"The Credit Genie" 

   Consumers Best Friend !

Consumer Knowledge is Not Taught in College

Now that you understand the penalties (from the FICO chart). Let's talk about "Consumerism".  The desire to consume is driven by targeted-marketing, advertising and multi-media influence. With offers too good to resist.  Here, you are the "target"!

Right now!  Right after the X-mas holidays, we are being bom-barded with deals too good to refuse!

Good Credit. Bad Credit: You can get a new car, no money down, no payments for six months, and or get a great deal on furniture with no money down and no payments for months. Need a "Pay-Day" loan?  No problem.  No credit check, no late fees and you get the money the same day...Wow!  No payments for six months? Well no monthly payments, initially anyway!  Here I'm breaking it all down for you.

With credit/finance"risk = rate".  Collatral credit like a car, a house  or furniture is easiest to get, because if you don't pay, they can re-posess the collateral to settle the debt. 

Non-Collateral Finance:  This is a very high risk, therefore the interest rate is much higher!  Here there is no collateral securring the debt. If you don't pay they can't  re-posess whatever you bought with your credit card.  

Personal Loans with no collateral:  With no credit check, no late fees, etc. This is a trap!  Here you have the highest risk which means the highest interest rates possible.  Alongwith a whole variety of tricks and traps to make it almost impossible to repay.  

Deferred Paymants:  Here: The interest is skipped  for a specified number of months, however, the interest accrues on the back end of the debt. Meaning you are paying longer and even more interest overall, than you would have paid if you didn't take the "Deferred" interest deal. 

Car Title Loan:  These great deals are designed to trap you in debts that you can not get out of with your car, here you are almost sure to lose your car!  Example: A $700.00 car title loan will cost you over 4,000.00 to repay. The catch is in the "terms and conditions".  that you could not /or did not read and /or understand before you signed!

Maintaining your good credit begins with planning and  budgeting your money!  This is the best way to control your spending to avoid these credit traps. Most "real good deals", are likely to be the death nail of your good credit. Protect your self by understanding the terms and conditions of your financing agremments...Before you sign! 

 CAUTION!:  Here’s the skinny on what happens when/if you ever miss a single payment during a "Special Financing" deal. The deal is off ! They all use these same basic tactics, terms and conditions when/if you ever miss a payment .

One 30 days late payment will result in the entire unpaid balance now being charged interest at current market rate (Now from 24.99 to 29.99% or more) This penalty is retro-active to the original date of the purchase and will remain in efffect until the entire debt is paid in full. 

If you should take advantage of a "Special finanace offer" ,better have a "Piggy bank" or a good friend/relative make you a loan.

 

 

 

Special financing offers can be a great deal...or Your worse nightmare! 

Great...Only if you can live up to the terms of the agreement for the life of the deal, which could be five years or more? 

 

 Do you have a "Piggy Bank"? It just might come in handy. 

Keep reading...Learn what could happen.