Prime Rate Credit

Credit ratings serve the purpose of evaluating the credit worthiness of an individual or a business. A credit rating is assessed by your current assets and liabilities and your financial history.

Credit ratings are used to inform a lender the probability of an individual or business paying back a loan. A credit rating is determined from a credit history that is put together and maintained by credit bureaus. In addition to credit ratings to determine credit worthiness, there is a 3 digit credit score that is defined by an independent financial services such as FICO which stands for Fair Isaac Corporation.

This information affects a person’s or company’s ability to borrow from financial institutions. Credit ratings also can effect the amount needed for a deposit on a utility or rental, the amount of interest on a loan and even eligibility for employment.

Credit ratings from FICO range from 300 to 850. The higher the number, the better your rating will be. Since having a high credit rating works in your favor financially, every effort should be made to improve your rating.

There’s a variety of steps you can take to improve your credit rating. Register to vote as this shows proof of residency in any credit searches. Opt for a fixed land line for your telephone and use this number on any applications for credit. Staying with the same employer, bank and residence for a long period indicates stability.

Time applications for credit, cell phones and insurance so they are further spaced apart. Too many applications for credit close together can negatively impact your credit rating. If you have credit cards you are not using, cancel them. This will lower your credit available and positively effect your credit rating.

If you have no credit history, you can build a good credit history by obtaining a credit card and putting a small amount on it each month then paying it off in full. This way, you’ll avoid interest and, after 6 months to a year, you will be on your way to building a good history.

If you marry and your partner has a poor credit history, it won’t effect your rating unless you have joint bills. You can keep your finances strictly separated and your credit rating will not be adversely effected. If you’ve split up with someone, let the credit agencies know about the “disassociation” so your ex-partner’s credit can’t effect your future finances.

Chase is a good credit card company, in my humble opinion. They are very flexible as far as when I’ve been charged a late fee that I felt was truly confusing. For example, one time I paid the bill what I thought was on time, and they said that since it was actually before the bill was due, it was posted to the last months payment, and my current months payment was then considered late.

Stupid, I know. But, when I called and demanded that the late fee be removed as this policy was extremely confusing, especially for consumers who are actually trying to stay on top of their bills by paying them early. I explained I felt I was actually being punished for paying my payment early. She understood and explained the billing system, and we agreed that I would not make my payments until the tenth of the month or after from then on due to the billing cycle issue.

I felt that she adequately explained it, and she immediately took the fee off without any hemming or hawing, nor did I have to ask for a manager, so clearly they empower their employees to make decisions they feel are fair and in the best interest of keeping happy customers. I also like their online billing notification system.

They send you an email automatically every month when your bill is due, so you’re not chancing making a late payment, which is excellent for those of us that live busy lives and very well may forget to pay these important credit card bills when they come due. Especially since late fees seem to be exorbitant nowadays! Online bill pay is almost a necessity for me nowadays.

I won’t even consider doing business with a company that doesn’t have a fairly sophisticated online bill pay and reminder feature.

The continued free fall in real estate can not persist forever, but for right now the effects on the economy and lending institutions are profound. There are a number of different causes for the ongoing slump. The recent increase in the number of foreclosures have tightened credit and financing. Even people with good credit have less attractive financing options available to them when applying for and comparison shopping for a home mortgage loan.

The supply and demand is way off balance in the real estate market. There have been too many existing homes on the market for too long with no pending sales in sight. This factor has forced home prices down. According to the U.S. Census Bureau, housing starts are at a 10 year low. Construction companies that build new homes are often focusing on remodeling jobs and building additions to existing homes just to stay afloat.

Another ripple effect in the economy is a decrease in availability of home equity loans. Second mortgages are being viewed as higher risk as the credit crunch continues. Job losses and department cutbacks ensue in home equity divisions at banks. Fears over credit problems spreading and the credit crunch are effecting stock market activities. The Dow is plunging and volatile as emotion and psychology seem to be dictating the state of the stock market.

Countrywide Financial Corporation has borrowed 11.5 billion to avoid bankruptcy. Countrywide is one of the top mortgage lenders and they are trying to use these resources to ride out the present credit crisis.

It’s hard sometimes to spend the money needed to do long overdue home improvements. However, maintaining and upgrading your home is a necessity to hold the value of your home and it can save you money in a variety of other ways. Also, there are some great home equity loans that can let you borrow against the value of your home, especially if it’s for the purpose of home improvement to the home you’re borrowing against.

Replacing old worn windows seems like a large investment, but in the long run, the dollars saved on energy costs will pay off. Replacing worn doors and storm doors can pay off signifigantly, over time, also with reduced energy bills.

Many home improvements can save in other ways by saving you money on your home insurance costs. If you have done large improvements, let your home insurance agent know about it and find out if discounts apply.

Home insurance companies usually offer discounts for substantial improvements such as replacing a roof or roof repair. Other improvements that could translate into insurance savings are upgrading plumbing, a new furnace, or rewiring or upgrading the electrical system in your home.

Security alarms are another discountable item with most home insurers. Good smoke and fire alarms can also add to your savings on discounts.

If you are a retiree or are employed in your home, you may be eligible for a discount since you are present in your home for most of the day. Sometimes, a discount of up to 10% is available for retirees on their home insurance.

I’m writing this as my significant other is yelling on the phone to an automated voice system because his credit card was declined for no reason at all at Home Depot. I really think that for all the interest you are paying your credit cards, that they could come up with a better customer service system that actually connects you to a real human, right away, without going through menu after menu and frustrations at being passed around when the person who does finally get you on the phone doesn’t know what you’re talking about or they have to transfer you to another area because they don’t “have the authorization” to do anything about your problem.

After talking to a woman for ten minutes about what the possible problem could be behind the declination of the credit card at Home Depot, he had to prod her to look into whether there was a block for some online charges he had made a couple days ago. I’m all for protecting the consumer form fraud and identity theft, but when a block is put on the card, they should be able to rectify the situation immediately.

The problem is that they advised him there was block on his credit card after ten minutes and at his suggestion at what might be wrong, and then gave him a fraud specialty department number because they couldn’t take the block off, only this special department could. Well, lo and behold, when he called the fraud prevention department at this particular credit card company, they were closed all day Saturday and all day Sunday. Now, what if this was being used for an emergency or he was away on travel and this was his only credit card, what then?

I thought it was awful service, so I told him to call the regular customer service number again and see if there was anyone that could lift the credit card block in the meantime, I mean, there should be SOMEONE there on a Saturday, when people tend to use credit cards like crazy, to lift an accidentally imposed block, right? Wrong, after a half hearted apology, he is left without his credit card until monday, when a credit card fraud specialist can lift the hold. I told him he should get a good balance transfer credit card. Ridiculous!

It’s up to the Federal Reserve to decide whether interest rates (the prime rate as we talk about often here, hence the name Prime Rate Credit) should be cut amid a very shaky market as well as shaky faith in the market from investors as well as consumers. Ben Bernanke has been criticized recently that he isn’t doing enought to help ease worries and the general economy as well as a burgeoning problem about credit from major corporations.

You see, many banks, mortgage lenders etc. are on the verge of bankruptcy and have supremely bad credit now thanks to a sluggish economy and home buying market right now, and this is leading the Fed to worry about a total collapse of the economy if this problem is not resolved and a so-called domino effect is not caused by the bad credit crisis going on right now.

The Fed did not indicate that they were going to lessen restrictions on bad credit or that they were going to lower interest rates a few days ago, but now that several stocks have plunged over the past week due to bad loans and financial instruments not being honored by customers, many are wondering what Bernanke is going to do now after he pretty much indicated that there would be nothing done.

The latest news is that now people are thinking the Fed is waiting to see how employment reports are coming in, and use that as a deciding factor after this month to determine whether they will cut interest rates or not in response to worries about floundering credit with banks and other financial institutions that are having a bad time with bad loans etc. Hopefully they will do what they see fit and what is best for us as consumers and the overall economy, not just what’s best for institutions, although admittedly sometimes their financial whoas trickle down to us.

Health care costs and health insurance rates are spiraling upward and out of control. Even with insurance, a series of the usual screening tests can end up costing a lot of money out of your own pocket after deductibles and the percentage uncovered by your insurance provider. One of the ways to get a handle on this situation is to investigate some of the alternatives to the traditional payments made for the usual health care policy.

One of the newer choices that is becoming more popular is the health savings account. Probably, the biggest advantage to the health savings account is the tax benefits. Contributions made by the employee are tax exempt from federal income tax and, in most states, from state income tax. Whatever amount your employer contributes is also tax exempt.

You may contribute as much as 100% of your annual deductible, provided you do not exceed the annual contribution limits set by the IRS. When you need to use the health savings account funds for health care costs, distributions are tax-free as long as the amount is used for “qualified medical expenses.

People who are qualified for a health savings account are individuals covered by a high deductible health plan, not enrolled in Medicare, not covered by any other insurance and not claimed by another as a dependent on their tax return. A health savings account is an individually owned account and is intended for use together with a high deductible health plan.

The money in a health savings account is your own and balances roll over from year to year. If you leave your job, the money in your health savings account stays and if you opt for a high deductible health plan with your new employer, you can continue contributing to your account. Even if you don’t use that option, you can still use these funds for qualified medical expenses, but can no longer contribute.

A health savings account can be opened as a checking account, a money market or as certificates of deposit. Interest is accumulated on all of these types of accounts and minimum opening deposits vary with the type you choose to open and which bank you choose. Be certain of any fees that may apply and what your balance needs to be to avoid them.

This is an option that is worth researching for the tax benefits and because the funds stay with you and remain your own even with a shift in employment.

Credit cards really do seem more and more like something you actually can’t live without nowadays, don’t they? The thought really hit me today as I increased my Netflix online DVD rental subscription to receive more DVD’s at once, and was required to enter credit card information to be able to do that. If you want to do any type of online transaction, which is basically the wave of the future, you have to have a credit card or at least a debit card in your name to be able to do that business online.

It’s not only business online though. Think about reserving a hotel or airline ticket, or any other types of travel plans. Most companies now require a credit card to secure any type of reservation like that (Oh, I forgot a good one, car rentals). In other words, your word is as good as your credit card limit, and if you don’t have a credit card and limit at your disposal, you could be out of luck when it comes to making any type of transaction online or reservation over the phone.

Cash is rarely carried by many people these days, unless you happen to be in a business where you receive cash tips, like the food and waiting industry, or a limo or cab driver. Even these people usually have to still have credit cards by sheer virtue of being able to get around in this world and pay bills. Ahh, which leads me to another important point.

If you want to do any type of online bill pay service, which massively simplifies your bill-paying in countless ways, you really need a credit card or debit card to be able to do this. Sometimes you can do it with a checking account number, but it is increasingly popular to do it through a debit card instead. If you have bad credit, there are credit cards for bad credit available that will offer you the convenience of having a credit card without having to worry about carrying a revolving balance for a long time.

If you’re looking to further your education and go on to college, usually the biggest obstacle is the matter of how you can finance this challenge. There’s a variety of student loans to choose from to make college dreams a reality.

To start on your financing options, you need to first obtain and complete a FAFSA, which is a Free Application for Federal Student Aid. The FAFSA has to be completed before you can be evaluated for federal financial aid. The FAFSA should be filed shortly after January 1 of your senior year in high school.

After completing the FAFSA and sending it in, you’ll find out what kind of loans, grants and school sponsored scholarships you qualify for. The various types of loans available are the Federal Stafford Loans, PLUS, and Graduate PLUS loans. There are two types of Federal Stafford Loans, the subsidized and unsubsidized varieties. The subsidized Federal Stafford Loan is based on financial need. With this type of loan, interest is not charged until you begin repayment.

The repayment schedule does not begin until six months after graduation and the amount of time for payment spans 10 years. The government subsidizes the interest on the loan during the time the student is in school. With the Federal Stafford Unsubsidized Loan, interest does accrue while you are in school. As with the subsidized type, you do not have to pay until six months after graduation or leaving school. The repayment time remains at 10 years.

The Federal PLUS Loan is designed for parents to fund their child’s education and may be used for books, living expenses, tuition and room and board. Some of the benefits of this type of loan are a fixed interest rate and the ability of the parents to completely fund the entire cost of their child’s education. Ther is no origination fee with this type of loan, and you should definitely be able to comparison shop for loans like this online.

The Graduate PLUS Loan is for graduate students and, like the Federal PLUS Loan, gives the student the ability to fund the entire cost of their education. The borrowers can defer repayment until after graduation and there is a fixed interest rate. Repayment options are flexible and varied.
There is a credit check, however, the loan is not based on assets or income level.

There are many opportunities for going to college if you just look into and research financing options available to you.