Monday, September 22, 2008

Why has my credit score tumbled?

I have recently been advised by two of my three credit card companies that my APR is to be increased - MINT up to approx 24 per cent and now Alliance & Leicester to 34 per cent.

Both cards are utilising up to close to their maximum at around £10,000 and I make monthly payments of about £300 on each. I have been about five days late in making a payment to MINT in April but otherwise normally pay be the due date.

I have one other credit card with Morgan Stanley with a lower balance of £4000 and make similar payments.

In addition I have two personal loans with Egg initially at £18,000 each started nearly 4 years ago and with a further three years to run - this has never been more than a few days behind on payments, and never in the last 12 months as far as I am aware.

I have one other personal loan with Northern Rock taken out a year ago for £20,000 running for 10 years and paid on time as above.

My husband and I were looking for a mortgage last year and so made sure all was well with our credit score. Mine was around 970 after some discrepancies had been sorted out and my husband's was over 700 again with some further sorting out which needed to be carried out.

I checked my credit rating this week and felt extremely anxious when I saw it had dropped to 312 - there seems nothing obvious on the report, other than obviously quite a large amount of credit but this is not significantly different from last year and I have continued to make payments on time.

Please can you advise if credit scoring mechanism has changed. If I am paying such enormous interest rates I am afraid I will never clear these balances but the credit card companies will not reduce my rates on account of my credit score.

Jennifer Allen

Rising living costs and concerns about customers defaulting on their payments mean that many lenders are now monitoring their customers' credit reports very closely and are taking mitigating action, such as reducing credit limits or raising interest rates, where they believe someone's financial situation is deteriorating.

Your personal experience sounds like a very good example of this. You appear to have a lot of outstanding unsecured debt, perhaps in excess of £60k, and although I don’t know anything about your income and expenditure, this level of unsecured credit is likely to make most lenders a little nervy in the current climate.

source : http://www.google.com/news/

Thursday, September 11, 2008

Unpaid medical bills may not hurt credit score

WASHINGTON (MarketWatch) -- Question: My son-in-law has several medical bills that have gone unpaid due to lack of funds. Are medical bills treated the same as outstanding credit-card debt and does it affect a FICO score?
Answer: Medical bills are not treated the same as outstanding credit-card debt. Consequently, they don't always have a direct effect on your FICO score.

One of the most important factors considered by the FICO algorithms is your revolving-credit utilization ratio. The utilization ratio is calculated as the proportion of your credit-card balances to your credit limits. The higher the ratio, the closer you are to being "maxed out" on your credit cards.
But in the eyes of the FICO score, the lower the utilization ratio, the better. The good news, at least for folks like your son-in-law who are behind in their doctors' bills, is that those payments are not factored into the utilization ratio, says Ethan Dornhelm, a senior scientist at the Fair Isaac Corp.
It's also important to note that not all medical debts are reported to credit bureaus. If the medical debt has gone unpaid long enough for the bill to be have been sent to a collection agency for recovery, then the debt is more likely to be reported to credit bureaus. At that point, according to Dornhelm, it will be posted to the area of the credit report that identifies accounts that have been sent for collection.
"Research has shown that consumers with previous late payments are much more likely to miss payments in the future and as such the FICO score penalizes consumers based on how many late payments and collections they have on file and how recently they occurred," the FICO scientist reports. "The precise impact to the FICO score will depend on the other info contained in the credit file.

source : http://www.google.com/news?

Tuesday, September 9, 2008

Congress weighs reprieve for seller-funded gifts

STOCKTON, Calif. -- A last-ditch effort to head off an Oct. 1 ban on the use of seller-funded down-payment assistance with FHA-backed loans is picking up steam as a compromise bill, that would mend rather than end the practice, gains momentum.

HR 6694, which would allow home builders to continue funneling down-payment assistance through nonprofit groups to home buyers using FHA loans, is certain to pass the House of Representatives and has the blessing of the Department of Housing and Urban Development, Rep. Barney Frank, D-Mass., said at a hearing on foreclosures this weekend.

The influential chairman of the House Financial Services Committee urged those attending a committee field hearing in Stockton Saturday to lobby the Senate -- which shoehorned language banning seller-funded gifts into HR 3221, the sweeping housing bill signed into law July 30 -- in support of the bill.

HR 6694 would automatically allow qualified borrowers with credit scores of 680 or above to use seller-funded down-payment assistance on FHA-backed loans, Frank said. Borrowers with scores between 620-680 who relied on seller-funded gifts might be subject to higher insurance premium fees.

Borrowers with scores below 620 would be excluded from using down-payment assistance until mid-2009, when HUD would be permitted to expand the program to include them if the Secretary of Housing determined it could be done without putting a dent in FHA's insurance requiring taxpayer subsidies.

HUD has sought to end the use of seller-funded down-payment assistance with FHA loans outright, claiming the practice artificially inflates home prices and that borrowers who relied on the gifts are more likely to default.

Although FHA loan guarantee programs have always been self-sustaining -- they are funded by premiums paid by borrowers, and not taxpayers -- HUD said the enormous growth in the use of seller-funded gifts and the poor performance of the loans threatens to put the insurance fund in the red.

Nonprofits that funnel payments from home builders to lenders to help borrowers meet minimum down-payment requirements on FHA loans dispute HUD's claims and have filed lawsuits that delayed HUD's implementation of a rule change banning the practice (see story). But the passage of HR 3221 made those court challenges moot.

source : http://www.google.com/news?

Monday, September 1, 2008

TRIAD Tips: Checking credit

The Office of Consumer Affairs and Business Regulations reminds consumers that they are entitled to one free credit report every 12 months from each of the three national consumer reporting companies, Experian, Equifax and TransUnion.

It is important to check credit reports regularly for accuracy and signs of fraudulent activity, especially with the increase in identity theft. To receive a free credit report, call any of the three reporting companies or visit www.annualcreditreport.com. Beware of other websites or unsolicited e-mails offering free credit reports. These sites that are not affiliated with the government-mandated free credit report program may claim to offer “free” credit reports; however, the reports are tied to the purchase of other products.

For a free credit report, follow these important steps:

· Steer clear of sites that promise free credit reports and then ask for credit card information.

· Do not respond to e-mails, pop-up ads or phone calls that claim to come from www.annualcreditreport.com or one of the credit reporting agencies. These may be scams seeking your personal information.

· Remember, there is only one official free credit report website. Access it by visiting the Federal Trade Commission at www.ftc.gov or directly at www.annualcreditreport.com.

· If you are uncomfortable with Internet security, order credit reports by phone or mail. Equifax, 1-800-685-1111. Experian, 1-888-EXPERIAN (397-3749). TransUnion, 1-800-888-4213.

source : http://www.google.com/news?

Thursday, August 28, 2008

Will using a credit service ruin my credit score?

Reporting on consumer news never gets old. I’ve warned you about contaminated toys, scam artists, crash tests … anything that helps you become a smarter consumer.

I get a lot of my ideas from you, the reader. From credit scores to oil changes, I receive a wide variety of questions. Here are some of the e-mails that have appeared in my inbox lately.

It could, but it could also get you moving in the right direction. If your debt load is already unmanageable – your credit cards are maxed.

credit score is probably already low. So getting help from a reputable credit counselor is the smart way to go.

The fact that you are receiving credit counseling may be noted in your credit report, but according to Craig Watts, public affairs manager for Fair Isaac Corporation, it will not impact your credit score. Watts says your FICO score may be affected (positively or negatively) if the counseling service has you close accounts, pay down outstanding balances, or negotiate partial payments of your debts.

“As a general rule, when a lender settles for only part of the balance due on an account, the way this status is reported to the credit bureaus will lower a person’s score,” Watts explains. The way to restore a poor FICO score, he says, “is to begin a new, consistent pattern of responsible credit management.”

The bottom line: If using the services of a reputable credit counselor gets you back on track, do it.

source : http://www.google.com/news

Tuesday, August 26, 2008

Tips for borrowing

Though it's tougher to get credit these days, it's not impossible. Here are some tips to ensure your small-business loan application doesn't get cast aside:

• Apply at a bank with an appetite for the type of loan you want. Each bank has a different investment philosophy; match your project to a bank's niche.

• Be prepared to offer collateral such as real estate, stocks, bonds or other personal assets.

• Know – and if possible, bolster – your credit score before walking in. A borrower's credit score can be just as important as his business plan.

source : http://www.google.co.uk


Sunday, August 24, 2008

Identity theft: Education is key to avoid falling prey to fastest-growing crime in U.S.

It’s the fast growing crime in the United States, and one of the best ways to protect against it is educate yourself and become more aware.

Identity theft is a broader categorization for crimes involving fraud, theft or embezzlement, or a mixture of all.

“This problem of identity theft, it might just be a two-word problem, but it’s got arms that reach out across the country,” said Mike Prusinski, vice president of public affairs for LifeLock, a company that helps protect against identity theft.

“The one that you see the most often is the ID theft,” Prusinski said. “It’s more fraud. It’s the use of the credit cards or identities to establish a false line of credit and running up the accounts.”

Enid Police Department detective Mark Pettus said the department receives the most reports concerning two types of fraud.

“The majority of reports we’re getting now is counterfeit checks and people finding out someone is using their account in another city, or state even,” he said.

A popular scam involving counterfeit checks or money orders targets those who have advertised something for sale online or in the newspaper. The amount sent as payment is much more than the price of the item, and the remainder is asked to be returned.

Other reports involve those who have discovered their accounts have been used without their knowledge or their information has been used to establish new accounts or lines of credit.

Prusinski said LifeLock has seen an increase in using the stolen identities of children to establish lines of credit or for the purpose of employment.

“Children have been the one segment we’ve seen a huge increase in,” he said. “Criminals now see children as a fresh source of credit. They get a hold of it and use it for years.”

He said these crimes often are not discovered until a child turns 18 and begins seeking credit or applies for loans.

Banking scams

When text messages and e-mails were sent to thousands in Enid during the first of the month claiming their Central National Bank accounts had been suspended for security purposes, the police department received hundreds of calls.

Pettus said only a few people, fewer than 10, gave out their personal information during the three attempts this month. Bank scams are difficult for police to investigate because they are rarely based in the EPD’s jurisdiction.

“We very seldom get a banking scam in Enid. They may target Enid, but they are very seldom based in Enid,” Pettus said. “Normally, we try to find out where it happened and forward the information to the jurisdiction where it happened.”

He said victims of a banking scam should contact their financial institution.

“First thing to do is call the police to and a get a report made,” Pettus said. “Then call a credit reporting agency and put a fraud report on your account.”

Once it happens ...

A fraud alert is a flag placed in your credit report warning potential creditors they must verify your identity before they issue credit in your name. Fraud alerts may be effective at stopping someone from opening new credit accounts in your name, but they won’t stop thieves from accessing your current accounts if your information lands in their hands.

source : http://www.google.com/news?

Thursday, August 7, 2008

Five things you should know about your credit score

Valorie Simpson, your go-to gal for all things money and finance, is back with more advice. Every other week or so, you'll find her debunking moolah myths and answering your financial questions here. Got a question for Simpson?

This week, Simpson provides five very helpful tips on how to improve your credit score. Before you learn any credit lessons the hard way, read up on what people never tell you.

Q: What's up with my credit score?

Simpson says:

A credit score, commonly referred to as a “FICO” score, is used by lenders to aid in determining your likelihood of repaying their loan. Not only is it important for you to be able to borrow money when you need it, but it can also make a big difference in what interest rate you pay … which ultimately means you pay less for what you buy. FICO scores range from 300 to 850; the higher the score the better.

FICO scores are weighted by five factors:

* Payment History – 35%
* Total Amounts Owed – 30%
* Length of Credit History – 15%
* New Credit – 10%
* Type of Credit in Use – 10%



Five steps to improving your credit score:

1. Pay your bills on time: this is the single most important contributor to a good credit score, comprising 35% of your total. Delinquent payments, charge-offs and bankruptcies lower your score. If you have trouble writing checks in a timely manner, consider having the payments automatically taken from your account, paying bills on-line or write the check the same day you receive the bill. Recent credit history carries more weight than the past, so starting to pay bills on time today will make a difference within a short period of time. Derogatory credit remains on your credit report for seven years, and bankruptcies for ten.
2. Make sure you establish credit: Many people like to pay with cash, thinking it will help them get a loan some day because they don’t have any debt. Not true. Even though it might seem counter-intuitive, it helps to have credit if you don’t have too much. Keep in mind, checking accounts are not reported to your credit bureau. That is, unless you overdraw your account, the bank closes it and turns it over to a collection agency.
3. Don’t close your revolving loan accounts when you pay them off. Again, this might not seem logical to you…but let me explain. One criterion to help increase your score is how much you have available on your credit card or line of credit, versus how much you owe. The lower percentage the better. If you “close” a revolving debt, the available credit is reduced, thereby lowering your credit score.
4. Keep balances low on revolving credit: One of the criteria in determining your credit score is your account balances compared to your available credit. For example, if you have a $5,000 credit card limit, it helps your credit score if you owe $1,500 instead of $4,500. Why? Because you aren’t maxed out on your debt, which makes you a better credit risk in the eyes of a lender.
5. Frequent loan inquiries can hurt (lower) your FICO score. This means every time someone pulls a credit bureau, it could hurt your score. So if you go shopping for cars and allow five dealerships to pull your credit bureau to try to get the best deal…it might backfire on you. It is the same with any type of credit: mortgages, furniture, credit cards, etc. The only exception is a “soft inquiry” which is if you pull your own credit bureau.

source : http://www.google.com/news?

Sunday, August 3, 2008

2008 Best's Insurance Reports(R) Now Available

OLDWICK, N.J., Aug 01, 2008 (BUSINESS WIRE) -- A.M. Best Co. has released the 2008 editions of Best's Insurance Reports - Life/Health and Property/Casualty - United States & Canada. This standard-setting financial resource provides in-depth analysis and commentary on thousands of U.S. and Canadian insurance companies.
Best's Insurance Reports is presented as a multi-component service including a CD-ROM with unabridged reports, a convenient print edition featuring slightly condensed reports, and online access to updated data and news. Each report provides A.M. Best's complete analysis of an insurer's financial strength, including the Best's Rating and Rating Rationale; Financial Size Category designation and Best's Profitability, Leverage and Liquidity tests; financial statement items such as net premiums written; business review; and management and contact information.
Subscribers can download up to 10 real-time AMB Credit Reports at no extra cost, for the most comprehensive financial information available on any insurers listed in the publication. Additional reports can be purchased at a 33% discount. Multiple-user licensees receive unlimited online access to the latest AMB Credit Reports.
Single- and multi-seat subscribers are also entitled to 33% off the cost of Historical AMB Credit Reports, available in print or online at www.ambest.com/ratings, dating back five years, while purchasers of unlimited subscriptions receive access to these reports at no additional cost. Additionally, subscribers can access Best's Corporate Changes and Retirements at www.ambest.com/ccr, an online database featuring 15 years of data that lets users find changes impacting existing companies, locate surviving insurers for companies that have gone out of business and more.
All purchases include a one-year subscription to Best's Review(R), A.M. Best's award-winning industry magazine, and BestAlert Service(TM), our company-tracking and e-mail notification service. For an additional cost, Full Service subscribers also receive a one-year subscription to BestWeek(R), which provides weekly, daily and real-time news and access to archived articles as well as statistical studies and special reports published by A.M. Best Company.
For more information, visit www.ambest.com/sales/bir, call Customer Service at (800) 424-2378, or e-mail customer_service@ambest.com.
Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

source : http://news.google.com/news?

Thursday, July 31, 2008

Shopping for Student Loans Can Damage a Student's Credit Score

College students have been encouraged to “shop around” for student loans. Now, it appears that doing so could damage their credit score.

The New York Times declares: “Since lenders quote higher interest rates to applicants with lower scores, some students could end up paying thousands of dollars more in interest over the life of their loans.” The Times goes on to note: “Mortgage and auto loan seekers who comparison shop within a relatively short period of time do not see their credit scores suffer. But Fair Isaac, the company that helps credit bureaus calculate credit scores, does not extend the same break to private student loan applicants or their parents, who often co-sign for loans.”

The New York State Attorney General’s office has asked Fair Isaac to treat student loan borrowers like car and home shoppers. So far, according to the Times, Fair Isaac has refused to change its policy.

Fair Isaac administers the popular FICO score, which is based on formulas that assume that multiple inquiries within a short period of time indicate that the potential borrower is financially troubled or may even be going bankrupt.

Not many people shopped around for the best rate before the student loan scandals erupted, the Times observes. Accordingly, Fair Isaac states that it does not have a sufficient database of private student loan data to mine.

Fair Isaac does not believe that any damage occurs most of the time. According to Experian, one of the three major credit bureaus, a small drop in credit score is possible.

source : http://www.google.com/news?

Tuesday, July 29, 2008

Going for the Score

It was the mother of all conference calls. Leading the pitch was Commissioner of Administration Angele Davis, surrounded by her staff in the Division of Administration's meeting room. Treasurer John Kennedy had phoned in from his office, along with bureaucrats from economic development, revenue and other agencies. Anyone with any sort of institutional knowledge of Louisiana's economy had a dial tone for the virtual meeting.

On the other end, from their international headquarters in New York, sat credit analysts for Standard & Poor's. Davis led them through a 48-page PowerPoint presentation. One staffer recalls that the credit analysts shot off rapid-fire questions throughout the presentation, which took up the better part of a workday. On the line, quite literally, was Louisiana's credit score.

Davis argued that the state's rating should be bumped up. Referring to the PowerPoint, she showed the analysts that Louisiana has enjoyed surpluses over the past three years; money in the general fund has outpaced the pre-storm trend; and the fiscal forecasts used by the state to craft its budgets traditionally side with caution.

A few weeks later, Standard & Poor's responded by increasing Louisiana's general obligation bonds from "A" to "A+." The shift translates into lower interest rates on bonds sold by the state, meaning it will cost less for the state and taxpayers to borrow money for public projects. Kennedy says those savings should eventually add up to $3.75 million. "We have been working for three years to regain the bond ratings we had before the hurricanes, and all of our hard work has finally paid off," says Kennedy.

S&P credit analyst Peter Murphy says the upgrade was awarded because of "continued strong revenue performance and budget discipline in the aftermath of hurricanes Katrina and Rita." He also says the state has "prudently managed surpluses by allocating them to one-time expenditures or to recurring items that are affordable." The existence of a Rainy Day Fund, which has remained full since 2006, was likewise noted, as was Louisiana's budget-spending cap.

Davis also shopped scores for $200 million of Louisiana's bonds with two other credit-rating agencies. The bonds, scheduled to sell on July 15, received similar treatment. Moody's Investors Service, another national firm, upgraded Louisiana's "General Obligation" bond rating from "A2" to "A1" with a "stable" outlook. "This upgrade is comparable to the rating assigned to us yesterday by Standard & Poor's and, like yesterday's increase, provides Louisiana with the same rating as California," Davis said earlier this month.

The combined reviews offer a positive snapshot for the state. Moody's tends to focus on the debt burden and budget operations of the bond issuer, while Standard & Poor's traditionally considers the issuer's economic environment as one of the most important elements in its analysis. The firms are also considered among the toughest from which to earn an "A" rating.

Still, the reviews are peppered with some negatives, and the outcome — a boost in score — glosses over the state's dismal national rankings in some areas. Furthermore, the press releases issued by the administration of Gov. Bobby Jindal, a Republican, largely failed to mention that most of the credit — at least this go around — rests with the administration of former Gov. Kathleen Blanco, a Democrat. Credit analysts used the past three full years of performance to make their decisions, which is actually the lion's share of Blanco's only term.

And while Louisiana now has the same rating as California, it only means the Bayou State is now tied — for the bottom position. Michael DiResto, a spokesperson for the Division of Administration, says S&P credit analysts specifically voiced concerns about Louisiana's over-reliance on oil and gas money. The analysts also identified revenue diversification as a way to keep moving up in the rankings. In response, the state is looking at different forecasting models that play down the impact of mineral revenues, DiResto adds.

Analysts from Moody's, meanwhile, lament in their review that the "state's economic engine, New Orleans, was the area most affected by the hurricane." It also notes the inflation of debt ratios in Louisiana and the state's concentration in two "relatively volatile sectors (tourism and energy)."

The Moody's reviewers even predict that Louisiana's ranking could potentially decrease if recent legislative action doesn't bear fruit. Particularly, this could happen if "tax cuts contribute to deterioration in the state's available resources" or if "economic development plans do not materialize."

Fitch Ratings, the third rating firm queried by Davis, eventually fell in line as well, upgrading Louisiana's GO bond rating from "A" to "A+." Still, the accompanying review brought with it a familiar tone: "It remains to be seen how much of the recent revenue strength is sustainable over the long term."

The Fitch report also took an understandable swipe at recovery efforts: "Progress in the recovery of New Orleans continues slowly. Implementation of the state's $7.5 billion "The Road Home' housing program, designed to be funded through federal community development block grant and hazard mitigation monies, has been slow and to date approximately 20 percent of homes have been rebuilt through the program."

Considering the negatives and the next time period likely to be considered for an upgrade, it'll be squarely on the shoulders of Jindal's administration to increase Louisiana's scores again. Team Jindal, according to the rating agencies, will need to diversify the job market, increase income levels and maintain budget discipline. It's a harsh reality that isn't lost on the man in charge.

source : http://www.bestofneworleans.com/

Tuesday, July 22, 2008

Credit unions: Safe as a banks

NEW YORK (CNNMoney.com) -- Gerri Willis answers reader's questions.

1. How safe are credit unions?

Is it possible to find out about credit unions? How safe are they at this time? - Willie, Florida

Credit Unions are just as safe a bet as banks are. Instead of the FDIC guarantee, you have the NCUA to back up your accounts up to the same amounts.

The NCUA stands for the National Credit Union Association. According to them, there have been six credit union failures so far this year, but as long as you have $100,000 or less in an individual account or $250,000 or less on a retirement account, you're insured. Plus, credit unions may have marginally better interest rates and rates on CDs, savings accounts and money markets.

To find a credit union in your area, go to

2. Do credit checks lower your FICO score?

I have registered with a number of temp/perm agencies all of which ask and insist on allowing them to check my credit report. I know that some inquiries to a credit report lowers the FICO score. Do these kinds of inquiries lower the FICO score also? - Elizabeth

Good news here Elizabeth. A potential employee inquiry will not lower your FICO score. If you check your own score, that won't impact your FICO score either.

While you are correct that some inquiries do impact your score. For example, if you apply for a credit card, an auto loan or a mortgage, that will lower your score. Basically anytime you seek access to more credit your score will be lowered.

3. Do lenders have to offer student loan consolidation?

Are lenders required to offer loan consolidation opportunities? My daughter has her student loans with Sallie Mae we searched their website for information regarding loan consolidation, but apparently hey do not offer it any longer. - George, NY

Lenders don't have offer consolidation loans or any particular type of loan. And your problem is a common one. A lot of lenders have stopped consolidating loans, including Sallie Mae.

source : http://money.cnn.com/

Friday, July 11, 2008

Will Congress Help Your Credit Score?

A bill that is moving through the hallways of Congress would not only prevent a new wave of foreclosures, but salvage the credit scores of hundreds of thousands of homeowners as well. Read on to find out whether it could help boost your score.

While many factors are considered, a foreclosure can leave a big black mark on a consumer's credit rating for up to seven years, according to Ethan Dornhelm, senior scientist of scoring solutions at Fair Isaac(FIC - Cramer's Take - Stockpickr), the company that developed the FICO score.

"The FICO score certainly going to take it into account for as long as it's found on the credit score," says Dornhelm. But, he adds, "if the consumer gets back on the horse shortly after the foreclosure ... as that foreclosure gets older and older, the impact will diminish."

The legislation would allow homeowners who are saddled with high-interest debt to refinance with safer, more affordable mortgages under a proposed $300 billion Federal Housing Administration program. Under current law, those consumers are too risky to qualify for government-backed loans.

Details are being ironed out House and Senate, but President Bush has promised a veto. The ultimate fate of the bill will have implications that could drastically alter a large swath of the country's finances.

Those with stellar credit scores who have not yet made a late payment stand to benefit most from the proposed bill.

source : http://www.google.com/news?

Sunday, July 6, 2008

SCORE: Patriot Express offers business loans for veterans

Q: Your column recently mentioned a Small Business Administration loan program called Patriot Express for military veterans and their families. Can you provide more details about the program?

— Geoff M., Bonita Springs

A: Geoff, yes, if you are a current member or veteran of the military, the Reserves, National Guard or a spouse or widow of any of these you may qualify for a Small Business Administration loan guarantee from a participating lender.

To find a participating lender, go to www.sba.gov/patriotexpress.index.html. Click on “Lender List & PE Forms” and then click on “Approved Patriot Express Lenders.” This will bring up a national list of lenders, some of whom are domiciled or have branches in Southwest Florida.

Banks generally like the program because the government guarantees up to 85 percent of the loan if the borrower defaults. Loans can be used for a variety of purposes such as working capital, startup, expansion, purchase of equipment, inventory or business-occupied real estate.

The SBA guarantees 85 percent of loans up to $150,000 and 75 percent from $150,000 to $500,000. For loans of more than $350,000, lenders are required to take all available collateral, possibly including the deed on your home. Most banks also will require owner equity, which means you must put up to 25 percent of your own money into the business, independent of the SBA loan. The logic here is if you don’t have the confidence to invest your own funds, why should the lender invest in you?

Make no mistake, this is not a government welfare program. Borrowers must qualify based on credit score, collateral, owner equity, a solid business plan, and demonstrate an ability to repay the loan in a timely fashion. However, if you are having trouble securing a conventional business loan, an SBA guarantee may be the solution.

source : http://www.naplesnews.com/news/

Wednesday, July 2, 2008

Consumers can get free credit score, report as part of settlement

Consumers can find out their credit score and get a credit report at no charge under terms of a recently settled class action suit involving TransUnion, one of the country's three major credit reporting agencies.

Anyone who has ever had a credit report on file with TransUnion between Jan. 1, 1987, and May 28, 2008, is eligible to receive this benefit as part of getting free credit monitoring.

This means anyone who had a credit card account or loan open during this time is eligible. That could be more than 160 million Americans.

Under terms of the settlement, eligible consumers will be able to select either a free six-month credit monitoring service that TransUnion normally sells for $59.75 or a nine-month enhanced credit monitoring service that costs $115.50.

It is believed to be the country's largest class-action settlement in terms of the number of people that are covered, said Ken McEldowney, executive director of San Francisco-based Consumer Action.

The three major credit reporting agencies do provide credit scores to consumers either through a one-time charge or through credit-monitoring services that are sold on a monthly subscription basis.

Credit reports amount to a history of what kind of loans and credits cards you have and whether your bills are paid on time. A credit score is a three-digit number, typically ranging from 300 to 850, that is based on the information in your credit report. The higher the number, the more likely lenders view you as good credit risk who will pay off loans.

McEldowney had mixed reviews on the settlement.

It's a good thing for consumers in that it will probably result in more poor people becoming aware of their credit history and credit scores, McEldowney said. The people that take advantage of the free credit report program tend to be higher-income people, he said.

Still, McEldowney said the free credit score being offered by TransUnion is its own product and not an actual FICO credit score, which he said is more useful to consumers.

"So it is less valuable, but I think it would still be useful in terms of letting people know in general how their credit history is viewed" by potential lenders, he said.

The settlement agreement was reached in May between Chicago-based TransUnion and attorneys who filed the lawsuit on behalf of consumers over alleged privacy issues.

source : http://www.mercurynews.com/businessheadlines/ci_9716378?nclick_check=1

Thursday, June 26, 2008

Fiserv Goal: Find At-Risk Mortgages Before Default

Fiserv Inc. developed its newest suite of services on the theory that lenders might be able to stem mortgage defaults if they can identify troubled borrowers before they fall behind on their payments.

The Fiserv Prism and Home Retention Solutions suite is aimed at parsing financial databases to determine which borrowers are making payments but may run into trouble.

"The foreclosure problem is going to get worse. It's not going to get better anytime soon," James L. Smith, the executive vice president of portfolio services at Fiserv Lending Solutions, said in an interview. He said he expects a "tidal wave" of foreclosures next year, because more adjustable-rate mortgages will reset this year.

Lenders are making a bad situation worse by pursuing foreclosure instead of restructuring troubled loans, Mr. Smith said.

The Brookfield, Wis., vendor's Prism tool set is meant to predict the likelihood that a borrower will fall behind on payments. (Prism stands for "Predictive Risk Index Score Modeling.")
For example, he said, the software can track consumers' credit ratings to measure "FICO drift," where a credit score is falling but the borrower remains current on the mortgage.
The software also looks at Fiserv's Case Shiller Home Price Index, which monitors market conditions to show where home prices may be falling, as a risk factor for borrowers. Even customers with good credit might be at risk of default if property values in their region fall so much that their houses are now worth less than they owe, Mr. Smith said. "It's not a mortgage type that makes them delinquent. It's an equity issue."

Other factors that play a role in Prism's analysis include property type and price, geographic area (in some cases at the ZIP code level), and various forms of risk scoring.

The suite lets Fiserv default management experts offer the lender alternatives to foreclosure, such as a loan restructuring, which can be customized according to the loan type and the borrower's state.

Also, Fiserv's call center can reach out to borrowers to discuss the terms of their loans, Mr. Smith said. "Everyone we had doing [back-office] origination work has been retasked to do this work."

source : http://news.google.com/news?

Tuesday, June 24, 2008

Denenberg Answers Questions On Glaucoma, Credit Scores, BBQ Sauce And Himself

Question: I'm concerned about developing glaucoma due to my family history. Are there any dietary measures or other steps I can take to reduce my risk of developing that disease? Also, I know you can measure blood pressure and blood sugar levels at home. Is there a device to measure eye pressure at home, an indicator of glaucoma?

Advertisement
Answer: A study reported by an organization called Research to Prevent Blindness, in its 2007 Annual Report, notes, "In a study of women aged 65 and older, Research to Prevent Blindness investigators found that higher intake of carrots, collard greens or kale, and canned or dried peaches (which are rich in vitamins A, B2 and C, respectively) may be associated with a decreased risk of glaucoma. The authors noted that the exact mechanism by which fruits, vegetables and antioxidants may affect glaucoma is not yet understood."

Of course, maintaining good health, by diet, exercise, weight control, stress control, adequate sleep, and all the rest will decrease your risk of glaucoma. That's because glaucoma is more likely in those with certain chronic diseases such as diabetes.

On your second question, Research to Prevent Blindness investigators have developed a prototype of a miniaturized eye pressure measuring device, but it is not yet available for home monitoring.



Question: In a recent column, you called on the real Sen.Barack Obama to stand up. Maybe there isn't a real Mr. Obama to stand up because the real Mr. Obama just isn't a stand-up kind of guy. Would you agree?

Answer: Yes, I've written several dozen columns on how Mr. Obama is many things, but honest, trustworthy, patriotic, and a lot more. I would agree with you he is not a stand-up guy.



Question: I went to a laundry with my sheets, and it wanted $19.50 a sheet. Is that for real? Do I have any alternatives?

Answer: In my opinion, that price is excessive. You can buy new sheets for around $9 to $24 so that would be cheaper than sending them to the laundry. You might consider doing them yourself at home. You may also want to do some more comparative shopping, as there has to be a laundry that will come in below that $19.50 a sheet, the number you mentioned.



Question: When your oil heater gets its annual tune-up, does the serviceman check out the chimney?

Answer: I put that question to Steve Updyke, a 22-year service veteran with F.C. Haab Heating Oils. He said the serviceman in the process of checking the heater should look into the chimney and is likely to spot any trouble. However, that would not include a complete inspection of the chimney. One form used for annual tune-ups includes a check box entitled "check chimney base."



Question: How thick are the needles used for acupuncture?

Answer: Healthy Years, a publication of the UCLA School of Medicine, reports, "The needles used for acupuncture are only as thick as a single human hair. You may feel a tiny prick as the needles are inserted, but it should not be painful. The needles usually stay in place for five to 20 minutes depending on your illness." The publication also cautions, "The FDA requires that sterile, nontoxic needles be used - and used only once. Make sure your acupuncturist follows these rules."

For more information on acupuncture, you might visit the UCLA Center for East-West Medicine's Web site, www.cewm.med.ucla.edu.



Question: I've seen enough wildfires on television to last a lifetime. Are there any precautions I should take as a homeowner?

Answer: That's a good question as experts say that wildfires can and do happen in every part of the country. Here are the precautions recommended by USAA, an insurance company that is a leader in loss prevention:

"Walk around your property and remove anything in the immediate 3-5 feet that might pose a potential fire hazard, such as woodpiles and dried leaves.

"Take special care trees are trimmed so no limb reaches below 6 feet off the ground. And make sure no tree branches touch your home.

source : http://www.thebulletin.us/site/

Sunday, June 22, 2008

High credit score is a lot of hard work

The man at the credit union was blown away.

"You've knocked out the high point credit score," he said. "I've never seen one this high."

I smiled modestly and ruefully. It was nice to know but it's an honor that was hard won.

Did he have any idea how many phone calls to India I've made to make that happen?

Does he appreciate the time I've spent waiting to get through phone menus and customer service lines to maintain my good reputation?

I think my accounts are red flagged all over America and in off-site billing houses. ("If that obnoxious lady calls again, do whatever it takes to make her go away!")

I consider it a good day when I can bring in the mail, go through the bills and not have any new battles to wage.

You see, I learned long ago that banks and credit card companies and title companies and Internet and Dish Network services make honest mistakes.

They'll own up to the mistakes if they are pointed out, but you have to point them out.

Late fees and service charges go away if you are willing to put in the time it takes to get to a live person and make your case.

Over the years, I've probably saved us several hundred dollars by catching mistakes and refusing to give away our money.

The escrow money from a recent refinance came in $600 short. Three phone calls and some serious research later, we're good.

Double charges have been refunded.

The money I spent online for train tickets to nowhere on a Sunday was returned.

Charges for magazines I did not order have been waived.

Here's some of what I've learned:

Payments left in drop boxes don't always get credited that same day or even the next day. It's better to pay at a service desk or cashier so you have a receipt.

Always read your bills and the little letters they sometimes send. Credit card companies change due dates and due times and interest rates a lot. A bill due on the 15th may now be due at 8 a.m. on the 15th.

Policies change — stay on the alert, especially as stressed-out businesses try to get you to change over to automatic payment plans or Internet billing.

Don't assume you made the mistake or paid late. Computers and people add wrong, miss a line, sometimes even try to get away with something.

It's a never-ending fight, but I've fought on. To me, it's the principle of the thing.

As a result I have six kids who read their bank statements and bills carefully and double check their receipts from the grocery store.

They take no guff.

And I have a husband who hides if I find an error. He can't bear to watch the battles.

He just doesn't see the sense in worrying about it.

But then, he doesn't have a credit score on the wall of honor either.

source : http://deseretnews.com/article/1,5143,700236769,00.html

Thursday, June 12, 2008

Jelmoli Bonus Card And Swiss Federal Railways Launch Free Visa Card

Jelmoli (JMLIF.PK) Corporate news announcement processed and transmitted by Hugin ASA. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- In cooperation with Swiss Federal Railways (SBB) Jelmoli Bonus Card will be issuing this coming autumn a Half-Fare Card that is also a free Visa credit card. Jelmoli Bonus Card look back on a long and successful experience in the customer retention and credit card business and will now offer SBB customers additional services that make the Half-Fare Card even more attractive.



SBB have over 3 million regular customers; more than 350000 of them own a General Abonnement. Furthermore, well over 2 million use a Half-Fare railpass, which makes the Half-Fare Card the most popular discount card in Switzerland. Now, SBB are offering their customers additional services in order to make these railpasses even more appealing both for existing and for new customers. In autumn this year, SBB are launching a new Half-Fare Card for 125 Swiss francs combined with a free Visa credit card.

About half the adults in Switzerland already own a Half-Fare railpass. Therefore, this popular discount card enables to travel for half the fare practically throughout the whole public transport network. Based on its success, the Half-Fare Card product line is to be further expanded: in addition to the 1, 2 and 3-year railpasses, a Half-Fare Card on a subscription basis will be launched this coming autumn.

Free-of-charge credit card and Half-Fare Card in one This offer is very attractive: the Half-Fare Card on a subscription basis costs 125 Swiss francs per year - 25 Swiss francs less than the 1-year railpass. And customers must no longer buy a new one each year, because their Half-Fare Card is also a Visa credit card to which the annual fee is charged. Furthermore, this integrated credit card costs nothing. That makes the new 2-in-1 Half-Fare Card double attractive: free-of-charge credit card and Half-Fare Card in one.

Those who do not require a credit card or are still underage, but want to take advantage of this convenient Half-Fare Card, can apply for a prepaid card. This is a fully-fledged Visa card that is however chargeable only up to the amount prepaid by the cardholder. By introducing a Half-Fare Card on a subscription basis, SBB reduces processing expenses - a cost saving that is passed on to the customers, only 125 Swiss francs per year. The new Half-Fare Card presents itself in an elegant SBB/Visa credit card look.

Jelmoli Bonus Card: the ideal partner for SBB Jelmoli Bonus Card already issues credit and prepaid cards in the Swiss market, and per end of 2007 well over 300000 Bonus Cards and Visa Bonus Cards were in circulation. Thanks to this accumulated expertise in the customer retention and credit card business, Jelmoli Bonus Card Ltd is an ideal partner for SBB to launch this new combined product.

The Jelmoli Bonus Card Ltd team of specialists takes responsibility for processing all credit card transactions in Switzerland and is being supported in this area by Valartis Bank Ltd. With this new partnership, Jelmoli Bonus Card Ltd will further strengthen its positioning in the Swiss credit card business.

source : http://www.google.com/news?

Sunday, June 8, 2008

TransUnion settlement makes services available to consumers

Credit bureau TransUnion's recent settlement of a class-action suit offers several options for consumers, two of which include free credit-monitoring services for a limited time.

Whichever option you choose, don't sign up for an extension when the free-use period is over because most of what's being offered you can do yourself.

The settlement arose from a suit filed in federal court in Chicago that claimed that TransUnion – one of the nation's three major credit bureaus – violated the Fair Credit Reporting Act when it sold consumer information to businesses for their targeted marketing efforts. The law allows selling publicly available information, but not private data.

In its settlement, TransUnion denied wrongdoing and said it discontinued the sales practice in 2001.

More details will become available June 16, but the settlement allows any consumer who had a credit card, mortgage, auto or student loan or other open credit account or credit line in the U.S. anytime from 1987 to May 28 to choose from two free TransUnion services:

•Six months of TransUnion's credit-monitoring service for free, giving consumers unlimited access to their credit reports and credit scores, and e-mail notifications when changes occur on their credit reports. The settlement values this service at $59.75.

If you choose this option, you give up your right to file a post-settlement class-action claim against TransUnion, though you could still bring an individual case.

•Nine months of the credit-monitoring service, plus access to the credit scores used in insurance decisions, and TransUnion's mortgage simulator service, which allows consumers to see how their credit score affects their mortgage rate. Value: $115.50.

Those who choose this option sacrifice any further legal claims of any kind in the matter.

Under a third option, consumers can sign up for a cash payment – but payments won't be made for two years and will be paid only if there's money left after any other "post-settlement claims" have been paid out of a $75 million fund set up by free.

source : http://www.google.com/news