Free Credit Reports - Free Credit Scores

Why has my credit score tumbled?

2008-09-22T22:50:00.000-07:00

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/

Unpaid medical bills may not hurt credit score

2008-09-11T22:33:00.000-07:00

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?

Congress weighs reprieve for seller-funded gifts

2008-09-09T22:53:00.000-07:00

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?

TRIAD Tips: Checking credit

2008-09-01T22:24:00.000-07:00

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?

Will using a credit service ruin my credit score?

2008-08-28T00:03:00.000-07:00

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

Tips for borrowing

2008-08-26T01:42:00.000-07:00

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

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

2008-08-24T22:20:00.000-07:00

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?

Five things you should know about your credit score

2008-08-07T02:04:00.000-07:00

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?

2008 Best's Insurance Reports(R) Now Available

2008-08-03T23:30:00.000-07:00

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?

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

2008-07-31T23:13:00.000-07:00

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?

Going for the Score

2008-07-29T23:17:00.000-07:00

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/

Credit unions: Safe as a banks

2008-07-22T04:12:00.000-07:00

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/

Will Congress Help Your Credit Score?

2008-07-11T02:58:00.000-07:00

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?

SCORE: Patriot Express offers business loans for veterans

2008-07-06T23:34:00.000-07:00

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/

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

2008-07-02T02:29:00.000-07:00

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

Fiserv Goal: Find At-Risk Mortgages Before Default

2008-06-26T01:18:00.000-07:00

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?

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

2008-06-24T23:46:00.000-07:00

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?

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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/

High credit score is a lot of hard work

2008-06-22T22:42:00.000-07:00

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

Jelmoli Bonus Card And Swiss Federal Railways Launch Free Visa Card

2008-06-12T01:47:00.000-07:00

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?

TransUnion settlement makes services available to consumers

2008-06-08T22:51:00.000-07:00

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 scor e 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

Get your credit score for free

2008-06-05T03:17:00.000-07:00

The Saving You Money Team has told you how to get your free credit report. Now you will be able to get your actual credit score for free.

It's all thanks to a class action settlement involving a credit reporting agency, Transunion. The settlement affects anyone who's had a credit card or taken out a loan in the past twenty one years. That's about 160 million Americans.

Under the agreement you'll be entitled to six months of Transunion monitoring service. Plus, consumers will get access to their credit reports and scores.

The deal will be finalized in September, but you can join the class settlement beginning the 16th of this month. You can start filing claims on June 16 at the settlement Website www.listclassaction.com or by calling (866) 416-3470.

source : http://www.kvbc.com/Global/story.asp?S=8420291&nav=15MV

Keep your medical records out of thieves' hands

2008-06-02T01:04:00.000-07:00

When someone steals your identity, obtains loans in your name and then stiffs the lenders, the effects on your credit report can be devastating.

It can take weeks, months or sometimes years – as well as plenty of frustration – to restore your good name.

But there's another kind of identity theft that not only can ruin your financial health but also endanger your life: medical identity theft.

Medical ID theft occurs when a thief uses someone's personal information – such as health insurance information – without the individual's consent to obtain medical services or goods, or to make false claims for medical services or goods.

Getting stuck with the bill for a medical procedure you never had is bad enough, but medical identity theft also has far more serious implications.

"Unlike purely financial forms of identity theft, medical identity theft may also harm its victims by creating false entries in their health records at hospitals, doctors' offices, pharmacies and insurance companies," said Pam Dixon, executive director of the World Privacy Forum, a nonprofit privacy-rights organization in Cardiff by the Sea, Calif.

Changes made to victims' medical files and histories can remain for years and may not ever be corrected, or even discovered, which can have deadly consequences.

"Victims of medical identity theft may receive the wrong medical treatment, find their health insurance exhausted, and could become uninsurable for both life and health insurance coverage," Ms. Dixon said. "They may fail physical exams for employment due to the presence of diseases in their health record that do not belong to them."

Of the 8.3 million Americans who were victims of identity theft in 2005, 3 percent, or 249,000, said someone had obtained medical treatment and services using their personal information, according to the Federal Trade Commission's 2006 Identity Theft Survey Report, the most recent.

Now that medical ID theft is recognized as a type of identity theft, it is being reported more often, said Linda Foley, co-executive director of the Identity Theft Resource Center in San Diego.

One North Texas hospital executive has seen evidence of that.

"Over the last three to four years, this has been something that's been coming to my attention more frequently," said Elaine Anderson, senior vice president of compliance at Texas Health Resources. "We've taken it really seriously. Identity theft has become a real problem for our society."

The most common way for consumers to discover that their personal information has been hijacked for medical services is when they receive a bill for a procedure they never received.

If this happens to you, contact the hospital, clinic or doctor that sent the bill and inform them of the error. Also contact your health-insurance company because the health-care provider may have already billed the insurer.

To help prevent medical identity theft, carefully study the "explanation of benefits" document that your health-insurance company sends you detailing health services you obtained and their reimbursements.

Check to see that the dates and types of services match your records. If you spot anything suspicious – whether you owe money or not – call your insurer and health-care provider immediately.

Guard your health-insurance card as you would a credit card.

If you're checking in for an appointment and are asked for your Social Security number, address and other personal information, make sure no one is lingering suspiciously near you.

news source : http://www.dallasnews.com/sharedcontent/dws/bus/

Lenders give advice on credit scores

2008-05-27T02:02:00.000-07:00

Whether people are trying to apply for a home or car loan, they need to realize that their credit report and credit score will affect their ability to borrow.

A credit score is a determined number from 300 to 850 that indicates the level of risk for repayment of debt to a lender at the time a person inquires about a loan, according to the Pennsylvania Association of Mortgage Brokers Web site.

Lenders say there are a surprising number of people who do not know their credit score before they attempt to take out a loan.

“There are a considerable amount of people who don't know their score,” said Kyle Shaffer, owner of Advanced Lending Solutions in Johnstown. “When people apply for a mortgage, we are required to disclose their credit score ... People are starting to realize the effect of credit scores and we try to reiterate they don't just come into play for lending but for insurance as well.”

John Anthony, co-owner of ACA Mortgage Co. in Mechanicsburg, said credit scores can determine how much people will pay on their loans in the long run. Anthony is also on the board of directors for the state association.

“Credit scores are now driving not only mortgages or car loans, but also renters, home or car insurance,” he said. “People should better optimize their credit so it will be cheaper for a later purchase or when they use credit.”

Shaffer said more people are starting to become aware of how important a credit score can be when applying for a loan.

“People are starting to understand if it's lower they qualify for a higher rate,” he said. “People are aware of that, but probably not how much it affects them over the long haul. There could be a dramatic increase in payment (with a low credit score) and people don't realize the true effect of what it does.”

Officials say there are ways to raise credit scores for those with bad credit or people who do not have a long credit history.

“The first thing you want to do is be aware of the number of inquiries against your credit,” Anthony said. “This will hurt your credit. Don't go shopping at 16 different places where they will pull your credit. Try to reduce the number of inquiries on your credit.”

He also said having three or four different credit cards with low balances is a better way to build credit than having one credit card with a large balance.

“When you do get a credit card, keep the balance down relevant to the high credit limit,” he said. “Don't pay them off every month if you're trying to establish credit. Credit is the ability to manage debt, not pay off debt.”

Shaffer said there is a misunderstanding that people should close old accounts. He said it is better to keep them open because they are established forms of credit.

Someone with a credit score around 700 or above is considered to have excellent credit, according to the mortgage brokers.

The association suggests people utilize free credit reports available online. Free copies of credit reports and profiles are available by contacting the Equifax, Experian or TransUnion Web sites. One free credit report is available each year.

Anthony said a credit report differs from a credit score.

“A credit report tells you what accounts you have and how you have paid on those accounts, as well as your credit history and if you have late payments, filed bankruptcy or have judgments or foreclosures,” he said. “A credit score is the culmination of all that data. It's the likelihood of whether you will pay your debt or go 90 days delinquent in the next 24 months.”

Shaffer cautions people not to use any other credit report Web sites than the three recommended by the association.
source :

Fix Those Errors on Your Credit Report

2008-05-22T23:05:00.000-07:00

If you've been waiting for the dust to settle before you buy a home or take out some other type of loan, you first need to take a close look at your credit report.

About three-quarters of all credit reports contain errors, according to a 2004 survey by the U.S. Public Interest Research Group. Some mistakes are serious enough to prevent you from being approved for a loan.

Correcting a mistake can take 30 to 45 days, so you shouldn't wait until you are ready to apply for a mortgage to inspect your report.

You are allowed a free credit report once a year from each of the three credit-reporting agencies (Transunion, Equifax(EFX - Cramer's Take - Stockpickr) and Experian), but you have to ask for it.

There is a one-stop Web site, AnnualCreditReport.com, where you can look at your reports online or have them mailed to you.

You can order all three reports at once, or you can space them out every four months to keep tabs on your credit all year long. But if this is your first time taking a close look, you may want to check all three as soon as possible, to make sure none of them have any mistakes.

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

Equifax boosts interest in Credit Report C.A. Buro de Informacion Crediticia

2008-05-18T23:26:00.000-07:00

Financial terms were not disclosed.

Atlanta-based Equifax (NYSE: EFX) acquired 70 percent of the total shares outstanding from Credit Report's management and other individuals, bringing total ownership to 95 percent. Equifax started Credit Report C.A. Buro de Informacion Crediticia in 2003 with members of the Ecuadoran financial community.

Consumer lending in Ecuador grew about 15 percent in 2007.

"Following our additional investment in Credit Report, we plan to introduce more products and services into the marketplace through our successful program of product transfer among Equifax companies in Latin America and the rest of the world," said Rudy Ploder, president of international for Equifax.

Equifax now operates in 14 countries in North America, Latin America and Europe, and recently announced its intent to enter India and Russia pending regulatory approvals.

news source : http://www.bizjournals.com/atlanta/stories/2008/05/12/daily48.html

Equifax acquires majority stake in Ecuador' Credit Report - quick facts

2008-05-15T03:54:00.000-07:00

(RTTNews) - Equifax Inc. (EFX: News, Chart, Quote ) said it has taken a majority ownership stake in Credit Report C.A. Buro de Informacion Crediticia, the leading credit reporting company in Ecuador. Equifax purchased 70% of the total shares outstanding from Credit Report's management and other individuals, bringing Equifax's total ownership to 95%.

Equifax's investment in Ecuador reflect its stated strategy to expand its global presence where the company can leverage technology, data assets and analytics to help customers make critical business decisions in growing markets.

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

Free Credit Reports

2008-05-02T23:57:00.000-07:00

FreeCreditReport.com’s ad makes it sound like it’s a free place to get your credit report. Not so, says Consumer Reports ShopSmart.

If you click on FreeCreditReport.com’s Web site to order your credit report, you’re automatically billed $14.95 a month for a credit-monitoring service after a free trial. So essentially your free credit report costs you about $180 a year. The site is just one of many credit report Web sites with “free” in their name trying to entice consumers. Consumer Reports ShopSmart says it’s money you don’t have to spend. You’re already entitled to a free copy of your credit report from each of the three major credit bureaus every year. To get those, go to AnnualCreditReport.com. It’s the only Web site where each year you can get free credit reports, no strings attached, from all three major agencies: Equifax, Experian, and TransUnion. You can also call 877-322-8228.

It’s a good idea to stagger your requests. You can order one of your reports every four months. Ordering that way gives you an opportunity to check on your credit throughout the year.

news source : http://www.keprtv.com/features/consumer/18434909.html

Using your house to pay for higher education

2008-04-28T02:21:00.000-07:00

Dear Ms. Mortgage Maven,

I am 65 years old and need about $30,000 to help my daughter pay for college. My house is worth about $500,000 and I owe about $120,000 on it. I would like a home equity line of credit but my credit score is not the best because I went through bankruptcy several years ago. I am a senior citizen and receive social security, and I also have a part-time commission-only job. My combined income is about $20,000/year.

Can I get a home equity line of credit?

-SD

Dear SD,

Two things immediately jump out at me. First, many people think that their credit score is lower than it actually is and second, you should compare getting a home equity line of credit to getting a reverse mortgage and see which one makes the most sense for you.

If you have been paying your bills on time since your bankruptcy, your credit score may be higher than you think. You should look at your credit report not just to learn your score, but to verify that it contains only accurate information. Especially since you have been through a bankruptcy, it is important to make sure that the collection accounts that were discharged through the bankruptcy are properly noted on your report.

For example, if your bankruptcy was discharged in April 2003, those collection accounts should not be reported as current collections. You want a relatively small amount of money, but you also are retired and do not make a lot of money. Do you enjoy working your part-time commission job? Do you think it could soon bring you more income for you to live comfortably for several years?

If so, then a small home equity line of credit may make sense, but remember that you will be paying your first mortgage (on $120,000) and a second mortgage (on $30,000) every month. If you answered no to both questions above though, you may want to consider a reverse mortgage.

A reverse mortgage allows you to use the equity in your home without having to make any sort of monthly payment. Unlike regular mortgages, there are no income or credit requirements, and the money you receive is not taxed by the government because it is a loan, not income. You can choose from a lump sum payment, a line of credit, a monthly payment to you for the rest of your life, or for a fixed duration, or a combination of the three.

news source : http://media.www.districtchronicles.com/

Why annual reports are a waste of time.

2008-04-22T22:45:00.000-07:00

It's spring, which in corporate America means it's time for the annual reports. If you own a few shares of stock, or someone in your house does, you've seen them. Many are beautiful. Most are banal: full of jargon, vague mission statements and feel-good pictures of smiling customers, spotless manufacturing facilities and diverse employees. Here's Merrill Lynch's annual report, with several pages of beautiful photography. And here's the McDonald's annual—68 pages of good times, good food and good statistics.

It saddens me to say this—especially at a time when people in the word and image trades are suffering—but annual reports are archaic and essentially worthless. Those thuds you hear are hundreds of thousands of meticulously crafted marketing documents being dumped into the garbage can. Given that every American corporation is trying to be greener and save money, it's astonishing that annual reports are still produced.

Once upon a time, annual reports were a necessity. The New York Stock Exchange required companies that listed their stock on the exchange to send every shareholder an annual report—a document offering a state-of-the-company address from the CEO plus crucial operating data. In addition, the Securities and Exchange Commission required companies to send 10-Ks (detailed annual reports shorn of the PR junk) and proxy statements (like 10-Ks but with more information about compensation and the directors up for election). In their day these were highly useful documents: news organizations would keep collections of them, and professional investors could mine them for insight.

news source : http://www.newsweek.com/id/133228

Citigroup reports loss on writedowns, credit costs

2008-04-21T03:19:00.000-07:00

(Bloomberg) - Citigroup Inc. posted a $5.11-billion loss today and cut 9,000 jobs, sending its shares up as much as 7 percent in New York trading.

Citigroup, the biggest U.S. bank by assets, reported almost $16 billion of writedowns and increased bad loan reserves as customers fell behind on home, car and credit-card payments.

U.S. index futures rose and the dollar advanced against the euro after Citigroup announced the results, fueling investor optimism that the credit-market contraction may be easing.

Citigroup climbed $1.40, or 5.8 percent, to $25.43 at 10:18 a.m. in New York Stock Exchange composite trading, after surging as high as $25.80 earlier today.

The bank's writedowns and credit losses from the collapse of the subprime mortgage market now total almost $40 billion, more than Zurich-based UBS AG and Merrill Lynch. Vikram Pandit, Citigroup's chief executive officer, has bailed out about 10 investment funds, replaced his chief risk officer and raised $30 billion to replenish capital since he succeeded Charles O. "Chuck" Prince in December.

Pandit's finance chief, Gary Crittenden, said today that the bank would eliminate 9,000 jobs in the next 12 months. That includes 2,000 of the 6,200 cuts the bank has already announced.

news source :

Great Credit Score Gets More Important

2008-04-19T01:59:00.000-07:00

Billionaire investor Warren Buffett has a FICO credit score of 718, just under the U.S. median, according to a published report.

That might seem low for someone with so much net worth. But a high income doesn't boost a score and a lot can hurt one, limiting a person's ability to get mortgages or other loans at a favorable interest rate.

Knowing the score and keeping credit squeaky clean is especially important now that lending standards for mortgages and other kinds of loans have tightened.

"Today, great credit is worth a lot more than it was just a few years ago," said Alan Rosenbaum, chief executive of mortgage firm Guardhill Financial in New York.

Besides late payments, carrying a balance on many accounts or running a high balance relative to one's credit lines can cut a score. So think twice before getting new loans or co-signing on someone else's. Many lender inquiries over time can dent a score, as can credit report errors. One looks likely in Buffett's case, reported by Fortune magazine.

Excellence Starts At 750

The FICO score is named after its creator, credit-rating firm Fair Isaac (FIC). It is the most widely used consumer credit rating model in the U.S. A FICO score from 750 to 850 is typically considered excellent, 660 to 749 is good, 620 to 659 is fair, and anything below 619 is poor. The national median is 723.

A statistical analysis of a person's credit report at a major credit bureau -- Equifax (EFX), Experian or TransUnion -- determines his FICO score. It is meant to reflect creditworthiness, the likelihood that a person will pay his debts.

"The formula for an individual's score does not evaluate income. Therefore, a high-net-worth individual may not have a high FICO score and vice versa," said Careen Foster, Fair Isaac product manager.

Banks using FICO scores in lending decisions may deny credit, charge more interest, demand more collateral, or require extensive income and asset verification if the applicant's score is low, Foster says.

In the housing boom, a score around 700 was more than enough to get a mortgage and a good interest rate. Today, many lenders want a 720, even a 740, to qualify for the best rates, Rosenbaum says.

Say someone wants a jumbo home loan of $1.5 million and can pay 30% down. Today a lender with particularly desirable rates may not give him the loan unless his FICO is at least 740, Rosenbaum says.

A few years ago, those scoring 680 or lower got such loans, he says.

No More Lenience

Today, an applicant with a score in the high 600s and not too much credit card debt could secure a loan from a traditional lender for about $200,000 but not higher, says Steve Habetz, president of Threshold Mortgage in Westport, Conn.

When loans are granted, lower scores mean higher interest rates.

"Twelve months ago, if you had 640 credit score you saw no differential in what your cost was for a loan and your ability to get a loan, compared to someone with a 720," Habetz said. "But things are different now."

Rosenbaum says someone with a score of 740 might get a 5-year adjustable jumbo mortgage at 5.5% with no points. Someone with a 700 score may get a 5.875% rate. Loan-seekers who score lower might have to hunt to land loans with interest rates of 6.25% or higher.

More Than A Score

Lenders today still do consider liquidity and income, not just a FICO score, Rosenbaum says.

But according to mortgage banker Peter Grabel, at Indymac Bank, many lenders will now only loan to people with very high credit scores.

"What we're seeing from most lenders is that the lending rate is becoming far more credit-score driven," he said.

It comes at a tough time. Many people are having trouble meeting credit obligations already. U.S. job losses hit 232,000 in the first quarter. The price of gas and goods has been rising.

What Next?

Amid economic challenges, hard-pressed consumers could go deeper into credit card debt and have trouble keeping their scores up.

A rise in revolving debt, including credit card debt, impacts a credit score. In December, this debt type grew at a 2.8% annualized rate nationwide. That rose to 7.1% in January, throttling back to 5.9% in February, the Federal Reserve says.

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

Insurance credit scoring here to stay

2008-04-15T03:26:00.000-07:00

I just received my FICO score and VantageScore ranking. My FICO score was 5 points less than my VantageScore ranking, yet FICO gave me a "good" rating and Vantage gave a "nonprime" grade D scoring. My vehicle insurance went up because of this score. Is there any way to dispute this?

-- Stephanie

Dear Stephanie,

Don't I wish you could dispute your insurer's decision! My insurer did the same thing to me while insisting I was still saving more money on my insurance than if the company didn't use scoring. Go figure.

What's really interesting about your situation is the big difference in how FICO and VantageScore rated your scores.

First, let me talk about my actuarial friends. Insurers have the right in most states to view your credit history and include what is found there in their calculations of your personal risk.

Why? Well, insurers say -- and our fearless state representatives agree -- there is a correlation between how a person handles credit and the likelihood of filing an insurance claim.

So to help everyone manage the difficult situation of who gets charged what rates, or gets coverage at all, insurers rely on a scientific model. All things considered, it is probably fairer than the old insurance underwriting technique of redlining based on neighborhood or race.

The bottom line of the situation is that insurance credit scoring is here to stay.

You can ask the insurer's customer service why your rates went up, but you'd probably have more luck asking my cat Stinky for answers. Each company has its own scoring models and considers them to be trade secrets.

However, you can get a version of your generic insurance score from TrueCredit. You will receive an auto and homeowner's coverage score along with advice for improving your score. Insurers may not look at the information contained in your credit reports and scores in the same way that a potential lender would. For example, an insurer may be more interested in your payment history than in how much you owe.

Your FICO and VantageScore credit scores are based on the information contained in your credit reports at each of the three major credit bureaus -- Experian, Equifax and TransUnion. Because each bureau has different data in its files about you, you will have a different score depending on which type of data they use.

Although you cannot dispute your scores, you can check your credit reports to assure that the information used to calculate those scores is correct. If you find inaccurate or out-of-date information, you should file a dispute with the bureau that reported it.

VantageScore is a relative newcomer to the credit-scoring industry. It was developed by the bureaus and they claim the VantageScore ranking is more up-to-date than a FICO score. Different math and weightings are used to figure your score and each has its own range of scores. FICO scores go from 350 to 850, while VantageScores range from 501 to 990 and also include a letter grade.

Once you have your credit reports in the best shape possible, your only other alternative for saving money on your insurance premiums is to shop around for different insurance carriers. Because insurers each use their own scoring systems, you could have a much better score with carrier A than you do with carrier B, and your premium will reflect that.

news source : http://www.scrippsnews.com/node/32303

Mintel Comperemedia Report: Credit card mailing volume continues to decrease

2008-04-04T01:53:00.000-07:00

The estimated amount of direct mail sent by credit card companies in the United States dropped 3% from December 2007 to January 2008, according to research from Mintel Comperemedia, a media monitoring service.

The decrease is representative of a trend that first started in October. According to the report, mail sent by credit card companies has declined by 19% since October of 2007. Mintel Comperemedia speculated that the change in mail volume is the result of an “unsteady, unsure market.”

“There have been a few peaks and valleys in 2007, but we observed consistent monthly declines starting in October 2007,” said Lisa Hronek, a senior research analyst for Mintel Comperemedia, when reached by e-mail. “Overall, mailings observed during 2006 were higher than 2007.”

From December 2007 to January 2008, direct mail sent to current cardholders dropped by 30%, the report said. In contrast, mailings to non-customers increased by 7%.

During the same period last year, direct mail sent by credit card companies increased by 7%, Hronek said. Overall, there were more offers sent to both non-customers and existing customers last year. However, the year before that, from December 2005 to January 2006, there was a decrease of 5%, she added.

Not every credit card company decreased its direct mail efforts from December 2007 to January 2008. Six of the top 10 mailers of 2007 actually increased mailings to non-customers from December to January, Mintel Comperemedia said. However, four out of the 10 reduced mailings to non-customers and existing cardholders.

These top ten mailers included in the reporte were Chase, Bank of America, Citibank, HSBC, American Express, Capital One Bank, Discover, Washington Mutual, Barclays Bank and First Premier Bank, Hronek said.

When contacted earlier this year, Paul Hartwick, a spokesman for Chase, confirmed that the company had decreased the amount of direct mail it sends out.

“In general, our direct mail efforts have decreased as we have acquired customers through different channels, including our branch network, the channels of our co-brand partners and the Internet,” Hartwick said in an e-mail.

In contrast, when contacted in late February, a representative from American Express stressed the importance of mail in its direct marketing efforts.

“Direct mail is an extremely important part of our mix, we remain committed to direct mail and it continues to be a successful channel for us for not only acquisition but also as a way to communicate and educate our card members on the benefits and services they have,” said Desiree Fish, VP of public affairs for American Express. “It continues to increase as does the other channels for us.” she added.

news source : http://www.dmnews.com/Mintel-Comperemedia-Report-Credit-card-mailing-volume-continues-to-decrease/article/108670/

Credit cards at ski resort compromised

2008-04-01T01:21:00.000-07:00

A Vermont ski resort has been the target of a security breach that may have compromised tens of thousands of credit cards.

Okemo Mountain Resort said Monday that hackers broke into its computer network and potentially gained access to credit card data from 28,168 transactions between Feb. 7 and Feb. 22 and 18,401 credit cards between January and March 2006.

The number of affected cardholders is unknown but Okemo said it expects it to be lower than the number of transactions.

Okemo is working to protect any personal information transmitted through its system from further unauthorized access. The resort has alerted credit card companies, which are notifying affected cardholders.

Cardholders are advised to monitor their credit card activity and credit reports and report any suspicious activity.

news source : http://www.businessweek.com/ap/financialnews/D8VOMSOG0.htm

Their curious eyes, your credit report

2008-03-24T22:45:00.000-07:00

DALLAS – James Alderman’s efforts to remove what he says is a costly error on his credit report provide a lesson on who can pull your credit report and what you can dispute on the all-important document.

Businesses can pull your credit report under several circumstances, and they don’t always have to ask your permission. And the mere act of a creditor pulling your report can affect your credit score, depending on how the query is classified.

Your credit report is your lifeline to obtaining loans, insurance or credit cards. Maintaining a “clean” report is vital, so it’s always in your best interest to dispute anything you consider inaccurate.

“My credit file is of utmost importance to me right now, given that I have an aging vehicle and a 25-year-old house and I’m in the process of adopting a 12-year-old orphan boy,” Alderman said. “Major expenditures are in my near future, and I can’t afford to pay more for everything because some … company wrongfully pulls my credit report and drives the score down.”

Alderman, an engineering technician from Carrollton, Texas, said his dispute with Avis Rent A Car System LLC started last November while he was on vacation in Hawaii. He reserved and paid in advance for a rental car from Avis as part of a vacation package.

When he went to pick up the car, he used a debit card instead of a credit card to secure the deposit needed.

Avis declined to talk specifically about Alderman’s case. However, company spokesman John Barrows did say the company pulls a credit report only when a customer uses a debit card to rent a car “as opposed to simply using it to pay for their charges upon return.”

“This is a typical procedure in our industry in order to minimize the potential for loss associated with this form of payment,” Barrows said in an e-mail response.

Alderman’s situation brings up issues consumers need to know about their credit report and who can access it.

“The big problem, and where our consumer protection laws are woefully inadequate, is that they pulled a credit report without my authorization,” Alderman said. “This practice should be illegal.”

It isn’t. The only time you must give written permission is when your employer, or prospective employer, seeks to check your credit report.

“Congress felt that because employment is someone’s livelihood, that there be should some special additional protections for consumers, knowing that this information may play a role in their employment decision,” said Rebecca Kuehn, assistant director of the Federal Trade Commission’s Division of Privacy and Identity Protection.

The law lists other “permissible purposes” for which your credit report may be pulled without your express permission. Those include:

• Credit transactions or collections.

• Underwriting insurance.

• Determining eligibility for a license or other benefit granted by a government that’s required to consider an applicant’s financial responsibility or status.

• A business transaction initiated by a consumer.

• A review of an account to see if a consumer continues to meet the terms of the account. An example is your credit card company checking your credit report regularly to determine whether you’re still creditworthy.

The second issue that Alderman disputes on his credit report is the classification of Avis’ viewing the report as a “hard inquiry,” which he says can hurt his credit score.

He’s right.

There are two types of inquiries. Soft inquiries occur when you check your own credit report or when a credit card issuer prescreens you before sending an unsolicited credit card offer. They don’t hurt your credit score.

But hard inquiries do affect your score. That’s when you apply for a loan and a lender checks your credit.

Lenders typically view multiple hard inquiries over a short period of time unfavorably, interpreting them as an indication that you’re looking to take on new debt.

Equifax ultimately agreed to remove the hard inquiry from Alderman’s credit report.

His experience underscores the importance of asking whether your credit report will be pulled. If you want to dispute an inquiry on your credit report, go through the same process as you would with any item you’re questioning on your report.

Consumers sweat over inquiries more than necessary, said Rod Griffin, manager of consumer education at credit bureau Experian.

“No one is ever declined solely because of an inquiry,” he said. “It’s the late payments (and high balances) and other problems that are really what’s important. Inquiries lose any value in a very short period of time.”
news source : http://www.thenewstribune.com/business/story/315513.html

Know Your Score

2008-03-23T23:24:00.000-07:00

(CBS) Should you decide to use a lending institution, your power to borrow money is linked to your credit score. Do you know yours? Stephanie AuWerter, editor of Smartmoney.com, joined us with some advice on learning and improving your score.

In times like these, a good score is more important than ever. Because of the ongoing credit crisis, lenders have pulled back. Whether you're looking for a mortgage, a credit card or a small business loan, the standards are now tougher. If you want to get the best rates, you need a great score. FICO scores range from 300 - 850 and you should shoot to have a score of 750 or higher. The good news is you can take steps to increase your score fairly quickly. Step number one is to know where you stand and you can pull your score at myFico.com.

The worst thing you can do to your credit score is not pay a bill on time. It will crush it. But if that's happened to you, you have nothing to lose by calling up the lender and asking that they remove it from your credit report. They have absolutely no reason to accommodate you, but if you've been a good customer and if you have a good reason they may be willing to work with you. It certainly doesn't hurt to ask.

You also need to pay down your cards. Not surprisingly, big debts hurt your score. FICO does not like to see you reaching the upper limits of your credit line. And that's particularly tricky right now because some credit card companies are lowering the credit lines of certain customers. You want to keep your balances at 50% or less of your total available line. So pay down those debts .

Also, hang onto unused credit cards. Old cards that you don't use much any more may be helping your score. Part of your credit score is based on the length of your credit history. Also, cards that have untapped balances help with your credit utilization rate. It helps that you have untapped credit. So don't cancel an old card, provided you're not paying for it, and maybe once a year or so, make a purchase with it. It will help.

Finally, fix your mistakes. Nearly 80% of credit reports have mistakes on them, 29% of which are serious enough to result in a credit denial. So pull your report and give it a good review. You can do it for free once a year at annualcreditreport.com. If you find a mistake the credit bureau has 30 days to verify that the information is accurate, or else it has to be removed.
news source : http://www.cbsnews.com/stories/2008/03/23/business/main3960888.shtml

Credit Card Hearing Starts With a Surprise

2008-03-17T02:58:00.000-07:00

The first big surprise of Rep. Carolyn Maloney's hearing on her proposed credit cardholders' bill of rights was who wasn't speaking. A few minutes before the hearing began Thursday, her spokeswoman explained that the consumers the congresswoman had invited to testify were no longer being asked to do so, out of concern that credit card providers couldn't respond to the consumers' tales of woe unless waivers had been signed. It wasn't clear why the waivers weren't immediately handed out and signed. (Maloney later released a statement expressing her disappointment and commitment to having the "regular people" testify at a future date.)

Maloney's bill of rights would mandate 45 days' notice of any interest rate increases and prohibit card companies from raising rates because of behavior related to other accounts. It is one of a handful of credit card reform proposals being debated in Congress. Sens. Ron Wyden and Barack Obama have also proposed a five-star rating system to help consumers easily evaluate cards' policies.

Industry groups, including the American Bankers Association, vigorously oppose such changes. "The Maloney bill could lead to a lot of negative consequences," says Ken Clayton, managing director and general counsel at ABA. He says controls that limit credit providers' ability to price credit according to risk—that is, charge higher rates to consumers who are more likely to default—will increase prices and limit credit access for all consumers.

news source : http://www.usnews.com/blogs/alpha-consumer/2008/3/14/credit-card-hearing-starts-with-a-surprise.html

Bill would allow credit reports to be frozen

2008-03-15T02:16:00.000-07:00

Without dissent, the Senate on Thursday gave preliminary approval to Arizona’s first law allowing consumers to freeze their credit reports.

SB1185 is designed to stop identity thieves from applying for credit cards, loans or other debt in the name of innocent — and unaware — victims.

The measure crafted by Sen. Amanda Aguirre, D-Yuma, permits individuals to forbid the three major credit reporting agencies from providing credit reports without their specific permission. Without such a report, businesses and lenders are unlikely to extend credit to someone.

The measure, which now needs a final Senate vote, sets up procedures for consumers to unfreeze their reports using a personal identification number when they want to buy something.

news source : http://www.eastvalleytribune.com/story/111408

Asia Day Ahead: U.S. Stocks Decline; FBI Probes Countrywide

2008-03-09T23:55:00.000-07:00

March 10 (Bloomberg) -- U.S. stocks fell a second day after the biggest drop in jobs since 2003 sent energy and mining companies lower, overshadowing an advance in banks spurred by a Federal Reserve plan to make more cash available to lenders. The dollar dropped for a fourth straight week against the euro after the U.S. unexpectedly lost jobs for a second month in February.

Time to refinance

2008-03-06T22:01:00.000-08:00

NEW YORK (CNNMoney.com) -- Interest rates on 30-year mortgages are down and mortgage applications are up. Is it time to refinance?

The big headline here is that interest rates on the 30-year fixed mortgage are at historic lows. According to the Mortgage Bankers Association, the rate is at 5.98%.

"Back in the 1980s, rates were at 15% or 16%," says Bob Moulton of Americana Mortgage. Remember, interest rates don't automatically go down when the Fed cuts the prime rate. Instead, interest rates respond to overall market sentiment.

2: Wanted: Good Credit

Even after the rate-cutting binge the Fed has been on, the rates on a 30-year fixed mortgage went up. That's what makes this decline so newsworthy. So, if you have an adjustable rate mortgage, and you plan to stay in your home for at least 2 to 3 years, you may really benefit from refinancing.

Banks want to loan money to people with good credit. In fact, they're insisting on it according to Melissa Cohn of Manhattan Mortgage. For some lenders, that's a score of 680, while other lenders are only considering those with credit scores above 720. Banks are being more selective in terms of borrowers according to Moulton.

So, if you do have excellent credit, take advantage of the products out there. If you want to refinance, negotiate with your lender. You have leverage here, especially if you refinance with a lender who holds your original mortgage.

3: Jumbo loans

If you can, take out a home equity line of credit. You don't have to tap into it, but it's nice to have in an emergency.

A jumbo loan is a mortgage that's more than $417,000. As part of the economic stimulus bill signed by the president, the limit for these mortgages will be temporarily raised from to $729,750.

This has been a tough area because lenders are reluctant to back these loans. And if that becomes a reality, it means you may be able to get a lower interest rate on a jumbo loan.

4: There are bargains

Here's another bit of good news, if you bought a no-income jumbo loan and your credit score has improved and you're able to provide tax returns, you may be able to get a full-income jumbo loan, says Moulton. And that's cheaper and less risky than a no-income jumbo.

Home prices are the lowest they've been since 2004 according to a report by lender National City Corp. Price declines and improved affordability during the last three months of 2007.

So, if you've been on the sidelines, wondering whether to invest in this turbulent market, it's time to start doing your research. No one really knows when the market will hit bottom. It makes sense to thoroughly investigate the area you're interested in.

news source : http://money.cnn.com/2008/03/06/pf/saving/toptips/

Commodities strong as investors flee credit markets

2008-03-02T20:43:00.000-08:00

A big week for commodities last week as yield and profit hungry financial investors continue to pile into the sector desperate for performance after the disasters of credit markets.

Gold set an historic high above $US975 on Friday, as speculators chased it higher, despite the late climb in the US dollar against the euro.

The driving force was more fears about the US economy and worries about financial stocks, including America's biggest insurer, AIG, which reported a big loss from credit derivatives, sparking worries about its health.

The late strength in the greenback saw traders take profits, while silver jumped to a 27-year peak near $US20 an ounce before falling. Palladium surged nearly 4 percent to its highest price in over six years.

Comex gold set a record for the third day in a row, hitting $US975.90 an ounce before falling to $US975 an ounce for the April contract. The spot month, March, finished at $971.10, both new record closes.

Gold has risen 16% this year on the top of 2007's 32% rise.

Silver rose to $US19.92 an ounce on Comex before falling to $19.808 for March spot and $US19.861 for April delivery.

Platinum hit a high of $US2,161 an ounce and was ended at $US2,158 for the spot month and last week's record of $US2,192.

Sugar rose to its highest level in 18 months after Federal Reserve Chairman Ben Bernanke urged the US to cut tariffs on imports of cane-based ethanol from Brazil, the world's largest producer.

Brazil used more than half of its sugar-cane crop to make ethanol for domestic consumption, instead of for human use.

The call came as oil prices returned to over the $US101 a barrel level.

The US imposes a tax of 54 US cents a gallon on ethanol from Brazil to protect the locally made ethanol, which is sourced from corn.

The tariff has allowed a number of big companies, such as Archer Daniel Midland and Cargill establish large ethanol businesses, while there's a fleet of smaller operation which are now struggling as corn prices hit record levels.

The tariff is due to finish at the end of this year but it's an election year, so you'd have to bet on it being extended if only for crass political gain and not any economic or business reason.

Sugar futures for May delivery finished at 14.69 US cents a pound in New York after touching 14.83 US cents, the highest for a most-active contract since August 2006.

Mr Bernanke told the US Congress on Thursday that he favoured open trade. "I think that allowing Brazilian ethanol, for example, will reduce costs.'' If commodity prices come down, including energy prices and raw-food prices, I would expect to see finished-food prices come down as well.''

Including Friday's gain, sugar prices have risen by more than 35% so far this year, thanks mainly to the activity of speculators and hedge and index funds.

News source : http://www.livenews.com.au/Articles/2008/03/02/Commodities_Strong

Reddy Ice Reports Fourth Quarter and Full Year 2007 Results

2008-02-28T02:15:00.000-08:00

Revenues for the fourth quarter of 2007 were $64.3 million, compared to $59.3 million in the same quarter of 2006. The Company's loss from continuing operations was $6.7 million in the fourth quarter of 2007, compared to $5.0 million in the same quarter of 2006. The Company's net loss was $6.6 million in the fourth quarter of 2007 versus $4.9 million in 2006. Diluted net loss per share was $0.30 in the fourth quarter of 2007, compared to $0.23 in the fourth quarter of 2006. Adjusted EBITDA, defined as earnings before interest, taxes, depreciation and amortization, and the effects of certain other items, was $6.9 million in the fourth quarter of 2007, compared to $8.3 million in the fourth quarter of 2006. Adjusted EBITDA from continuing operations was $7.0 million in the fourth quarter of 2007 versus $7.9 million in the corresponding 2006 quarter. Available Cash for the fourth quarter of 2007 was $3.4 million, compared to $2.0 million in the fourth quarter of 2006. A discussion regarding the presentation of Adjusted EBITDA and Available Cash in this press release, including reconciliations of Adjusted EBITDA to EBITDA and net income and the calculation of Available Cash, is set forth below in the section titled, "SUPPLEMENTAL DISCLOSURE REGARDING NON-GAAP FINANCIAL INFORMATION."

"We were challenged on several fronts in 2007, including unusually volatile weather in certain key months and increased cost pressures," commented Chairman and Chief Executive Officer William P. Brick. "Despite last year's difficulties, we enter 2008 with sound fundamentals and are well positioned to take advantage of opportunities, including further acquisitions and the continued implementation of our ongoing cost savings initiatives, as well as to respond to the challenges that we see on several fronts."

Revenues in the full year 2007 were $339.0 million, compared to $335.0 million in 2006. The Company's income from continuing operations was $9.4 million in 2007, compared to $15.9 million in 2006. Net income in 2007 was $10.3 million, compared to $14.7 million in 2006. Diluted net income per share was $0.47 in 2007, compared to $0.68 in 2006. Adjusted EBITDA was $83.8 million in 2007, compared to $88.7 million in 2006. Adjusted EBITDA from continuing operations was $82.7 million and $86.0 million in 2007 and 2006, respectively. Available Cash for the full year 2007 was $46.1 million, compared to $55.5 million in 2006.

In connection with its ongoing acquisition strategy, the Company completed three acquisitions during the fourth quarter of 2007, bringing the total number of acquisitions in 2007 to twenty. No acquisitions have been completed to date in 2008. These twenty acquisitions, together with the acquisition of one facility in the fourth quarter which had previously been leased, had an aggregate acquisition cost of approximately $27.2 million. Annual revenues and Adjusted EBITDA associated with these twenty acquisitions, together with the leased facility acquisition, are approximately $17.0 million and $4.9 million, respectively.

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

Michigan AG: Predatory Lending, Credit Top Consumers' Concerns

2008-02-25T00:09:00.000-08:00

Michigan’s Attorney General Mike Cox recently said in a press release that issues involving predatory lending and personal credit topped Michigan's list of consumer concerns last year.

Cox’s assertion is based on 85,700 consumer complaints received by his office in 2007.

Ranking first in the top ten list of consumer complaints is the heading of “credit and financial concerns,” which means a larger portion of Michigan's consumer complaints last year were related to predatory lending, credit reports, finance charges and identify theft.

news source : http://www.dsnews.com/view_story.cfm?id=2101

Ringing Up Big Charges For "Free" Tones

2008-02-23T00:22:00.000-08:00

What's wrong with the ringtones that come with the phone?" CBS News investigative correspondent Sharyl Attkisson asked teenager Kelsi Dolan.
"They're Beethoven!" Kelsi said. So imagine Kelsi Dolan's excitement when she got a text message on her brand new phone. "It said, 'you've qualified for a free ringtone,' and they sent it to me three times," Kelsi said. "So I asked my Mom if I could get it and she said 'no.' So I texted 'no' back."
But saying "no" wasn't enough. A charge for $19.99 showed up on her phone bill. When her mom tried to get it removed, her phone company told her it was a monthly subscription and it couldn't be stopped.
"I didn't even want a refund for the first month because I figured, 'okay, ya got me.'" Debbie Dolan, Kelsi's mother, said. "Fine I'll take the $20 hit. But when you're gonna keep doing it and you won't do anything to stop it?!" It's called "cramming," Attkisson reports: Charges for services you didn't order and don't want that can be next to impossible to stop. And it's not just happening to kids. Last year, the FCC ordered millions of dollars returned to angry cell phone customers who said they were scammed. Rebecca Anderson did nothing more than search the Web for free ringtones. Then she, too, got hit by monthly charges.
"I did not agree to any charges. I did not download anything," Anderson said. An innocuous-looking website run by a company called Ringaza. Peel away the layers of Ringaza and you find a man named Scott Richter, better known to some as "the King of Spam."
A few years ago, Richter was one of the biggest e-mail spammers in the world. He even paid a $7 million settlement over it. And now he's in the ringtone business. He didn't respond to our repeated interview requests.

But carriers like Ringaza owe some of their success to carriers like Verizon Wireless ... which agree to add the charges to your regular phone bill. "If you believe that you've been charged in error or that you didn't subscribe, we'll credit that charge," said Verizon Wireless spokesman John Johnson. Johnson says if you suspect fraud, all you have to do is call. But it's not always that easy. "Verizon said that this was an outside carrier and they were not responsible for these charges," Anderson said. And in Dolan's case: "They told me they wouldn't take it off and they couldn't stop it.

It turns out the big carriers are making money off the deal. "What is Verizon's share?" Attkisson asked Johnson. "What kind of cut do you get from these bills?" "I don't have a percentage," Johnson said. "Does 30 to 40 percent sound accurate?" she asked. "It doesn't sound unreasonable, but again I don't know," Johnson said. It looks to the customers like Verizon or other companies may not be very responsive because they're getting a cut of the action. "Well, sometimes it looks that way and that really concerns us," Johnson said. Since CBS News first began working on this story, Verizon decided to change its policy. Customers can now block those unwanted charges. And Kelsi is still looking for the right ring tone ... one that's really free.

news source : http://www.cbsnews.com/stories/2008/02/22/eveningnews/main3867197.shtml

Same Name, Wrong Credit Report

2008-02-21T00:33:00.000-08:00

Viewers contact Seven On Your Side frequently, asking for help correcting mistakes on their credit reports. But one viewer's problem really caught our attention because the same mistake could happen to you. We discovered that court judgments can easily show up on the wrong person's credit report because they're filed using very little information.

Will the real Kenneth Kaliski please step forward? Said Kenneth Kaliski of Anderson, "I can't refinance this house until this judgment is removed."

A mix up with another Kenneth Kaliski stopped this Kenneth Kaliski from refinancing his home. Said Kaliski, "The mortgage lender said to me, do you know anything about this civil judgment? I said what civil judgment?"

Kaliski says he never lived at the address on the judgment and was not involved in the case, which he says he learned was a battle over a house payment.

Said Kaliski, "I have nothing to do with this. I'm an innocent victim here. This other person has a name similar to mine, its not me, they're a young couple."

So how did it get on his credit? Court clerks tell us credit bureaus routinely check court records for unpaid judgments.

Here's the problem. Court records are usually filed with just a name. Maybe an address, if your lucky. There's no social security number, no date of birth. If you have a common name, you could be out of luck.

Kaliski filed a dispute with the credit bureau TransUnion and it was removed from his credit. So we asked TransUnion how they verify who's who on judgments. The answer?

Steven Katz with TransUnion sent us this statement: "While TransUnion cannot discuss specifics of our verification process for security reasons, we do actively encourage consumers to check their three credit reports frequently to ensure that each appropriately reflects how they've managed their credit health over time. If consumers see an item on a report that they don't recognize, they should first consider going directly to the party reporting the item - the card issuer, mortgage lender, etc. If they still require assistance, they can file a dispute through TransUnion either directly via phone, online or in writing if they prefer. Details can be found at www.transunion.com."

Kaliski has now refinanced his home and believes court judgments should list more identifying information. Said Kaliski, "I believe there should be another resource for them to before entering a judgment onto somebody, have a more pertinent information on you than just a name and address."

But is that the answer? Court records are public. Court officials tell us more personal information could expose you to identity theft.

So for now, the answer may be to regularly check your credit to make sure Kenneth Kaliski's or any other judgments aren't on yours.

You can check your credit report s once a year for free. If your report lists any debt that is not yours, you can dispute it to have it removed. Credit reports usually come with dispute forms. Fill it out and send it back with any documentation showing the debt is not yours

news source : http://www.wspa.com/midatlantic/spa/

Asian stocks mostly lower on US holiday; Australia hit by ANZ provisions UPDATE

2008-02-19T00:03:00.000-08:00

SINGAPORE (Thomson Financial) - (Updates with closing figures throughout)

Asian stocks closed mostly lower in subdued trade Monday with Wall Street closed for a public holiday and Australia falling after the third-largest bank Australia and New Zealand Banking Group said it would book losses on bad loans and exposure to a US bond insurer.

'We're in an environment where the market doesn't deal with disappointment very well,' said Justin Gallagher, head of sales trading at ABN Amro in Sydney.

'If you're in the financial sector you're probably under a little bit more scrutiny than some of the other sectors. That safe haven tag (the banks) have enjoyed for a long time is not appropriate at the moment.'

The S&P/ASX 200 closed down 0.9 percent at 5,558.4 and the All Ordinaries was down 0.8 percent at 5,634.0.

ANZ slid 6.1 percent to 22.46 Australian dollars, after Chief Executive Michael Smith said the bank was taking a 200 million US dollar one-off loss provision relating to a troubled US monoline bond insurer.

The Nikkei closed up 0.1 percent at 13,635.40, shedding most of its early gains. The broader Topix was down 0.1 percent at 1,332.99.

The Hang Seng closed down 1.6 percent at 23,759.25, ending a four day winning streak.

'There is still no evidence that the housing and financial sectors in the US are getting better, so investors will remain cautious,' said Francis Lun, general manager at Fulbright Securities.

Elsewhere, the Kuala Lumpur Composite closed down 1 percent at 1,412.83 and the Philippines Composite lost 0.6 percent to 3,163.25. The Singapore Straits Times closed down 0.2 percent at 3,083.34 and the Jakarta Index closed down 0.1 percent at 2,684.70.

India's Sensex provisionally closed down 0.4 percent at 18,048.17.

The Shanghai Composite bucked the downtrend, gaining 1.6 percent at 4,568.15.

The official Shanghai Securities Journal reported that Bank of China Investment Management Co and AXA SPDB Investment Managers have won approval to launch two new open-ended stock funds.

Separately, nine fund management firms were reportedly given the go-ahead to offer wealth management services to institutions.

The Kospi rose 0.1 percent to 1,696.24 and the Taiwanese Taiex was up 0.2 percent at 7,890.90.

ANZ slumps

The Dow Jones Industrial Average closed down 0.2 percent at 12,348.21 on Friday after data showed declines in consumer confidence and factory activity in the New York area.

Consumer electronics retailer Best Buy cut its outlook for 2008, citing weak customer traffic in January, adding to the gloom.

Investors are looking ahead to US consumer price data due this week as well as results from Wal-Mart, the world's biggest retailer.

A homebuilder survey due on Tuesday and housing starts due Wednesday are expected to show continued stress in the housing market.

Meanwhile, investors will keep a close eye on the bond insurance market after New York Governor Eliot Spitzer warned last week that the big monoline insurers need to take swift action to recapitalize and keep their crucial Triple A ratings.

ANZ is the first bank to disclose losses related to the recent downgrades of the bond insurers.

CEO Smith said the bank expects losses arising from the global credit crunch to wipe out profit growth this year, describing the crunch as 'a financial services bloodbath.'

The bank's revelations have caught the market by surprise, said ABN Amro's Gallagher.

'I guess the problem the market is having is that we've been led to believe that everything is okay and that certainly isn't the case. We're seeing evidence now that the bad and doubtful debt provisioning is a bit conservative,' he said.

'While they are saying there is no subprime exposure, that's almost irrelevant in the sense that there are other issues coming to the surface that are having a similar impact.'

ANZ said it's also exposed to other bad loans including 90 million Australian dollars lent to a commercial property group and 50 million dollars lent to a resources group. That brings its total potential losses to more than 360 million dollars.

Other Australian banks fell in sympathy with ANZ. Commonwealth Bank shed 5.1 percent to 44 dollars, National Australia Bank closed down 3.7 percent to 29.51 dollars and Westpac Banking Corp fell 3.7 percent to 22.50 dollars.

Toshiba rallies

In Tokyo, Toshiba closed up 5.7 percent at 829 yen, on reports it's considering abandoning its HD DVD format for high definition DVDs as it's losing the battle for market dominance to rival Sony Corp's Blu-ray format.

Analysts said the move would mark the end of a long battle over next-generation DVD formats between Toshiba and the Blu-ray camp led by Sony Corp and Matsushita Electric Industrial Co.

On Friday, Wal-Mart announced it would shift to exclusively selling movies on Blu-ray.

Weekend reports said losses for Toshiba could reach tens of billions of yen if it decides to pull out.

Sony closed up 1 percent at 4,900 yen.

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news source : http://www.forbes.com/markets/feeds/afx/2008/02/18/afx4665713.html

Beat the credit card blacklist

2008-02-13T21:18:00.000-08:00

CREDIT-CARD companies are to start sharing information in the spring that will help them weed out prudent and therefore “unprofitable” customers for the first time.

Banks have been talking to industry bodies for several months about a new initiative that will enable them to identify consumers who clear their balances in full every month, or who constantly switch to 0% deals. Such customers make the banks no money because they do not pay punitive interest charges of up to 28%.

The disclosure follows Egg’s controversial decision to cancel the cards of 160,000 customers this month. It claimed they were “high risk” – in other words, they had missed payments or borrowed beyond their means.

However, hundreds of Egg customers came forward to say their cards had been cancelled even though they had never missed a payment, or cleared their balances in full every month.

This raised speculation that Egg, owned by America’s Citigroup, had cancelled the cards simply because it was not making money from them – and this will become much easier under the new initiative.

At present, the only information banks share includes when a card was issued, when it was closed, the balance and whether or not there have been any missed or late payments. From the spring, however, customers can be vetted by lenders to see if they pay off their balance in full each month, and make use of promotional 0% deals.

Card firms will also be able to see more signs of “high risk” behaviour such as withdrawing cash with a credit card, and big changes in a customer’s credit limit.

The sharing of this additional “behav-ioural” information will conclude a two-year project overseen by Apacs, the UK payments authority, to help lenders better judge risk.

However, consumer groups warn the move – the first change for more than a decade – could mean more customers are denied credit.

Steve Willey, head of credit cards at Moneysupermarket, the price-comparison site, said: “Though this information is meant to help lenders make more informed decisions, there is a danger they could use it to deny customers who aren’t necessarily a risk.”

Credit-card providers such as Barclaycard, HSBC and others have already tightened their lending criteria in response to the credit crunch by asking customers who don’t use their cards to justify why they need them.

Lloyds TSB charges some customers a £35 “inactivity fee” if they have not used their cards in 12 months.

Equifax said its latest survey, conducted just before the credit crunch, showed a 10% increase in the number of credit-card rejections over the past year.

Neil Munroe at the credit-reference firm said: “Minor misdemeanours, such as missing a telephone-bill deadline, which may have been overlooked in the past, may not be now.”

Although the “behvioural” information will be made available in the next couple of months, some industry insiders say it is already being circulated under a “principle of reciprocity”, where banks will pass information between each other if another bank is prepared to disclose a similar level of information.

Here we answer your questions.

What information is currently kept on me by credit reference agencies? The number of credit cards you’ve applied for, when they were issued, when they were closed, the balance and whether or not there were any missed or late payments.

They also hold information about how many bank accounts and loans you have, what your credit limit is, how many times your credit file has been checked by lenders, and any county-court judgments against you.

What information is kept on me by my bank? Banks have more detail about the way you use cards. This behavioural data includes how much of a balance you pay off each month, and how often you use your card.

So is that why Egg could throw out customers who had a good score from the credit reference agencies? Yes. There is no guarantee you will have a good credit score with your bank even if a credit-reference file labels you as low-risk. This is because lenders have their own rating system which uses “behavioural” information. It will also weigh information differently from credit-reference firms or other banks.

What will the new initiative mean in practice when I apply for a card? A lender you have never used before will now have a better idea of the way you use your card and could, for example, decide it does not want to offer a card to a customer who simply makes use of promotional 0% deals, or pays off their balance in full each month as this will not make them any profit.

Isn’t data sharing against the rules? No. Sandra Quinn of Apacs said: “When you sign up to a credit card, you are giving permission for the firm to pass on this information to other providers.”

Could I be thrown out? Banks could cancel your card even if you have a good credit rating on your file if they don’t like your behaviour. They do not have to explain why or give details of the score they hold for you.

Alternatively, a bank could reduce your credit limit if you do not use your card enough or if you hold a number of cards.

If your credit limit is reduced, a bank is unlikely to demand you pay off the balance above the new limit. Instead it will gradually reduce your limit as you reduce the balance on the card.

If your card is cancelled, the lender will stop allowing you to make additional purchases on the card. It will allow you to continue making payments to reduce the balance until it is settled.

FIRMS THAT MARK YOUR CARD

- Barclaycard has lower credit limits for those who have never held a card before.

- Barclaycard and HSBC customers who do not use their cards for more than a year may be contacted and asked if they wish to continue holding it.

- MBNA charges £10 if you have a positive balance on your card.

- Halifax will start to reduce your credit limit if you have lots of credit cards.

- Lloyds TSB has introduced a £35 annual fee for customers who have not used their card for 12 months.

- Coop customers have complained that their credit limits have been cut after making large purchases.

HOW TO CLEAN UP YOUR FILE

- You can check your file by contacting Callcredit, Equifax and Experian. It costs £2 for each file to be looked into.

- If you regularly take advantage of 0% deals, and then forget to cancel a card at the end of the promotional period, your lender may reduce your credit score.

- If you missed repayments on an account you have subsequently paid off, check this has been removed from your file. Lenders take the number of searches on your credit file into consideration.

- If you spot an error, write to the credit-reference agency to ask it to remove or change the entry, explaining why it is wrong and sending evidence. The agency has 28 days to act, and the entry is marked as ‘disputed’ in the meantime.

news source : http://business.timesonline.co.uk/tol/business/

Credit Card Follies

2008-02-11T00:21:00.000-08:00

(Political Animal) CREDIT CARD FOLLIES....What's a bank to do when its profits fall thanks to the subprime debacle and a slowdown in consumer borrowing? You guessed it:

Hundreds of thousands of Capital One and Bank of America cardholders have been notified in recent months that their interest rates are going up — in some cases to as much as 28% — even though they haven't been missing payments.

...."They need to raise rates because they can't raise fees anymore," [David] Robertson said. "It's politically untenable."

Politics also seems to be behind a subtle shift in language that's appeared in the terms and conditions of several top card issuers. Increasingly, lawmakers have been taking a skeptical view of banks' long-standing insistence that they can raise people's rates at any time for any reason.

Citibank announced last year that it would no longer make this claim. Instead, the bank now says people's rates may rise because of "general market conditions." Similarly, Capital One introduced language last year asserting that cardholders' rates could go up "if market conditions change." More broadly, BofA declares that credit card rates could increase due to "market conditions, business strategies or for any reason." [Italics mine.]

...."The card issuers are moving from a risk-management strategy to a revenue-generating strategy," [Robertson] said. "Credit cards are consistently the most profitable retail banking product," Robertson observed. "The growth is not there anymore. And with a recession coming down the pike, there's no expectation of more spending by consumers. The industry needs to raise prices to keep profits where they need to be."

The net result of this, of course, will be to scare the crap out of every credit card owner in the country, which will lead to even less consumer borrowing, which in turn will lead to even bigger problems for the banks. In other words, credit card issuers aren't just evil, they're stupid too. If Democrats in Congress had any guts at all (I know, I know), they would have long since introduced legislation to put an end to this and dared Republicans to vote against it. The campaign ads practically write themselves, don't they?

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

Truvo, Graydon cooperate on credit reports

2008-02-07T02:46:00.000-08:00

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news source : http://www.telecom.paper.nl/news/article.aspx?id=202434&nr=

Egg raises prospect of credit card clampdown

2008-02-05T22:03:00.000-08:00

Confusion over the reasons behind Egg's cancellation of thousands of credit cards has led to speculation over the possibility of more banks following suit.

Egg, which is owned by the US bank Citigroup, wrote to 160,000 customers last week to tell them their credit cards would be withdrawn and they had just over a month to stop using the cards, while allowing them to continue with monthly payments to clear balances.

Citigroup said that it had taken the decision after an extensive credit review and had targeted customers with a higher than acceptable risk profile. However, a number of those customers have complained that they had not exceeded their credit limit or missed payments. Some are concerned that their ability to apply for credit in the future will be harmed.

Analysts believe the move, which comes a year after Lloyds TSB said it would impose a £35 annual charge on account holders who do not use their cards, may prompt other banks to scrutinise their credit card books.

"You may see other banks looking at the profitability of the card businesses in a different way," said Doug Taylor, spokesman at Which?, the consumer group.

Egg yesterday defended its actions, claiming only the accounts of customers with poor credit records were closed. "Only those whose credit scores deteriorated in the months before Egg was acquired by Citigroup last May were affected," said Rachel Roe, an Egg spokeswoman.

Experian, the credit checking company, said the cancellation would not damage customer credit ratings. Any account stopped will be recorded on credit reports as "settled", the same record that would be carried if the customer cancelled the account themselves.

Steve Willey, head of credit cards at moneysupermarket.com, said that Egg had caused confusion by not communicating clearly its reasons for cancelling customer credit cards.

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

NovaGold Enters into $30 Million Credit Facility

2008-02-04T21:10:00.000-08:00

NovaGold Resources Inc. (TSX: NG)(AMEX: NG) today announced that it has entered into an agreement with The Bank of Nova Scotia for a C$30 million credit facility maturing on July 30, 2008. The proceeds borrowed under the credit facility will be used by NovaGold Resources Inc. ("NovaGold") for general corporate purposes.

The credit facility will bear variable interest based on The Bank of Nova Scotia's Canadian prime rate, or United States base rate. The loan is secured only against certain marketable securities held by NovaGold Canada Inc., a wholly-owned subsidiary of NovaGold. NovaGold Canada Inc. has also guaranteed the obligations of NovaGold related to the credit facility.

The credit facility provides the usual and customary representations and warranties, and covenants and negative covenants restricting the amount of indebtedness. Advances under the credit facility are subject to customary conditions.

"With this $30 million credit facility, we are pleased to strengthen our relationship with Scotiabank, one of North America's leading financial institutions," said Don MacDonald, Senior Vice President and CFO of NovaGold. "We look forward to working with Scotiabank as we continue to advance our portfolio of projects and examine new opportunities."

About NovaGold

NovaGold is a gold and copper company engaged in the exploration and development of mineral properties in Alaska and Western Canada. Production is scheduled for 2008 at the 100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, with Barrick Gold (50%). NovaGold also owns 50% of the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco (50%). Also in Alaska, NovaGold is earning a 51% interest as manager of the high-grade Ambler copper-zinc-silver-gold project in partnership with Rio Tinto. NovaGold has one of the largest resource bases of any exploration or development-stage precious metals company. NovaGold trades on the TSX and AMEX under the symbol NG. More information is available online at www.novagold.net or by e-mail at info@novagold.net.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation; anticipated dates for receipt of permits and approvals, construction and production, and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; estimated timing and amounts of future expenditures, and NovaGold's future production, operating and capital costs, operating or financial performance, are forward-looking statements. Information concerning mineral resource estimates also may be deemed to be forward-looking statements in that it reflects a prediction of the mineralization that would be encountered if a mineral deposit were developed and mined. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from NovaGold's expectations include fluctuations in gold and other commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in NovaGold's Annual Information Form for the year ended November 30, 2006, filed with the Canadian securities regulatory authorities, NovaGold's annual report on Form 40-F filed with the United States Securities and Exchange Commission, and other information released by NovaGold and filed with the appropriate regulatory agencies.

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

Get Your Free Credit Report -- Without the Hassle

2008-02-03T22:36:00.000-08:00

We all have the legal right to see our credit-score reports for free, but getting them can be complicated.
Teresa Yakes learned the hard way just how complicated it is to get one of those reports. When she was struggling in May to avoid bankruptcy and working with a debt consolidation company, her lawyer told her to get her free credit-score report online. Yakes went to what seemed to her like the obvious place: freecreditreport.com. (Its Web page even features a smiling blond woman holding a giant orange card that says FREE CREDIT SCORE & REPORT.)
Weeks later, Yakes discovered that the site now expected her to pay a fee every month. "I thought, 'screw that,'" Yakes says. "It's supposed to be freecreditreport.com."

To be sure, freecreditreport.com's home page says in a box underneath the blond woman that if you order your free report at the site, you'll also begin a subscription to Triple Advantage Credit Monitoring. That not only gives you those promised "free" reports, but also checks them daily at a fee of $14.95 per month if you don't cancel your membership within a 30-day trial period.
"We do put that information in to make sure the consumer understands," says Kelly Poffenberger, a spokesman for the Dublin credit-reporting agency Experian Group, which owns freecreditreport.com.

Whether they understand what they're getting or not, many consumers are choosing to pay to see their credit scores these days, and agencies are earning gobs of money by selling services that take the concept of monitoring to new heights.

Experian, for example, raked in $450 million in revenue during full-year 2007 from products such as Triple Advantage Credit Monitoring, compared with $100 million five years ago. Meanwhile the company's rival, Equifax(EFX - Cramer's Take - Stockpickr), made $150 million in 2007, compared with $40 million five years ago, according to Michael Meltz, an analyst at Bear Stearns. "It's a big business," Meltz says.

It's happening even though the Fair and Accurate Credit Transactions Act of 2003 requires the agencies to notify consumers of their right to see their credit files for free. Despite that mandate, only 22% of nearly 5,000 people surveyed between March and June 2006 had gotten free credit reports around six months after they became available nationwide, according to the Federal Trade Commission's 2006 Identity Theft Survey Report, which was released in November.

So, how do you get the free kind of credit report? You can go to AnnualCreditReport.com, call 877-322-8228 or fill out the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. These are the only official channels to make a request for a free annual credit report.

You can order copies of your reports at once from all three agencies -- Experian, Equifax, and Chicago-based TransUnion -- if you want to keep an eye out for changes in your file or as a protection against the risk of someone using your personal information to obtain credit. You can also order one free report from a different agency every four months.

Consumer advocates say that doing these basics alone is the most sensible way to watch your credit score.

"We don't feel necessarily that it's worth it," to pay extra for credit monitoring services, says Linda Foley, founder of the San Diego nonprofit Identity Theft Resource Center. She points out that even daily monitoring services can't make up for the time lag between when someone has taken out credit in your name and when the issuers report that to agencies.

And other billers, such as utilities or hospitals, might not say anything to the credit-reporting agencies all the way until an unpaid bill in your name goes into collections, Foley adds. Instead of paying the agencies for a false sense of security, Foley recommends setting up your own, free credit monitoring service by ordering one report at a time every four months.

If you're looking to do this, consumer advocates warn to steer clear of the numerous sites that might seem to exist in order to offer free reports but then invite you to buy other related services. A 2007 Consumer Reports WebWatch analysis of 24 such Web sites found that nine were owned by or closely connected to TransUnion; eight were owned by or otherwise closely connected to Experian. The list includes TransUnion's TrueCredit.com and Experian's ConsumerInfo.com, among others; you can find the other 22 named here.

"If you go to TrueCredit itself, we tell you [on the home page] there's a free trial, but it's never promoting the product or the services as free," says Steve Katz, a spokesman at TransUnion. "It clearly lays out the cost."

Officials from all three agencies say consumers should find out about their credit scores by using the more full-fledged monitoring services available for sale.

"We have a lot of demand from consumers who want to take a much greater step than just getting their free report and taking a look once a year," says Chris Atwood, vice president of Equifax Personal Solutions. "Some consumers feel they want the ultimate in protection, regardless."

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