Tidbits^® - April 2007

Credit insight from Credit.com

Welcome to the Credit.com newsletter!

This free newsletter delivers easy-to-read tidbits about credit directly from personal finance experts. In this issue, we're showing you how to check your mortgage health. We'd love to hear from you! Send an email to tidbits@credit.com with your credit questions or comments anytime!

Quick Tip

April 15 is only a little more than a week away. Are you ready?

Avoid paying your tax bill by credit card if possible. You'll be charged a 2.5% to 3% fee for the convenience. Instead, find out about other tax payment options in our free article.

What to do if you can't pay your taxes - http://www.credit.com/r/tidbits-cant-pay-taxes

Mortgage Health Check

Mortgage industry problems have been getting a lot of attention in the news during the past few weeks. Over 40 subprime mortgage lenders have gone out of business, mortgage default rates are rising, consumers are scrambling to refinance and the whole market is starting to look a little queasy. What should homebuyers do?

Credit.com breaks it down for you:

Know your Mortgage
According to a recent survey, 34% of homebuyers have no idea what kind of mortgage they have. That's a shocking statistic!
Your future financial plans might be very different if you have an adjustable rate mortgage (ARM) instead of a fixed rate mortgage (FRM). And home loans these days are much more complicated than just adjustable and fixed. A recent Credit.com article defined more than 20 common types of mortgages- http://www.credit.com/r/tidbits-picking-mortgage

Take a few minutes tonight to check exactly what kind of home loan you have. If you have an adjustable rate mortgage, look to see when your loan is scheduled to reset. If your APR increases with the reset, you might be facing a much higher monthly payment.
You can use this free mortgage calculator and your loan's rate index to estimate how your mortgage may change - http://credit.com/r/tidbits-calc-homeloan

Know your Credit
Subprime borrowers (people with a credit score under 650) could have a very hard time finding a lender to refinance their mortgage. Subprime mortgage industry problems have led to much stricter lending rules for people with less than perfect credit. If you are not sure where your credit stands, order your credit reports & credit scores online right now - http://credit.com/r/tidbits-calc-homeloan

The good news is that subprime borrowers might be able to increase their credit scores to the prime range before a refinance. A lot depends on your own credit history, but simple things like reducing your credit card balances, avoiding applications for credit, and removing inaccurate negative records can boost your credit scores significantly. Read more about improving your credit online here - http://www.credit.com/r/tidbits-five-steps

Know your Options
Homeowners should start to plan now to avoid potential problems in the future. ARM borrowers need to be prepared for higher monthly payments when their loan resets. Consider creating a family budget, consolidating your debts, talking to a credit counselor, or possibly selling your home.

If you are planning to refinance your loan before a rate reset, calculate your loan options and refinance costs today. Also, check to make sure that your loan doesn't have a pre-payment penalty that would make refinancing expensive. You can apply for a refinance loan online at Credit.com - http://credit.com/r/refinance-mortgage

Already in Trouble?
If you are struggling to pay your mortgage, it's important to act quickly so you don't lose your home. Our expert, Gerri Detweiler, has advice for saving your home from foreclosure - http://www.credit.com/r/tidbits-save-your-home

Do you have a question about your mortgage or a story to share? Send our team of credit experts (including Randy Johnson who has over 20 years of experience in the mortgage business) an email at tidbits@credit.com.

Ask John

One unpaid medical bill, cell phone account or even library fine can lead to a collection account and major credit score damage.

In this month's Ask John article, learn how to avoid collections or deal with an existing collection debt.

Read more about the secret world of collections - http://www.credit.com/r/tidbit_vol19

On the Blog

Identity theft has become a global problem. Your stolen credit card information could easily end up being used anywhere from Boston to Bulgaria.

In this post, Nancy Castleman shares tips for protecting your computer and identity from identity theft.

Read more about international ID theft - http://www.creditbloggers.com/2007/03/identity_thieve.html

Quote of the Month

"If we had no winter, the spring would not be so pleasant: if we did not sometimes taste of adversity, prosperity would not be so welcome."
- Anne Bradstreet

Tidbits^® - April 2007

About this newsletter
This information has been compiled and provided by Credit.com as a service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's
situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.

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