How Marriage Affects Your Credit Score

So, you have found the person that you want to spend the rest of your life with- congratulations! Few things can be more exciting and meaningful than this. Getting married comes with combining families, routines, living environments, and, of course, finances.

While your basic philosophies on finances may already be well known to each other, one thing that may often be overlooked is how your credit report is going to be affected. It is incredibly important that among all of the other conversations that you are having while planning your marriage, that your credit and debt be a huge topic of discussion. After all, finances tend to be one of the most common sources of difficulties in marriage. For that reason, we suggest that you get a good grasp on your combined situation as soon as possible.

One of the most common questions is whether or not one partner’s bad credit will bring down the other partner’s good credit. When you get married, items that are contained on your spouse’s credit report do not instantly become transferred over to yours. You do of course have the ability to add your spouse as an authorized user on your account, in which case it would then become an item on both of your reports. Aside from this though, the accounts and items reported on your spouse’s credit report before you are married will never show up on your own. In most instances, only the accounts which you obtain jointly will appear on both of your reports.

Although the items on each person’s report do not automatically get transferred over, any negative items will absolutely affect your creditworthiness when you go to apply for a loan jointly. If one partner has great credit and the other one has bad credit and you go to obtain a loan for a home or a car jointly, the bad credit will absolutely pull down the good.

There are some instances where things do get a bit trickier. Some states have community property laws and in those states, any debt incurred by either party after you have gotten married can be considered joint debt. This means if you get married and your spouse goes out and obtains new lines of credit and defaults on them, this would then affect your credit as well. That said, it is ill-advised to be unconcerned about rebuilding one parties credit if it is already in the tank, as those new remarks brought on during your marriage will affect both individuals. Again, this is only in the states that have community property laws.

Here are the states that have community property laws according to Wikipedia.

Community Property States

For new couples or even couples who have been together for years, trying to overcome financial difficulties in your marriage can be a huge hurdle. You may also enjoy our Personal Finance 101 series, which discusses honest budgeting, the importance of an emergency fund, and the basics of your credit score.

If one or both of you have debts that are out of control or difficult to be managed, it is important to tackle that burden before it puts a strain on your new marriage. We suggest you reach out to a Debt Advisor here at FaithWorks Financial to learn how to put a plan of action in place to have these accounts resolved and together you can begin working towards your newly combined financial goals.

There is a lot of hype about student loans these days. After all, there is currently over 1.1 trillion dollars of student loan debt in America. As a result, there have been plenty of advertisements and promotions about consolidating your Federal student loan debts. Today, we’ll explore how FaithWorks can support you in exploring Christian student loan consolidation!

Debt consolidation is the act of taking multiple loans from varying financial institutions and combining them into one single loan. FaithWorks helps people find debt consolidation loans to consolidate high-interest unsecured debt like credit cards and personal loans. The same concept works for student loans, too.

The debt consolidation process issues a new loan with a single, fixed interest rate. Ideally, consolidating debt should give you a lower monthly payment, lower interest rates, and simplicity in the form of one single monthly payment. When done right, it can do wonders for your cashflow and your budget.

For students at colleges and universities all around the country, a federal student loan consolidation can be a great way to relieve some of the burden that comes with paying for higher education. However, there are a few very important factors that you should consider to help make sure that debt consolidation is right for you in the first place.

Your Current Monthly Payment

For starters, take a look at your current student loans and see if your current monthly payments are actually manageable. Most students don’t have to begin repaying their loans until they have either dropped below full-time status or have graduated from their university. If you have fair interest rates and you are not having a difficult time keeping up with your loan payments each month, you may not have much to gain from a consolidation in the first place.

The Number of Loans You Have

One of the main benefits of loan consolidation is that multiple bills suddenly become a single bill due on the same date each month. However, if you only have one or two loans or are having no problems keeping track of your current commitments, student loan consolidation may have a lot to offer you. The bigger benefit is experienced by people who have four or more high-interest student loans that they are making payments on each month.

Current Interest Rates

Another factor that you’re going to want to consider is the interest rate that is attached to each of your current loans. People with high or variable interest rates stand to benefit the most from a federal loan consolidation. If you have reasonable fixed interest rates on one or more of your loans, you may actually lock yourself into a higher rate if you end up consolidating. If you find that your interest rates average over six or 7%, a consolidation may be worth taking a look at.

The Long Haul

You will have to consider the general basis of a consolidation- restructuring your term. If you only have a few payments left it may not make any sense for you to consolidate. If you have quite a long repayment ahead of you though, and would benefit from that lower interest rate and monthly payment, you may want to explore the consolidation or other student loan resources.

Christian Student Loan Consolidation

You may have already asked yourself by now, “What’s the difference between a Christian student loan consolidation and a regular student loan consolidation?”. The simple difference is that you will be working with somebody with like-minded values who will go the extra mile to help you solve your debt situation and present you with honest information. In fact, anyone can consolidate their federal student loans on their own directly through the Department of Education. FaithWorks is here to help you decide if student loan consolidation is right for you.

A student loan consolidation can often prove very effective in simplifying your finances and help you get on sound financial footing. If you would like more information please complete the form on the right hand side to request a call from a FaithWorks Financial Christian Debt Advisor today!

Massive student loan debt seems like a fate etched in stone for college graduates everywhere. It can take several years, even with a high-paying job, to eliminate student loan debt. Some post-graduates find themselves wondering if the cost of their education was even worth the effort. The good news is making slow and steady repayments is not the only solution. Many people do not realize that volunteering can also erase student loan debt.

Many organizations will eliminate a portion of student loan debt to college graduates who volunteer their time and talents for a specified period of time. The spirit of volunteering aligns with basic Christian debt management principles. Serving others to erase debt shows an outward commitment to imitate the deeds of Christ. This is a great way to help others and do good in our world, while getting some assistance with those student loan obligations.

The following organizations offer student loan debt relief through volunteer opportunities. Please note that their programs may change overtime, so we cannot guarantee accuracy of the following statements. We have provided links to each though, so feel free to review the organizations direct website for more information.

Peace Corps

As a volunteer program run by the U.S. Government, the Peace Corps sends volunteers to more than 70 nations. Volunteers work worldwide to improve education, agriculture, business and reduce hunger and poverty. Peace Corps volunteers are trained for three months and serve for a minimum of 24 months. The Peace Corps will repay up to 70 percent of qualifying student loans, depending on your length of service as a volunteer.

National Guard

Serving in the armed forces can also reduce the burden felt from student loan debt. College graduates may be eligible to receive up to $10,000 in student loan repayment in the Army National Guard. The Air National Guard has a similar student loan reimbursement program in place for college graduates. These programs can vary depending on the terms of recruitment, so it is a good idea to check with your local National Guard recruitment offices for more information.

AmeriCorps VISTA

A domestic version of the Peace Corps, AmeriCorps VISTA is dedicated to assisting nonprofit and faith-based organizations in helping low income individuals and communities eradicate hunger, homelessness, poverty and illiteracy. At the time of this writing, for a full year of service volunteers receive $4,725 to be applied toward student loans. In return, volunteers are expected to commit to 1,700 hours of community service.

Medical service

Added medical or nursing school debt can make repaying student loans more difficult. The good news is multiple options are available for new doctors and nurse to get out from under this burden. Many programs offer debt repayment for practicing in places lacking adequate medical care. Some agencies, such as the U.S. National Institute of Health, will repay up to $35,000 on student loans for doctors and nurses they employ.

If dedicating a long period of time to volunteer work is not an option but you are still overwhelmed with student loan debt, a Federal Student Loan Consolidation through FaithWorks Financial may provide you with the student loan relief you are in need of. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation to help you find your best option.

It may seem unusual to bring the term “abundance” into a conversation about Christian budgeting and implementing responsible Christian financial planning, especially if you are struggling to make ends meet.

As Christians, we sometimes fail to understand the true meaning of living under abundance. Our culture tends to equate that term with the dictionary version that describes abundance as “an excessive amount of something”. Abundance is better viewed as a sufficient amount for immediate needs, plus a surplus. The amount of food in a well-stocked cupboard, for example, may likely be an abundance as it meets our needs and will not be depleted by our immediate needs. We would not be likely to consider that excessive, though.

An Old Adage Lends Itself to Christian Financial Planning

The old “a penny saved is a penny earned” mindset can be much too easy to forget!

When we find ourselves in a situation where we have unexpected money (we’ve yet to meet such a thing as “extra money”), the perspective from which the blessing is viewed has a tremendous impact on how it is managed. To view the funds as being extra or excess makes it much easier to simply spend on a luxury item. We’ve all probably said it at one time or another- “I only spent $100 at the grocery store instead of $140, let’s eat out tomorrow night!”. Viewing that instead as abundance may allow us to put that money to better use.

A Bible Perspective on Finances

In the book of Matthew, we read the account where Jesus feeds five thousand men with five loaves and two fish, and are amazed at the multiplication factor. This story has a surprise relation to Christian financial planning.

And he directed the people to sit down on the grass. Taking the five loaves and the two fish and looking up to heaven, he gave thanks and broke the loaves. Then he gave them to the disciples, and the disciples gave them to the people. They all ate and were satisfied, and the disciples picked up twelve basketfuls of broken pieces that were left over. The number of those who ate was about five thousand men, besides women and children. Matthew 14:19-21(NIV)

Something that is often overlooked is the fact that the remnants were gathered. There were no unnecessary leftovers.

The twelve baskets of broken pieces remaining after everyone had eaten are not random happenstance. Perhaps the remnants were a blessing for the twelve disciples based on their work feeding the crowd. This signifies that Christ not only provides for immediate needs, but He is an immense provider on a continual basis.

Too often we think of the money that is left after we pay the bills as “extra”, whereas that abundant portion should be used wisely for immediate needs, and future needs that will follow. To put this into practice, when we find that we are under-budget and have unbudgeted monies available, those funds should be put to good use. Whether it be tithed, added to your Christian Debt Relief Program, or fund some other good measure, the important thing is that it be put to good use.

The disciples realized that the people needed to eat. They also knew they could not meet those immediate needs, and they turned to Jesus for relief, asking Him to send them a way to feed themselves. Instead, Jesus provided a way for the people to eat and the disciples to receive a blessing from the abundance. We learn that with Christ, there is abundance, not excess.

If you find that you have an abundance of funds remaining in your Christian budget, consider that to be God’s money. Help build His Kingdom and keep Christian financial planning at the center of your financial strategy.

If your financial challenges seem as impossible as feeding five thousand with a handful of fishes and loaves of bread, allow a Christian debt relief counselor to help you explore a Christian debt relief program with you today.

Regardless if you are a recent college graduate looking for work or you just moved into a dorm, it is important to for Christian’s to maintain perspective when it comes to debt management and Christian personal finance so you can honor God.

Let’s face it: student loans are a popular choice for students and families across America due to the rising cost of college tuition. Many Christians are anxious about obtaining student loans in order to pursue their dream of going to college, especially if they have to get more than one loan. You also may have concerns about getting a student loan if you think debt is frowned on or prohibited by the Bible.

At first glance, many Bible passages seem to condemn taking out loans. “The wicked borrow and do not repay, but the righteous give generously.” Psalm 37:21 is a popular verse that causes many to believe that all loans are wrong. Upon taking a further look at the verse it focuses on how important it is to honor your commitments and make timely payments when you owe money.

Another popular verse used to discourage getting into debt is the verse: “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” Romans 13:7-8. In this letter to the Romans, Paul is trying to promote the idea that we continually “owe” love to everyone.

There are many Bible verses that discuss the responsibility that comes with borrowing money, and that is what is important to keep the focus on. In todays society it is absolutely possible to live an entirely debt free life, though not without a great deal of prayerful diligence.

A huge population of students entering college are not in that fortunate situation. In many instances, student loans for Christians may be the only option for you to get a higher education if scholarships, grants, or work study opportunities are not available at your university.

Luckily, if you have already obtained your loans and are feeling pressure due to the monthly expense, a federal student loan consolidation can help lower your interest rates. Consolidated loans are a combination of many loans into a single one from one lender, ideally with a reduced interest rate. Sometimes it makes sense to even just consolidate one loan in order to reduce your student loan interest rate.

If you still have questions about how to consolidate your student loans, FaithWorks Financial can provide you with information and services that can help you manage your debt. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation so we can help you find the best option for your situation.

Arm Yourself Against Bill Collectors with the FDCPA

Through our experience in offering Christian Debt Relief programs, we have come to learn that whether you are in great financial shape or are up to your ears in debt, some things are universal. Most individuals that we speak with have heard the horror stories about harassing bill collectors. Bill collectors have been known to make incredibly outrageous statements in hopes of collecting on a past due account.

In hopes of putting an end to these unscrupulous collection methods, the Federal Trade Commission implemented the Fair Debt Collection Practices Act, better known as the FDCPA. Knowing your rights as a consumer can help you to handle phone calls from bill collectors and give you the knowledge that can keep you from being the target of unethical and even illegal collection methods.

We aren’t attorneys and cannot offer legal advice, so use this as a jumping-off point and consult with an attorney if you feel your rights have been violated.

Here are a few of the basic protections offered by the FDCPA.

When and Where A Debt Collector May Call-

A debt collector should not make any phone calls prior to 8 AM or after 9 PM unless given prior permission by the debtor.

Also, a debt collector should no longer attempt to reach a debtor at their place of employment if they have been notified, whether it be through verbal or written notification, that their employer does not allow such communication.

Types of accounts that are covered by the FDCPA-

The FDCPA covers consumer debts such as credit cards, auto loans, medical bills and mortgages. The FDCPA does not cover business debts.

How to stop phone calls from bill collectors-

If a debtor provides a written request to cease communications the collection agency should cease all collection efforts aside from the following:
o Notification that collection efforts are being terminated
o Notification that the agency intends to take legal action

Statements that a debt collector cannot make-

A debt collector may not use or threaten to use violence or other criminal means to harm the debtor, their reputation or their property. Also, a debt collector may not use obscene or profane language.

One of the most common violations is the frequency of the phone calls. A debt collector may not call repeatedly or continuously with the intent to annoy or harass the debtor.

While the FDCPA has helped to promote ethical collection tactics, rouge bill collectors still use less than professional methods to collect past due debts. Knowing your rights as a debtor will allow you to stay armed and protected in the event that you are the subject of harassing collection efforts.

If you feel that your rights have been violated, please speak with one of our Christian Debt Relief specialists about a prepaid legal service offered by a third party company. You may qualify to be compensated up to $1,000 under the Fair Debt Collection Practices Act.

Worried about your credit and want to improve it? Our Christian debt relief programs give us insight into helping people not just with their debt, but their credit as well. There are two things to know: You are not alone, and there are some simple ways to boost your credit score.

According to Experian’s annual consumer credit review, nearly one-third of Americans may have difficulty obtaining loans and credit cards because of challenges with their credit.

The better your credit, the lower your interest rate on car loans and credit cards. Good credit scores will also make homeownership much easier. There are few tools more valuable in your financial tool belt than a good credit score.

Below are five (better yet, let’s make it SIX!) simple ways to boost your credit score.

Simple Way to Boost Your Credit Score #1: Get rid of credit card debt

Paying off loans, such as your mortgage, car loan, or student loans, can improve your scores, but it won’t improve your scores as much as consistently lowering balances on revolving accounts such as credit cards. Your debt to credit limit ratio plays a significant role in determining your credit score.

Paying your balances down doesn’t just help your credit score either, it takes major financial pressure off! Understanding how our Christian Debt Relief programs impact your credit is important to ensure long term success.

Simple Way to Boost Your Credit Score #2: Cut back on credit card use

Making big charges can damage your scores whether you pay off your balances each month or not. As a rule of thumb, keep your monthly charges to 30% or less of your credit card’s limit.

Simple Way to Boost Your Credit Score #3: Be sure your credit limits are reported accurately

If your lender is showing a credit limit that is lower than your actual amount your credit score can be penalized. Most credit card issuers will quickly update this information if you make them aware of the error.

This proven and simple way to boost your credit score requires very little legwork and can make a big impact, fast.

Simple Way to Boost Your Credit Score #4: Keep Using Older Cards

Quite simply, the older your credit history, the better. Continue to periodically use the credit cards that you’ve had the longest and your credit score will benefit. Don’t make unnecessary purchases or go deep into debt for this. Even an occasional fill-up at the gas station will do the trick.

Simple Way to Boost Your Credit Score #5: Study Your Credit Report for Errors

When it comes to raising your credit scores, some errors are more important to fix than others.

Here’s what you should look out for. Get these items corrected if you discover mistakes have been made:

• Late payments
• Credit limits reported as lower than they actually are, as mentioned above
• Accounts listed as anything other than “current” or “paid as agreed” (such as “paid derogatory” and “paid charge-off”) if you paid in full and on time.
• Accounts included in bankruptcy still listed as unpaid.
• Negative items older than seven years should have automatically been removed from your credit report.

Follow these five simple ways to boost your credit score and you should see your score steadily improve.

Because Everyone Loves a Bonus…

Don’t ask a creditor to lower your credit limits!

While your heart might be in the right place – i.e. reducing your limit will keep you from charging so much, the truth is lowering your credit limit will reduce the all-important gap between your balances and your available credit, which in turn will hurt your credit score.

It’s better to leave your limits where they are and try to limit your spending another way.

Interested in reducing or eliminating your credit card debt quickly and easily? Our proven Christian debt relief programs will provide a customized debt relief solution so you can achieve true financial freedom.