Did you have problems repaying your credit card bills on time? You’ve got plenty of credit card companies to split your payments; it is most likely that you will soon start defaulting on them as your monthly income level may not be high enough. There are possible ways in which you can save your dollars by boosting your credit score. Read the rest of this entry »
Noel Whittaker FCPA FAIM FTIA AFPA, writes for established reputable newspapers, has made tv appearances, and broadcasts on ABC radio. In 1998, he was awarded the title of Australian Investment Planner of the Year. In his international best seller “Making Money Simple”, Whittaker explains using simple easy-to-understand language on Credit Ratings.
“When lending organisations are considering making a loan they look carefully at the applicant’s ability to repay it. It is not their business to be taking risks with their shareholders and depositors’ funds and there are certain areas they will look at critically before making a decision.
These include:
- Length of time at the present address and at the present job – stability is preferred.
- Level of income – obviously the applicant must be able to afford the loan repayments.
- Marital status – stable people have proven to be better payers.
- Asset accumulation – people who have built up considerable assets are proven better credit risks.
- Type of employment – in occupations (such as commission selling or small crop farming) where income can be uncertain, borrowers may have trouble making repayments.
- How the applicants have repaid previous loans – lenders have found that good payers tend to stay good payers – bad payers also tend to remain bad payers.
Credit ratings and credit history come into importance when the last item is being considered. When making a loan application the client will be asked details of any previous borrowings and whether they are still current or paid off. Normally staff of the loans approval department will then telephone the other lenders and ask for details of how the applicants have conducted their accounts. If they hear comments like “slow payer” or “never pays until final notice is sent” the chance of getting a loan lessens. No lender wants the bother of borrowers who have to be chased continually for money.
This is what happens when a lender calls the credit bureau.
- The lenders code is asked for and verified. This prevents unauthorised persons from obtaining information.
- The applicant’s full name, sex, date of birth, driver’s license number, occupation and last two addresses are given. These items are included to ensure proper identification.
- The enquirer is asked what the person is asking for. This is recorded on the applicant’s file.
- In exchange for this information the credit bureau advises details of all other information on file. This includes all other application for credit and detail of any “delinquencies”.
A “delinquency” is something that indicates a past problem. It could be a judgment, repossession, bankruptcy or the fact that the person had “skipped” – owing money without leaving a forward address.
Note the file contains only applications for credit and details of any delinquencies. It does NOT state whether any of the recorded applications were approved, declined or proceeded with. The file merely shows that, at some stage, the applicant was considering getting a loan.
You can now see there are two elements that make up this term “credit rating”. One is the history of the way in which loans have been repaid in the past – this is available only from those lenders the applicant has dealt with. The other is details of applications for finance, and delinquencies that come from the credit bureau”. Whittaker, N. (2003). Making Money Made Simple. Australia: Simon and Schuster.
Submitted by Karen Colquhoun-Smith for www.HowTo-BuildCredit.com
As far as the current scenario of the business arena is concerned, it’s almost impossible for a company to survive unless proper and effective strategies are adopted. In this world of rat-race, every company is coming up with fresh business intelligence and innovative ideas to compete with the top multinational companies and big business firms. One such initiative is hiring services of fulfillment companies. There are plenty of fulfillment service providing agencies scattered throughout various corners of the globe. Any these companies can be contacted through their personal websites. In fact, an official site of a particular fulfillment company can help you know everything about their services and offerings.
Before hiring services of one of these fulfillment companies, you must take note of several points. Your initial task is to check whether the company you are choosing can fulfill all your requirements. Remember, there are certain fulfillment companies that excel in offering specific services to customers. Some companies specialize in books and videos while some others specialize in products designed to cater to the needs of corporate houses.
It’s the warehouse where the fulfillment companies preserve all their products. Therefore, it’s essential for you to check the size of the warehouse prior to hiring their services. Go for such fulfillment companies having large warehouses so that you can easily store your products without any hassle. In fact, it’s the best option for those who are planning to transport an enormous range of goods to specific locations.
The location of the warehouse of your fulfillment company must be in close proximity to the shipping hub. Remember, the transportation fare can cost huge and your goods might also get damaged while getting transported. Swift delivery can certainly fetch you to your customer’s good books. In fact, hiring services of fulfillment companies can keep your overhead costs in check.
Besides the problem pertaining to the fast pace of life in the contemporary times one of the most pressing problems despite the improved standard of living is that of finance. The financial problem faced by all and sundry is also the chain effect of yet another scenario: the price rise. However each and every need of the diverse mass is not the same. Therefore to cater to the various requirements the market has introduced different alternatives to obtain cash. One such option is the FHA lender.
The various fund vehicles devised for the benefit of the mass are also variegated as per their mandatory requirements. Therefore it is always advisable that the respective individual should collect proper information and develop adequate understanding of the same before opting for the option. The FHA lender caters to the urgency of requirement. In fact the main problem of the conventional lender: the bank is that of time. The processing involved in the sanction of a loan by the bank more often than not turns out to be a time consuming affair. However affording that time may not always be possible for the individual. The FHA lender resolves that issue by lending money according to the requirement of the individual.
The other problem that is faced by the loan seeker while opting for a bank loan is that of the credit history. Usually the absence of a good credit record may lead to the rejection of the loan plea as well. The FHA lender on the contrary does not seek a spick and span credit history. Therefore for an individual with a tarnished record, the FHA lender is the ideal source to obtain a loan. This lender in fact is truly the financial messiah as he further provides the option of mortgage free loans, which implies collaterals are not mandatory in case of loans obtained from this lender, thereby making loans all the more convenient to avail for.
As a consumer in the United States, the Federal Government decided back in 2003 that you are entitled to receive a free annual credit report so you can monitor your credit and your credit rating. The FACT Act was passed unanimously so that all Americans could get a free annual credit report and be able to keep track of what the credit reporting agencies were compiling on them. Read the rest of this entry »
