All Credit Reports

Though only five years old, Mint.com has quickly established itself as a highly recognized personal finance management web-service. For the uninitiated, Mint.com has been listed by Time Magazine as a top-50 website for the last three consecutive years and is the winner of the Webby Award for Excellence on the Internet for Best Financial Service in 2009, 2010, and 2011, beating out financial news giants CNNMoney, NY Times Dealbook, Nerdwallet and Yahoo! Finance.

Mint.com allows its users to aggregate their banking accounts, investments, insurance policies, IRAs and mortgages into its management system which automatically provides up-to-date categorization, support and tools for budgeting analysis and bill reminder services. Their services are essential for those wanting to take control of their financial lives and improve their credit scores. Best of all, Mint.com is completely free.

The site was conceived by Aaron Patzer in 2006 after quitting his day job as a software architect to develop a method for analyzing numerous financial documents with high accuracy. After gaining the interest of First Round Capital, Mint.com received the seed capital to further develop their concept. Patzer’s ideas ambitions became so popular that grabbed the attention of Intuit, a financial software company and maker of Quicken, which extended an offer to purchase Mint.com for $170 million in late 2009.

CreditRepair.org was granted an opportunity to gain some insight into the company from Aaron Forth, Inuit’s Vice President and General Manager of Personal Finance Group.

CreditRepair.org: How does the current Mint.com differ from the founder’s initial vision for creating it?

Aaron Forth: When Aaron Patzer created Mint, his goal was to answer one simple question: How much did he spend this month? And on what? Aaron created Mint based on the philosophy that money is for living, and with every new feature or product update from bill reminders to Mint’s new iPad app — Mint is giving users a full financial view so they can save, spend and do more with their money. Mint does not differ from Aaron’s initial vision; it is just becoming an extended version that offers more features and helps nearly 7 million people do more with their money.

CR: How has becoming part of the Intuit family affected Mint?

AF: Mint was acquired by Intuit in November 2009 and since then the Mint team has successfully integrated with Intuit’s Personal Finance Group — incorporating Intuit company goals, philosophies and best practices into each product or feature we create. We have been lucky to be able to learn from such a successful financial company and implement their strategies into making the Mint product the best it can be, as well as being able to contribute to the creation and updates of existing products like Quicken.

CR: How does Mint differentiate from the competition like Learnvest.com and Manilla.com?

AF: Mint.com is a completely free online personal finance software that allows users to see all their financial accounts in one place, making it easy to set and keep to budgets, helping identify money saving ideas and managing money on the go with its iPhone, Android and iPad apps. From bill reminders to Ways to Save to the Goals feature, Mint is a constant resource to help users stay on top of their finances. Users can find a great number of tips and advice on the MintLife blog and learn about the importance of good money management at an early age with Mint’s Financial Literacy program. Mint offers a FULL view of all finances for every stage of life.

CR: Are you planning to add bill payment as a paid feature/add-on for Mint users?

AF: Mint currently offers a bill reminders feature that alerts users when an upcoming bill is due, but does not have the specific bill pay feature. Mint is always looking into new ways to help our users have the most complete financial management experience.

CR: Security is a big issue that comes up when Mint.com is mentioned, what measures are taken to ensure security of user’s finances?

AF: Security is a top priority that Mint takes very seriously. Mint uses the same 128-bit encryption and physical security that banks use. Mint’s practices are monitored and verified by TRUSTe, VeriSign and Hackersafe, and supported by RSA Security. Mint is also a “read-only” service, meaning you can organize and analyze your finances, but you can’t move funds between —or out of — any account using Mint. And neither can anyone else. In addition, Mint increases your financial security through email and text alerts that notify you about any large purchases or unusual changes in your accounts and more.

CR: What else is in the cards for Mint’s future?

AF: Mint is always looking toward the future and finding innovative ways to improve existing products and features along with creating new ones. Mobile is a big initiative for Mint and is something the company, as a whole, will be focusing on for a long time to come. With the recent release of the iPad app and constant improvements to the existing iPhone and Android apps, Mint is available anytime, anyplace. We are always making sure everyone has the resources to be financially literate with tools like our current Financial Literacy program and creating more ways to help people save by providing reliable advice, tips and resources in order to use money for living.

It is very important for families to have a debt management plan, especially when they first begin having children. They should make these arrangements early on, so that when the family is established with several children, there is already a budget in place that can fit the lifestyle the family wants to live.

Some third party organizations work with the debtor if he or she has gotten in too deep with the bills. Parents must discuss the problem with these advisors, and be informed about the various methods they can use to get out from under a heavy amount of bills. They may need to change the way they live to spend less extravagantly. These advisors will also go over a solid budget for that the family can use. They will suggest changes based on the amount of income the family has.

Sometimes the representatives of these organizations will contact creditors to see if there is any kind of payoff arrangement that can be made that might save the debtor some money. Companies tack on extra fees, interest and other penalty charges that they are often willing to remove from the amount owed, lowering the cost so the debtor has an easier time paying it. Sometimes the creditor will offer to reduce the payoff amount by up to seventy five percent, if the debtor agrees to make one large immediate payment.

These advisors will also guide the debtor so that they do not end up in a bad financial situation again by counseling them on how to spend their money, how to eliminate particular debts quickly and how to consolidate their bills into one large payment.

Every month, there are bills that must be paid to keep the family in the house with the heat or cooling working. These bills, like rent, electricity, and water, are essential bills that cannot be forgotten. They must be put in a monthly budget along with outstanding bills, such as credit cards and doctor bills.

The bills that must be paid every month are often forgotten when people are attempting to create a good budget. The food for the family, utilities like electricity and water and gasoline for vehicles should not be forgotten. Insurance must be kept up with for the car, house and health of the family. An arrangement for paying outstanding debts must be made that will take into account all necessary bills.

The basic reason for structuring a debt management plan for the family is so that there is no threat of homelessness, freezing in the winter or boiling in the summer. The family must have food on the table and clean clothes to wear. Without a solid arrangement, the family is at risk.

Are your debts spiralling out of control? You may need help for debt. Take control and take the first steps get out of debt today.

Are you hung over?

And I’m not talking about the booze-induced hangover (though you might have that, too!)

I’m talking about the post-holiday credit-card hangover …

The one that happens when you realize you spent way more than you meant to spend.

The one that causes a headache when you wake up, see your credit card bills clearly, and realize what you’ve done.

But there’s hope …

You can recover.

In just a few days, I’m starting a new-and-improved 14-Day Credit Challenge, where you can grab your credit card bills by the horns
once and for all.

Here’s the even better news …

The webinar orientation doesn’t cost a penny and I’ll show you how you can have a 720 credit score in just six months. The enhanced program will take your credit score from wherever it is today …

To at least 720.

In just six months!

It’s like aspirin for your credit card bills…

Click here to reserve your spot.

I’m so sure of my new Challenge that I offer a pretty gutsy guarantee: I promise that you’ll have a 720+ credit score in six months, or I’ll pay you $794.

So put my guarantee to the test! Best-case scenario, you’ll have a 720 score. Worst-case scenario, you’ll have $794.

Chase Bank recently announced a big change to its Freedom cards – the credit limit will be replaced with credit access lines, in other words the cards will no longer have a preset spending limit. The concept of no preset spending limit isn’t new, charge cards have used these spending limits for years. More credit cards with revolving credit lines are replacing the “hard” credit limit with a “soft” one that can be exceeded with no over-the-limit fee.

One of the biggest problems with the no preset spending limit is that you don’t have a physical signal telling you to stop using your credit card. If you have a traditional credit limit and you’ve chosen not to have over-the-limit transactions processed, you’ll get denied if you try to make a purchase that puts you over your credit limit. Even before you get denied at the register, you can check your available credit to see how much you can purchase. Without a credit limit, you’re prone to the type of overspending that leads to missed payments, delinquencies, and other credit problems.

Credit bureaus and credit scoring models handle some no present spending limit accounts in a way that hurts your credit score. Remember that 30% of your credit score is based on your credit utilization – the ratio of your credit card balances to their credit limits. Creditors who have cards with no preset spending limits report the credit limit in different ways.

Some don’t report the credit limit at all and in that case, the credit scoring calculation may not use that account in credit utilization.

Other credit card issuers report the credit limit as highest balance ever charged on that credit card, which could hurt if your credit card balance is currently at that highest point. You’d look like you’ve maxed out your credit card and your utilization when you really haven’t.

Some credit card issuers may report a “soft” credit limit, which isn’t doesn’t reflect your true credit limit. Again, if your balance is at or near that soft limit, then your credit score will be negatively impact because it seems like you’re at 100% credit utilization.

If you have a credit card with no preset spending limit or an “credit access line,” check with your credit card issuer to find out how your credit limit will be reported to the credit bureaus. Or, after you’ve had the card for a few months, pull your own credit report to see what’s listed as the credit limit. Then, you can be smart about using your credit card so that it doesn’t look like you’ve maxed out your credit limit.

For credit card issuers who report your credit limit as the highest balance you’ve charged, make sure you pay your balance down quickly so your credit utilization opens up. Remember that if you ever charge a bigger balance than previously, that new balance will be reported as the credit limit.

And, if the credit card issuer reports a “soft” credit limit, then you’ll know to keep your balance below that amount. Your credit card issuer will let you go over without charging a penalty, but to protect your credit score, keep your purchases below that soft limit.

Many people find that acquiring debt is inevitable. Being able to keep one’s finances on track can be exceedingly hard to do. The American Dream is comprised of the perfect house with the perfect vehicle and the perfect household items. Individuals are further exposed to media messages that tell them what types of gadgets and clothes to buy. Nevertheless, the ability to acquire the right things requires individuals to increase their credit exponentially. The tragedy comes from the realization that the american dream can actually cause more suffering than jubilation. However, for those who do find themselves in a considerable amount of debt, there is hope. Nevertheless, help is available through credit repair organizations and services.

A credit consultation organization should first and foremost be contacted. These institutions specialize in helping people to avoid further debt and manage their budgets. A person can find a good organization through several means. Pop-up and site ads are everywhere in cyberspace. Most people who have checked any financial pages have probably noticed numerous advertisements for companies that specialize in credit repair.

An individual should not make his or her decision based on one of these advertisements alone. This sector is rife with scams and shady organizations that are more interested in taking money away from people rather than helping them to retain it. A person should consult his or her lawyer before acquiring the services of any credit counseling institution.

Another way to find a reputable service is to ask family members and colleagues who have had credit issues in the past. While this is a sensitive topic, most people who have successfully removed their debt will be more than happy to recommend reputable services. A person should first ask close family members that have faced troubling financial times. Going over the exactly how an individual created a bleak economic outcome is the most important first step. An individual must be honest about his or her spending habits and circumstances.

An in-depth explanation will help family members to recommend reputable and legitimate organizations. Close personal friends are another good source of financial counsel. These are great people to ask because they will be able to assess the situation fairly and objectively. Excellent recommendations can be found if one consults his or her relatives and acquaintances.

Our series about six options if you are underwater on your home has drawn a lot of comments. Some readers are wondering whether they should stay and pay or try to get out. Here’s a reader question we received this week:

I have been thinking a lot about whether to keep my home. I really feel like the place is a money hole. I paid $455,000 for my townhouse and the place across the street is selling for $150,000. I still owe $190,000.

I can afford to pay for the place but I feel like I could lose more money in the future. I tried to rent it out but found no promising tenants.

I really don’t know if I should keep it or not. I have a very long one and a half hour commute, and now I have a young child too. I am thinking about just renting a small place near work and starting over. Which of your six options are good for my situation? Please help! — Stuck in California

Dear Stuck,

I can only imagine how stressful this situation is for you, but I think you need more information before you can make a decision. You don’t need to go into “analysis paralysis” but you do need to investigate three things in more detail:

Find out exactly what kind of places are available to rent closer to work in your price range. Don’t just look online—go and look at some places and talk to the landlords so you can get a good idea what they require in terms of first and last, security etc. Get a good feel of whether you could rent an acceptable place for what you are paying now. (And of course check out schools since that will be an important factor with a young child.) If you are in a position to buy in another year or two, consider also looking at homes to rent with an option to buy.

If you discover that you’d have to pay a lot more to live closer to work, or if you can’t find something acceptable in a decent school district, you may decide that it’s better to stay put. Or maybe you’ll discover that for a little more you can get a decent place and save an hour a day in commuting time. You won’t know until you hit the pavement and check out what’s available.

Find out if you will be on the hook for a remaining balance. If it you have a non-recourse loan, the property is the only collateral for the loan and you can likely walk away without worrying that you will be sued for a deficiency. Many purchase money mortgages in California are structured that way. If you are not sure, make an appointment to talk with a real estate attorney who can review your paperwork with you.

Find out what your tax liability may be. Meet with a tax professional (an enrolled agent or CPA) with experience in handling 1099-C and 1099-A issues to learn whether you would owe taxes on the forgiven balance if you do a short sale or walk away. You may be eligible for the Mortgage Forgiveness Debt Relief Act or the other exceptions or exclusions I outlined in my previous article on this topic. This is an important question because you don’t want to be surprised with a large tax bill.

Read: 1099-C In the Mail? How to Avoid Taxes on Cancelled Debt

Since you bought your home for $455,000 and owe $190,000, it sounds like you’ve lost quite a bit of money that you put into it. That has to be a very tough pill to swallow. It also sounds like you are worried the value can go down further. It’s impossible to predict, though, how much further home values will drop or how long they will take to stabilize and then start going up again in your area. That means there is no single right or wrong answer here. Gather some more information and make the best decision you can knowing that at least you’ve made an informed choice to stay or leave.

Do you have a question for Credit.com’s Credit Experts? Submit it to creditexperts@Credit.com. We can’t respond to every question but we’ll choose the most relevant and educational ones to answer on the blog.