Credit Cards

credit scoreIf you’ve got a good or excellent credit score and pay your bills on time and keep your credit balances low, then maintaining that score can seem like a headache.

A credit score can be used in ways other than in determining what interest rate you’ll pay on a loan. It can also be used by employers, landlords and utility companies — with your permission — to determine if you should work, live or be allowed to sign up for electric service without a deposit.

Small credit score drop is fine

But not all of those look at your credit score as much as you might think. There are some times when it can be OK to let your credit score drop by a few points.

For example, if you don’t plan on applying for credit in the next six months or so because you’ve already got a car and house, then a small drop in your credit score shouldn’t hurt you. You still want to keep your credit in good standing, but there is some wiggle room.

Your credit history can be more important in non-lending situations than your credit score. ...continue reading

interest ratesThe Global Financial Crisis of 2007 hit families in certain American locales extremely hard. The resulting loss of jobs and stunts in growth meant that many families saw their wages decline or stagnate even in times of rising costs.

This resulted in families taking on more credit card debt to alleviate the financial stresses of the time. The average American family currently has over $15,000 in credit card debt.

Because credit cards operate on revolving credit, their interest rates are often above 20%. This can create a trap that is hard to escape; some borrowers are only able to pay off the interest on their balance. For this reason, EC Lending has begun to help their customers refinance this debt at significantly lower rates.

The idea began in 2014 in Escondido, California. The companys founders realized that credit card debt was becoming an excessive problem in the credit industry and that many borrowers were extremely serious about paying it off — they just couldn't due to interest rates. EC Lending, which started as a loan broker in the automobile industry, then made a definitive decision to tap into the market.

Success has been rampant so far. EC Lending LLC of San Diego, California has reported that the amount of clients that have come to them in search of refinance has way overshot their initial profitability projections. In addition, by analyzing a consumers credit report, EC Lending is able to target low risk borrowers who have clear sources of income. This reduces risk on the lending side as many refinancers are often considered risky borrowers. In order to provide rates that are competitive with industry leaders, EC Lending has had to invest serious time into selecting their initial batch of clients.

Despite the economys recent recovery, experts believe that credit card debt is now part of Americas mentality, and that balances as a whole will continue to rise. The reason behind this is that to spur investment into the economy the government has increased the money supply which has resulted in banks reducing the requirements for obtaining all forms of credit.

This means that much of the country is now seeing there debt rise rather than fall, despite positive economic signs. For this reason, firms like EC Lending are likely to experience continual growth into the future as consumers continue to spend more than they can afford despite increases in wages.


swipeKeeping a $20 bill in your pocket can seem like an enticement to spend it. That cash can also help you have less credit card debt by not having to swipe a credit card for small purchases.

A recent study by the Urban Institute found that using cash when a purchase is under $20 left the consumer with $104 less in revolving debt, on average. That dropped their credit card balances 2 percent below their baseline average.

For young people, the $20 cash rule led to more savings. People under 40 who were reminded "Don't swipe the small stuff" and to use cash on purchases for less than $20 had $173 less in revolving debt. ...continue reading