MB Information Age

Archive for September, 2008

When doing business, it is a good idea to do a appraisal of creditworthiness of the company you are signing a contract with. In former days appraisals of creditworthiness were expensive and not easy to find. But nowadays credit checks can be bought quickly and easily online. There are some very good vendors of credit checks. The following website gives more information on a company offering online credit assessments on the German market: Bonitaetspruefung Bonitaetsauskunft.

There are some big benefits of ordering a appraisal of creditworthiness before doing business with a specific person or company:

Lessors can face big problems when giving apartments or houses to tenants who are unwilling or unable to pay the rent. So a online appraisal of creditworthiness can be a big help to avoid future problems. When expensive goods or services are delivered without deposits, there is a great risk to lose money if the customers financial situation has changed. This risk can be reduced with high quality online appraisals of creditworthiness. Before doing business with a credit check vendor, read more about my favorite one: Bonitaetspruefung von Firmen. Especially when investing a lot of work and money into fulfilling a clients needs, it is vital to minimize the risk of lost payment. Every overdue invoice can develop into a big burden for the company.

There are online credit check companies who offer their services at cheap rates and without registration fee or minimum quantities to be bought. This is very good for customers who need the service only sporadically. It is also useful for companies to check the ability to pay of their existing customers on a regular basis. Markets and businesses change over time, and customers might turn from winners to losers. Online credit checks are delivered to the customer very quickly. So they can be ordered right before the contract is ready to be signed.

The Fair Isaac Company invented credit scoring in 1958 as a quick, easy way to assess the potential risk associated with lending to certain people. This number, which is sometimes called a FICO score, is generally between 300 and 850, and the higher the better. When you pay a bill late, your score could drop anywhere from 10-100 points. If you’ve undergone a foreclosure, then you could see your credit rating decrease of as much as 300 points! We often lose sight of the fact that every financial decision we make is being recorded and while it may seem too easy to say “I’ll just pay that off when I get the money,” the points are whittling away off our credit scores.

If you are to take away one lesson about improving your credit scores range, it’s this: late or missed payments are bad, very bad. Payment history accounts for 35% of your credit rating and includes everything from mortgage or rent to utilities, cell phone bills, credit cards, store charge cards, medical bills, auto loans, college tuition bills and student loans. If you are 30 days late on one payment, then it’s not likely to cause severe damage to your report. It’s only listed when you are “currently 30 days late” and even then, you can usually negotiate with your lender to cut you some slack since you’re normally a good borrower. If you’re often 30 days late, then you may have a hard time convincing anyone to give you a favor. Once you’re sixty days late, your credit rating will be slightly damaged, but when you hit more than 90 days you’ll have a tarnished score, which could be something like 100 points deducted for up to 7 years! After 120 days, it’s likely you’ll have a charge-off on your record or an account that slips into collections. Short-term collection accounts will hurt you 50-75 points, although financial advisers at the Gallant Group say that older accounts won’t hurt you as much, as these are just “a blip on the radar screen,” they said. However, if you’re applying for a new loan, then you may occasionally be required to go back and resolve any past due items on your report before being approved.

The most damaging “big ticket items” on your credit scoring are bankruptcies, foreclosures and repossessions. A bankruptcy credit report is the quickest way to derail your score, with the longest-lasting effects. One claim can plummet your score down to the mid-400s for the first year. If you engage in smart finances over the next year, then you may be able to resurrect your credit score back to the 600s, yet lenders will still see “bankruptcy” on your files for ten years. Foreclosures are just as ugly and hurt your chances at getting approval for another mortgage in the future. Credit scores usually drop to the low 400s because so much delinquent activity gets reported; first the monthly missed payments, then the subsequent foreclosure hit. Repos are the least damaging of the three, but will still knock a perfect score down to the low to mid-500s.

There are many myths about credit scoring, but here are a few. The first myth is that closing accounts can improve credit scores. The reality is that you can’t repair an account by simply shutting it down. When you close an account, your total available credit shrinks, which makes your situation look worse. Closing accounts also makes your credit history appear shorter. Instead, pay down your debt. The second myth is that checking your FICO score can hurt your credit. You can check your score as much as you want, although you’re only entitled to one free credit report each year. Credit lenders checking your score to send you new offers won’t impact your number either. Applying for new lines of credit is what actually affects your score, although you can shop around for auto loan quotes and mortgage quotes as much as you want within a 14-day period, since it’s only counted as one inquiry or 5 points off for 30 days). Another myth is that credit counseling is as bad as bankruptcy. Your credit counseling program will not be explicitly stated on your report, although your lenders may report you as late and any settlements made may show up on your report, all of which can hurt your score. This is nowhere near as damaging as bankruptcy, but it’s best to turn to credit counselors only if you’re seriously derailed and need those settlement offers.

More than two-thirds of Americans don’t even know what a credit score is, says a recent Consumer Federation of America survey. Basically, good credit scores mean you’re likely to repay a loan and bad credit scores put you into a high risk pool as a potential borrower, hurting your chances of receiving an offer or even a good deal on your next credit card. Your credit score is based on your payment history, how much debt you have, how much credit you were offered and how frequently you borrow.

The most common way people get poor credit scores is to miss a credit payment or to pay late. At the time you may think, “Who cares if it’s just a few days late? They’re still getting their money.” However, once that lateness or missed payment is reported, a credit score can drop as much as 100 – 150 points and will take 24 months to be fully restored. To remedy the situation, be sure you bring all your credit accounts current, paying off late payments and always paying at least the minimum monthly fee, rather than waiting to pay it all at once. For many people, paying automatically through debit or setting a monthly cell phone reminder a week in advance are the best ways to ensure bills get paid on time.

In some situations, getting new credit cards is a good way to actually improve credit scores. If any of your cards have double digit interest rates, it’s best to shop around for a better rate. Sometimes you can consolidate several other cards onto one low-rate card, like a Virgin Credit Card, which offers 15 months interest-free and a transfer fee of 2.98%. Another is Barclays, which has 14 months interest free and a 2.9% fee. However, be careful if you choose this route because your interest rate will be hit very hard if you miss even one payment. Also be aware that applying for numerous credit cards in a short amount of time will bring down a credit score as well. If you’ve had big trouble in the past, then you may want to look for a secured credit card, which is sort of like a debit account: you pre-pay and can only borrow what’s guaranteed in your account, yet the positive activity is reported to the credit bureau.

The most recent activity will weigh the heaviest on your credit score. For example, 40% of a credit score is based on the last year, 30% on the last 13-24 months, 20% on the last 25-36 months and 10% on the last 37-plus months. The good news is that the negative credit will not stay on your report forever. After 7-10 years from the time your accounts are closed or satisfied, the information will be removed. Good credit, by contrast, will remain indefinitely on your profile. If you think you cannot make the adjustments yourself, then you may want to hire a credit counselor to go through your credit report, make the necessary adjustments, bring your files up to date and set you on a path to success.

Here is my reason for writing this article about LifeLock and Debix.

Last week two acquaintances were debating which was better Lifelock identity protection or the Debix identity protection network. I actually paid attention to this argument as I too was considering purchasing Lifelock identity protection. This is what they taught me.

Lifelock is the best known when it comes to identity protection services. They do all the work for their clients even though many things could be done yourself for free such as placing and renewing a fraud alert. In order to get attention and show how confident they are in being able to protect your identity, Lifelocks CEO actually made his social security number public. This is how I first became conscious of them.

LifeLock is also able to generate positive public relations for itself because they have been recognized by multiple agencies. LifeLock has some unique for your private to ensure it is not being sold. True Address verifies with databases that your address has not been changed by a criminal.

LifeLock the only identity theft protection company who can effectively protect children. Life Lock is ISO 27001 certified which shows that their security procedures at company headquarters is the best of the best. They seem to have invested in such which makes them able to provide real protection of the confidentialpioneered the $1,000,000 identity insurance offer.

As for Debix, another identity protection company gaining traction in the identity protection racket, is almost as good as LifeLock. They also put a Debix Safe Number in your credit file, not your phone number. This keeps your phone numbers private. In addition, during the credit approval request process, reporting fraudulent credit requests is easy to report to law enforcement by just pushing a button on your phone. Simply hit star to be connected to a identity theft specialist who will help you contact the appropriate authorities.

Did you know Debix has a patented technology that offers a secure interface for credit protection? Debixs utilization of fraud alerts is simply the best. Debix also provides an audit trail in case an imposter impersonates you.

Life Lock and Debix place fraud alerts on your behalf and order your 3 bureau credit report. They also stop the flood of junk mail. Debix also removes you from telemarketing lists.

The differences are Debix’s innovative fraud alert technology and low price $24/year compared to LifeLocks additional offerings including TrueAddress, WalletLock and Erecon and, of course, the $1 million guarantee.

This should help you evaluate which company is right for you. In my opinion you get better identity protection with LifeLock but at $24 a year Debix is certainly worth considering. Especially since it is $75 cheaper than LifeLock.

Almost all of us have a need for credit score restoration because of something in the past that’s hurt our credit score.

Maybe we were late on a couple bills, or defaulted on a loan.

However, while many “experts” claim that the only way you can improve credit scores is with time; in reality…nothing could be further from the truth.

The biggest obstacle for me was simply searching my way through all the information out there to find one good, accurate course or software program that would show me the steps to take and then do most of those steps for me.

To begin, I recommend you find out exactly what derogatory accounts is showing on your credit reports.

Make sure you get a credit report from each of the three credit bureaus separately, since they will vary in the information that they are reporting about you.

The good news is your credit score can most likely be improved dramatically in a very short period of time.

The bad news is that while the actual “work” will take very little of your time, it is vital that you have good information on “how” to go about it.

So, possibly the most important factor of all, for your success in credit score restoration, is finding the right course or self-help guide or software program.

In an effort to find a fix for my own poor credit score I have looked at and studied multiple courses. I genuinely believe that there is more than one good, accurate, and effective program out there. However, I have found the most success from one software program simply because it does most of the work for you.

So, here’s my suggestion:

1. Get a credit repair software program

2. Follow the program from start to finish.

Will it work for you?

I believe it will, since it has worked for me and I’ve also seen it work for several others too.

Just think, you could find your credit score improving dramatically in no time, as well.

There are many different types of credit cards available out there and choosing which can benefit you and your business the most may be quite confusing.

Using Cash Back Credit Cards For Your Business
However, if you are one of those people who do not have problems in paying monthly credit dues and want to save your company a lot of money, then a cash back credit card just might be perfect for you. Through cash back cards, you are able to enjoy the usual functions of a regular credit card with an added bonus, and that is of course, by receive cash back rewards on the purchases you have made with your account.

How Do Cash Back Cards Work?

A cash back credit card basically gives you bonus points every time you use it to purchase goods. They would start off by offering you a flat percentage rate refund in the form of statement credits, a check, gift cards or deposits into your bank account on the agreed timely basis of receiving your bonus. Percentage rates may vary with the provisions of your lender.

The methods for how cash is given back to you as reward often differ with your credit card’s terms and conditions, and so it is important to choose which type of rewarding method would more probably be of help to your business. For example, if you want cash to come back sooner, then a statement credit method of rewarding will be best for you as this is done monthly.

Using Cash Back Credit Cards For Your Business
However, statement credits may seem as if they are just a mere reduction of your outstanding balance instead of an actual cash bonus. Checks on the other hand are usually only rewarded per year, but these can mount up as a huge cash incentive for your business.

Another method of cash back can also be through discount cards that can be of big help if you run a type of company that does a lot of purchasing for your undertakings. No matter what type of cash back method you choose, such a credit card can really help your business a lot.

How Do Cash Back Rewards Really Help?

But how does a cash back system really help a company by merely giving rewards? Let us analyze how much a company may spend in a year purchasing supplies like printing materials, boxes and even calling cards to boost operations. The company basically purchases all of these things for a whole lot of money during the year. And when you think about it, the rate of buying these supplies won’t stop anytime soon as long as the company stays afloat.

Build Up Your Business Credit
After all, these are basic goods that a business needs in order to continue production and generate income. So we would see through this scenario then that if a company makes use of a cash back credit card for its purchases and gets rebated for that, it is as if the company is being rewarded for merely going about its normal transactions.

An additional profit is generated to the company for no real cost at all since purchased goods with or without cash back would have been purchased anyway. And obviously, additional amount of money to a company’s account can always be very useful for any type of business.

Not a lot of people may realize this, but one of the most vital documents that you should take note of, is your credit report. It is a document that contains detailed information about your credit history, including identifying data, credit accounts and loans, records of late payments, bankruptcies and pretty much almost everything that has to do with how you handle your finances.

Handling Your Credit Report
This report, depending on its content, can either help you a lot or cause serious hindrances to you, especially if you are operating your own small business or about to make certain loans. After all, your credit report will basically become one of the major defying factors of your creditworthiness.

How Vital Is Your Credit Report?

If you have not been in a situation that has commenced how important your credit report is, let us allow an example scenario to walk you through. Let us say that one of these days you may need a certain amount of money in order to push through the expansion of your business. In doing so, you may need to apply for a loan or a credit account in order to gain funding for your project.

But before any lenders would actually give you a credit account or give you a loan, they would first check on your creditworthiness and whether they can trust you to make the right payments. With this, they would of course check your credit report to see if you have any histories of bankruptcies, unpaid debts, late payments and so on. If you do not have a very good credit record, then no lender would most likely help you out. And this could be very much of a hassle to you.

How To Build Your Business Credit Score
Such a situation can be applicable not only to your business needs, but to your personal needs as well, such as asking for a car loan or a housing loan. Even in trying to get a credit card account can become a difficult process if your report is unfavorable. And also, some firms that you may want to do business with or partner with in the future would most likely want to look up on your credit report and might be discouraged if it does not project a good image.

What Should You Do To Keep Your Credit Report Favorable?

With your credit report being very essential to establishing your financial reputation, you must do what you can to keep it as clean and favorable as possible. Paying your bills on time, preventing debts from mounting up, and basically handling your finances well are just few of the things that you can do to keep your record untarnished.

If you realize that upon checking your credit report, there might be some errors in it, make sure that you exhaust all means to correct it as this can reflect badly on you. Sometimes these errors may come because of innocent technical mistakes through your banks, and sometimes they may come with much serious threats as having people steal your credit identity. In such cases, contact the credit bureau and report your concerns as well as correct errors by approaching the source of your report. More on Build Up Your Business Credit.

Whether you’re shopping for your first home or looking to refinance your seventh, you’ll likely also be searching for a lending institution in your area. However, mortgage research – to be effective – goes well beyond locating the best interest rate. So, keep reading for some criteria and factors to help you evaluate different mortgage lenders.

Single Loan Officer

A good mortgage lender assigns you a single loan officer who takes you through the entire loan process – from walking in the front door of the bank to signing over the funds to you. This person provides ongoing personal support and is your one contact at the bank or mortgage lender.

However, some mortgage lenders cycle you through a series of bank employees and contacts as you move from one step to the next during your loan process. This musical chairs version of mortgage service can slow down the process and cause you significant headaches.

Credibility and Reliability

When comparing home mortgages, look for a lender that exudes credibility and reliability. While that new mortgage broker with an office in the nearby strip mall might offer the best interest rate, you may have more faith and confidence in a local lender who’s been established in the community for a long time.

Closing Speed

Sometimes an efficient lender who can guarantee that they’ll close on time is worth the extra closing costs or .01 percentage point. A lender with a reputation for being slow can take your whole house purchase down with them if the financing isn’t ready by your deadline.

Closing Costs

Before you choose a lender, make sure you get a written list of all the fees and closing costs associated with applying for and closing a mortgage with them. In fact, you should try to estimate your overall costs ahead of time so there are no surprises at the closing table. Ask for full disclosure so you can accurately compare each lender.

Customer Service

From the moment you walk through the door of a mortgage lender, you should be evaluating their customer service skills. Remember, you are a customer and this lender should be competing for your business – not the other way around.

Unfortunately, some mortgage lenders act like they’re doing you a favor. So, if you don’t like the way you’re being treated, say so, leave, and find a more customer-friendly lender.

Interest Rates

While interest rates aren’t the most important factor when choosing a mortgage lender, they are still very important. So, look for a mortgage lender who offers a low rate. Remember, you don’t have to go for the lowest rate, but look for a quality lender who combines features like superior customer service and historic credibility along with the lower rate.

In today’s world, owning a credit card is a luxury. The worry of having to carry cash is eliminated by the convenience of a credit card. Although some credit cards have strict requirements, there are a lot of manufacturers that are giving both high school and college students the chance to get their own credit cards. Student credit cards can be used the same way as a traditional credit card, although they do come with certain restrictions and limitations that other credit cards don’t normally have. A lot of companies and banks that offer student credit cards will normally need a co-signer as a form of insurance or collateral.

Should the student be unable to pay the bill, the person who signed the loan with the student will be the person the company falls back on for payment. Parents or guardians are the frequent choice to co-sign for student credit cards, as issuers consider it to be back up and a peace of mind should they have to count on the co-signer with good credit to pay if the student can’t. Carefully compare student credit cards to be sure you are choosing the best student credit card for your situation, as this is an important decision.

Normally, the APR or interest rate is higher with student credit cards, which helps to minimize the risk for the company. Spending limits for these credit cards are different as well, with most being between 250 – 800 dollars. Most students have not established any credit, and therefore won’t have a great credit rating, which is the reason why spending limits are different with student credit cards. The spending limit is obviously lower with these cards than other credit cards, although they will still help students establish credit.

By planning a large purchase by using student credit cards, students can benefit greatly. Having a student credit card will help out to make large purchases – as you’ll need really good credit. As a stepping stone to building credit, you can use credit cards to establish a good credit rating. You’ll then be able to be approved for much higher loans in the future if you can get your credit rating high with your credit card. Helping students to gain a sense of responsibility is another reason to have a student credit card. The spending limit is much lower than any other credit card, although the card works just the same. By mastering usage of the card, the student will be able to manage money better later on in his or her life.

These cards are wonderful for students to have, and can teach them lifetime money skills. Credit cards, whether traditional or for a student, can be dangerous, and the student should know this. Although they are great to have, there are pitfalls such as overspending. If they are unable to pay their credit card bill because the students spend more money than they have coming in, then this will affect their credit. If the company goes after the co-signer to pay the bill, it could also affect their credit as well. For this reason, before students start using their credit cards, they should have a budget in mind.

Student credit cards are great to have, for the most part. As a way to teach responsibility for high school students or college students, these credit cards are also a means of freedom. In case there is an emergency; they can come in handy – which is reason enough to invest in them. Finding the best student credit card for your child is something you should look into if your son or daughter is in school right now. You can help your child to establish credit – this will take them farther wherever they go in life.

More than two-thirds of Americans don’t even know what a credit score is, says a recent Consumer Federation of America survey. Basically, good credit scores mean you’re likely to repay a loan and bad credit scores put you into a high risk pool as a potential borrower, hurting your chances of receiving an offer or even a good deal on your next credit card. Your credit score is based on your payment history, how much debt you have, how much credit you were offered and how frequently you borrow.

The history of identity theft shows us that criminal activity can cause a bad score but the most common way people get poor credit scores is to miss a credit payment or to pay late. At the time you may think, “Who cares if it’s just a few days late? They’re still getting their money.” However, once that lateness or missed payment is reported, a credit score can drop as much as 100 – 150 points according to one leading credit repair attorney and will take 24 months to be fully restored. To remedy the situation, be sure you bring all your credit accounts current, paying off late payments and always paying at least the minimum monthly fee, rather than waiting to pay it all at once. For many people, paying automatically through debit or setting a monthly cell phone reminder a week in advance are the best ways to ensure bills get paid on time.

To manage your credit score and credit card debt, you’ll need a plan. Create a chart showing the total balances and minimum monthly payments for all your accounts. Some people pay off the smallest balances in full first to feel like they’re gaining ground. Yet it may be more reasonable to pay off the highest interest rate cards first. Get into the habit of paying much more than the minimum monthly payments; otherwise, it could take you 10-30 years to pay off your balances! Also try to avoid making new purchases until your old accumulated debt is paid off. Be aware that getting close to your credit limit will also weigh against you, so you should try to keep your usage at 30% of your total limit, or less. Following these tips will put a damaged credit score back on the road to recovery.

Checking your own credit score will have no impact on your report. You can gather basic information at www.AnnualCreditReport.com, which allows you one free assessment each year. Experian, Equifax and TransUnion are the three major providers of financial report information. Even though you won’t get the exact number without paying, you may gather useful information that you could use at www.MoneyCentral.MSN.com/Investor/CreditReport/Main.asp to see where your approximate score may fall. To improve your credit score, your first step should be to pay down your credit cards, then your loans. Do not close your credit cards because this will decrease your capacity. Make all your bill payments on time. Move some of your revolving credit card debt to installment debt if you can. For example, you can sometimes take a home equity line of credit and transfer it to a fixed 10-15 year pay off. If you need more assistance improving credit scores, try www.CCCServices.com.