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Many homes “free and clear.” In anticipation of that day, some homeowners speed up their mortgage payments by paying more toward the principal whenever they have some extra cash. These homeowners get an enormous sense of satisfaction as they watch their mortgage balances diminish each month. By accelerating payments, not only will they pay off their mortgages…

On March 6, Senator Bernie Sanders from Vermont and Representative Steve Cohen (TN) introduced legislation in the House and Senate, called the Fair Access to Credit Scores Act. If passed the Act would that require credit reporting bureaus provide consumers with a free credit score. There are several companies out there that will provide you…

Deborah Laemmerhirt, Broker  203-994-4297

Consumer Groups and Congress are advocating for consumers to receive a free credit score once per year. Also we review a popular credit checking site that we feel is worthy and gets “two thumbs up”.

On March 6, Senator Bernie Sanders from Vermont and Representative Steve Cohen (TN) introduced legislation in the House and Senate, called the Fair Access to Credit Scores Act. If passed the Act would that require credit reporting bureaus provide consumers with a free credit score. There are several companies out there that will provide you a credit score for a fee or with some sort of annual membership. There is much confusion in the credit reporting industry due to the different types of credit scores that are available for credit grantors to use. So if given a credit score, a consumer could not be 100% assured that it is the same one that a credit card company would have or a mortgage company would use.

Recently, the Consumer Finance Protection Board released a study HERE that indicated major discrepancies are possible when consumers are given one score and a credit grantor has another they use to determine credit worthiness.  In up to 24% of the cases, the agency found, a consumer might see a score that was one tier off from what a lender would see. That means a consumer could see a score in the “excellent” range of 740-plus, while a lender saw only a “good” score in the 680-740 range, or vice versa. In as many as 3% of cases, the scores varied wildly. Be aware of this confusion when seeking credit.

Let’s hope Congress clears up this mess.

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How to keep an eye on your credit:

www.creditkarma.com.  

This site is getting rave reviews for being easy to use and free. There are some ads that come with the service but generally they are not intrusive. Once you register, Credit Karma goes to work monitoring your balances, payments and any warnings are given to you by email.

Credit Karma believes that every consumer has a right to access their scores. You’ll get four credit scores along with free credit tools to help you better understand what a good credit score is. Even better, you’ll receive your free credit score without a credit card.

The totally free Credit Report Card is an easy-to-understand summary of your credit report details. Use the Credit Report Card to gain a better understanding of your credit history and how it impacts your credit health.

Credit monitoring can help prevent identity theft and inaccurate information from appearing on your credit report. You’ll receive an email when something important changes in your credit report.

Along with your free score, you’ll see important details of your credit report for free. In addition to your free Credit Report Card, you can view the details on your individual credit cards, mortgages, auto loans and personal loans. You can use this section to spot any fraudulent or mistaken accounts on your credit report, maintain a record of your reported balance history, keep tabs on your credit card utilization rate, and receive recommendations for new loans and credit cards.

Deborah Laemmerhirt, Broker  203-994-4297

Whether you’re looking to do to some major remodeling or if your home just needs some basic repairs, deciding on a contractor for your home improvement project can be difficult. It’s certainly not a decision you should make in haste.

How does your insurance factor into home improvements? Most homeowner’s insurance policies include four basic types of coverage:

• Repairs to the home because of damage caused by specified disaster

• Replacement of items lost due to theft or damaged by specified disasters;

• Liability coverage; and

• The cost of temporary housing in the event that a specified disaster causes significant damage to the house   

While all these protections are equally important in the long run, when it comes to home improvements, your liability coverage comes to the forefront. This form of protection insures you against any injury claims made by uninsured workers, as well as property damaged during the project. Liability protection also pays for the cost of your legal defense in any related court cases and covers awards to injured workers, as defined by the terms of your policy.

Of course, your home insurance shouldn’t come into play if you’ve selected a highly qualified contractor to get the job done. Before you make the hire, set up an interview so you can ask some questions, including these:

1. How long has your business been around?  Businesses that have withstood the test of time generally do good work and have enough customer reviews to back it up. Look for reviews on the internet and use a consumer protection agency, like the Better Business Bureau, to check up on their complaint history. Remember to take internet posts with a grain of salt, and that BBB records don’t always tell the whole story.
2. Do you hold a state license?  Most states license plumbers and electrical contractors, but just 36 states have a license or certification for contractors and home remodelers. You can find out what types of contractor’s licenses are available in your state by contacting your local building department. If your state requires home contractors to be licensed, do not hire anyone without seeing proof of their licensure.
3. Are you bonded and insured?  Only hire a contractor who carries insurance that covers against damages to your property, personal liability, and worker’s compensation coverage. If you hire an underinsured contractor, your insurance will be making up the difference if something should happen
4. Does my project require a permit?   A good contractor will get all the required permits before starting a project.
5. Will sub-contractors be used during the project?  Sub-contractors are not necessarily a bad thing, just make sure to meet them first so you can check out their credentials. Subcontractors are also a good source of honest information about the prime contractor. A little known fact for many homeowners is that a “mechanic’s lien” can be placed against your home if the contractor does not pay their sub-contractors or material suppliers, so ask if the contractor makes prompt payments.

While negotiating the terms of your home project, ask the contractor and all sub-contractors to sign a lien waiver or release statement that keeps subcontractors from coming after your money if bills go unpaid.

The Federal Trade Commission has issued a warning to homeowners to help spot disreputable contractors and scammers looking for your business. Here are a few telltale signs of a shady contractor. He or she:

•     Goes door-to-door soliciting business.
•     Wants the names and phone numbers of friends and neighbors who may need service.
•     Offers a discount for using “leftover materials.”
•     Only takes cash payments.
•     Is unable to get the proper building permits.
•     Has an unlisted phone number.
•     Considers your project a “demonstration job.”
•     Uses high-pressure and intimidating sales tactics.
•     Offers guarantees without any paperwork to back them up.
•     Wants the payment up-front and in full.
•     Offers financing through a “personal friend” or acquaintance of the contractor.

Remodeling can make you feel like your home is brand new and can add thousands to its resale value, but without doing your homework before hiring a contractor, you could be left regretting your decision for years to come.