Category Archives: finance

Tips We Recommend When You Are Considering Applying For Credit Cards

How do you define what the best type of credit card is? For each of us, the answer likely differs, due to our own unique personal needs. Credit companies understand that consumers broadly differ in what they look for in a credit card, and in such a highly competitive field, offers and credit cards are continually improving. Credit cards can be compared to an arms race, when one or more credit card companies introduce a new perk or feature, more follow.

In a world where there are a multitude of options when it comes to credit cards, what do you look for? How do you compare the available offers when you are hunting for a new card? Some might look for a card with a multitude of perks, while others look to maximize their rewards earnings, others simply look for new cards based on the best sign up rewards bonus. Others who travel look for a card which offers them the features they need when traveling, such as air miles and hotel points, and also no foreign transaction fees. Some people weigh the fees a card carries, such as an annual fee vs no annual fee. others prefer to stick to a card type, such as Mastercard or Visa. So for the answer to what the best credit card is, it would be better to ask what the best credit card is for what you are looking for, be it rewards, air miles, low interest, sign up bonuses or perks.

If you want to base your worth of a credit card based on the bonus points, you should learn how to estimate those points value. If you cannot come up with a dollar value of the sign up bonus when you redeem your points, how can you effectively gauge weather or not a deal is good? One card might offer a sign up bonus of only 40,000 points and another might offer a sign up bonus of 50,000 points, but the redemption value may be higher on the 40,000 points card. You should also take into account any statement credits any sign up offer might have, as well as any statement credits that are given out each year to card members.


You should try and rank a credit cards perks as well.
For example if you often travel, free checked bags perk could be worth hundreds of dollars, unless you have elite status with an airline already that is. Things that are free from a credit card, such as free nights or a free travel companion ticket should be ranked accordingly as well. A free night at a hotel is roughly worth $250 for example.

One thing to consider is if you find two or more credit cards, with the perks that you are looking for, and roughly the same value in sign up rewards, is how to pick the right offer in this case. My opinion in this case would be to opt for the card with the lowest spending requirement to obtain the sign up bonus. All credit cards with sign up bonuses require some set spending limit, often with in 3 months of opening the account. So if you have 3 offers you really equally like, but two of the offers require you to spend $3000 for the sign up bonus, but the third card only requires you to spend $1000 to obtain the sign up bonus, you should opt for the card that only requires the $1000 spend.

Searching for the top finance and money savings offers, our editorial team covers loans, credit cards and debt savings topics, have a suggestion, send us an email anytime.

What Happens When You Are Purposely Avoiding Creditor Calls

Do you have a lot of debt, and collections agencies are pursuing you over this debt? Are you avoiding all calls from creditors and debt collection agencies, and throwing away their letters without reading them? If you are wondering what can happen with this debt, when you are actively avoiding any contact with said creditors and debt collections agencies read on.

First and foremost you should indeed be careful in deciding to speak to any debt collector. You should however read any and all written correspondence with these debt collection agencies and creditors. Be on the lookout for any errors or factual discrepancies or anything else that has been misrepresented. If you find any of these errors you should dispute them via mail, as errors can restart the debt clock as far as the statue of limitations goes.

If the debt is very old, you should be aware that if you make any sort of payment after being harassed by debt collectors that you will be restating the debt clock and statute of limitations on the debt. Normally after 7 years of no payments and no contact with a creditor, the debt will fall of off your credit report. Yet making a payment or admitting the debt is yours can restart this “debt clock” all over again, giving your creditors 7 more years to pursue you, and 7 more years for the debt to haunt you.

If your debt ends up in a collections agency, how the collection agency deals with your account will hinge on a few factors. The first being that they are legally allowed to pull your credit once per month. Your credit report will let them get a general feel for your finances as they stand, if there is any indication that you are making a decent income or paying on other accounts, they may decide to pursue you to the maximum extent that they are allowed by law. The next factor rests on how large the debt is, large balance accounts warrant more time and effort, while small low balance accounts yield little for the collection agency to expend to much effort.

Your debts will show on your credit report as being in collections. This is a huge red flag to any lenders that you do not honor your debts, so your lending in the future may be hampered. If the dent is large the creditor may seek a judgement against you. After a judgement has been filed on you, that too will appear on your credit report, further damaging your credit score and credit standing. The creditor can then take any legal remedies to collect on the judgement, depending on the laws of your state.

If you owe a bank due to a bad check or an overdrawn bank account, this could lead to further issues than described above. Most times these issues get reported to ChexSystems or TeleCheck, which are debit history agencies. If you get reported to these agencies, you could be denied a checking or savings account at any future banks, not only that but any banks you currently have in good standing can be shut down at the banks discretion if they see you appear in these systems.

Your only options are to work out a payment arrangement, or do nothing and wait for 7 years until the debt falls off of your credit report.

Searching for the best tips on personal finance, credit cards, loans, debt reduction and money savings tips in 2015? Our editorial team works hard to find great topics to help educate you on options for making sound financing decisions.

Why Different Credit Bureaus Show Different Scores

Today more than ever your credit score matters. Today’s economy and finances are credit score driven. Did you know just 1 point can mean the difference between paying hundreds and even in some cases thousands less in interest and fees on a mortgage? It is true a 679 instead of a 680 could cost you dearly. Yet figuring out your exact score can be a real headache, or rather your exact representative credit score. Why? Simple, each credit bureau might have different data on you.

Each of your creditors might report to different credit bureaus, in fact creditors are not required by law to report on you at all. Many do but some do not. Paypal credit comes to mind here, they do not report at all, that is unless you default on payment then sometimes they do. Smaller creditors are even less likely to report to all 3 credit bureaus, mostly due to the costs of reporting the data. The costs to report the data are not offset for smaller creditors. Major creditors however tend to report to all 3 credit bureaus. I always tell clients that I have who care about their credit scores to choose which creditors and lenders they use carefully and to ask before hand if they report to all 3 major credit bureaus.

Now even if every account gets reported to all 3 credit bureaus, your score may actually differ between one or more of the credit bureau reports. This is due to the fact that while bureau might have exactly the same information, it does not mean that each bureau calculates the score the same. Also each lender can pull a different score. Sound confusing? Its realy simple actually. There are two major scoring models FICO and Vantage. When you pull your own credit score you are likely to see your vantage score and not your FICO score.

Your vantage score is made up of 6 components: payment history (32%), utilization (23%), balances (15%), depth of credit (13%), recent credit (10%) and available credit (7%) and your vantage score will range from 501 to 990. Your FICO score on the other hand will have just 5 components: payment history (35%), length of credit history (15%), amounts owed (30%), types of credit (10%) and new credit (10%). Your FICO score will range from 300 to 850. There are also variants of the FICO and Vantage scoring systems such as FICO8 and FICO9 for example so even two lenders pulling your FICO score may end up getting different numbers on you.

The types of lenders you go to can also effect your score. Each type of lender uses their own in house variant of the same scoring system. Auto lenders for example are much more likely to weigh your auto payment history when calculating your credit score under the FICO or Vantage scoring model. If for example you had a car get repossessed, even if your credit report was perfect otherwise, your score for the auto lender might be terrible while the same scoring model such as FICO ran for a mortgage would be much higher. Many lenders have proprietary systems such as algorithms that will calculate a custom score based on in house criteria based on their unique credit products, services and past experiences.

You should there for expect your score to vary between 5 and 20 points higher or lower than the score that you see when you pull your own credit score online. Just because one lender says your score is for example 679 does not mean the next one will. This is where rate shopping comes into play. Rate shopping is where you get more than one quote by having multiple lenders pull your credit report. FICO only counts one inquiries made in the 30 days prior to scoring so that you can rate shop without harming your credit.

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Getting Your Retirement Goals On Tracks Starts With A Plan For 2015

If you are planning retirement you may be asking yourself how much do you need to save for retirement. Sadly there is no one size fits all answer to this question. The answer on how much to save will vary from one person to another based on life style and income needs. One thing is for certain however and that is that saving for retirement today will help you reach your retirement goals, but putting off saving for retirement could mean the difference between having a solid retirement plan and having a poorly funded one.

You need to account for several factors when you want to determine the amount you will need when you retire.

* The rate of inflation, your dollars today will be worth less in the future unless invested where the money grows past the rate of inflation

* What life style you wish to live when you retire. Experts claim if your mortgage is paid off that you should plan to replace 70% of your pre-retirement income through various sources for use during retirement, not counting social security income which does not amount to much.

* What age you plan to retire directly affects how you plan to save for retirement and how much per year you need to invest to reach your goal.

* What rate of return you want for your investments.

If you start saving for retirement in your early 20s you are setting yourself up for a great retirement, but sadly most of us do not start planning for retirement until well into our 30s. If you are in your 30s the most basic advice is to place 15% of your salary into your companies 401k if one is offered, or into a IRA if your company does not offer one. If your employer contributes 5 percent of pay you would only need to save 10% to your 401k, but in the case with the 5% that you do not need to allocate to 401k you should allocate it instead to another retirement investment such an IRA or federal T bonds to further diversify your retirement portfolio. If you began to save in your early 20s you are in a better spot retirement wise.

According to the Boston College Center for Retirement Research (CRR) :

If you start saving at age 25 and you:

Retire at age 62: Save 15 percent of pay
Retire at age 65: Save 10 percent of pay
Retire at age 67: Save 7 percent of pay

If you start saving at age 35 and you:

Retire at age 62: Save 24 percent of pay
Retire at age 65: Save 15 percent of pay
Retire at age 67: Save 12 percent of pay

If you start saving at age 45 and you:

Retire at age 62: Save 44 percent of pay
Retire at age 65: Save 27 percent of pay
Retire at age 67: Save 20 percent of pay

Here you can see how age of retirement versus age you started saving equates into how much of your salary you need to put away into retirement savings. The sooner you begin to save the better off you will be, but you can still make it at age 45 to start your retirement savings, but you will need your mortgage paid off to make it.

The editorial team from TexasPersonalLoanLenders is committed to finding relevant articles on consumer loans, lending, debt, credit cards and money savings opportunities to help consumers navigate the daily challenges as they work towards achieving their financial goals.