It’s a brand new year—the ideal time to set fresh goals and decide what course of action is needed to get there. If one of your resolutions for 2011 is to make some sound financial improvements, here are a few suggestions to get you started.
First, call us at 757.569.6000 to make an appointment with one of our Financial Educators. They’ll do a free and confidential review of your debt to see if there is a way to consolidate outstanding balances into one lower monthly payment through a home equity loan or line of credit. And by using the equity in your home to pay off your high interest loans, you may be able to deduct a portion of the interest on your tax return (consult your Tax Advisor for details). In addition, our Financial Educators can look through your monthly expenses and suggest ways to cut back so you’ll be able to start putting more money away.
Another good idea is to take a look at your current mortgage rate and payment to see if Bronco can help you refinance to a lower rate mortgage, which will reduce your monthly payments and Potentially save you some serious money. Read more about this strategy in this issue’s “Picket Fence” article.
Keep in mind that your creditworthiness dictates the loan rates that you’ll be offered. In order to qualify for the best Annual Percentage Rates (APRs) for mortgages, auto loans, credit cards and other loan products, a borrower’s credit score now needs to be at least 720—up 40 points from the old standard of 680. So it is vitally important to check your credit report regularly and make sure that everything is up to date and accurate.
You can check you credit report for free once every 12 months. Go to www.AnnualCreditReport.com and request reports from each of the nationwide consumer credit reporting agencies—Equifax, Experian and TransUnion. Before you get started, there is a Frequently Asked Questions tab toward the top of the page that provides exceptional information on things like how to read your report, what to do to correct erroneous entries and more.
Once you have your reports, read them carefully to identify anything that shouldn’t be there—like loan balances that were previously paid off, closed credit card accounts that are still showing as active and any other errors. These items will have an impact on your overall credit score and need to be addressed immediately.
You can also order your credit score for a small fee. This score will let you know where you stand in terms of being able to qualify for great loan rates should refinancing be part of your debt management plan. Of course, if you find you need to improve your credit score, our Financial Educators can help you with that, as well.
As your financial advocate, it’s our mission to help you find the best ways to save money and build your wealth. You can count on us to be with you through every step of the process with excellent products, great service and sound financial solutions that will allow you to create a financial plan that you can stick to. Give us a call, stop by any convenient office, or read more about our products and services at www.welcomehome.coop.
