Credit Scores
A credit score is an indicator of how likely you are to default on a loan or credit card in the next 24 months. This information is used by credit grantors when evaluating your credit for approval. Your BEACON®, FICO® or EMPIRICA® score is based solely on information in your credit file maintained by the credit reporting agencies. Other scores may be based on a combination of credit information and other information that you supply on your credit application.
The way you have handled credit in the past may indicate how you will manage credit in the future. Credit scores cannot predict with certainty how you will manage credit, but they do provide an objective estimate of how likely you are to repay on time and according to terms.
How Are Scores Calculated?
Your credit report is the basis of your FICO® score. The report details your credit history as it has been reported to the credit reporting agency by lenders who have extended credit to you, by court records and by you. The FICO score analyzes information from the trade line, inquiry, public record and collection sections of your credit report.
A FICO score evaluates five main categories of information in your credit report, and compares this information to the patterns in hundreds of thousands of past credit reports. These five categories are, in order of importance:
1. Payment history what is your track record? 35 % of the score
Risk predictors here look at:
Severity - how bad are the delinquencies?
Recency - how recent are they?
Frequency - how many times did it occur?
2. Amounts owed how much is too much? 30% of the score
Risk predictors here look at:
Large outstanding balances
The ratio of balances to credit limits
3. Length of credit history how established is yours? 15% of the score
Risk predictors here look at:
Age of the trade lines - (the age of the oldest account, the average age of accounts, or both).
4. New credit are you taking on more debt? 10% of the score
Risk predictors here look at:
Number of inquiries and new account openings
5. Types of credit in use is it a healthy mix? 10% of the score
Risk predictors here look at:
Number of trade lines reported for each type: bankcards, retail, department store cards, installment loans, etc.
Doug Parker is the CEO of http://www.RepairMyCreditNow.com (RMCN Credit Services, Inc.). For more information on http://www.RepairMyCreditNow.com or to learn more about Credit Education & Restoration, log on to http://www.RepairMyCreditNow.com or call (888) 4-MY-REPAIR to speak with a customer representative.
Cashback Credit Cards Explained: One from American Express
I have received numerous inquiries regarding One from American Express, a new cashback credit card that deposits 1% cashback into a high yield savings account. Here I’ll discuss the features, benefits, and fine print issues of One from American Express.
Delving into the precise rewards value of this Amex credit card is a little difficult. Whenever you make a purchase, American Express makes a deposit of 1% into a high-yield savings account (currently, the variable interest rate is 3.5%). The amount of interest you can earn will vary dramatically from cardholder to cardholder. Now, because I’m a rewards junkie, I use my credit cards for every purchase and pay my balance in full each month. Why use an ATM card when you can get paid to use your credit card? It doesn’t make sense. Assume you use your One from American Express credit card for all of your everyday purchases. Over the course of a year, most people’s food, gas, and entertainment expenses exceed $10,000 to $15,000, especially those with large families. Thus, if you spend $10,000 with the One from American Express credit card, you’ll receive a $25 bonus deposit for signing up, $100 in savings deposits, plus interest. So far, very good.
Additionally, new card members are charged no annual fee their first year, and are benefited even more by an Interest Protection feature that allows you the opportunity to pay no interest on new purchases, even if you carry a balance.
However, small spenders do face a problem. During the second year of card membership, there is an annual fee of $35. For those who spend $10,000 or more each year on their credit card, this doesn’t pose too much of a problem, as you’ll earn most of that fee, if not more, in interest.
However, if you only spend a few thousand dollars a year, the annual fee will really eat away at your rewards. For those who fit into the small spending category, other cashback credit cards, such as the American Express ® Blue Cash SM , the Citi® Dividend Platinum Select® Card, or the Chase Cash Plus® Rewards Visa may ultimately provide better value.
Overall, One from American Express ® provides great value for large spenders. But, unlike cashback credit cards that charge no annual fee, this credit card may not be the best option for smaller spenders.
Copyright 2006 Credit Card Depot Inc.
Jeffrey Weber is the president and CEO of Credit Card Depot Inc. For over two years, his website http://www.Credit-Card-Depot.com has provided detailed information on credit card applications and has helped over 10,000 consumers make educated decisions when choosing new credit cards online. Credit Card Depot features secure links to Credit Card Applications including cashback credit cards.
Have you Chosen the Best Airline Credit Card?
The whole world and their sweetheart use airline credit cards, but are you sure that you are using the best possible airline credit card? Think about it, the difference between just any airline credit card and the THE perfect one is pretty much like the difference between all the people you dated and THE one you finally married. Airline miles credit cards come a dime a dozen, so if you really want one to work for you, you have to be sure you selected the perfect card.
Airline Credit Card Sponsor
For example, the first thing you may want to check is its pedigree - which retailer accepts the card you use? Does your favorite retailer use it? Do they offer any additional schemes and rewards which will help you notch up air miles or points? Do a thorough survey. Visit your supermarkets, neighborhood retail shops, check out their brochures, phone them, do a full analysis before you buy your airline miles credit cards.
In case you see you can get a better offer from another card, negotiate with the current company. More often than not, you will see they prefer to keep your business rather than lose you to the competition. And who knows, you may even land up getting a better deal on your current airline credit card than you ever imagined.
Balance Transfer on your Airline Credit Cards
Yes, it is possible. To get this offer, just ask your sales rep. Many companies will allow you; even tempt you, with balance transfers. Not only will you get a lower rate of interest but also, you may jack up your frequent flyer miles. What’s more, if your retailer partners with this card, then you have a winner on your hands. Therefore, the real trick lies in doing your homework.
The Fine Print of an Airline Credit Card
Have you seen if the black out dates on a card tallies with your comfort? Suppose you wish to redeem your air miles and then you realize that you have fallen outside the black out date, it will be a real pity. Therefore, it is better to check the small details of a card before you select it or even while you are using it.
Have you inspected the extra bells and whistles? For example, does your card also offer discounts on car rentals? Or perhaps some travel insurance? Does your airline credit card offer competitive rates? Check if they will offer emergency cash to you on the spot, or perhaps roadside assistance should your vehicle face a breakdown or an accident.
Airline Credit Card Fees
While some cards can look tempting with their lower fees or minimal interest rate structures, the point always is - what do you want? For example, if you have a high-flying job with a multi-national company then you may opt for a card that offers generous air miles because your continent hopping lifestyle will reimburse the extra annual fees they charge. Alternatively, if you are self-employed, then a card with a low sign-up fee and a slightly lower air miles offer might be ideal for you.
So shop around for the best possible airline credit card that works for you - check the annual fees of a number of cards, narrow it down to a select few by comparing the rewards they offer. Select the final three airline miles credit cards by reading similar articles like these, so that you are knowledgeable about what you want and then, finally, pick the winner. You will soon realize that the best airline credit cards will get you where you wish to go
For more information on choosing the best airline credit card, Willard Roberts recommends that you visit CreditCardAssist.com.
Building Business Credit, How Credit Cards Play The Key Role
Over 90% of business owners have never taking the time to build business credit. The reason why I have chosen to open this article with this statement is for two reasons. #1 to give comfort to those who have not taken the time to establish business. From this statement you can see that you are not alone. #2 To help ones understand that if they take this seriously, and take the time and energy to establish business credit, any one can, then they will enter the elite small group of business owners who have a tremendous edge on their competition because they can leverage themselves financially in a way that their competitors cannot.
A road map outlined by experts.
You must separate your business credit from your personal credit. In order to do this you must set up either a corporation or an LLC. If you are a sole proprietorship or a partnership you are 100% responsible for any money that you borrow perhaps you have herd of personal guarantor.Your business must have an EIN #, and in no way should your business be connected to your social security #. Your business should open a banking account that is not linked to your personal account in any way. Be sure that the account has the correct business name. Your business should also have a business phone # that is separate from your personal Phone #, and it should be listed with your local phone company as a business, and be in a 411 directory.Once you have set up this foundation the next step is to make sure your business is registered with the following credit bureau’s and have an open file with all three of them. Eqiifax, Experian, and Dun & Bradstreet.
Your business must establish one bank loan, 3 business credit cards and 5 vender trade lines of credit that all report to these three credit bureau’s. A few things I thought it might be appropriate to point out at this time is. #1 Business credit is not a substitute for personal credit. Both should be worked on and maintained and will have a bearing on haw much you will be able to receive from lending institutions,often lending institutions will in addition to looking at the business credit, look at the personal credit worthiness of the corporate officers or principles of a corporation or LLC. If you have bad personal credit work on it at the same time you are building business credit. #2 I have personally seen companies extended large sums of money who had a good credit score and report with Dun & Bradstreet without giving much bearing to other sources, the point I’ am trying to make here is, make sure that whoever’s reporting on your behalf reports to all three, and specifically these three.# 3 Business credit is very different from personal credit. There are laws that govern the accuracy of information on you personal credit that don’t exist for your business credit, this means that it is harder to change bad or inaccurate things on your business credit report, thus its important to establish business credit right, right from the start.
Why credit cards are the key.
In essence your business has to establish a credit history. Again reflecting on our road map of 3 credit cards 1 bank loan and 5 vender trade lines, each time we attain one of these elements it will be easier to attain the next.
If we do not qualify for a unsecured credit card it is relatively easy to get a secured credit card provided we have a small sum of money that we can deposit into an account as collateral on our credit limit for the newly acquired credit card. Once we have our credit card it will be easier to get vendors to extend us a 30 or 60 or 90 day line of credit provided that we allow them to keep our credit card on file. After we have paid on our secured credit card for a little while our bank will make it an unsecured credit card. Once this happens it is often much easier to get another issuing bank to give you an unsecured credit card as they can see that your business has established a measure of credibility. At this point things can move forward in a timely fashion and before you know it you have every thing on the road map to success. Once you have reached this point a few things to remember are #1 keep your credit card balances bellow 50% of your total available credit as this will reflect well on your credit score. In addition to this it is important to make sure you do not have any insufficient funds hit you record for checks that your business writes, pay all your accounts on time as well as pay all your taxes on time. If you do this you will build good credit and before you know it you will be in the minority of people who are in a position of financial power able to make strategic maneuvers at key moments.If you are in need of a secured credit card or any credit card for that matter you can find one on my website www.creditcardumbrella.com under the credit cards to rebuild credit section. A link to this website can also be found bellow.
Hugh Parker Web site: www.creditcardumbrella.com Compare credit cards apply online. If you would like to read more articles please click credit cards. and visit our resource center. Or if you need a credit card make a comparison and apply online.