Posted by GuestPoster on August 29, 2010 under Credit Scores, Debt | 
A lot of people confuse themselves between FICA and FICO when referring to credit scores. Actually, there is no such thing as FICA credit score. It is only FICO when talking about credit scores.
FICA is the acronym for Federal Insurance Contributions Act. This act is the result of the Social Security Act of 1935 which was proposed by the late president Franklin D. Roosevelt. It mandates that an employer should set a specific amount from the employee’s salary and contribute it to a government account known as Social Security Trust Fund. The funds gathered were to be used to provide retirement income, disability insurance, Medicare and benefits for survivors.
On the other note, FICO score is a numerical value that measures the capability of a person who would like to lend money from a financial institution to pay his debts or bills. FICA scores are compiled by a company named Fair Isaac & Co. This company began developing FICO credit scores in the latter part of 1950s. Currently, many lenders and other financial agencies are using FICO scoring to decide as to whether they would grant loans or other credit application to borrowers.
The FICO credit score ranges from 300-800 where 300 is very poor and 800 is very good. The average FICO score is 568. Borrowers with FICO Scores that are above 568 are capable of paying their bills whereas those with lower than the average FICO score are not. Lenders or other financial institutions give favor to borrowers with a good FICO score by allowing them to lend money or incur a loan. Those with very good FICO score are privileged to borrow a greater amount of loan, if they wish to, without any hassle. Those with poor FICO scores would find it hard to apply for any credit line and would have higher interest rate (If the credit application is approved). This is the beauty of having a good FICO score.
The creation of a FICO score is based on different factors. The score notes whether the consumer pay his/her bills on time, how long the consumer lived in a certain address, whether the consumer filed a bankruptcy, employment history and the length of the credit history.
There are three major bureaus that reports FICO scores. These are TransUnion, Equifax and Experian. Small credit bureaus also exist and they only provide information to local areas. Lenders or other financial institutions collaborate with these bureaus to determine the creditworthiness of borrowers. Some of them use the three bureaus while some just the TransUnion.
By law, consumers can get one copy from these credit bureaus once a year. If there are any discrepancies, consumers can call these bureaus for any concerns.
There are many ways on how to increase the FICO score. Consumers should pay their bills on time, avoid applying for credit cards frequently, having a sufficient credit, and avoid high balances on credit cards.
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Posted by GuestPoster on August 18, 2010 under Credit Scores, Debt |
The goal of any person who wants to improve their financial situation is to restore credit. Good credit can make purchases such as a home or car much easier and more affordable over time. It can also help with applying for a job. Seen in this light you realize that good credit is a vital part of your financial health and stability. The way you go about repairing your credit is pretty straightforward and simple. Here are some suggestions and tips can be helpful.
First you should look at the state of your credit. There are several ways you can do that. The first is to look at your current credit card bills. You should look at what is current what is late, and what may be delinquent and make a list based on how you want to pay them. Another approach is to obtain your credit report. Federal law allows for you to get a free copy of your report. This gives info on all your credit activities and your scores. This combined with other information will help you have a complete view of your credit.
The next step is to create a plan for how you will pay off your debts or erase them from your credit report. Bad credit can’t be instantly wiped out. It takes time and effort to do so and you need to have a concerted plan to make those efforts effective. Tackles debts by how quickly you can clear them and use larger debts to create positive credit. For example you can restore a delinquent debt by catching up on payments and paying any penalties.
Another thing to do is to use new credit and loans wisely. If you find yourself needing to use new credit use it in the best way possible. Keep up with payments and go with an amount that fits your budget. This is the best way to restore credit.
Posted by GuestPoster on August 17, 2010 under Credit Scores, Debt |
What do you do when you get all those monthly statements and it’s time for you to send your payments? Do you take out another loan just to get by at least for this month? This could really be tiring and perhaps you have often asked yourself when this will end. This will never end if you have not resolved to take care of all those debts once and for all. You surely want help with credit card debt.
What you need to do first is request for a lower interest rate for your credit card. This will make a big difference especially if you have a lot of credit cards and you have a large outstanding balance in your credit card account. Do not hesitate to ask. It’s not something to be ashamed of. We all know how hard it is to earn money these days so it is only reasonable if we try to find ways to save money. You’ll be surprised with how helpful they could be. After all, they would not want to lose a valued customer such as you.
It would also help if you focus first on paying just one credit card account at a time. This will take you less time to pay off all your credit cards instead of just paying the minimum payment.
If you’ve considered debt consolidation then think again. Is this really the best option for you? Make sure you understand what this involves if you have decided on this. If you are not certain on what to do, consider your other options first and make debt consolidation your last option.
For those who need help with credit card debt, you can find several ways to solve your problem. Just analyze what is best for you. In these times, what you need is a long term solution to your financial problem if you really want to put an end to your debts.
Posted by GuestPoster on July 31, 2010 under Credit Scores, Debt |
One known option for credit card holders who are struggling with very high interest rates is to transfer their balances into a single card with the least interest. This is very practical and convenient to support their effort to erase credit card debt. Though it may sound very simple, there are some things that everyone should know.
Credit card balance transfer may not apply in all situations. If anyone has an awful credit standing, chances are your application might be rejected by some credit card companies. For somebody that has good credit history, it’s a lot easier to transfer balances because of the ‘trust’ that was built between the cardholder and the company.
Another thing to check would be the total balances that you want to consolidate. While it is true that there are credit card depot and debt consolidation companies, there’s still a chance that an application may not be totally accepted if the balance is too high. A lower balance has better chances of being transferred. Some companies would accept a portion of the total balance – say for instance ten thousand out of the twenty-five thousand total balances. This may not sound enticing to some, but it could help in anyone’s goal of steadily eliminating your credit card debt.
Lastly, be sure to check the whole program before signing up with a credit card company. Make sure that you understand the terms and conditions, fees or charges that may apply, interest rates and how it will be computed moving forward, and other pertinent information. If there are some clauses that confuse you, it’s always a good idea to ask since you’ll be the victim if anything goes wrong.
Remember that this is another credit card, and that your ultimate goal is to totally eliminate your credit card debt. Take advantage of these offerings as it may help you achieve your objective.
Posted by GuestPoster on July 19, 2010 under Credit Scores, Debt |
Since debt consolidation programs are last remedies before declaring the debtor insolvent or bankrupt, debt consolidation agencies will make the creditors aware of how things stand. In the light of that knowledge, most, if not all, creditors will usually settle for getting just a portion of the original profit they intended to make on their loan accommodations. In extreme circumstances, lending institutions or companies that sold their wares on installment may be willing to settle for getting back their capital.
The advantage of approaching loan consolidation companies for assistance in cases of overwhelming indebtedness is that these people will have the convincing power to prevail on creditors to ease out the thorny aspects of the terms or face non-payment altogether.
Some charges that may be left out in debt consolidation programs are miscellaneous charges and fees pertaining to late payment, interest rates and ultimately the monthly amount to be paid.
Since the consolidation company will be doing this for all the creditors, the total monthly payable that will be incurred by the debtor will not be much more than the basic amount of the loan.
Additionally creditors may even be willing to cut short the duration period of loan payments. This further allows the debtor to cut down on his expenditures for loans.
On the other hand, the person availing of debt consolidation programs will have to shoulder the professional fees of the persons handling his loan accounts. There will be an initial professional fee paid to the consolidating agency for acting as the go-between of the debtor and the creditor.
In addition to these, monthly payments are required for the additional service of apportioning the money to the different creditors concerned. These fees can be considered as the interest that would have been paid to the creditors for whom the debt consolidation company is also acting as loan collector
Military Debt Consolidation Advice is a guide to a range of debt solutions for those in financial trouble, with a focus on military members but with practical advice for everyone.