Dear Penny,My mechanic just told me my 16-year-old car is a fire hazard and that my only option is to sell it for scrap metal. I’ll probably get $100 for it.I have no money saved, and I’m recovering from wrecking my credit in college. But I need a car ASAP. Public transportation where I live is a joke, and my job requires me to travel across three counties.I know I’m going to have a high interest rate due to my bad credit, and I’m OK with buying an older used car. But I’m terrified of negotiating with a used-car salesperson. My parents worked out the terms of the deal when I bought this car as a teenager. I’m afraid the salesperson will sense my desperation — especially since I don’t have a trade-in and I don’t have much time to shop around — and tack on extra fees and interest.Any tips that will help me deal with a used-car lot?Sincerely,Carless and Credit ChallengedDear CCC,While we advocate for buying used cars and … [Read more...] about Dear Penny: I need a car, but my credit is awful. Will I get ripped off?
I have bad credit but need a personal loan
Q: Is it true that no credit is as bad as bad credit? I recently paid off my house and have no car loans. I use four credit cards every month, including one for automatic monthly bills. All are paid in full as soon as I get the bills. So practically speaking, I have zero debt. Am I making a credit history if I don't have debt? I had excellent credit scores before I paid off my house. A: You still do. You don't have to carry debt to have good credit scores. The myth that you do — that the only people with good credit are the ones in debt — is unfortunately a persistent one, typically spread by people who don't understand how credit scores work. Rest assured that using your credit cards lightly but regularly, and paying the balances in full every month, is the right thing for both your scores and your finances in general. Your paid-off mortgage should remain on your credit report for years to come, and it will continue to help your scores. Scoring formulas … [Read more...] about Liz Weston: Do you have to carry debt to have good credit?
Susan Tompor Detroit Free Press Published 7:00 AM EDT Sep 19, 2018 Tracey Taschereau tried over and over again to find a quick loan online. And somehow, the scammers figured out she was desperate. Tascherau, 48, had trouble paying everything from payday loans to utility bills to the property taxes owed a home she was buying on a land contract in Dearborn Heights. Her bank account had but $100 or $200. She only had seasonal part-time work in a school cafeteria. So she searched online for loans made to people in tough spots. And she was rejected each and every time. “I have real bad credit, so the payday loans are hard to get too,” Taschereau said. All of a sudden, though, she got an email out of the blue in early February from an outfit called Ace Cash Express saying she was approved for a loan. “OK, great somebody is finally willing to lend me money that I need,” she thought. “They asked for my bank account information … [Read more...] about How check scam victim paid price for depositing a fake check
Dave Ramsey Columnist Published 12:00 p.m. UTC Jul 28, 2018 Why do you think all debt is bad? Aren’t some kinds of debt, like a mortgage or student loans, good? A.: It sounds like you’re letting me know you think some kinds of debt are OK, instead of really asking for my opinion. When you ask a question that’s really a statement, it’s called a passive-aggressive question. That’s OK. You and I will now argue as best we can in a newspaper column. It’s not necessarily a question of what I think. I’m really just the aggregator of information we’ve gathered while walking with people through their financial issues. I’ve worked with tens of thousands of folks over nearly 30 years, everyone from billionaires and millionaires to broke people, and those in between. In the process, we’ve collected a lot of data through formal research projects — I’m talking about a huge stockpile of statistics, facts and figures. … [Read more...] about Dave Ramsey: The numbers don’t lie — debt is bad
Liz Weston NerdWallet Published 9:02 p.m. UTC Jul 27, 2018 Owing money in retirement isn’t ideal — but most people do. Seventy percent of U.S. households headed by people ages 65 to 74 had at least some debt in 2016, according to the Federal Reserve’s latest Survey of Consumer Finances. So did half of those 75 and older. Paying debt usually gets more difficult on a fixed income. Mortgage debt, especially, can be a huge burden in retirement. Retirees may have to withdraw larger amounts from their retirement funds to cover payments on debt, which can trigger higher tax bills and increase the chances they’ll run short of money. People have the most options to deal with debt if they create a plan before they retire, financial planners say. Refinancing a mortgage, for example, is usually less of a hassle while people are still employed. It’s also typically easier to generate the extra income that may be needed to pay off debt. “It is much easier to … [Read more...] about Most older people have debt; here’s how to handle it