April 10, 2009
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A Measure of Credit Repair Progress
If you are planning to start a credit repair effort you might want to establish a benchmark for your progress; some objective means of marking the results of your efforts. Your credit scores are the logical way to measure your improvement. But getting your credit scores is not as simple as it seems. If you attempt to buy your scores online you are likely to encounter a dizzying array of options, many of which make little sense. It turns out that there is not just a single score, nor are there only three, one for each credit bureau. The crazy reality of the credit score market is far less clear. Are you ready to explore the world of credit scores?
It Starts With the Credit Bureaus
In brief, the three credit bureaus maintain credit data on consumers. Credit scores are based on this credit bureau data. Lenders base their lending decisions on a score called the FICO score. Lenders purchase these FICO scores from the credit bureaus, but the credit bureaus do not own the FICO scoring software, they license its use from Fair Isaac Corp, the creator of the FICO model.
One Score Three Names
The credit bureaus rebrand the FICO scores they sell to lenders. Experian calls their FICO score the Experian/Fair Isaac Risk Model, Equifax calls theirs the BEACON score, and TransUnion calls it an EMPIRICA score. All of these scores utilize the FICO software. The reason that there are differences in your three FICO scores is because creditors do not all report to all three bureaus. In addition, there are timing differences in the release and processing of data between the creditors and the credit bureaus; if you pay off a credit card Experian may update your balance in three weeks, Equifax in five weeks and TransUnion in eight. In addition, Fair Isaac updates their software from time to time, and the credit bureaus do not all adopt the new release simultaneously.
The Plot Thickens
So far we have described the relationship between the credit bureaus, Fair Isaac, and lenders. Unfortunately, there is more to the story. In a perfect world if you wanted your scores for credit repair or other purposes you would just purchase them from the credit bureaus. You would then know exactly what a lender will see when they make a decision on your loan application. But the credit bureaus have decided not to sell FICO scores to consumers. Instead, with the exception of Equifax, who sells a genuine FICO score, they have created their own credit scores and sell them to consumers. These bureau scores have little numeric resemblance to a FICO score, often differing by over 100 points. This is completely useless for credit repair, and not only because of the numeric difference, they also behave differently; you can’t optimize your FICO score by optimizing a bureau score.
Ignorance is Not Bliss
If this leaves you wondering why anyone would spend good money on a credit score that has no resemblance to the score that a lender will see, I’m sorry to say that the reason is that the millions of people that buy these scores do not know. And the reason they don’t know is that the disclosures provided by the credit bureaus are almost impossible to find. It is a fact that if Experian and TransUnion were to put their disclosures in plain English, in plain sight, no one would buy their scores.
Your Credit Repair Problem
But let’s go back to our little problem. You are getting your credit repair project rolling. Where can you get your real FICO scores? Prior to February 13, 2009 you could go to MyFICO.com, the Fair Isaac website and purchase all three FICO scores. But as of February 13th Experian has declined to let Fair Isaac sell the Experian FICO score. This has raised a cry of concern from many consumer advocates, but the fact still remains. At the time of this writing you can only purchase your Equifax and TransUnion FICO scores.
The Solution
Work with what you have. Get your two FICO scores. If you want all three scores to benchmark your credit repair results the only option now available to you is to get them through a lender. This may not be as hard as it sounds. If you plan to get a mortgage in the near future you might contact a mortgage broker. They will run your credit as part of the pre-qualification process, and if you ask, they might give you a copy of your report which will show all three scores. Good luck!
Copyright © 2009 Ian Webber. All Content. All Rights Reserved.
Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.
Article Source:http://www.articlesbase.com/credit-articles/credit-repair-and-those-darn-credit-scores-858806.html
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April 9, 2009
Once upon a time, shops on the High Street had cash registers allowing shop owners to accept cash payments from their customers. Making cash payments was the norm and it has only relatively recently become the case that cash payments are steadily becoming less popular, with preference being given to payments made on plastic.
It wasn’t until 1966 that Barclays released the UK’s first credit card. 21 years passed until the UK saw the release of its first debit card, again from Barclays. Since then the ease of use that plastic cards bring has caused the withdrawal of cash from banks and ATMs to be less important because debit and credit cards have saved the public from what used to be a necessary chore. The fact that in 2001 over half of UK retail spending was made on plastic shows just how popular payment on plastic is and therefore highlights the importance of merchant accounts for any business.
The ability to receive payments from multiple debit and credit cards opens up a whole stream of different payment options for the customer and removes any potential obstacles a customer may have to overcome in order to make a purchase from your business. Unfortunately, I could not buy a birthday card from an independent gift shop the other day as I had no cash on me and as I needed to get a card sent my only other option was to go down the road to Clintons and pay for a card on my debit card. The independent card retailer lost a sale that I was more than willing to make because I could not pay on my card. Perhaps twenty years ago I would have always made sure I had cash on me before going shopping, but due to our reliance on plastic today it is not necessary to always have cash to hand. This is a pressing reason why any business should have a merchant account. Losing a sale because you only accept cash is no longer acceptable. McDonalds used to only accept payment by cash but even though most sales are under £10 even they now accept card payments. Whilst to make sure you don’t lose a sale is a strong reason to have a merchant account it is by no means the only reason.
In recent years the Internet has provided retailers with a means to sell their products with further reach and exposure than seen ever before. The only way to pay for goods purchased over the Internet is by card and therefore a business without a merchant account cannot harness the power of the Internet and make online sales. If to make your products available online is the only reason then this justifies having a merchant account in itself. However, there are other benefits of merchant accounts.
Making purchases with a card rather than cash gives the customer a sense of security as there is an automatic record of the purchase. If the only payment option is cash this could be the difference between making the customer feel secure and whether you make or lose the sale.
Merchant accounts not only benefit the customer but they benefit the business owner also. With monthly statements they help to keep track of your financial records so with the benefits to business owners as well as customers with the vast amount of transactions made by card merchants accounts are a must have for any business.
Jack Goldstein is an expert in merchant services. For more information about merchant accounts visit http://www.seymourdirect.co.uk
Article Source:http://www.articlesbase.com/credit-articles/merchant-accounts-a-must-have-for-any-business-858204.html
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April 8, 2009
It’s the same problem each and every year. You need to spend hours poring over the most recent instructions for the federal and state 1040 forms ? which are only minutely different than last year’s, but you have to be sure you aren’t missing some evasive new tax law ? then another few hours compiling all your documents in an order than makes some sense. Once that’s done, you begin the tedious process of computing each individual line and printing your responses in painstakingly neat handwriting just to know for absolute certainty that someone at the Internal Revenue Service won’t bounce your return back as unreadable.
Your return has been signed, placed in an eight by ten manila envelope and mailed to the IRS. Even though you mailed it registered, with return receipt requested no less, you worry that it never made it, that someone lost it, or that some small error will come up and push you beyond the looming April 15th deadline.
If you haven’t started using computerized tax filing software, this probably isn’t so far from the truth. You may have heard of these programs and passed them off as not worth the investment. Each and every year, tax payers spend at minimum eight hours, and usually closer to fifteen to twenty hours, completing their tax returns. Even earning minimum wage, that eight hour time investment would have returned nearly sixty bucks at work ? substantially more than the cost of completing and eFiling your tax return online.
Not only does eFiling save you time, it saves you money. Since these programs are made to know the current year’s tax code, you can avoid many common mistakes. You don’t need to worry about incorrectly computing a specific line or claiming a deduction that isn’t actually deductible. Using these programs will prevent many seemingly minor errors which often result in hefty fees and fines from the IRS.
Once you’ve completed your return on your computer, eFiling is the best way to submit it. The IRS’s strict standards for eFile providers ensure that your return will be transmitted securely. With the “Free File” program, you may even be able to eFile your federal tax forms without any processing fees. Best of all, the eFile provider will keep you up to date on the status of your return, from submission to processing, so you never need to worry that the IRS hasn’t received it.
Because of the popularity of this method, all but two states (and those that don’t have an income tax system) also offer electronic systems to file state income tax forms. While the tax forms vary from federal to state, you almost always need the same information. If you use tax software to complete and eFile your federal return, chances are you’ll be able to do the same with your state return.
Learn more about efile tax return and state income tax forms from our website.
Article Source:http://www.articlesbase.com/credit-articles/benefits-of-efiling-your-tax-return-855658.html
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April 7, 2009
There are really no rules in place that stipulate why or what reasoning is being used by credit card companies to lower consumers’ credit limits on their accounts. Normally, the consumer has an idea why the card company has taken certain steps to limit their risk if the consumer had knowledge of a late payment or went over their credit limit, but now the only reason seems to be is that you are a credit cardholder with an outstanding balance.
Many consumers when receiving their monthly statement are finding their credit card limit has been reduced or their interest rate has been increased without warning. What is true and understood by most consumers is that once their credit limit is adjusted, it also may result in a change in their credit score.
Most consumers are asking how credit card issuers are making the decision to lower their credit limits especially if their credit score is over 720, they have never been late making their payments, they have not gone over their credit limit and they have no negative information in their credit report. The easy answer would be because of the current economic situation. However, there are other factors that will affect your credit card limits also.
First, every account has a statistical value based on usage. Credit card accounts paid in full or that are rarely used are of no value to a credit card company. There simply is no money in it for the company because the cardholder is not paying interest on a balance, there are no annual fees associated with the account and most importantly, these type of consumers are rarely accessed transaction fees when they do not follow the terms and conditions on their credit card account.
A second factor is risk quotient. Credit card companies now consider more heavily whether it is likely a customer will be delinquent on their account. Remember, your creditors pay the credit reporting agencies for your financial information. If a credit card issuer sees where you have defaulted on another credit card account, the credit card company in an effort to protect their financial interests will take the appropriate action to decrease their risk.
And last, you do not use enough of your credit line. Credit card companies are now reviewing your spending patterns and in some situations will reduce your credit limits accordingly. There is a term used for this practice, it is behavioral analysis where card companies evaluate where you spend your money and how much.
If you have not used your credit card in awhile it sends a red flag to your credit card company which could result in your card company reducing your credit limit or even closing your credit card account. Keep in mind that you are still responsible for any outstanding balance on your account and that your credit history with the company remains intact for review.
Granted, interest rate increases and dramatic reductions in credit limits can send consumers deeper into financial stress, rather than encouraging them to pay their bills. Credit card companies are focusing on reducing their risk, which means they will take the necessary measures against consumers so they are not left holding the bag.
If you pay on time and are never late, you may still be considered a risk. Currently, card issuers are reviewing your payment habits, credit score, and even where you shop to determine how likely you will be to default on your account and become a risk to them. In this economy, the banks definition of risk is changing which benefits them in more profit, but the consumer is hit again with higher payments, less spending power and nowhere to turn for help.
Janice Devereau is an internet, affiliate and network marketers with interests in health and wellness, credit repair, debt management, self-improvement and travel. For more information, visit my website at
http://www.j6financialsolutions.com/eraseyourdebt.htm.
Article Source:http://www.articlesbase.com/credit-articles/why-me-how-to-understand-your-credit-card-limit-reduction-853702.html
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April 6, 2009
Obama hailed the G20 summit as historical, which hopefully it will prove to be, but peoples’ day to day reality is certainly not going to change overnight.
The G20 summit termed the times that we are living in as “the greatest challenge to the world economy in modern times”
A fast cash payday loan is becoming an increasingly popular solution in these challenging times.
However the G20 summit state that they believe that prosperity is indivisible and growth has to be sustained and to be shared.
They have pledged to do what is necessary to:
1. To restore confidence, growth and jobs
2. To repair the financial system to restore lending
3. To strengthen financial regulations in order to rebuild trust
4. To fund and reform international financial institutions to overcome the crisis and prevent any future ones
5. To promote global trade and investment
6. To build an inclusive, green and sustainable recovery
It’s not that this doesn’t sound promising and positive but it will take time to decide on the specific measures and then actually to implement them, and then eventually for the ripples of positive reaction to show their effect.
Ireland, where the Celtic Tiger used to reside, has unemployment at the highest since 1996.
The International Monetary Fund and other lenders have agreed in principle to lend 20bn to Romania, and they have already provided loans to Latvia and Hungary.
Job losses continue everywhere, and here in the Costa del Sol, Spain, one of the most expensive 5 Star Hotels has not paid their staff for 4 months.
There’s no escaping the crisis, and as it is called in Spain “La Crisis”, and I wonder will the fact that the Spanish Prime Minister, Rodriguez Zapatero and Obama can now call themselves friends make much of a difference in the near future to the huge job losses in Spain, and of course across the United Kingdom and all of Europe.
The Italian Prime Minister, Silvio Berlusconi, on 4th April 2009 had such a pressing phone call to take on his mobile phone that he could not possibly greet his hostess Angela Merkel, who was rather bemused and puzzled by his behavior.
In fact he walked away from the venue and continued on talking, to the disbelief of even his own security team, and was nowhere to be seen to cross over the European bridge to the French side. He missed out on most of the proceedings only to turn up eventually for the second group photo.
But in the United Kingdom the public finances have become so bad since November 2008 that the basic income tax rate would need to increase by 8 percentage points to bring government borrowing back on track by 2015-2016, a statement released by the Institute of Fiscal Studies on Monday 6th April 2009.
In the Financial Times, Philip Lane, Professor of International Macroeconomics at Trinity College Dublin, certainly feels that the initial phases of the G20 can be implemented effectively and on time.
It is further down the line that needs more attention, especially bearing in mind that the execution of the policies which relate to domestic banking systems and aggregate demand management will be in the hands of the national governments, with a degree of shared sovereignty.
We will all be watching very closely, and live in hope that the correct measures can be carried out and that the spirit in which worthwhile G20 decisions have been made will be kept alive for a long time. For those who wish to source a fast cash payday loan, you must be over 18 years of age.
Article Source:http://www.articlesbase.com/credit-articles/fast-cash-payday-loan-853074.html
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Valery "Val" Mackie is an ordinary citizen of the United States of America (probably not unlike yourself). Her mission is to fix her credit report by January 3, 2009, while showing you how.
