What Is Affordable Credit Repair?
When looking to repair your credit, a frequently asked question is what exactly affordable credit repair is? The last thing you want is to go in and pay a bunch of money on something that you do not necessarily need to spend too much money on. But it is difficult to clarify exactly what affordable means. The reason it is difficult to clarify what affordable credit repair means is because everyone’s situation is different. While you may be on a pressing deadline to get something paid off, someone else might have a minor problem that they need fixed. Either way, it is important you realize you can repair your credit regardless of how bad your credit is. Some people opt to try and repair their credit on their own. While this is an option, you have to be cautious about doing this. There are a lot of terms, laws and techniques that you are probably not familiar with. The last thing you want to do is worsen your situation because you thought you could do it on your own. Instead, it is safer to hire someone who repairs credit for a living. While it will cost you money, it will be worth it when your credit is better far quicker. Professionals know the tricks to get your credit back to normal. It can be tempting to fix it yourself, but just know that there are a number of advantages to hiring a professional. You have to look at it like any other thing you may do in life. If you are selling a home, you can try to sell it on your own. But typically, you would hire a real estate agent that can take care of everything for you and make sure you get the best deal possible. If you are going to court, you are probably going to hire a lawyer to defend you. Of course, it depends on the situation though. If you are going to court for a speeding ticket, a lawyer is probably not needed. If you have a minor problem with your credit, you may be able to get away with repairing it on your own. In order to determine what affordable credit repair means, you have to look at it on a case by case scenario. Before going out and hiring the most expensive professional available, research and find out what your options are. Just know that bad credit is what you are trying to fix. While it can be difficult to pay someone to do something you think you can, it is better to repair your credit properly. Allan Zolis is can help improve your credit scores, help you get approved for loans and help with bankruptcy removal.
About the Author Allan Zolis is owner of http://www.creditscoresusa.com/ - a credit repair agency with a unique advantage. See how he successfully combines a collection agency with credit repair to save you money and fix your credit the right way.
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Tax credit for home buyers works like an interest-free loan
They mark the eligibility period for the home purchase tax credit created by the housing bill enacted last week. If you have not owned a house during the last three years -- or are considering buying a first home -- and you close on a purchase before the end of next June, you may be eligible for a credit of as much as $7,500 against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).
The new tax credit is expected to benefit hundreds of thousands of buyers. Here's an overview of the specifics.
* The basic idea: To jump-start housing sales and clear out stocks of unsold real estate, Congress is offering tax credits to encourage new purchasers. Buy any house -- new, old, in any location or condition for any price -- within the designated time period and the IRS will cut as much as $7,500 off your tax bill this year or next.
For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.
* Eligibility rules: If you own a home now, you're not eligible. If you sold your home more than three years ago and now rent, you are eligible. The same is true if you've never owned a home. Close on a house before next June 30 and you can claim a credit of up to 10% of the purchase price to a maximum of $7,500.
If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down. You cannot claim the credit if you financed the property using a state or local housing agency's tax-exempt bond mortgage, or do not plan to use the house as your principal residence.
* Payback: Unlike some past tax credits, this one must be repaid over an extended period. Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings. Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year.
If you sell the house before the end of the repayment period, and you have no gain on the sale, you won't be expected to repay the remainder of the credit from the proceeds. If you have a net gain, the "recapture" cannot exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.
At its core, the new tax credit works very much like an interest-free loan. You pay the principal back in increments over time, but there's no interest charge to you.
Rob Dietz, an economist for the National Assn. of Home Builders, says the credit not only will pull first-time buyers into the market but also will have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses go out and purchase replacement homes for themselves -- extending the effect of the credit into the move-up segment.
How do you claim the credit? If you qualify, you simply request the credit on your tax return for either 2008 or 2009, which will be modified for that purpose.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return. The home builders group is launching an educational website, at http://www.federalhousingtaxcredit.com/, with additional information for consumers.
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10 Questions To Ask A Remodeling Contractor
10 Questions To Ask A Remodeling Contractor
by Larry Goins
Are You Licensed?
Most states require contractors, even sub-contractors to be licensed. Make sure your contractor is properly licensed. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the law. If a contractor cannot produce a valid license, Do Not Hire Him! You can check the contractor’s current licensing status with your states Secretary of State.
Do You Carry General Liability Insurance?
Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing, and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance.
Do You Carry Workers’ Compensation Insurance?
Make sure your contractor carries workers’ compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor does not carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor, or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers’ compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption from Workers’ Compensation.
This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor’s workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor.
Do You Offer Financing?
Many Contractors are lender-approved contractors. They have been approved and investigated by lenders as being financially sound, maintaining satisfactory relationships with suppliers, satisfactory credit and no outstanding complaints at the Better Business Bureau.
Are You a Member of NARI or NAHB?
NARI stands for the National Association of the Remodeling Industry and NAHB stands for the National Association of Home Builders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated.
Will You Pull All the Required Building Permits?
Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to “code." Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are either unlicensed or the work is outside of their license. A reputable contractor will permit every job where a permit is required.
Do You Guarantee Your Work?
Your contractor should guarantee his work for at least one year from date of completion. They should also include any warranties from the material used if applicable.
Who Will Be in Charge of the Job?
Make sure the contractor or his foreman is on the job whenever work is being performed-especially if sub-contractors will be used. The responsible party must be familiar with every aspect of your project. You cannot be worried about what is going on when you are not there.
Will You Provide Me with Written References?
A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several customer references from the last 6 months to one year. Ask for the name of the contractor’s accountant or banker. You want to ensure the contractor is financially sound and will not be declaring bankruptcy in the middle of your project.
How Do You Handle “Dirty Work”?
Construction is dusty and dirty! It gets everywhere, especially if any sanding is being done. Make sure the contractor will make an honest effort to keep the dust contained, or notify you when the heavy dust generating operations will take place so you can place sheets over furniture or move sensitive belongings. Make sure the contractor agrees to sweep up and place all construction debris in a predetermined place or refuse container at the end of every day.
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