accounts and other deposit accounts have dropped recently, and what the falling yields mean for consumers right now.

According to the article, rates are dropping pretty much across the board, but how much the rates have dropped varies from bank to bank. All in all, it pays to shop around for the best rate if you are currently looking to put money away in a savings account, certificate of deposit or money market account.

See full article: Savers Feel Pinch of Tight Credit

It’s easy to analyze your savings situation with our savings calculators. These calculators can help you formulate a customized savings plan by allowing you to compare different savings options, set savings goals and more.

Once you have created a reasonable savings plan with reachable savings goals, you can compare savings options online. The comparisons include savings accounts, money market accounts and certificates of deposit that are available as online banking options.

Make your next banking decision a knowledgeable one. A little research and planning can really pay off in the end.

Posted in News, Personal Finance | Permalink

Many Students Graduating With More Than $20,000 in Debt

A recent article discussed the overall state of student loan debt in the U.S. According to the article, the average student graduates with about $21,000 in debt and it may be getting more difficult for many borrowers to repay their student loans.

Full article: Student loan debt — how to get relief

The article discussed relief options that may be available to those who are having trouble repaying student loans. In addition, the article touched on the differences between private student loans and federal student loans and how the repayment of these two types of student loans can differ.

Understanding student loans can be a difficult task, but there is an abundance of information out there that can serve to answer a lot of the questions that arise along the way. See the list of top resources below.

Student Loan Resources

FAFSA - Free Application for Federal Student Aid
Find out what information you’ll need to apply, fill out the application and view your results online.

NSLDS.gov - National Student Loan Data System for Students
Provides a centralized place where students can access and inquire about their loans and/or grant data.

Student Aid on the Web - Federal Student Aid on the Web
Information, from the U.S. Department of Education, about preparing for and funding edcuation.

In addition to the above student loan resources, you can also find more helpful information, advice, tips and tools right here on e-wisdom.com. Our student loan calculators and student loan advice center can both help you make your next student loan decision a knowledgeable one.

Posted in News, Loans, Personal Finance | Permalink

What does the lowering of interest rates mean for borrowers?

The Federal Reserve lowered interest rates once again on March 18, 2008. This marked the sixth time since September 2007 that interest rates have been lowered by the Fed. So, what does this mean for borrowers?

According to a Wall Street Journal Online article, the new, lower interest rates will only help with certain kinds of borrowing. According to the article, rates on many auto loans, credit card accounts and home equity lines of credit and adjustable rate mortgages have fallen. But borrowers looking for a new mortgage or looking to refinance a current mortgage may not see the benefits.

See full article: Why Only Some See Benefit From Fed’s Cuts

The article goes into great detail about different perspectives and strategies for homeowners who are either seeking a new mortgage loan or are looking to refine their current home loan situation. There are a lot of factors to consider before making any major financial decision right now, and understanding how the current interest rates affect your specific situation can be beneficial in many different ways.

Make your next financial decision a knowledgeable one. Learn more about any of our financial topics at our knowledge center and be sure to utilize our financial calculators to assess your current situation before deciding on your next move.

Posted in News, Credit Cards, Loans, Insurance, Personal Finance | Permalink

Alternative credit scores being used to to evaluate
the credit-worthiness of potential borrowers

A recent article discussed in detail how many lenders are now looking beyond what some consider to be the “traditional” credit score in order to determine the credit-worthiness of a posssible borrower. These lenders are instead looking at alternative credit scoring methods to evaluate the risk involved with certain individuals.

Some lenders are now looking beyond total debt amounts and payment histories, and are instead looking at other factors, such as rent and utility payments.

Credit scorers find creative new ways to judge you

Whether or not this is good news depends on your specific financial situation as well as the details of your credit history (or lack thereof). One thing that is certain, though, is that some lenders are looking beyond the traditional methods when determining the risk involved in extending credit to potential borrowers.

One time each year, consumers can request a free copy of their credit report. Read Can I get a free credit report? for more information about this guaranteed right. There are also a number of companies that offer credit score services and a variety of credit monitoring services.

Staying on top of your credit can really pay off when the time comes to apply for your next loan or financial product.

Posted in News, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

FICO credit score uses a new scoring model

A recent article detailed changes that Fair Isaac Corporation, the creator of the well-known FICO credit score, made to it’s credit scoring model. The article talks about how the new scoring model for the FICO credit score, which is used by many lenders to judge applicant quality, will attempt to better predict those who are more likely to default on a loan.

Full article: FICO Credit Score Gets Makeover

The new scoring model should be in use by Spring of 2008, and, once the new model is in place, some consumers could feel the changes when applying for a credit card or a new loan.

It’s always wise to stay on top of your finances and be fully aware what is and is not listed on your credit report. Keeping tabs on the overall state of your credit as well as your current credit score can greatly benefit you when the time comes to apply for a new loan. If there is an error or mistake you can correct it before it has a chance to affect your next loan terms.

Did you know that once per year, consumers can request a free copy of their credit report? Read this for more information about this guaranteed right.

Posted in News, Credit Cards, Loans, Miscellaneous, Insurance, Personal Finance | Permalink

Lenders are Making Some Student Loans Harder to Obtain

A recent article touched on the current state of the student loan industry and how overall market conditions are affecting it. Due to recent changes in overall market conditions, some have lenders are raising rates and fees on some student loans. In addition to raising rates and fees, some lenders are simply making certain student loans more difficult to obtain.

The article also focused on the difficulties that those with less-than-perfect credit may encounter when applying for new student loans and how fears over loan defaults may be contributing to what seems to be a general tightening of standards.

» Read the full article here

Have a question about new student loans or student loan consolidation? Visit our student loan tips center or check out our knowledge center for many more loan-related tools and resources. Make your next loan decision a knowledgeable one.

Posted in News, Loans, Personal Finance | Permalink