August 30, 2009

How to Boost Your Credit Score in 90 days?

If you are looking for a quick way to raise your credit score there are few options. This is because your credit score looks at things over time to determine your credit worthiness. This leaves little hope unless the information that goes into the formula is inaccurate which might be the case.

A reported 70% of consumers have errors on this credit reports so the chance that you have errors is extremely high. It can also be said that most of the errors are not in the consumers favor and having these negative entries removed could be the way to give your score a boost in 90 days.

The first step is to acquire all three of your credit reports. You need three because there are three credit bureaus do not share information. This creates three distinct reports and each one can have errors. The common errors you need to be aware of are: late payments over 7 years old, credit inquiries over 2 years old, double collections, and bankruptcies over 10 years old. You also need to check for misreported payments and delinquencies.

Once you have a list of the possible errors, you need to do your research regarding each item to ensure you have some ground to stand on. Next, you need to fill out dispute forms either online or by mail with each credit bureau. Once the credit bureau receives the disputes, they must research each item within 30 days.

The credit bureau then contacts your creditors regarding the possible dispute with information you provided them. If the account says yes these are inaccurate, the errors will be removed from your credit report possibly giving your score a boost. If the creditor states the disputed item is accurate, it will stay on your credit report and you will then need to pursue the dispute through the account.

Cleaning up your credit report should be one of the first steps on your path to improving your credit score. Like said before the majority of consumers have errors on their reports and getting them removed will get you a boost in 90 days. This will be a nice positive boost to get you committed to improvement.
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August 29, 2009

What is APR on a credit card and how to calculate it?

Annual Percentage Rate (APR), as the name suggests, is a calculation of the interest rate annually. The interest rates are also referred to as finance charges. These charges will be paid yearly against your usage of credit card(s). You can figure it out by multiplying your daily finance charges by 365. However, the calculation is not conclusive, as the calculation is done on compound interest and not on simple interest method, which may also include certain fees. To be more elaborative, if you do not pay your monthly bills every month in full by the stipulated due dates, you will be charged with applicable fees and monthly finance charges, which will be added to the calculation of the APR. In this case, the APR will increase and continue to increase if your do not pay your remaining balance in full in the following month. The APR on credit cards may vary from cards to cards. Generally, it is between 11% to 35%. If you have a good credit score, then your APR may be low. On the other hand, if you apply for a new card with a bad credit history, chances are there that your APR will be higher.

Non-payment of your monthly bills in full may affect your APR. For example, say, your monthly bill for a particular month is $1,000 and your minimum payment is $40 with an interest rate of 15%. Now, if you pay only the minimum payments, you can surely avoid being charged with any penalty charges like late fees, over limit fees etc; your credit will also remain in tact. However, you will be levied with additional charges because of the non-payment of the remaining balance, which will apparently add to your APR calculation taking the finance charges in account. Moreover, if you continue to pay only the minimum payments for months and do not make payments in full in any given month, your APR will drastically increase amounting to a high percentage. You may end up with an APR of, say, 35%, which was not there when you started using your card(s).

Hence, before you decide to own a credit card, do verify the terms and conditions properly. Check out with other credit card companies, which may periodically offer 0% APR cards. Maintain a decent credit score. Try to pay your monthly bills on time in full. In case, you cannot make the full payments, try making higher payments than the required minimum ones. Do not default any payment at all. Always keep an eye on your credit score and try to improve it. Check your credit score and all other information regarding any credit cards on various websites available on internet. Do contemplate before you sign the dotted lines for a card. Remember, it is good to posses a credit card with a decent credit limit, but it is better to have this card with lower interest rates and higher credit limits. All the best for you.
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August 20, 2009

What do you need to know before you go for a home insurance?

Home is the best and the most comfortable place to be in, isn’t it? That’s why we call ‘Home sweet home’. Now it is up to us to protect our sweet home. We need to know how it can be done. Amongst all the factors, I believe, home insurance tops the chart. Insurance is something most of us do not wish to bother about until we need it the most. Hence, we need to be acquainted with some of the basics of home insurance. We need to find out what types of insurance fits the best for our homes, what we can be offered in the insurance policy and what the premium as well as the charges are for the policy. The price of the policy and the coverage that we may get depend on the type of house, our credit score, and the age of the house and the like. A home insurance policy covers damages resulting from storm, water damages, theft, fire, etc.

Types of insurance coverage that is found in a standard home insurance policy.

1. Personal Property Coverage: It covers your home as well as the personal belongings you have. In other words, it insures the contents of your home. It will be paid on actual cash value of your property or on the replacement cost of your belongings lost. Some items are excluded from these types of coverage as they are covered by some other homeowners’ policies. So, review your policy before you go for it.

2. Coverage for Temporary Living Expenses: In the event of any loss of your home under any circumstances, you may need to stay somewhere else other than your own home while your house is being repaired or rebuilt. Additional costs will incur on you. Hence, this type of policy will cover your extra expenses of living elsewhere. However, this type of policy is covered for a limited span of time, until your home is repaired.

3. Dwelling Coverage: This type of insurance policy covers almost everything. It covers any damages done to your living places, floors, fireplaces and the structures attached to your house. This section covers supplies and materials required to repair your home.

4. Personal Liability Coverage: This part of insurance policy covers any damages done to your bodily injury or any property damages to others on your territory for which you are liable. It acts as a defense for your covered claims and can protect you and all the family members living with you against any lawsuits resulting from any bodily injuries or damages of property to others.

So, before you buy any insurance policy, it is advisable that you do a research about them. You should know about the price of premium of different companies. In this way, you can avoid any trouble in the future while you claim for your policy.
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August 13, 2009

Payday loan—pros and cons

Payday loan, also sometimes referred to as cash advance loan or check advance loan, is a short-term loan with a high interest, which is generally meant to meet the urgent need of money by the borrower. It is the easiest and the fastest way to get a small amount of loan. No major paperwork is needed to get such kind of loans approved. The amount of loan is generally very low ranging normally from $50.00-$500.00. This is good for those people who do not have credit cards, who has huge debt, or who need instant cash to pay their utility bills or so.

How it works

You will issue a post-dated check to your lender for the amount you are borrowing along with applicable finance charges. E.g., you need a cash amount of $350.00 instantly. Hence, you would write a check for around, say, $390.00, which will include the finance charges and the principal amount borrowed. If you are unable to repay the amount by the next payday, your lenders, along with some additional finance charges, will encash your post-dated check. You may also pay only the finance charges and make the loan roll over for the next payday. In this case, again you need to pay finance charges. You may also sign over electronic access to your bank accounts to repay your payday loan automatically.

Advantages of payday loans

There are surely some benefits of taking a payday loan. Firstly, there will not be a credit check of your report. Application for such loans is very easy. You may apply through internet or in person or over the phone. The process to get such loans approved takes very little time. The loan amount is automatically credited to your bank account within a few business hours. You do not need to have a credit card to get such loans. It is secure, as your financial information is not shared with others. It is quick and fast, and no immediate costs are burdened over you.

Disadvantages of payday loans

The first thing that will make you think many times to get such loans is the rate of interest. The interest rate is very high. The Annual Percentage Rate (APR) is approximately 360%. Isn’t it too high to receive such a loan? If you cannot pay the amount by the slated time, then your rate will go higher and higher. If you fail to repay the loan, you will be charged with bounced check fees. This will negatively affect your credit ratings. Your bank account(s) may also be closed if you have repetitive returned checks. It will further hamper your credit report.

What should you do?

Every aspect of life has pros and cons. The desired result depends on how you manage it. The same applies with payday also. If you are in urgent need of cash, the payday loan is a better option. By all means, you need to tackle your present financial crisis. But, do not make it a habit to take such loans unless it is really emergent. You just need to be wise in using it and be careful to repay it on time. Make it only a last resort. All the best of luck.

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August 6, 2009

What Mr. Obama says about the new proposed student loans?

Every student aspires to shine in his respective field of study. He wants to study further and further to reinforce his knowledge. But at times, financial constraint puts bar to it and eventually kills his aim to go far. However, there are still some people who know how to get out of such constraint and make way for themselves. They try to find out ways in order to realize their goals. Every good and meritorious student deserves a better deal in his study life. He should be free to think and study further to his urge of knowledge and hence, contribute a bulk of portion of his knowledge to nation.

Around 200,000 Americans step outside the US to study further each year and around 650,000 students come to the US to pursue their higher studies. With respect to the American students, pursuing study abroad needs financial assistance and stability. Studying abroad not only involves study expenses but also requires money for other reasons such as travel expenditure, accommodations, other necessary materials and the like that add to the cost of study amounting to a huge figure. However, there is a respite for students in the USA. President Barack Obama of late announced a number of benefits for college loans. He proposed for a direct financial aid to students instead of private loans. Below I got a YouTube video in which Mr. President makes the announcement of some college loans, which is still in the pipeline. Under this system, students at some colleges can borrow loans directly from government, while others can get loans from private banks, or state agencies, who will in return get subsidies from Washington.

With that proposal, as usual, comes criticism from already existing lenders who fear to lose their lucrative business. They are also lobbying against this proposal. Whatever, the case maybe, we hope that the students can avail more and more beneficial aid from banks or the government so that they can pursue their higher studies and help nation grow stronger. I pay thanks to YouTube to record such a good video for others.
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