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Home Buying Tips in a Struggling Economy

Now really isn’t the perfect time to buy a home for anyone.  Buying a home can be a nervous time, even in a strong and booming economy.  It is even more distressing when the economy looks the way ours does.  Careful planning and consideration needs to be taken into account before getting into the biggest investment of your lifetime.

In recent years, lenders have gotten too lax on their lending standards.  Our economy is in the mess that it is because of these poor lending practices.  The tide has turned, as far as lending goes.  Lenders have gotten extremely picky about lending to just anyone again.  Here are some helpful ways that can help you buy a home in today’s economy.

1. Stick within your budget.  Buy a modest home that is within your budget.  There is nothing worse than getting into a home and realizing that you can’t afford it.  Try applying for a pre-approved mortgage.  You can be sure to get the right price range for you this way.

2.  The right agent.  Shop around for the best real-estate agent.  Every real-estate agent works differently.  Find one that fits your needs.  If you need to be contacted every day, find an agent that is willing to do that.  Don’t be afraid to ask questions when trying to find the right agent.  Your agent is there to work for you so find one that will.

3.  Homework time.  Don’t sit back and let your agent do everything for you.  You need to do your homework too.  Research different styles of homes, different neighborhoods, different schools, etc.  You can be sure to make a much more informed decision if you are willing to put in your time too.

4.  Neighborhoods.  The Internet has wonderful information and a lot of it.  But, nothing compares to actually visiting the neighborhoods of the homes you are considering.  Do not buy a home without visiting its neighborhoods and the surrounding neighborhoods.  Realistically, you should know that neighborhood well before buying a home in it.

5.  Haggle and barter.  Some of the most important words you can ever ask someone is, “Is that the best you can do.”  Richard Paul Evans, in his book The Five Lessons a Millionaire Taught Me, expresses the importance of constantly using this phrase.  You’ll be surprised how much you can actually haggle prices down with this phrase.

6.  Caution.  If you are considering buying a foreclosed property, do it with extreme caution.  Foreclosed properties can offer you big savings.  But, they can also cause a lot of unforeseen problems.  Try to only consider homes that have been officially foreclosed on and that are deeded back to the foreclosing bank.

7. The Right Lender and Mortgage.  Your monthly mortgage is going to either be a good thing or a bad thing.  Rates are low.  Do some shopping for the right mortgage company.  See how their customer satisfaction rating is.  Don’t get stuck with a mortgage company that isn’t going to be good to work with.

8.  Home inspector.  Finding the right home inspector can be extremely difficult.  Do whatever you have to do to find a good home inspector.  Unfortunately, some inspectors can let certain things slide.  This can be extremely costly to you in the long run.  Only use a qualified home inspector that is going to look at every tiny detail of the home.

9.  The Long Run.  Your home is viewed as a long-term investment.  Treat it as such.  Try to buy a home that you could see yourself in for the next several years.  Finding the right home, or right long-term investment, will give you much more peace of mind.

10.  Time.  The market is extremely volatile but should affect your timing.  Don’t rush into buying a home just because you think the rates are about to go up or the market is going to get worse.  Take the time to do some shopping, be informed and carefully weigh out the pros and cons.

Buying a home is a very important decision, even in a good market.  This means that you need to be even more careful in today’s market.  Be an informed buyer and make sure your buying decisions are based on sound knowledge.

Thanks to our guest blogger from Superior Lending; A great place for FHA Loans and Utah Home Loans

Protecting Your Hard Earned Cash

Your money is most likely federally insured, up to $100,000. However, there are still several things you can do to protect that hard earned cash, in case your bank is seized. Recently, we have several institutions in serious trouble. The once powerful IndyMac Bank was shut down by regulators, something that its customers never saw coming.

Thousands of people lined up (some even bringing lawn chairs) in the Summer months to pull their money out of the failing institution. Most of these people didn’t lose a dime because they were federally insured. In fact, everyone still had complete access to their account via the Internet, checks, debit cards, credit cards, and ATMs.

The problem is that most Americans don’t know what to do if something like this happens. We had gone almost 20 years since the latest savings and loan crisis. More than 1,000 banks and other financial institutions failed during this time. This crisis also cost taxpayers more than $125 billion.

The FDIC has a list of troublesome institutions. Check to see if your bank is on that list. If it is, switch banks. At the end of June, there were 117 “problem” institutions. Compare that number with the number that was released at the end of March…90. IndyMac’s failure noted the eleventh bank failure just this year. It was also the second largest financial institution to ever fail. Bad mortgage loans, the credit crunch and falling home prices have bank analysts predicting that dozens (even hundreds) more institutions will fail this year.

Here what you can do to protect your hard earned money.

1. Advance warning. It is almost completely impossible to know which financial institutions will fail ahead of time - who would have though Washington Mutual would fail? Some banks struggle for years and then completely rebound. Other seemingly strong banks can fail in a matter of days. You can use bank ratings to get an idea of what lies ahead. Most of these ratings however, are based on the bank’s own reports. The key is to be aware but don’t expect to know all of the answers.

2. Coverage. Banks are typically federally insured up to $100,000. Many credit unions are insured by the National Credit Union Association or NCUA. If you have certain retirement accounts (such as IRAs), your limit can reach up to $250,000. Your limit can further be increased for each “pay-on-death” account that names beneficiaries. For instance, if you name each of your four children as beneficiaries on a POD account, each child would get up to $100,000 of coverage. That all adds up to $400,000 for the entire account.

3. Know the process. Bank seizures can either be the biggest hassle or nothing to worry about at all. Government regulators often close a bank of Fridays. Most times, another financial institution has already been lined up buy the failed bank’s business. Keep in mind, they buy the failed bank’s business minus any trouble loans or assets. As soon as regulators step in, they give the FDIC complete rein over the “merger.” Over the weekend, the FDIC finishes handling the case to ensure an hassle-free transition. By the time the bank opens the following Monday, it is already under new ownership. As with IndyMac’s situation, customers have complete access to their accounts the entire time.

4. Read it all. Once your accounts are transferred to the other institution, you are sure to get plenty of literature to read. Don’t toss it aside. Make sure you read everything. Check to see if the terms of your checking account and savings account stayed the same or if they changed. Also, the address where you send your installment loan payments may have changed. Don’t be caught unawares, make sure you read everything from the new institution.

5. Keep cash at home. You probably won’t need any cash at home if your bank fails. But, it is always better to be prepared. Keep just enough cash at home to get you through a couple of days in the even your bank isn’t sold immediately.

Chances are, your bank isn’t going to fail. If it does, chances are there won’t be anything to worry about. However, it is always better to be informed and stay prepared. You can be sure that you can protect your hard earned money.

Thanks to our guest blogger from Plastic Rewards, a site putting the best credit cards side by side and giving you the information you need to chose.

Insured by the National Credit Union Administration

I worked at a federal credit union for several years in college. There seemed to be a general abhorrence of credit unions by many people. I often heard the comment, “I need insurance on my money. That’s why I will never use a credit union.” Hearing this always made me laugh. What these people didn’t seem to realize is that credit unions are insured, just as much as banks are.

Credit Unions are insured by The National Credit Union Administration. This is a separate United States federal agency. NCUA supervises and charters federal credit unions. It also insures savings in federal and most state-chartered credit union institutions nationally. The insurance is backed by the National Credit Union Share Insurance Fund or NCUSIF. Some people also don’t realize that the NCUSIF is a federal fund that is backed the “the full faith and credit” of the United States government.

It is important to note that just as all banks aren’t insured by the FDIC, all credit unions aren’t backed by NCUA. There are 8,101 federally insured credit unions as of December 31, 2007. Collectively, these credit unions held more than $753.5 billion assets, loans of $526.9 billion, and had almost 87 million members. As you can see, the trend towards using credit unions instead of banks is increasing.

The President of the United States appoints a three member board to govern the NCUA. The Senate must also confirm each appointment. Typically, each board member serves six years. Often times, board members remain in office until their successor has been named, appointed, confirmed and sworn in.

President Franklin Delano Roosevelt signed the Federal Credit Union Act in 1934. This act helped charter all credit unions in all states. Again, this act was created to help stimulate a badly weakened economy from the Great Depression. This federal law sought to “make credit available and promote thrift through a national system of nonprofit, cooperative credit unions.”

If you use a credit union, chances are that your money is insured by the NCUA. Double check to make sure your money is protected. “Share” accounts (checking and savings accounts) are federally insured under the Standard Maximum Share Insurance Amount (SMSIA) up to $100,000. IRA accounts and Keogh account limits have recently been increased to $250,000.

As you can see, credit unions are a smart alternative to banks. They offer many of the same services as banks do, but with lower interest rates and better fee schedules. Make sure you are using a credit union that is insured by the NCUA to prevent losing everything that you’ve worked so hard for.

This was a guest post by Plastic Rewards, a great place to research credit card offers, and find the perfect personal or business card.

How American Express is Helping Students Build Their Credit

Major credit card companies, like American Express, could care less about how a student builds their credit, right? Absolutely wrong. American Express has recently been trying to help students built their credit. They do this by offering a number of realistic credit cards, especially designed with the college student in mind.

Many of the American Express student credit cards come with a variety of features that help students manage their finances and build their credit while still in school. In recent years, many college students didn’t feel that it was necessary to worry about their credit history while in college. This is a costly mistake. The longer your credit history, the better your credit will be. Many students didn’t realize that good credit took years and years to build. They thought that all they had to do was graduate college, land a great paying job, take out a mortgage loan, several car loans and some credit cards, and instantly they would have good credit.

American Express, along with other major credit card companies, have begun offering “student” credit cards to help students realize the need for good credit. American Express offers online account management which helps the students get into good credit habits. It offers email reminders about upcoming payment due dates and other notifications. Here are some of American Express’s most popular credit cards.

Blue from American Express
-No Annual Fee
-0% APR on purchases for the first 15 months
-Low balance transfer fees
-Earn points-points can be redeemed for gift cards, travel, merchandise, entertainment, etc
-Membership Rewards Program
-Express approval

Clear from American Express
-No fees of any kind (no annual fees, late fees, overage fees, cash advance fees, balance transfer fees, etc)
-0% APR for up to 12 months
-Automatic Rewards
-Every time you spend $2500, you get an American Express gift card worth $25
-Carry a balance or pay in full
-Express approval

Although these credit cards are not designed specifically for the student, they are a great way to earn rewards and build credit. These reward credit cards are the most popular reward credit cards among students and professionals. If you are looking to build your credit history and get rewarded at the same time, try the Blue card or Clear card from American Express.

How $45 Saved Me Over $1000 This Year

Saving all that money was simple and easy. All I had to do was change my behavior slightly for my family and I to reap such a large benefit. It took time to implement and getting my wife to also change her behavior wasn’t the easiest either, but we did it. We have been able to save over $1000 just this year alone on hotel and airline tickets. All we did is use our American Express Starwood credit card for every possible purchase we could and pay it off every month, allowing us to acquire a significant amount of points. The only money it cost us was the $45 annual charged by American Express.

This year we took a vacation to San Diego to visit friends of ours whom we had not seen in several years. We decided to stay in a Starwood Hotel close to their home that would have cost us $119 per night for a total of $595 for the five nights we vacationed in San Diego. Instead of paying out the almost $600 before taxes and fees, we were able to redeem accumulated points and stay in the hotel for free - eliminating a very large portion of any vacation expense. This wasn’t the first time we had redeemed points for a free hotel stay either.

I was also able to travel to San Antonio to visit with family. Guess how I got there? That’s right, with points I was able to redeem for an airline ticket on Delta Airlines. With sharply increasing prices on airline travel it didn’t make much sense to buy an airline ticket. I was simply able to use my points and save over $400 on the cost of my trip - a huge savings!

This is how easy it was for me to save over $1000 by spending only $45. We just used our credit card to charge all our purchases and earn reward points. You can do the same or similar by finding a credit card that fits you and your lifestyle. Just because a credit card has an annual, doesn’t mean it is not worth considering, given the rewards it offers.

Increase Your Credit Score With Your Cash Back Credit Card

Is your credit score dragging behind where it should be because you don’t have any incentive to pull it up? Don’t you want to stop paying higher payments just because your credit score is too low? Don’t you finally want to have good credit? You can increase your credit score with your cash back credit card. It is probably the easiest way to increase you credit score. You can get paid to increase your credit score.

If you are looking to increase your credit score, do it with your cash back credit card. You’ve never heard of raising your credit score and getting to paid to do it, have you? Cash back credit cards offer many incentives that will help you raise your credit score. It isn’t even hard work to do it. Just follow these simple steps.

1. Make your payments on time. You can earn extra points/cash back when you make your payments on time. For instance, Visa has a program that lets you earn an extra $50 cash back when you make your payments on time. You can do this two times a year. That is an extra $100 just for being responsible and paying on time. Every time you make your payments on time, you will also be raising your credit score. Cool, huh?

2. Pay off your balance. Don’t keep a balance on your cash back credit card. Pay off your balance every month. You will still be earning cash back because you will still be using your cash back credit card. However, you will avoid having to pay interest on your balance. You’ll be able to make more cash back because you won’t have to give a portion of the cash you earn back to the credit card company. This will also get you in the habit of making wise credit card purchases.

3. Keep it low. Some cash back credit card programs offer you the chance to lower your interest rate when your account has been in good standing for a certain time period. Take advantage of this. It really doesn’t take much to have your account in good standing. Having your account in good standing will allow you to raise your credit score and lower your interest rate. Take advantage of this as soon as you can.

It is so simple to increase your credit score by using your cash back credit card. As long as you handle your cash back credit account wisely, you will be raising that credit score while you get paid to do it. Make your payments on time to earn extra cash back. Pay off your balance every month. Keep your account in good standing with programs like household budgeting software from money management groups like Finicity so that you can lower your interest rate and increase your credit score. Use your cash back cards to increase your credit score and make some money at the same time.

Why Are Cash Back Credit Cards So Popular?

Cash back credit cards are the newest hot item in the financial market.  People are looking for more ways to save money.  They don’t seem to be interested in the traditional way to save money…put everything into a savings account or certificate account.  Consumers want a way that they can save money while still spending money.

Rising gas prices are much of the culprit for why people want to start saving money now.  Gas prices aren’t the only item that has gotten more expensive.  Gas prices have also pushed the prices of other products up.  Millions of people across the country have found the need to alter their lifestyle because of the price increase.  So, people are looking for any way that they can still save money while spending money, especially on high gas prices.  That’s where cash back credit cards come into play.

Cash back credit cards offer consumers so many benefits.  They offer the consumer a way to combat increasing inflation.  They are extremely convenient and if used properly, can free up the financial burden that so many people are facing today.  Here are some more benefits for using a cash back credit card.

1. Low APR.  If you have good credit, you can qualify for a low APR cash back credit card.  This is extremely beneficial because you’ll be able to make money by spending money.  By having a low APR cash back credit card, you won’t be spending as much money on interest payments.  Pay off your balance each month in order to pay no interest.  If you do this, you’ll earn cash back without letting the credit card company profit at all.

2. Convenience.  Cash back credit cards are just as convenient as regular credit cards.  In fact, I dare to say that they are more convenient.  Yes, you’ll get the same features that a regular credit cards offers.  You’ll also get the added convenience of online management.  Every time you use your cash back credit card, it will automatically keep track of the points that you’ve earned.  Depending on how much you spend, your credit card company will automatically send you a check for the cash back you’ve earned.  If nothing else, they will automatically send you a notification telling you you can redeem your reward whenever you want.  Now, that’s what I call convenience.

 3. Get paid.  Get paid to go shopping by using a cash back credit card.  All you have to do is use your cash back credit card to make everyday purchases.  In time, you’ll earn a significant amount of cash back.  Credit card companies offer fantastic incentives and a good amount of cash back points when you use their card.  Earn cash back by using your credit card today.

As you can see, there are so many benefits for using a cash back credit card.  Don’t stress about how you are going to fill up your car next time.  Use a cash back credit card and let the credit card companies pay you.  Shop around for the best cash back credit card to get the most cash back possible.  It won’t take long before you realize why cash back credit cards are so popular.

Benefits of Cash Back Credit Cards

It isn’t surprising to anyone that cash back credit cards are so popular. They offer consumers that ability to fight inflation and to get paid to shop. Here are some of the most common benefits of cash back credit cards for better money management.

1. Up to 5% cash back on qualified purchases-
Most of the major credit cards companies offer up to 5% cash back on any qualified purchases. Some programs offer you 5% cash back on gasoline purchases and 1% back on anything else. Other programs offer you 3% cash back on purchases at restaurants, grocery stores and gas stations and 1% cash back. Each program is different and can offer a different percentage back for each spending category. The key is to find what program works best for you.

2. No annual fee-
So many cash back credit card programs offer no annual fees. This works well because you won’t have to pay them a fee for using their card. Instead, they will split their commission with you and give you the opportunity to earn cash back without having to pay those silly annual fees.

3. Low interest rates-
You want to take advantage of low interest rates whenever possible, especially if you carry your credit card balance over from month to month. The point of cash back credit card programs is to actually get cash back. Don’t earn cash back and turn around and give it back to the credit card companies by paying expensive interest payments.

4. Up to 20% cash back when you shop with affiliate retailers-
Some companies offer you the chance to earn up to 20% cash back when you shop with any other their affiliate network. A lot of these credit card companies have teamed up with different retailers to offer their customers exclusive benefits. Not only will you get great deals, but you will get to earn a much higher percentage cash back.

5. No cash advance fees-
This is a popular option because it is rare that you get to take advantage of not having to pay cash advance fees. More and more credit card companies are taking advantage of offering this to get more people to sign up for cash back programs.

6. No balance transfer fees-
This is similar to no cash advance fees. Don’t get stuck paying balance transfer fees when so many companies are offering no balance transfer fees.

7. No expiration dates-
Most cash back credit card programs offer no expiration dates. This means that you don’t have to use your cash back in a certain amount of time. As long as you have your account, you are free to use your cash back whenever you’d like.

8. No limits to the amount of cash you can earn-
You can earn unlimited amounts of cash back with most of these programs. Take advantage of this opportunity and use your cash back credit card as much as you’d like to earn the most cash back possible.

9. No overlimit fees-
Don’t get paid a $25 (or higher) fee when you go a few dollars over your limit. Get a cash back credit card that doesn’t penalize you so heavily.

10. Additional points or cash back when you make payments on time-
There are programs available that reward you more for making your payments on time. Some of these programs give you an additional amount of money or more points several times a year when you pay on time.

These are the ten most common benefits that come with many cash back credit card programs. You can all of these benefits by using one cash back credit card. Be sure to shop around and get the best program you can.

Tips - How You Can Combat Inflation With Your Cash Back Credit Card

It isn’t a surprise to anyone that the price of everything has gone up. You used to be able to buy a gallon of gas for $1. Remember when you could buy a gallon of milk for under $2. You can’t find these prices anywhere anymore. What do we have to thank? Inflation. Rising gas prices certainly haven’t helped inflation at all. As the price of gas keeps going up, so does the price of everything else.

You don’t have to change your lifestyle just because everything is more expensive. You can combat inflation by using your cash back credit card. Cash back cards have become extremely popular because they allow people to earn money while they spend money. People who tend to pay off their credit cards every month are especially fond of reward programs because they end up benefiting the most.

Cash back reward programs really are the way to go. These programs offer simple and easy ways to redeem your cash back after you’ve accumulated a certain amount. Each program can also offer low interest rates and minimum fees. If you know how to manage your credit cards, you can really end up making a lot of money from your cash back credit card.

If you pay off your credit card every month, you can earn extra money every time you use your credit card. If you carry balances on your credit card, you can earn enough money to pay the interest payments on your credit card each month. Either way, you’ll reduce the financial pain of inflation by using your cash back credit card. Imagine getting a $50 check in the mail from your credit card company every few months. It’s about time you got paid to shop. Take advantage of the cash back programs that the major credit card companies are offering. You don’t have to be a slave to inflation; you can fight it with your cash back credit card.

The Top 5 Cash Back Credit Cards

Cash back credit cards really are the new craze. People from every corner of the world have found out why. Cash back cards offer you a way to make money while spending money. Credit card companies are offering outrageous benefits for using cash back credit cards. You can earn cash back in no time each time you use your credit card. Here are the top 5 most popular cash back credit cards.

Blue Cash from American Express
-Earn 5% cash back on purchases you make everyday
-Earn cash back even on gas purchases
-Earn unlimited cash back
-Get 0% APR for the first year (12 months)
-Low balance transfer fee
-No annual fee
-Express approval
-Perfect for people with excellent credit

Discover More Card
-APR varies from 10.99%-18.99% depending on your credit
-Earn 5% cash back in spending categories that can change four times a year
-Earn 5%-20% when you shop at top retailers through Discover’s exclusive online shopping site
-0% APR for the first 12 months on Balance Transfers
-0% APR for the first 6 months on Purchases
-No Annual fee
-Double your rewards when you redeem your points for gift cards or instant eCertificates

Chase Freedom Card
-Earn $50 cash back after you make your first purchase
-Earn 3% back from your top 3 everyday purchase categories
-Earn 1% back on every $1 on all other purchases
-Every time you redeem $200 in points, earn another $50
-The perfect card for people with great credit
-Low balance transfer fees

Chase PerfectCard
-Earn 0% APR for the first 6 months on account opening purchases
-Earn 6% cash back on all gas purchases for the first 90 days
-Earn 3% cash back on all gas purchases after the first 90 days
-Earn 1% cash back on all other purchases
-No annual fee
-Low balance transfer fee

Discover Open Road
-Earn 5% cash back on gas purchases and auto maintenance purchases
-Earn 5%-20% when you shop at top retailers through Discover’s exclusive online shopping site
-No Annual fee
-Online account access
-Online bill payment options
-Double your rewards when you redeem your points for gift cards or instant eCertificates

Keep in mind that each consumer is different. Each person makes different purchases. There isn’t one “best” cash back credit card. However, there is one “best” card just for you. Take the time to look at the benefits that each card offers. Make your decision based on your spending habits and your individual needs. Certainly one of these top 5 cash back cards will suite your needs and get your the cash back that you deserve.