Family Financial Expert & Personal Finance Advisor

What with the very tough economy and hard times so many are enduring there is a greater need for a family financial expert to help your family finances. Personal financial solutions need to be easily implemented, free and also simple. Falling into debt is something most of us manage to do very well. In fact, we are experts at it, especially in the past when consumer credit and stated income or no-doc mortgage loans were readily available.

The fact is the major credit card companies, mortgage lenders and banks have become real leery of extending credit over the past few years. As a result, your credit bureau report and FICO credit score likely declined. In addition, you may have lost much of your old spending power but don’t despair as that may actually be a blessing in disguise if you can get established on a mostly cash basis and use debit cards more often vs credit cards.

Try real hard to stop living pay-day to pay-day and sometimes needing short term loans or credit card cash advances, and especially avoid the incredible high interest rate payday loans. However, if you fall into that credit trap at least seek out a good family financial expert and advisor, as soon as possible. The advisor may be able to also help-out as far as a mortgage loan modification is concerned, though that’s not easily done. In the meantime, try to avoid drowning under a mountain of bills!

Please pay a visit to Family Financial Expert website for additional information about investing and debts.

Capital One Credit Discrimination by Zip Code

There have been ongoing rumors since credit became tough to get that some creditors (American Express in particular) have been rejecting new applications or reducing existing customer credit limits based on where the borrower lives. It was said American Express was doing so on the grounds that home prices and foreclosures were worse depending on your zip code. That’s a reason there are new AmericanExpressSucks and other protest websites appeaing on the internet.

Now we have first-hand evidence that credit discrimination based on where you live is in fact hapenning.

Here is a letter from CaptalOne (the big credit card firm) I now have in my hand dated April 5 2009 which say’s “Thanks for your recent request for auto financing. After reviewing your application we cannot grant your request for credit because of worsening economic conditions in your area, in addition to the year of your mortgage.”

So basically it means because the applicants geographic area has lots of foreclosures and his/her home may possibly have upside down home equity thay are not able to buy a new car!

It’s interesting to note the Capital One credit turn-down letter does not mention the normal credit rejection reasons such as past due accounts and negative credit issues. I think that’s a real shame and huge consumer letdown issue which can only make the economy worse (not better) due to reduced credit availability, combined with less retail sales as a direct result.

If this discriminatory credit “redlining” was done by home lenders or Realtors® involving real estate sales it’s believed doing so would be illegal and subject to presecution and fines so why is it legal to discriminate by credit card firms and auto lenders?

That kind of blatant credit discrimination and redlining needs to be complained about to the Federal Trade Commission in our opinion. You may file a consumer complaint at this FTC web site http://www.ftccomplaintassistant.gov

How to Apply now for Loan Modification Program

President Obama’s government loan modification and loan refinance program part of the gov bailout package was announced on March 4 2009. At first glance it appears to be somewhat complex with a number of rules and requirements for qualification.

Rather than analyze it here in much detail we suggest the best option for you to pursue if you need help with your mortgage payments is to visit to the new government website FinancialStability.gov and apply for the refinance or modification programs immediately.

Apparently there are two different programs from what we understand. One involves modifications providing you are no more than 5% underwater and 60 days or more past due on your home loan payments. The other apparently relates to homeowners who are current with payments but possibly are more than 5% upside-down. Please do not quote us on that and investigate the Affordable Home Modification plan yourself because the program facts, rules and requirements are not real clear at this time.