Credit Agencies to use VantageScore
March 16, 2006
Equifax, Experian and TransUnion have joined forces and “created a new credit scoring system aimed at simplifying the loan process for both lenders and borrowers,” according to AP Business Writer Eileen Alt Powell. Traditionally, each agency used its own proprietary formula to create scores.
The new system, called VantageScore, will provide “greater consistency and predictability to consumers and credit grantors.” Here’s a breakdown of the new scoring system, which is based on the academic scale:
- A — 901-990
- B — 801-900
- C — 701-800
- D — 601-700
- F — 501-600
The new scores are available immediately for financial institutions, but won’t be rolled out for consumers until later this year.
Rising Credit Card Payments An Incentive?
January 12, 2006
The minimum payments are being doubled thanks to the new rule that went into effect and experts have said this would be a huge strain on households. However consumers are showing just how resilient they are by using different tactics and new ways to eliminate their debts all together.
Consumers stung by the sudden doubling
of their minimum required monthly credit card
payments are finding new ways to eliminate credit
card debt by replacing their card debt with cheaper
alternatives such as a 401(k) loan, said retirement plan
expert, Daniel Lamaute, CEO of Lamaute Capital, Inc.
(InvestSafe.com).
Sound Money Tips
January 12, 2006
Sound Money Tips says that you can get your company to lower your interest rates if you threaten to take your business elsewhere.
“While talking with this agent, be firm — tell the agent you’re planning to leave, but would consider staying if s/he offers you a drop in the interest rate to under the other card’s rate. Don’t tell them what card it is - they’re armed with reasons why that’s a bad card for you, and that’s not the conversation you want to have with them . Stay focused on the issue of lowering your current rate.”
Late Credit Card Payments Are Staying Sky High
January 10, 2006
A large majority of consumers who have credit cards are behind on very large bills. The blame is being laid on record high gas prices as well as the fact that the Federal Reserve increased interest rates 13 times in almost two years.
How Credit Scoring Works
April 10, 2005
The all important credit score! It determines the amount of loan you can get, it determines the interest rate at which you are charged for a loan, etc. Your credit score plays an important figure in your financial life. So what goes into making that all important score of yours? How does it increase, how does it decrease and what are the factors that go into its calculation?
Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.
Your credit score and credit report is formed on the basis of your credit history and you need to have at least one account which has been open or updated in the past six months to get a credit score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.
All in all, if you can pay for all your debts in a timely and consistent manner and not take more debt than you can handle, your credit score shouldn’t be able to trouble you in life. So take care and be wise with your finances.
About The Author
Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - Real estate listings of homes on sale and rent. Visit http://www.choiceofhomes.com.
UK Credit Card Debt
April 10, 2005
By Sean Turner
Getting into credit card debt in the UK, can leave you feeling helpless and hopeless. It seems like you could be stuck in UK credit card debt forever, and there’s no light at the end of the tunnel. Harassing phone calls from creditors and threatening letters prevent you from doing anything else but worry about money matters and you debt. Yet there is one practical solution for getting out of UK credit card debt: don’t get into it in the first place!
So what can you do to avoid Uk credit card debt, at all costs? Try a few of these practical tips, that keep you paying your bills on time and those pesky creditors from calling you at home.
Pay off your balance every month. This way, you avoid high interest payments that make it so you’re only paying off the interest on the principle rather than actually paying off the balance. This keeps creditors really happy, and makes your credit report clean when applying for a home loan or other things.
If it’s impossible to pay off the entire balance each month then at least pay more than the minimum amount due. The minimum amount is only your interest, so if you only pay that, you’re never going to pay off the balance!
If you’re sliding down the UK credit card debt mountain, search for other debt solutions. Try calling and ask for a lower interest rate. And if that doesn’t work, apply for a new card with a super low interest rate, and transfer over your current balance. This way, you can start right away on paying off the balance rather than dealing with that pesky interest.
To eliminate UK credit card debt, you can also try consolidating your debt into one low, monthly payment. While you’re paying your consolidated debt, try to avoid credit cards unless it’s an absolute emergency. This way, you don’t fall further intoa holeof credit card debt while trying to pay off debt! It’s really just common sense, but credit is a tricky subject and more and more people fall into bankruptcy because of it.
Once you’re back on top of your credit game, avoid slipping again by never spending more than you have in your bank account right now. You can’t fall into credit card debt if you don’t spend more than you have! Of course, emergency situations will always arise, but by following these easy tips, you should be able to deal with the emergencies because you spent wisely previously.
Knocking out credit card debt may seem like a never-ending process of calls from creditors and denials for loans, but by being smart and conserving a little bit, you’ll be credit card debt free in a minimal amount of time. Don’t fret at a small decline in lifestyle though. You did spend beyond your means to get into credit card debt, so it may take some sacrifice to get back onto the good side of credit.
This aricle has been supplied by Debt Help Consolidation
http://www.debthelpconsolidaion.co.uk
Welcome to Credit Cardenza!
April 9, 2005
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