Credit Essentials

Whether you are a homebuyer or a homeowner, your credit is the single most important element in your financial success. 

As a homebuyer, your credit report and score will determine whether or not you will be approved for a mortgage and how much you will pay for your home over the life of your loan.  The higher your credit score, the lower your interest rate will be.

As a homeowner, your credit report and score will determine your ability to refinance your mortgage or to obtain the credit you need to maintain your home.

Why does your credit matter?

• An estimated 80% of credit reports contain errors that damage your credit rating
• Identity thieves can destroy a strong financial foundation—don’t be a victim!
• Save yourself time and money by knowing your credit status before applying for loans
• Don’t miss out—there are simple and foolproof ways to raise your credit score

Start improving your credit profile, now.

• Meet with a Homeownership Advisor for a confidential one-on-one counseling session. Find one near you...
• Take a class on raising your credit score. Find one near you...
• Schedule an online Mortgage Profile Meeting (credit assessment) today...

Credit News

Phase Two of the Credit Card Act Takes Effect

The Credit Card Act has reformed a significant amount of the credit card business for the benefit of the consumer. It is important to be aware of the changes as they can dramatically impact your credit score and overall financial position. We have highlighted a few major changes below:

• Credit card issuers will not be able to increase interest rates on existing credit card balances unless the borrower is at least 60 days late on the account. This will eliminate the retroactive rate increases and the universal default clause where credit card issuers would periodically review an account holder’s current credit standing to determine changes in terms and annual percentage rates.
• Credit card issuers will not be able to charge over-limit fees unless they obtain the account holder’s consent to accept and process over-limit transactions beforehand. If consent is obtained, the card issuer will not be able to charge more than one over-limit fee per billing cycle. Additionally, credit card issuers will not be able to charge an over-limit fee if interest charges or other fees are the sole reason for pushing the account holder over their limit.
• Double-cycle billing, a process where credit card issuers use the previous month’s balance to calculate interest charges for the current month, becomes illegal.
• Subprime or “fee harvester” credit cards will have fee limits. Fees on a credit card (other than late fees, over-limit fees, or insufficient funds charges) will not be able to exceed more than 25 percent of the credit limit when the account is opened.

For more information on the Credit Card Act, please click here...

Phase One of President Obama's Credit Card Act Takes Effect

On August 20, the first phase of President Obama's credit card reforms was launched. The reforms require credit card companies to notify cardholders 45 days before an increase in rates, which is a significant improvement from the previous 15 day notification period. The new policy also gives borrowers the option to accept the new rate or pay down the current debt at the current rate while relinquishing further use of the card. Card companies must also mail bills 21 days before the due date, giving cardholders a week more time to prepare for payments. The full effect of the reforms will be felt in February 2010.

State Farm Bank and HomeFree-USA Join to Make it Possible

Click here to Learn 5 Ways to Improve Your Credit Score in 30 Days and get a free State Farm Insurance and Financial Review...

Contact Us!

HomeFree-USA
3401A East West Highway
Hyattsville, MD  20782
Phone: 301.891.8400 / 1.866. OWN.2DAY