Your Credit Score - What Is A Good Number?

By Christine A. Mathews

Are you thinking about applying for credit? Whether you're buying a new car, getting another credit card, or refinancing your home, one of the first things your lender will do is check your credit score. This score will determine just how quick and easy it will be to get the loan. That's why it's always good to know what your current credit score is... before you approach a lender.

In case you don't already know what a credit score is, let me explain...

Your credit score is a number the credit bureaus use to rate just how credit-worthy you are. They look at both your past credit history and how well you are handling any current debt you may have.

The three major credit bureaus (Equifax, Experian, and Trans Union) all have their own way of determining your credit score. But they each use the same standard scoring system to show how credit worthy you are. It based on FICO, an acronym for Fair Isaac Corporation. That's why you'll often hear people use the term "FICO Score" when talking about credit scores.

The truth is, lenders won't always ask for credit reports or credit scores from all three credit bureaus when you apply for a loan. Fortunately, since the "big three" all use the same FICO system, a score of 680 from one is thought to be the same as a score of 680 from the other two credit bureaus. Even so, it's a good idea to review your credit report from each one, as sometimes mistakes are made. When that happens, you should contact the credit bureau to have them corrected.

Where Do You Fall - What Is A Good Credit Score?

Credit scores range from a low of 375 to a high of 900. If you have a higher score, you are usually considered a better "risk" and getting credit will be easier. You'll also find that higher credit scores usually mean better loan terms.

You should understand that each lender will have their own underwriting guidelines and cutoff points they have to follow. But here is a general guideline you can use to see where your credit score falls overall.

If your credit score is 650 and above, this usually indicates very good credit history. This means you will probably find getting credit approval is quick and easy. Another bonus for having very good credit is that the terms of your loan will likely be very good, too.

If your score is between 620 and 650, you are considered to have generally good credit. That said, your lender may ask for additional documentation or explanations before approving large loans or extending a high credit limit. They are simply doing their due diligence, looking for any possible credit risks before final approval.

Also, instead of being quick and easy, your loan may take longer to close. But there is a good chance you will still be able to get credit at a good rate.

Don't panic if your credit falls below 620. It doesn't mean you will never get credit. The right lender may still be willing to give you a loan, but you need to accept that your interest rate will likely by higher and terms won't be as good.

About the Author:

It's easy to see that your credit score plays a big part in the type of credit you are able to get. If your credit is less than perfect, don't despair. Find out what you can do to improve your credit rating starting today! For more information, visit http://CreditHelp.ImprovingYourFinances.com

Dealing With Income or Job Loss

By Doug West

Why Multiple Income Streams Are More Important Than Ever

The latest economy reports show more and more folks ending up on the unemployed rolls. The real statistics are most often worse than what is reported.

My guess is that the situation will get Much worse before we see any improvement in the job numbers.

I have always been a big fan of multiple income streams (even before that became a catch-phrase), and I think they are more important now than ever.

When I was laid off my nearly 10 year job with AT&T back in 1992, I saw first hand how important multiple income streams were. At the time, I had a part time mail order biz (and had been tinkering with that since I was a kid). I looked at the lay off as a good opportunity to get more serious about my business. I also had been doing some investing (my best-ever stock play helped BIG back in those days), and had a little network marketing income.

Many of my AT&T coworkers had no other source of income, and I clearly remember a few grown men in tears when they walked us all out the door that morning!

I would MUCH rather have five sources of income that pay me $200 a week, than to have a J.O.B. that pays me a grand a week! If you still have a job, you need to take this info seriously - NOW! If you are one of the millions of folks that recently lost a job or your only income stream, you need to take steps NOW to correct that (you still have time - perhaps a severance package and/or unemployment insurance checks to get you by - but please don't wait till they run out to get going).

How do you start to create multiple income streams? Here are a few areas that are available to most people:

* Online Income - Many things fall into this category, affiliate plans, blogging income, Adsense dollars, online jobs, marketing your own products and/or services, eBay and other auctions, & more.

* Investment Income - OK, this one may be tougher than ever, and if you barely have money to live on, how do you start to invest! I am partial to index trading, and that does not require a lot of money to get started, but to be really good at it, you need other income streams too.

* Network Marketing Income - Don't turn up your nose at this one. I have companies sending me checks that I have not worked in years. While it is true that network marketers often talk about the top guy who is making $500,000 a month, but there are a TON of folks who make a few hundred a month. Not life changing in and of itself, but as part of your multiple income stream strategy, not bad either.

* Cash Back Debit & Credit Cards - You won't get rich with this alone either, but the old saying is really true "If you watch the pennies, the dollars will take care of themselves". Pay Pal offers cash back on a debit card (which in my opinion is better than a credit card - you won't have the temptation to carry over a balance, which would cause interest charges and defeat the purpose of cash back)

* Interest Savings on Loans & Credit Cards - OK, this is not technically income, but if you save money off what you are currently spending, it comes out the same in the end - more money in your pocket and budget.

* Food Bill Savings - This is like the Cash Back cards, not really income but can be very important - especially if you just lost your job or sole income (like many folks who used to live on their stock market income). Try clipping coupons or join a coupon club. Eat at home more and quickly find more money left in the budget at the end of the month.

* Turn Hobbies Into Income - Like to go to garage sales? Turn that hobby into eBay income. Like to work on small engines or have some other hobby that can be turned into an income source? Don't sell yourself short here. Maybe you love flea markets? What if you could get an extra $200 or more a week by setting up a booth one day a week? Not enough to live on for most folks, but not bad as part of your multiple income strategy. You might even consider creating a booklet, ebook, book, or other info product on your hobby. If you are good at it, you ARE and Expert (you don't have to be the best to be considered an expert - there are folks out there who will pay you for what you know).

We have had affiliates of our Index Trading course earn up to $100,000 in a year. We've had many more earn from $5,000 to $30,000 in a year. What if you had 5 affiliate plans you liked (loved would be better - you'd be more passionate about them), that averaged about $5,000 each per year. You might be able to live on that. Add some other sources like the ones mentioned above and you might live very well!

You should always be looking for ways to add additional income streams. Remember, the more you have the better! If one dries up, you are not devastated.

The time to set up multiple income streams is before you need them, but no matter what your situation is, there is no time like NOW to get started.

About the Author:

Mini-Dow Index Trading Made Simple. Discover how to build your trading income. Get Doug's Debt-Free Report. Read his blog here.

Debt Management Programs Revealed

By Steve Collins

If you find yourself in a financial crunch and are thinking about enrolling in one of the many debt management programs available, there are a few things you should look at when evaluating your options. First, depending on the severity of your problem, it may be advantageous to look into non-profit debt management programs. You'll get assistance in negotiating with your creditors to lessen the amount you owe at no additional cost to you.

The downside to going with one of these debt management programs is that non-profits don't usually carry the kind of bargaining clout that a paid service does. As a general rule, the more you want to shave off the payments you have to make per month; the better off you'll probably be enrolling in one of the for-profit debt management programs.

If you've concluded that you do need one of the paid debt management programs, one of the first considerations when comparing them is accreditation. search for companies that are licensed with the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. ISO compliance and a good standing with the local Better Business Bureau are also excellent ways to gauge the quality of the debt management programs you look into. There are good debt management programs that do not have accreditations, but why risk it?

It is often the case that the biggest consideration for most people when they're comparing various debt management programs is the cost. You will find that prices vary, so doing some research and shopping around is advisable. Ask what all the associated costs will be up front. You should cross off of your list any programs that will not divulge that information at the outset. If the employee hesitates or gives estimates only, move on to a competitor. There is certainly no shortage of debt management programs out there!

On a similar note, there are hidden costs with joining any debt management program. Specifically, it makes no sense to enroll in a paid program based entirely on the company's charges if they are unable to get your creditors to reduce the amounts you owe as much as another company can. You'll save money only to lose money! The bottom line is that it pays to take the time to thoroughly research all of these factors for each of the debt management programs you're considering. Then, at the very least, you'll be pleased that you found the best possible choice.

About the Author:

Steve Collins is an author and journalist. In these trying times, he knows the importance of obtaining effective Debt Solutions if necessary. Read his article about Debt Solutions here

Dispute Equifax

By Justin Hutto

A dispute can be filed with Equifax by creating a dispute letter and mailing it to them. In your letter you will need to include a reason as to why the listing is inaccurate.

You can write a dispute letter yourself or you can hire a service to write it on your behalf. You should be aware that a dispute letter must be sent to each credit bureau.

This means that if you send a letter to Equifax and they remove the mark you will also need to send a letter to Transunion or Experian. There is no communication between the three bureaus regarding disputes.

Common reasons to dispute a bad credit item include; information is wrong, item is out of date, account paid in full and more. The Fair Credit Reporting Act passed by congress gives you the right to dispute any item on your credit report.

In addition this act says that any mark that can not be verified must be removed from your report. This is what the dispute process is based upon.

When your dispute is filled the bureau will conduct an investigation. They will contact the creator of the negative mark and ask them to verify the debt, the amounts and the dates.

If the mark can not be verified then it is removed from your credit report. Often an investigation results in the removal of bad credit. This is a result of many businesses being unwilling to spend the time and money verifying disputed debts.

Before the bureaus will investigate your dispute they must deem it valid. There is no clear definition of what a valid dispute is.

Many claim that the bureaus are just avoiding having to hold an investigation so they will deem your dispute invalid and respond with a letter requesting more information about the dispute. It is widely speculated that this is nothing more than a stall tactic used by the bureaus.

It only costs the bureaus money to conduct an investigation. There is no revenue in it for the bureaus, their customers are businesses.

I suggest a credit repair service if you have multiple listings you wish to dispute. However you can repair your credit yourself if you have minor damage, be patient and persistent.

In sum you can remove bad credit items before seven years. You can dispute the bureaus and have the negative item removed.

About the Author:

For more credit repair tips or to learn about how you can dispute nco financial a common collection agency visit us.

How the slowdown is hitting the credit card market

By Mark Wright

The credit crunch is a little different to previous incarnations of economic slowdowns in that it has hit the consumer much harder and much earlier on in its development. The amount of personal borrowing against credit cards and the lenders' response to this particular crisis may have a great deal to do with that early-doors impact. A survey by the financial information analysts Moneyfacts has found that at least 10% of credit cards have raised their interest rates or fees as a direct result of the economic storm now battering UK PLC.

A knock-on effect of the credit crunch has been the average interest rate on credit cards rising from 16.8% to 17.2% since the start of August 2008. This trend upwards is in direct opposition to the Bank of England's policy of cutting base interest rates to stave off the chances of runaway inflation. The credit crunch is biting, and biting hard. As banks and lenders realise that the money pot in the City is nearly empty, they know that this time consumers are feeling the squeeze as well. In the lenders' eyes that means a greater risk of customers defaulting on payments, so the interest rate rise on credit cards is seen as a financial cushion against defaults and bad debt. The lenders are shoring up their financial positions and doing their utmost to reduce their exposure to bad debt.

As the financial institutions lost faith with each other, they tightened up on lending criteria across the board. This was primarily to stabilise an already shaky marketplace and stop everyone running the risk of 'bad debt', both lenders and borrowers alike. The lenders need money to continue trading and as borrowing from other banks and financial institutions has practically stopped, the only way for them to get the money they need to continue in business is to increase interest charges on credit agreements, loans, credit cards and mortgages. This signifies an end to the 'live now, pay later' lifestyle that the First World industrial countries have enjoyed for so many years.

The ten years between 1997 and 2007 were boom times for credit card lenders in the UK. The brakes weren't just put on because of the credit crunch that kicked in during 2008. An extremely competitive marketplace, the emergence of the Pacific Rim countries as manufacturing and financial superpowers, increasing international 'bad debts' and a plethora of government regulations made the credit companies re-evaluate their positions. A few companies responded with a knee-jerk reaction of 'dumping' thousands of customers that were just not profitable (those who cleared their balances every month and paid little or no interest charges). All of the credit companies tightened their criteria for lending, increasing transfer charges, restricting credit limits and access to cash withdrawals. By doing this, they're not only minimising their own exposure to bad debt, but reducing the possibility of their customers getting into trouble as well. It's a win/win move by the credit card companies, and will probably do a lot more to help stabilise the market.

The lenders have suffered a double-blow. The loss of individual overall market share in the 1990's resulted in lenders fighting hard for the affections of a credit card loving public with a plethora of 0% offers. Card lenders are now charging up to 3% balance transfer fees to try and regain a more stable financial position and refund some of the lost earnings that 0% offers cause. The second blow was the Office of Fair Trading's decision in 2006 to impose a 12 cap on penalty fees. Now card lenders are bracing themselves for a third punch; the Complaint's Commission decision to take a long, hard look at personal protection insurance schemes that are often mandatory additions to credit card agreements.

Unemployment is the next potential credit problem as the economic downturn starts to impact on jobs over the next 12 months. If things do get worse credit card customers can expect interest rates on their cards to go up not down, as lenders try to cushion themselves against the impact bad debt exposure could have on their business. There are still plenty of good credit card deals available. But lenders are a little more careful about whom they lend to, so the best thing to do to ensure that the credit crunch doesn't scupper your chances of getting a good deal is to check your credit rating measures up before you apply.

About the Author:

Mark Wright writes regularly on the topic of the recent financial crisis, and educates readers on what to expect regarding the credit crunch. Read more about credit cards here.

? Subprime Mortgage Foreclosures: The Importance of Reading the Fine Print

By Michael Geoffrey

Even without good credit, owning your own home is a very real possibility, and that very advertising strategy worked on lots of current homeowners in the last several years. Snatching up low interest loans, these individuals were all too thrilled to have found such great loans from lenders who enabled them to move into their own homes.

Unfortunately, the majority of people who purchased homes by means of this type of mortgage did not carefully analyze the details hidden in the fine print of their loan agreements. Because of that, they had no clue that their interest rate was set to skyrocket after a few months or years. Since they were not expecting it, that interest rate increase made it impossible for the individuals who took the loans out to continue making payments on their mortgages. This sad situation is now happening all over the country.

The monthly payment increases that occurred as a result of the jump in interest rates were overwhelming for many homeowners. In some cases, people's payments more than doubled. This unexpected increase in interest rates left many people unable to make payments. They then found themselves being served foreclosure paperwork, threatening eviction if they were not able to pay off their mortgages.

When you are forced out of you home in this way, it is referred to as a mortgage foreclosure. Your home is auctioned or otherwise sold by the bank or lending agency you took your loan out with so that they can get a different person to live in the house and make the mortgage payments that you could not. Their only concern is to make money.

Protect Yourself from Foreclosure

The best way to keep yourself from getting into a similar situation is to read all of the details found in the fine print of a loan agreement before you agree to or sign anything. If your interest rates are going to go up and you know that at the time you take out a loan, you will be able to prepare for the increase and budget yourself accordingly.

You need to develop the excellent habit of reading all of the fine print on any important papers you sign before you ever sign them, regardless of what the paperwork is for. Financing can be dangerous if you do not understand the details of your agreement and interest rates shoot up unexpectedly. This has caused many mortgage foreclosures.

People find out they can't make their payments and the next thing they know, they're homeless. Don't let this happen to you. Be a smart consumer and always make your payments on time so that you never fall victim to a mortgage foreclosure.

About the Author:

Are you sick of buying financial guides that promise the world but just don't deliver on those promises? We offer unbiased reviews of many resources in the debt, credit, investing and real estate markets, to name a few. Visit http://www.financeproductevaluations.com to check out our latest reviews, such as our current top pick 37 Days To Clean Credit.