Author: blakkfabi

A Federal Housing Administration (FHA) home loan is a mortgage that is insured by the FHA, which is a part of the U.S. Department of Housing and Urban Development (HUD). This type of loan is designed to make homeownership more accessible to people with lower credit scores and smaller down payments compared to conventional loans.Features of FHA LoansHere are 7 key features of FHA home loans you should know about.1. Low Down Payment – Making Homeownership AccessibleOne of the most attractive aspects of FHA loans is their low down payment requirement. Typically, these loans require just 3.5% of the home’s…

Insurance companies often use credit scores as one of the factors in determining insurance premiums for their customers. This practice is particularly common in the fields of auto and homeowners insurance. Here are 9 ways how insurance companies use your credit score to determine your insurance premiums:1. Credit-Based Insurance ScoresInsurers use a specific type of credit score, known as a credit-based insurance score, to predict the likelihood of a customer filing a claim. This score is different from the credit scores used for lending purposes (like mortgages or credit cards) but is based on similar information from your credit report,…

Whether you’re a seasoned credit user or new to the game, it’s crucial to know how secured, rewards, and balance transfer credit cards play a role on your credit score. Below is how each type of card impact your credit score. This brief insight could help you make informed financial decisions.1. Secured Credit CardsSecured credit cards are designed for individuals with no credit history or those looking to rebuild their credit. These cards require a cash deposit, which usually sets the credit limit.Positive impacts on Credit ScoreNegative Impacts on Credit ScoreLearn More: 9 consequences of bad credit scores ➔.Best practice…

Credit scores ➔ play a critical role in determining eligibility and rates for mortgages, auto loans, and personal loans. Here’s a general overview of how they impact the eligibility and rate of each type of loan:How does credit score affect MortgageEligibility: Credit scores are one of the key factors mortgage lenders consider when determining your eligibility. Generally, a higher credit score increases the likelihood of being approved for a mortgage. Lenders often have minimum credit score requirements, which can vary depending on the type of mortgage (e.g., conventional, FHA, VA).Rates: The interest rate on a mortgage is heavily influenced by…

In the intricate world of personal finance, your credit report acts as a financial report card, influencing everything from loan approvals to interest rates. Ensuring the accuracy of this report is very important, as inaccuracies can have fatal consequences. In this guide, I’ll briefly explain the process of disputing and fixing credit report errors. I’ll break it down into 10 easy-to-follow steps. 10 steps to dispute and fix inaccuracies on your credit reportStep 1: Obtain your credit reportsBefore embarking on the journey of dispute resolution, obtain your credit reports from Equifax ↗, Experian ↗, and TransUnion ↗. To make this…

Capital gain tax is a tax on the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. In the United States, capital gains are typically realized from the sale of stocks, bonds, precious metals, real estate, and property.There are two main types of capital gains in the U.S.: short-term and long-term.Short-Term Capital Gains: These are gains on assets held for one year or less. The tax rate for short-term capital gains is equivalent to your ordinary income tax rate, which varies based on…

Operating income, also known as operating profit or operating earnings, is a key financial metric used to evaluate a company’s profitability. It’s calculated by subtracting operating expenses, like wages, depreciation, and cost of goods sold (COGS), from the company’s total revenue. The income focuses solely on the profits that a business earns from its regular operations, excluding any income or expenses from non-operating activities such as investments or one-time events.The formula to calculate this income is:Operating Income = Total Revenue − Operating ExpensesWhere:Total Revenue is the income generated from normal business operations.Operating Expenses include cost of goods sold, as well…

The Earned Income Credit (EIC), also known as the Earned Income Tax Credit (EITC), is a valuable financial resource for low and moderate-income individuals and families in the United States. Yet, many people are unaware of its existence or how to take advantage of this significant anti-poverty program. In this blog post, we will provide a comprehensive guide to the Earned Income Credit, explaining its eligibility criteria, benefits, and how to claim it.There are 7 key points to know about EIC. These are;1. EligibilityTo qualify for the Earned Income Credit, you must meet certain criteria, including having earned income from…

Gross income is the total income earned by you or your business before any deductions or taxes are subtracted. For you as an individuals, it includes wages, salaries, bonuses, rent received, interest earned, dividends, and any other income. While for businesses, it refers to the total revenue from sales of goods or services before expenses are deducted. Gross income is an important measure as it forms the basis for calculating your taxable income after accounting for allowable deductions. Now let’s see how it applies to you as an individual an as a business.What is Gross Income for you as an…

Understanding the advantages of credit cards is essential in today’s financial landscape. Whether you’re a seasoned cardholder or considering your first credit card, this guide will highlight the key benefits and how they can enhance your financial well-being. Below are the advantages in a glance;10 Advantages of Credit Cards1. Unmatched Convenience of Credit CardsThe convenience of credit cards is unparalleled. They offer a quick, easy, and often more secure alternative to carrying cash. This aspect of the advantages of credit cards is particularly evident in online shopping, where they have become almost indispensable. Moreover, for travelers, credit cards eliminate the…