3 Credit Myths Exposed

Myth: Paying interest on your credit card balance each month increases your credit score because credit card companies make money from the interest you pay.

Fact: Paying off your cards in their entirety each month positively effects your credit score more so than maintaining a balance you pay interest for.

“Credit card companies make a percentage from every purchase you make.”

The less debt you have against your revolving credit, the higher your credit score will be. One of the variables used to calculate your credit score is called “revolving utilization”. This is the percentage of revolving credit you have debt against and has 1/3 of the weight against your credit score. The less debt you have against your revolving credit, the higher your credit score will be. Paying your credit card balances off each month not only saves you the money that would have been spent on interest, but it also drops your revolving utilization which helps to improve your credit score.

This myth seems to be perpetuated because of the implied relationship between credit card companies and your credit score. Even if they were that closely related, credit card companies make a percentage from every purchase you make. Therefore, they are more interested in your purchasing activity than in the amount of interest you pay each month.

Myth: Closing credit card accounts will increase your credit score.

Fact: Closing credit card accounts has a dramatically negative effect on your credit score.

“Make sure that before you apply for a credit card, you will be able to live with that card for a very long time.”

When you close credit card accounts, you are lowering your total credit limit considerably. Without wiping out the same amount of debt at the same time, you are effectively raising your revolving utilization and usually, by a very considerable amount. Before closing credit card accounts, you should consider carefully the effect this may have on your credit score and if it is really worth it.

This should also make you more cautious about applying for new credit cards. Do your research and make sure that before you apply for a credit card, you will be able to live with that card for a very long time.

Just like everything in life its important to understand how all the pieces are put together before jumping in. For example if you were interested in investing in gold and precious metals, it would be prudent to observe the changes in the market before investing.

Also its important to review the top major companies in the current market and what customers are saying about them. Here’s a Regal Assets gold IRA review that shows the current business ratings by the BBB and BCA as well as what customers are saying.

Myth: Paying cash for everything will increase your credit score.

Fact: Not using credit responsibly will have a negative impact on your credit score.

“Your credit report is a historical record of how responsibly you use your credit.”

Some people seem to believe that having no credit means you have good credit. This is definitely not the case. Your credit report is a historical record of how responsibly you use your credit. If you don’t build that historical record, then your report won’t reflect much and won’t be a good indicator to creditors on whether or not they should issue you credit or maybe even a service like with cell phones. In order to gain access to new credit and sometimes services, you need to build your credit and do your best to maintain a good credit score. While you may save money paying cash for that new car because you have leverage to bring the price down, it won’t do anything for your credit.

Also, some people shy away from credit cards because they fear their own lack of discipline with regards to controlling their spending. A good idea for these kinds of people might be to start out attaining credit cards that only give them enough total credit limit to match their monthly net income. In this way, they can safely max out their credit cards without accumulating massive amounts of debt. It will also help these people to pay off their cards every month which will also assist in building their credit.

Posted in Credit Cards

Everyone Deserves a Second Chance, Right?

Did you know that, aside from your credit report, you also have a banking report? ChexSystems is an agency with a purpose very much like Experian, Trans Union, and Equifax only instead of keep tabs on how well you manage your credit, it keeps tabs on how well you treat your bank accounts. Just like with credit, you are permitted one free report per year and to get yours now, simply click FREE BANKING REPORT.

If you don’t have any blemishes that appear on this report, then you probably don’t have any problems opening a bank account. However, if there are negative marks on this report, you may have experienced difficulty if not, impossibility, trying to open a new bank account. Thankfully, there is help.

Introducing second chance checking, some banks offer a second chance checking account. These banks allow you to start an account with some minor fees even if you have blemishes in your banking report and some of these banks may even overlook these blemishes entirely if they are minor amounts or are really old. So, if you have this problem, don’t fret too much, just look around for a second chance checking account. This may be the missing link you’re needing to rebuild your financial stability.

Posted in Business

Spam Filter for Your Snail Mail Box

If you have started building your credit, then you may have already invested in a wheel barrel to haul junk mail off with. Not knowing who to turn to, you sift through your mail each day picking out the credit card offers and stacking them in a pile of junk mail. This is known as excessive junk mail syndrome.

If you or your loved one suffers from junk mail syndrome, there is help. Just call 1-888-5-OPT-OUT. Optionally, you can visit www.optoutprescreen.com. This is one of the FTC approved methods for opting out of the pre-screening that credit card companies use to pre-approve you for a credit line so they can send you offers. Opting out may not be a fast acting cure, but you should notice an effect within a few weeks which should allow the healing process to begin.

Before you know it, you’ll be doing the things you love again. You’ll be able to go play ball with the kids again, give your spouse attention again, and anything else that might suit your fancy. No more spending countless hours at the dining room table sifting through gobs and gobs of junk mail just so you can find the bills and other real mail you receive. No more taking out the trash 5 times a week. No more tree burials at your trash can.

Stop wasting your strength and energy on junk mail and start using it towards more productive means or at least, the means you choose.

Check out FTC’s website for more information on how to stop other forms of solicitation as well.

Posted in Security

Work From Home – Real or Scam?

Many people today are attracted to this lucrative idea of working from home. It sounds like a great concept, in theory, but finding a legitimate work from home job is less than easy. Work from home is not an entirely new concept. Although the age of computers and internet has spawned a larger number of legitimate companies that offer this type of employment, many offers are still scams. It is tedious work to find a legitimate work from home job and even if you do find one, it may not be what you expect.

“Although the age of computers and internet has spawned a larger number of legitimate companies that offer this type of employment, many offers are still scams.”

Finding a Legitimate Work from Home Opportunity
More often than not, ads you see online and in the newspaper are scams. If you choose to research any of these offers, here are some tips on how you can tell the difference between a legitimate offer and a scam:

1. Do they require you to purchase a package? If a work from home opportunity requires you to purchase a package, it may be legitimate, but basically, they are just selling you the package and possibly a hosting service. The package is usually an assortment of training materials and information that tells you how to start and run an online business. These packages are usually incomplete and only contains information you could find yourself in a good online entrepreneur or marketing book you could pick up from your favorite book store.

2. Do they have valid contact information? If you can find contact information or a website, use it to look them up on the BBB’s website. Take a look at their rating and their description to see if they are a legitimate business. If you cannot find them using their public contact information, then it is most likely a scam and you can stop there.

3. Do they interview applicants? Most legitimate work from home opportunities follow the same protocols as any other employment. You will most likely have an interview and some kind of formal training if you pass the interview. If they are asking you for money for the training, it is probably a scam.

4. Ask Questions! The more you know about the company, the safer you will be. Ask as many questions about the company, their business practices, and whatever else you can think of. A legitimate company will welcome these questions and will understand your need to verify they are not a scam. Scammers will most likely hang up on you.

Many time, your local employment agencies will have clients who offer work from home opportunities. This is one of your best bets. Contact your local employment agencies and ask them if they have any work from home opportunities available. If they have clients offering this type of employment, going through the employment agency will save you time and money. Just make sure that you agree with the employment agencies practices. Most of them will charge the employer for your employment and not you, but there are some that will take a cut of your pay. Make sure you’re getting a deal you want.

“If you can find contact information or a website, use it to look them up on the BBB’s website.”

Have the Right Setup
Most legitimate work from home opportunities will want you to be distraction free, even if you are working from home. If you have an office or a room you can stay in for 8 hours each day without household distractions, you will be a better candidate for a work from home opportunity. Employers who offer work from home opportunities are usually very cautious about it or have software to track your progress. Either way, you will put their mind at ease if you can let them know that you won’t be distracted.

If you are able to find a legitimate work from home opportunity that worked out for you, please post it on here and write a short review about it.

Posted in Business

Holiday Shopping : Let’s Make a Deal

holidayshoppingIt seems that many people feel that most prices are non-negotiable. We look around, compare the price of one retailer to the next and allow planned sales marketing to entice us to make a purchase. Waiting for a sale is very much like haggling, the only difference is that the retailer is in complete control and you have no say other than to walk away.

With these planned marketing schemes, retailers are able to easily balance the see-saw between consumer demand and competitor pricing. The act of planning the marketing schemes gives them time to research what other competitors are doing, run numbers on how well certain products are selling, and choose the best plan for how to market their product and get the best results. Generally speaking, when you go for these deals, you are over spending because most of the retailers’ competitors are going to have similar deals. Not only that, but these deals allow the retailer to stay well above their cost and keep their profit margin high or reasonable. Not that making money is bad, but you want to save money as much as they want to make money, don’t you? After all, a penny saved is a penny earned.

The fact of the matter is, nearly every price you see is negotiable. The trick is to make sure you are you talking to the person who can negotiate with you and then executing the negotiation with a good amount of courage. Think of price tags as merely suggestions. Even some large retailers allow their employees to negotiate the sale price, especially if the employee earns commission from their sales. Either way, someone will be able to negotiate with you.

If you find yourself in a large corporate retailer store, ask to see the manager. It may feel weird at first, but you don’t have to be dealing with a customer service problem or having issues with employees to ask to see a manager. Bring the manager over to the product you’re wanting and ask HIM the questions you would otherwise ask sales people. This will do several things. First, it takes the manager away from the important task of running their store while they are taking the time to help you. Secondly, many managers will feel down played when you unexpectedly put them in the position of what their lower level employees are supposed to do. Either way, the manager will most likely be in a hurry to get back to business as usual and this is exactly why you should take your time.

Regardless of who you’re dealing with, there are some simple things you can do to work the negotiation in your favor. Here are some quick tips on how to work the negotiation in your favor:

Ask question, and then ask more questions. When you have run out of all of the questions that are relevant to you, ask questions that would be relevant to someone else. Take your time to formulate each question and ask it concisely and with interest. This does two things. First, it shows you are reluctantly interested in the product. Secondly, it forces the manager or sales person to have an immediate time investment which makes them AND THE PRICE much more pliable.

2. Overcome Your Natural Aversion to Silence
Most people have a natural aversion to silence in social settings. That’s why the best talkers usually have the most friends. You can use this to your advantage when haggling with someone. Allowing a long period of silence can sometimes cause a sales person to give you a really good deal just to get out of the uncomfortable silence you’re causing.

3. Understand the Business Model of the Seller
Understanding the business model of the seller can you a very large advantage. If you go to buy a used car, understanding that dealerships have already bought and paid for the car their selling can be useful just as understanding that a private seller may have an outstanding note they are trying to get out from under. These pieces of information are vital to rallying good successes from haggling.

4. Be Courteous and Nice
People are more receptive to those who are courteous and nice. This is a general rule for all people. If you are courteous and nice, you may find that the sales person is more willing to work with you than if you down them or the product they’re selling. Sales people want to earn their commissions, but they are still human are going to want to do this the easiest way possible. Sometimes, its not only beneficial to play the “easy sell”, it can also be fun.

Use these hints and, hopefully, save lots of money this holiday season. Your family and your budget will thank you for it.

Posted in Saving Money