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3% Interest Rates Are Going, Going, Gone!

“The financial crisis that began in 2007 was the most intense period of global financial strains since the Great Depression, and it led to a deep and prolonged global economic downturn. The Federal Reserve took extraordinary actions in response to the financial crisis to help stabilize the U.S. economy and financial system. These actions included reducing the level of short-term interest rates to near zero. In addition, to reduce longer-term interest rates and thus provide further support for the U.S. economy, the Federal Reserve has purchased large quantities of longer-term Treasury securities and longer-term securities issued or guaranteed by government-sponsored agencies such as Fannie Mae or Freddie Mac. Low interest rates help households and businesses finance new spending and help support the prices of many other assets, such as stocks and houses. By law, the Federal Reserve conducts monetary policy to achieve maximum employment, stable prices, and moderate long-term interest rates” (source: federalreserve.gov) Does this all mean as the economy ...

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Different Types of Credit Scores: Which Are You Getting?

As someone who has owned/operated a credit message board for 4 years running, I get quite a bit of feedback from consumers. Based on that experience, if I had to pinpoint the #1 most confusing and least understood topic within this niche, do you know what it would be? Credit scores. And my reason for saying that may not be what you think. Sure, a credit score is cryptic by nature, since its formula is a secret. But that’s not why it’s so misunderstand. Rather, the reason credit scores are confusing is because most websites that sell scores are misleading consumers. FICO vs. everyone else If you go apply for a credit card, mortgage, or car loan, there’s a good chance the creditor will be using your FICO score as part of their decision. FICO (formerly known as Fair, Isaac and Company) has been around since 1956. They were the first in the credit scoring industry. During FICO’s first couple decades, the ...

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