Credit Scores and You - What Is A Good Credit Score?

By Christine A. Mathews

If you're thinking about applying for credit, it's always a good idea to find out what your current credit score is ahead of time. It will be one of the first things your lender looks at when reviewing your application. And it could well be a determining factor in how quickly your loan is approved. Knowing what your credit score is before you apply will help eliminate any surprises along the way.

What exactly IS a credit score?

A credit score is simply a number calculated by the three major credit bureaus that indicates how well you handle credit. This is done by reviewing your past credit history and looking at how you are doing with any current debts as well.

Trans Union, Equifax, and Experian are the three major credit bureaus lenders use. Each credit bureau has their own way of calculating your credit score, but they all report their scores using the same scoring method: FICO. FICO is short for Fair Isaac Corporation. Don't be confused if one person uses the term "FICO score" and another uses "credit score" -- they both mean essentially the same thing.

Lenders don't always check all three credit bureaus to decide whether or not to offer you credit. But since Equifax, Experian and Trans Union all use the same FICO scoring system, a score of 720 from one is considered equal to a score of 720 from the other two. That said, it's always wise for you to check your credit report directly from each credit bureau. Mistakes are possible, and you'll want to correct them as soon as possible.

What Is A "Good" Credit Score?

Your credit score can range from 375 to 900 points. The higher the number, the better you are. Getting credit will be easier, and you'll likely get better loan terms as well.

While each lender has his own criteria to follow, here is a general guide that shows how credit scores tend to rank.

If your credit score is 650 and above, this usually indicates very good credit history. This means you will probably find getting credit approval is quick and easy. Another bonus for having very good credit is that the terms of your loan will likely be very good, too.

If your score is between 620 and 650, you are considered to have generally good credit. That said, your lender may ask for additional documentation or explanations before approving large loans or extending a high credit limit. They are simply doing their due diligence, looking for any possible credit risks before final approval.

Also, instead of being quick and easy, your loan may take longer to close. But there is a good chance you will still be able to get credit at a good rate.

If your credit score is below 620, this doesn't necessarily mean you won't get credit. But you should realize that the interest rates and terms of your loan will probably be less desirable, due to your low credit rating.

About the Author:

If you find your credit score isn't as high as you'd hoped, don't panic. Take action! There are things you can do to improve your credit rating starting today! For more information, visit http://CreditHelp.ImprovingYourFinances.com

Dealing With Income or Job Loss

By Doug West

Multiple Income Streams Are More Important Than Ever

The latest economy reports show more and more folks ending up on the unemployed rolls.

My guess is that the situation will get Much worse before we see any improvement in the job numbers.

I have always been a big fan of multiple income streams (even before that became a catch-phrase), and I think they are more important now than ever.

When I was laid off my nearly 10 year job with AT&T back in 1992, I saw first hand how important multiple income streams were. At the time, I had a part time mail order biz (and had been tinkering with that since I was a kid). I looked at the lay off as a good opportunity to get more serious about my business. I also had been doing some investing (my best-ever stock play helped BIG back in those days), and had a little network marketing income.

Many of my AT&T coworkers had no other source of income, and I clearly remember a few grown men in tears when they walked us all out the door that morning!

I would MUCH rather have five sources of income that pay me $200 a week, than to have a J.O.B. that pays me a grand a week! If you still have a job, you need to take this info seriously - NOW! If you are one of the millions of folks that recently lost a job or your only income stream, you need to take steps NOW to correct that (you still have time - perhaps a severance package and/or unemployment insurance checks to get you by - but please don't wait till they run out to get going).

How do you start to create multiple income streams? Here are a few areas that are available to most people:

* Online Income - Many things fall into this category, affiliate plans, blogging income, Adsense dollars, online jobs, marketing your own products and/or services, eBay and other auctions, & more.

* Investment Income - OK, this one may be tougher than ever, and if you barely have money to live on, how do you start to invest! I am partial to index trading, and that does not require a lot of money to get started, but to be really good at it, you need other income streams too.

* Network Marketing Income - Don't turn up your nose at this one. I have companies sending me checks that I have not worked in years. While it is true that network marketers often talk about the top guy who is making $500,000 a month, but there are a TON of folks who make a few hundred a month. Not life changing in and of itself, but as part of your multiple income stream strategy, not bad either.

* Cash Back Debit & Credit Cards - You won't get rich with this alone either, but the old saying is really true "If you watch the pennies, the dollars will take care of themselves". Pay Pal offers cash back on a debit card (which in my opinion is better than a credit card - you won't have the temptation to carry over a balance, which would cause interest charges and defeat the purpose of cash back)

* Interest Savings on Loans & Credit Cards - OK, this is not technically income, but if you save money off what you are currently spending, it comes out the same in the end - more money in your pocket and budget.

* Food Bill Savings - This is like the Cash Back cards, not really income but can be very important - especially if you just lost your job or sole income (like many folks who used to live on their stock market income). Try clipping coupons or join a coupon club. Eat at home more and quickly find more money left in the budget at the end of the month.

* Turn Hobbies Into Income - Like to go to garage sales? Turn that hobby into eBay income. Like to work on small engines or have some other hobby that can be turned into an income source? Don't sell yourself short here. Maybe you love flea markets? What if you could get an extra $200 or more a week by setting up a booth one day a week? Not enough to live on for most folks, but not bad as part of your multiple income strategy. You might even consider creating a booklet, ebook, book, or other info product on your hobby. If you are good at it, you ARE and Expert (you don't have to be the best to be considered an expert - there are folks out there who will pay you for what you know).

We have had affiliates of our Index Trading course earn up to $100,000 in a year. We've had many more earn from $5,000 to $30,000 in a year. What if you had 5 affiliate plans you liked (loved would be better - you'd be more passionate about them), that averaged about $5,000 each per year. You might be able to live on that. Add some other sources like the ones mentioned above and you might live very well!

Always be looking for ways to add additional income streams. Remember, the more you have the better! If one dries up, you are not devastated.

The time to set up multiple income streams is before you need them, but no matter what your situation is, there is no time like NOW to get started.

About the Author:

Mini-Dow Index Trading Made Simple. Discover how to build your trading income. Get Doug's Debt-Free Report. Read his blog here.

Detailed Information about Mortgage Leads

By Todd Packward

When it comes time to finding more mortgage leads, you may want to consider turning to a mortgage leads company. These companies make it their job to track down the leads you need to maintain your business. In an industry that is highly competitive, highly resourceful and very profitable, any company that wants to get ahead needs to invest the time and energy into getting every lead that is available to them. Some of these companies have just what it takes to give you these resources.

You may be asking how to increase your business with mortgage leads from these sources. If you have selected the best companies to work with, you pay a small fee to obtain any and all of the leads they have to offer. They send you leads that you can easily contact and get information on. It is essential to choose a company that is reputable, one that is not recycling leads over and over again and one that you can contact easily if there is some type of problem. When you do this, you will have a wide variety of mortgage leads to work with.

When you locate these mortgage leads companies, it is important to work with companies that give you flexibility. You should be able to select the type of leads you are most interested in. This is often a rate or score that works for your particular need. You may want exclusive debt consolidation mortgage leads, for example. Depending on what the company has available, and your stipulations, chances are good you will get the type of leads you need to make the investment worthwhile. If you are unable to choose from these options, you may want to consider a company more flexible.

The bottom line is quite clear: if you want to have a successful business in the mortgage industry, you need to have a regular stream of customers. You need to be sure that that stream of customers is highly qualified and that they have not been contacted by many other brokers in the recent past. Once you get this information, you can work the leads as you would any other. You will walk away with more deals and transactions than if you were to wait around for borrowers to contact you. Many of today's top mortgage brokers use these services for just this reason: they work.

About the Author:

Loan office mortgage lead, Buy mortgage leads, Direct mail mortgage leads, loan office mortgage leads, mortgage leads exclusive, older mortgage leads, online mortgage leads at mortgageleads.theinfostop.info

Airline Miles Credit Cards

By Gray Rollins

We all know what a frequent flier means. They are people who do a lot traveling on a regular basis and earn rewards like free airline tickets in return. Many frequent fliers use airline miles credit card to avail such facilities. There are many types of credit cards available for this purpose but you must be careful in selecting one for yourself. You have to make sure that your card offers all that you need to provide maximum returns. If you also fall into the category of frequent fliers then this can be the right credit card to use.

If you are considering a credit card such as a frequent flier card then you will want to be sure to know the answers to 2 questions so that you will be sure that you are getting the right card for you needs. The first would be, what airlines the miles redeemable are at and the second would be which one will earn you miles the quickest so that you do not have to wait a long period of time to redeem them.

Another thing you should find out is whether there is a hub for their airlines in the area where you stay. This will make it easy to reach the airport that your card qualifies for. If this requirement is also met, you will be able to use the miles without any inconvenience so you will be able to use it more frequently. This will not only make your traveling easy and efficient, but it will also make it more economical.

You will also want to know what the stipulations are for when you redeem the points or miles, as you do not want to jump through hoops just to cash in on your free travel. Chances are, if you are going with an airline miles credit card that is with a major airline, then you will be just fine as they all pride themselves on taking the best care of their customers.

There are lots of businessmen who are already using these kinds of credit cards. Because of their jobs, they keep traveling a lot and this enables them to complete the required miles very quickly. Thus they earn many free trips all through the year. If you belong to this category, you make sure that the card you get should be affiliated with the airlines that you generally use for traveling.

One of the most popular types of rewards cards that are used frequently today is the Delta Skymiles Card. People really love this card, as Delta Airline is located all over so you can be sure to find a hub that is close to you. When you first join, you automatically get 1,000 bonus miles when you make your first purchase. You will also get 1,000 bonus miles each year if your purchases total at least $5,000.

Another feature contributing to its popularity is that there is no annual fee and for every eligible $1 you spend with Delta, you can earn 1 mile. For every $2 you spend on other purchases, you automatically get to earn 1 mile. People find these lovely offers very attractive and that is another reason why more and more people like to use this card. These facilities definitely make it a popular choice of many travelers.

For all the travelers who travel a lot and want to get a rewards credit card that provides a lot in return, you must go for an airlines miles card. You have to get the most suitable card and you will end up getting a lot of benefit. Don't forget to use it as often as possible to ensure that you quickly rack up the free miles.

About the Author:

If you fly frequently, then the Delta Sky Miles card from American Express will like serve you well. This card has no black out dates and no seat restrictions. Visit us at BestSkyMiles.com and we'll expedite your applications and get you a decision in less than 60 seconds.

60-Second Guide to Getting out of Debt

By JR Rooney

Imagine for a minute being free of debt -- no more sleepless nights over mounting credit card balances, no more ball-and-chain of debt feeding your anxieties, and no chance of threats from dreaded collection agencies. You can do it! Here's the scoop -- in one minute flat.

0:60 Resolve to spend less than you make. Make it a habit as fundamental as stopping for red lights. Realize once and for all that if you can't pay for it today -- you can't afford it.

0:55 Distinguish between Bad Debt and OK Debt. OK Debt has an interest rate well under 10% -- preferably with some tax advantages to boot. In the best case, what you bought with borrowed funds will appreciate in value. Home mortgages and student loans are examples of OK Debt. Automobile loans are on the border: They often satisfy the low-rate piece, but automobiles almost never appreciate in value. Bad Debt is everything else -- from your titanium credit card to the 35% loan from Karl's Kwik Kash.

0:50 Pick a winner. Out of all your cards, pick the one or two major credit cards that feature the lowest annual interest rate. Resolve to use those cards for emergencies only. As for all the other plastic pals in your wallet, remove temptation by taking them out of your wallet. Throw them behind a major appliance, freeze them in a bowl of water, or put them to a shoe box. Do whatever it takes not to use them.

0:41 Gather all the bills from your accounts. Line these up on the kitchen table. Find the minimum monthly payment for each account and then add these up to get an overall monthly minimum. Make a decision to pay this overall minimum PLUS a hefty additional chunk every month -- enough to make a solid dent in the outstanding balance of at least one account. If you can't pull this off, you'll have to make a drastic move to increase your income or lower your expenses. It's harsh, we know, but it's also an inescapable fact.

0:34 Pick the highest interest rate account and: Attack! Next, order the latest bills according to annual interest rate charged. Apply the "hefty additional chunk" (beyond the minimum) to the highest rate account(s). Repeat this process monthly until the last Bad Debt account is paid in full.

0:26 Ask for a lower interest rate. Grab a bill from any account charging you more than 14% interest. Call the toll-free number on the bill and demand to have your rate reduced -- say, to 11%. Tell them that you'd really like to stay with them out of customer loyalty (embellish according to your acting skills), but that you have received offers for much-lower-rate cards. Expect to be made very uncomfortable, but stand firm and remember that, to them, you are both a customer and a cash cow. You also stand to save a bundle. Practice makes perfect.

0:18 Be prudent. Be aggressive in paying down Bad Debt, but don't get so ambitious that you risk missing minimum payments on your mortgage, automobile, or any other secured credit account. (Secured means that if you miss enough payments, the bank can show up and take away the item.)

0:12 Commiserate with others. You'll find plenty of emotional support and great ideas by visiting debt relief discussion boards. Help others celebrate their debt-free "happy dance."

0:05 Dance, Fool! You're done when the Bad Debt is 100% exorcised and you can make remaining OK Debt payments with ease, leaving plenty of budget room for savings.

About the Author:

JR works for a Debt Collection Agency. If you can not pay your debt it is best to try and settle with the Collection Agency

How the slowdown is hitting the credit card market

By Mark Wright

The current economic slowdown that is battering the financial world is a little different from previous 'market readjustments'. This time it's not just big business and the banking industry that have felt the shock-waves - the crunch has hit consumers much earlier than before. This is partly due to the amount of personal debt that individuals have built up during the good times, when credit was easy to obtain and the banks were willing to lend to everyone who came knocking at their door. A survey by Moneyfacts, the financial information analysts, found that at least 10% of credit cards have raised their interest rates or imposed fees as a direct result of the financial storm now sweeping across UK PLC.

As a consequence, the average APR on credit cards has risen from 16.8% to 17.2% in just over three months. This upward trend is a direct counter to the Bank of England's 1.5% recent base rate cut, which brought the base rate down to 3% in an attempt to cool the prospect of rising inflation. This particular credit crunch is biting hard across the board. The slush fund banks use to lend to each other is running dry and this time consumers are feeling the squeeze as well. As a result consumer spending has dropped markedly meaning that even less money goes into the economy, perpetuating the situation. In lender's eyes, this lack of available cash means that customers pose a greater risk to the credit card companies due to the increased chance of defaulting on payments. But rather than just shoring up via interest charges, lenders are being much more proactive this time to try to stabilise the market for everyone.

As the financial institutions lost faith with each other, they tightened up on lending criteria across the board. This was primarily to stabilise an already shaky marketplace and stop everyone running the risk of 'bad debt', both lenders and borrowers alike. The lenders need money to continue trading and as borrowing from other banks and financial institutions has practically stopped, the only way for them to get the money they need to continue in business is to increase interest charges on credit agreements, loans, credit cards and mortgages. This signifies an end to the 'live now, pay later' lifestyle that the First World industrial countries have enjoyed for so many years.

The ten years between 1997 and 2007 were boom times for credit card lenders in the UK. The brakes weren't just put on because of the credit crunch that kicked in during 2008. An extremely competitive marketplace, the emergence of the Pacific Rim countries as manufacturing and financial superpowers, increasing international 'bad debts' and a plethora of government regulations made the credit companies re-evaluate their positions. A few companies responded with a knee-jerk reaction of 'dumping' thousands of customers that were just not profitable (those who cleared their balances every month and paid little or no interest charges). All of the credit companies tightened their criteria for lending, increasing transfer charges, restricting credit limits and access to cash withdrawals. By doing this, they're not only minimising their own exposure to bad debt, but reducing the possibility of their customers getting into trouble as well. It's a win/win move by the credit card companies, and will probably do a lot more to help stabilise the market.

The credit card industry has suffered a double-whammy. The loss of overall market share in the late 1990's resulted in a scramble by lenders for customers, enticing in consumers with 0% balance transfer offers and cashback schemes. That has all now changed, with most cards imposing up to 3% balance transfer fees in an attempt to regain lost profits as a result of the 0% offers. The second blow was the decision in 2006 by the Office of Fair Trading to impose a 12 cap on penalty charges. Now lenders are bracing themselves for another knock-back as the Complaint's Commission takes a close look at personal protection insurance schemes imposed by lenders on many credit card deals.

The economic slowdown could have yet another sting in its tail, with unemployment now under the spotlight. Higher interest rates on cards for everyone is the lender's way of buffering their position, minimising their financial exposure. It means that everyone pays the price through increased interest charges, but a more stable credit card market emerges as a result. Credit card lenders are keeping a close eye on their customers, looking for early signs of financial difficulty. They are well aware that things are tight for everyone, and by keeping a watch for customers who show signs of struggling, they can step in early and guide the customer through the financial rapids they may find themselves in. The credit crunch does mean a slowdown generally, but rather than a complete collapse of the house of cards, it's more a matter of shoring up the foundations so that the market can emerge stronger after the event.

About the Author:

Mark Wright writes for various popular websites, and keeps a regular commentary on the recent financial crisis and credit crunch. Read more about credit cards here.