Your Children and Credit
Educate Your Children about Money and Credit
Parents, start building your children’s credit early – and do it well. Build credit early for your children – even before college starts, if they plan to take out student loans. Sign over an account that they must pay on time each month. Get a credit card with a low limit, and a bank account that you help them manage monthly. Avoid opening several charge cards at once in their name – not only will they be hard to repay, but having new accounts when they have a short credit history will cause their credit rating to drop. Encourage them to get a part-time job.
“The Credit Card Act of 2009 sought to temper aggressive marketing of credit cards to students by restricting campus promotions and requiring students younger than 21 to have a co-signer, unless they have enough income to get their own card.” And banks are unwilling to offer credit education to their customers. “They do not tell us that no credit is as bad as poor credit. Banks and educational institutions certainly do not think it is their responsibility to conquer the critical task of teaching children about credit.”
Categories: Changing World of Finance, Credit Scoring and Reporting, facts about credit, Money education, Secrets Revealed Tags: Children, Credit, Credit education, credit score, Money
How Credit Bureaus Make Money
 Credit Reporting and You
Information you as a consumer should know about Credit Bureaus. The Credit Bureaus make money selling your information. The three major Credit Bureaus are in business for two main reasons only and those reasons are to make money, and be profitable for their shareholders. They make their money by selling consumer information to other businesses who lend money. With this information those businesses can assess the risk level of potential borrowers. Many of those businesses are:
Accurate credit report
- Mortgage companies
- Banks
- Credit Unions
- Car dealerships
- Credit Card companies
- Insurance companies
- Collection agencies
- Land lords
- Employers (with your permission only)
The Bureaus enjoy greater financial success if you have low scores. As a rule, credit card companies do not spend nearly as much money buying the personal information belonging to people that have good credit.
Categories: Credit Repair, Credit Scoring and Reporting, facts about credit, Secrets Revealed, Small Business Consulting Tags: Consumer rights, Credit, Credit report, credit score, understanding credit
What’s Your Score? Find Out Before it’s too Late!
It’s easy to ignore the problems that are created by a low credit rating. Thinking about your credit history isn’t something many people do every day. At some point it will become obvious that the poor credit score is stopping you from moving forward. For most, the moment of understanding comes when it is time to make a big purchase, like purchase a home or a car.
Having a bad credit score makes it very hard to obtain a loan. Even if your score is somewhat decent and you can get approved, your will likely pay much higher interest rates. It may not seem like an additional 2% in interest will result in much, until you do the math. A mere 2% higher interest rate will result in thousands of extra dollars spent.
The first thing that you need to do in order to begin raising your score is to pull copies of your credit files and scores. You can do that free of charge by visiting Equifax.
Categories: Credit Scoring and Reporting, facts about credit Tags: Credit, credit card, FICO, Length of Credit History, score
Peer-To-Peer Lending
With the credit markets tightening and banks implementing strict lending standards there has been a surge in alternative forms of borrowing money
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Obtain Business Financing, Small Business Consulting Tags: borrowing, Credit, credit card, financial, lending, peer-to-peer, peer-to-peer lending, unconventional
Alternative Lending Sources
What is the proper measure for creditworthiness in this day and age?
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Internet Marketing Answers, Obtain Business Financing, Small Business Consulting, Uncategorized Tags: Credit, lending, market, market place, organizations, peer-to-peer, subprime
The FACTS about your credit
As an adult almost everything you do evolves around your credit. Your ability to purchase a home, a car, a big screen tv
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Obtain Business Financing, Secrets Revealed, Small Business Consulting Tags: Credit, facts, FICO, finances, history, score
How HELOCS’s can affect your credit
Today we're going to discuss how a HELOC (Home Equity Line of Credit) can negatively impact your credit
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Small Business Consulting Tags: affect, Credit, credit bureau, HELOC, Home Equity, negatively, revolving
Where’s credit due? Business owner credit reporting
Just today an article in BusinessWeek reports on a Capitol One practice of reporting all small business loans to consumer credit bureaus
Categories: Uncategorized Tags: Credit, loans, personal, personal credit score, reporting, score
DEBT VERSES EQUITY FINANCING
One of my readers has recently posed the question “in what cases should a manager look at equity verses debt financing”. First let’s make sure we understand the difference between the two.
Categories: Business at It's Best, Changing World of Finance, Credit Scoring and Reporting, Economic Domino Effect, Obtain Business Financing, Small Business Consulting Tags: advance financing, Credit, debt, equity, financing, incurring, loan, loans, SBA
SBA Financing Tips
As the credit markets continue to tighten, an old reliable source of financing for small businesses, the U.S. Small Business Administration (SBA)
