Sunday, 21 August 2011
Sunday, 1 May 2011
Why A $300 Credit Card Limit Won't Help Your Credit Score
If you are a frequent reader of my articles, you know I do recommend credit repair strategies that do involve the usage of sub-prime secured credit cards. However, this article is to help you to better understand the purpose of obtaining these types of accounts and how to use them in such a way to acquire the desired results. If you do not follow this advice, your credit score will likely drop as soon as you begin to use your new major credit card account.
As I have stated in many of my past articles, one of the single most factors that will determine your score is something called your Credit Utilization Ratio. This is simply the amount of credit you have used in relation to the amount of credit extended to you. For example, if you have a Visa with a credit limit of $1,000 and you have used $500 of that limit; your utilization ratio on this account would be 50%. Here is where obtaining a credit card with a limit of $300 or less can be tricky business. You must remember that credit utilization ratios above 30-35% will start to have a negative impact on your score. So, in the example given above where the ratio is 50%, this is bad. This is where points can be potentially subtracted from your credit score. Merely having a credit card in good standing does NOT mean your score will increase.
So, having a sub-prime credit card with a small credit limit of $300 means that in order for this account to benefit your score by lending more points, you must not use any more than approx $90 of the $300 limit extended to you. This is a 30% utilization which you will not want to go beyond in order to have a positive impact to your overall credit score. So, do not think that just because you have a credit line of $300 that you can spend $300 and increase your score. Not so, even if you make your payments on time it would take years not months to impact your score. The caveat is if you were to pay the account off in full every month. These types of sub-prime secured credit card accounts are encouraged only for the purpose of establishing new credit. It's not really promoted for the usage of the credit
What Does It Mean to Have Bad Credit
Credit Scores Determine Good or Bad Credit
Lenders rely on credit bureaus to supply them with credit scores. The three, major credit reporting agencies, Experian, Trans Union and Equifax, all use the same formula developed by Fair Isaac's and Company (FICO) to calculate a consumer's credit score. Every loan you have ever had and how well you managed those accounts are posted on a credit report. According to the Federal Trade Commission Site on Consumer Issues, the credit-scoring characteristics include an applicant's bill-paying history, the number and types of accounts, the age of account and outstanding debt; information used to calculate a credit score also comes from the loan application.
While the three agencies may have different information about you and slightly different approaches to calculating your score, each agency gives you a score of between 300 and 850. A single FICO score from one of the three agencies may be used to determine loan approval. The lender does not see just a score and judge applicants based on the score number alone, however.
High and Low Scores in a Nut Shell
Anyone with a FICO score of 539 or lower is considered at high risk to lenders. Nearly twenty percent of people at this level have defaulted on a loan; in other words, out of one hundred approved loans, twenty will stop making their payments. By comparison, people with a FICO score of 760 are rated average-to-above-average and default on their loans less than two percent of the time.
Top 3 Strategies to Help Microfinance Get Its Groove Back
There has not been much comment on how the industry can be saved and be helped to get back on the right track where it was about 5 years ago. The comment below gives a flavor of how the microfinance industry can attempt to get back on track and continue to make an impact.At the outset, most actors believe that micro finance does indeed reduce poverty and increase the level of financial inclusion for the unbaked. What I believe the industry needs however is hard and fast data to actually show the good that it does. Mix Market and Micro finance transparency are two organizations that have spearheaded data collection within the industry and have made some strides in getting data together that present the impact of micro finance in the lives of poor people.
These two organizations should however focus more providing data that gives more information on the quality of services given by MFIs rather than focus on numbers of borrowers reached for example. A focus on more qualitative data would help MFIs improve their products and how they interact with their clients and would also help the world see the non-financial impact that micro finance can make. They should also focus on providing more geographically representative data as my view is a lot of their data is India and Asia centric which a huge gap in African MFI space.
Innovation is a key area that the micro finance industry could explore further in order to improve its efficiency and possibly reduce its operational costs. For example, more MFIs should take advantage of mobile money for their clients which would mean that clients can settle their loans using their mobile phones and also receive payments using their phones. This would reduce the need to travel or complete numerous forms for loan disbursements. This could lead to increased efficiency and reduced staffing costs for Micro finance Institutions.
'Micro finance plus' is another key area for consideration. By this I mean the additional (free) non-financial services that Micro finance institutions provide their borrowers. This could be Aids counseling, financial education, clinical services, or schools. Obviously the level and quality of the services provided will be dependent on the capability of the MFI and some small MFIs may see this as an increase in their overheads which may be unsustainable.
Whilst the above 3 strategies may not create an overnight change and resolve all the issues within the micro finance industry, I believe that they are a strong starting point to getting the industry gradually where it was a few years back when Yunus won the Nobel prize and where micro finance was referred to by the Nobel prize committee as 'the most liberating force that exists
The War On Cash
It's quite ironic that as the US Federal Reserve devalues American money into abyss, yet the American government is trying to instill more and more controls on the increasingly worthless dollar.What's sad is that the US government now employs cash sniffing dogs at airports with the typical government explanation of "for your own protection." This is also known as a capital control. The Soviet Union did this as well. Usually when governments devalue their currency significantly enough, history has shown that governments employ capital controls. Currently one is required to declare $10,000 when entering the country or leaving the country.
Sure, it is true that terrorists and other types of criminals usually operate on a cash basis; however, this does not mean that every person who carries large sums of cash is a suspicious character. It's quite funny that many parts of the world are cash based societies. Countries such as China, for example, have a mostly cash based economy. It is not so common to see people whip out their credit cards to pay for things, as in the United States.
Last, since I did spend several years working in banking, I will warn you if you regularly deposit larger sums of cash at the bank. While the laws may have changed, last time I checked, banks are required to fill out a form known as the CTR (Currency Transaction Report) any time a customer deposits or withdrawals any amount within 1 cent over $10,000. This CTR report goes straight to the IRS. The bank does not have to tell you they are sending this report.
If you are a customer who has been depositing and withdrawing larger sums of cash regularly and the bank believes it is "suspicious." The bank will file what is known as a SAR (Suspicious Activity Report), and for people using cashiers checks and money order, the form is known as MIL (Monetary Instrument Log).
With this in mind, if you report foreign bank accounts, cash exceeding $10,000 (silly since 10K is not much money these days), you are being a law abiding citizen and this is good; however, one has to wonder what exactly does the government do with this information? As a citizen I feel suspicious of the government's actions and feel like I am being watched. Not to mention, with the financial meltdown of 2008 being a reminder of the Great Depression, more people have less faith in our financial system; therefore, more people carry cash.
With the idea of a cashless society becoming more of a reality under a fiat currency system, there is no better way to spy on citizens then to watch were their money goes. Some may think it's for their protection, or believe they have nothing to hide, but what about privacy? What about private property? Without opening a new can of worms and completely different topic, it's quite obvious something is wrong with our tax and monetary system.
Business Car Insurance - Guidelines
There are a few differences between business auto insurance and private auto insurance even if it isn't that noticeable when the same driver uses the vehicle for both personal and business purposes. If there's just one driver, many auto insurance companies suggest the company owner to purchase a normal personal insurance for the car as opposed to a limited business auto insurance. But, on the other hand the special business car insurance may be useful because of a certain specialized coverage that can be provided in this case.For instance, if you are the owner of a small logistics company that gives goods from a sender along with a receiver, the car that makes the delivery possible may be driven by different persons at different moments of time as well as, the package transported can be hazardous containing a fragile item or perhaps a chemical substance. As a result if a car crash occurs while transporting this type of package, having special business car insurance could save you a lot of trouble, since the content of those packages can have a negative effect on others as well as on the environment.
So, basically convinced you of the importance of business auto insurance, I would like to let you know about the necessary steps that will help you buy the policy. First of all you need to locate an insurance company that has some experience and is in a position to help you protect your company. You could attempt requesting a referral from your usual auto insurance company to a business auto insurance company that may be a joint venture partner or perhaps a partner company.
As with the case associated with another car insurance you get to choose the level of protection you desire. The organization drivers will be protected by liability while the company vehicles will need damage to property insurance. The level of insurance depends upon your decision, but considering that protecting an investment is of the essence, many business people would rather spend the money for larger payout rather than the maximum ones. The best business auto insurance will make sure the company won't be sued with a 3rd party because it's unable to cover the price.
After you have finished with those choices you have to choose the drivers that will be mentioned about the policy. Those drivers don't need to posses their very own auto insurance, but it's essential that there is a driver's license along with a clean driving record. It is best to choose reliable individuals that have turned out to be safe drivers over the years.
Last, but not least, if at any given moment among the company's drivers needs to use his personal vehicle at the office, the company will be responsible for the driver's protection. Contrary were to happen towards the driver during company time, the company will have to cover the damages. That's why the business auto insurance you purchase may include special coverage for these types of situations.
How to Dispute a Car Insurance Claim
Many auto insurance companies advertise their services as helping you save a lot of money, but many insurance companies are only dangling that bait in front of you in order to entice you into making them money by using their services. When it comes the time to file a claim, there is a host of paperwork that needs to be filled out, red tape to try to muddle through, and a host of other requirements that simply make it far too difficult to actually get the payout.
Often times the insurance company simply will not pay out as much as they should, and will only fork over a nominal fee that doesn't even come close to covering the damages that they should be covering
1. Contract an independent appraisal company or agent to come and give your car an evaluation. Using an independent appraiser ensures that he or she will not be influenced by an insurance company and will give you an honest evaluation of your automobile.
2. Once the appraiser has finished his or her evaluation, have them send his report to both you and your insurance provider.
3. If you can mediate the dispute, it is much better and less official than arbitration. Hiring a mediator to review the report from the appraiser is a good way to get a suggestion on the best and easiest way to go about settling the car insurance claim dispute. The mediator will give unofficial advice on how to close the case. The good thing about using a mediator is the fact that the ruling is unofficial, meaning that you don't necessarily have to take as law what is decided.
4. If mediation is unsuccessful, arbitration is the next step to take. An attorney will handle the dispute, and you will need to present any evidence that you have gathered to the attorney. You may need to find witnesses, and you will also need to present the report of the independent appraiser. The downside to using arbitration to settle a car insurance claim is the fact that the ruling will be official, meaning that you will have to follow whatever the arbitrator decides.
5. Often the insurance companies will simply refuse to pay out the adjusted insurance, even after the arbitrator has ruled that they need to do so. That is when you will need to take the insurance company to court and sue them to pay out the correct amount. If you have the mediator and arbitrator on your side to present legal testimony in court, then you can be pretty sure that the judge will rule in your favor. If you need to take the insurance company to court, make sure to hire a good lawyer. The insurance company is sure to have a slew of highly paid lawyers whose sole job is to get the insurance company off the hook of having to pay out.
Be prepared when disputing your car insurance claim, as it will be an expensive process. You will need to hire a mediator, and arbitrator, and possibly a lawyer if things go too far.
Online School - The Boon Of Technology
Online School
Education is considered as the right of every individual with the passage of time. Considering these factors you should try your level best in getting hold of the best quality education without any issues. It is true that all the people are actually not lucky to move on with the full time education as money is always remaining as the greatest constrain with the passage of time. there are many people moving on with the different activities in order to get hold of the required money to pay for the course of their choice as the increasing qualification will definitely help you in scaling up the ladders in the professional field without facing any issues with the passage of time.
You will be even able to move on with the activities without any concerns as the routine task will help you a lot wherein you could switch to your studies any time as all the materials are available online around the clock wherein time is definitely not going to create any issues with the passage of time. It is very essential for the entire professional group to move on with the qualification along with the usual job as it is helping them a lot in acquiring better positions with the passage of time in the best way without any issues. You need not have to worry about the expense as it is very low when compared to the regular studies and the regular job on the other side will help you very well with the fees in the right manner without any concerns. If you are really interested in carrying on with any course of your favorite subject you can definitely move on without turning back.
5 Ways to Grow a Local Business
Having a local company grow is easy with local advertising. Although it takes money, the effect is amazing. Marketing brings leads to the company depending on the strategic location of the advertisements.
List with Newspapers
Depending on the industry, newspapers reach the local area and every consumer. If the company has items or services that appeal to everyone, it is a good bet to place. Some examples of companies that do well marketing in a newspaper are satellite companies, local home decor companies and car sale companies.Getting Targeted Leads
Every company wants to receive targeted leads. These types of leads are the ones that are within the niche and target market of people actively looking for the business product or service. Some ways to research the business consumers are to look at local advertising magazines. Many offer the latest coupon books, classy magazines and niche magazines. To advertise local business in a certain magazine that caters to the higher paid working class, would gather a targeted lead for a trade that runs an upscale golf course or hair salon, for instance.
Going for the Bargain Shopper
This type of advertising appeals to all types of people and bargain shoppers are in the mix. Coffee shops often have handouts that list local businesses. Coupon books delivered throughout the city provide a good way to advertise the business, and entice shoppers to come in with a coupon.
Made for Television
Cable television adverts those that receive broadcasting on the local news and public stations. These often display in government buildings that have televisions stationed throughout waiting areas, and other local commerce that provides this entertainment for their guests.
Heard it on the Radio
Radio promotion is one of the biggest ways to advertise locally for an industry. Every day millions of people in local cities listen to the radio during their workday. Having a jingle or script written about the business is one way to attract leads. Even if the announcer comes up with a script and announces the product or service during targeted times, like rush hour traffic in the morning and afternoon, the advertisement serves its purpose for the price.
Opening and Operating a Local Business
Opening a local business can be an exciting and financially rewarding opportunity. If it is done properly, then rapid success can be assured and the owner can go on to have a long-term, thriving local business.
Business Preliminaries
First, decide on what type of business is of most interest. Then learn as much as possible about it from online and print sources, as well as with audiotapes from entrepreneurs in the same field. Then find a superb location. Negotiate with the landlord about how much rent is per square footage, and put down two to three months rental deposit. Get all the required local permits and licenses from the county government offices.
Leasehold Improvements
Once the rental space is obtained, it is then necessary to make leasehold improvements such as building all the required construction, plumbing and electrical work to get the business up and running. Some shops will have more work required than others. Restaurants will require more leasehold improvements than opening a mattress store where the owner just has to stock mattresses, and not worry about technical plumbing and building improvements.
Advertising and Marketing
Once opened, local business advertising will definitely help. Local business advertising can be in regional print sources, such as display ads in weekly magazines or in daily newspapers. Local advertising can also mean establishing an online presence with a beautiful website. Local advertising can also include handing out and posting flyers announcing the grand opening of the local shop. Customers should soon start flocking in. Offering discounts and daily or weekly specials will also help patrons come in to the new venture on a regular basis, and this will greatly help expand growth.
Sustaining Local Growth
A local establishment owner must continue to be dedicated, work long hours, and be disciplined and determined to make his establishment a big success. Continued advertising and promotion is a must for sustained growth. So is having superb customer service no matter the type of establishment, whether it is a coffee shop, a cell phone store, a pet shop, or a hair salon. Owners have to make customers want to keep coming back, and to do that they must continue to offer high amounts of quality and value at affordable and competitive prices. The key is to focus on the local angle, which is what customers love.
Consistent Postcard Marketing Helps Boost Business Sales
In order to be successful in business, you need to have the right plan and follow the right strategy. You need to also stand out against your competitions in order to attract attention and interest. To do all this, what you need is a creative and effective marketing tool-tool that will help you communicate to your customers in the most cost effective manner without breaking your budget. That tool can be postcard printing.
The post cards are actually already a staple in the business industry. They have been used by businesses for a long time now and despite the widespread use of modern marketing techniques, they are still indispensable to businesses. If your goal is to promote your business without breaking the bank, then include these cards in your marketing program.
It's important though that when you carry out post card marketing, you do it for several times. You need to repeatedly send your cards over and over again to your customers and prospects for simple reasons:
First, experts agree that people need to be exposed to your marketing material at least seven times before they are likely to respond. You can send one card each month to the same people and expect to get positive response from some of them in no time at all. Compared to using display advertising, post cards are much cheaper to send for several times so you can be sure to get a lot of savings.
Second, you need to stay visible to your customers, and post cards will help you do that. Because they are cheap to produce you can afford to send several cards a month so people are constantly reminded of you. Keep in mind that people are likely to forget someone that they don't see often. Lack of attention to customers will prove to be costly to you. So, make sure to stay in front of them the whole time.
Third, it is often more costly to get new customers than to keep old customers. If you send your cards to people who already know you, it would be much easier for you to encourage them to buy from you again unlike convincing a new prospect to trust on your offerings. He or she would have hesitations at first and would require you to send several cards before they will trust you. That could all be avoided if you market to your existing customers.
After knowing the reasons why sending post cards consistently is important, you now need to know some tips in designing your standout cards:
- Print your cards in color to make them more attention-grabbing.
- Pick the right photos that fit the message you want to communicate to your customers.
- The right font size and style is also important to make sure your message is read and understood clearly.
- Offer discounts, freebies, and incentives so your customers will be encouraged to purchase your products or services.
- Pick the right photos that fit the message you want to communicate to your customers.
- The right font size and style is also important to make sure your message is read and understood clearly.
- Offer discounts, freebies, and incentives so your customers will be encouraged to purchase your products or services.
The Power Of A Great Banner
Big written statements need a big place to make the impact they deserve. No matter what you want to say, if you need to say it loud and proud there is nothing much better than a banner. Loudspeakers can be misheard, emails can be lost or discarded, websites can be blocked and people can be ignored. A banner is unavoidable, unmistakable and can echo for much longer than anything else.
Here are some great examples of where a banner is irreplaceable:
Political
Politics is all about messages: messages of support, messages of intention, messages of anger etc. Every stage of the political process from the unrelenting election campaigns, right through to the smear campaigns that are inevitable for all but the cleanest of politicians involve big sound bite messages that the media and public lap up.
Banners in politics are especially powerful as they leave little to the imagination. Who can forget the devil eyes of Tony Blair from a Conservative billboard banner campaign? Not only did people see this.
Following nicely from politics, protests are another area where banners have a big impact. Lost amid a sea of clenched fists, a big bold banner can easily be picked up by the television cameras and delivered to computers and TVs around the world in seconds. Protests are all about getting your point across and making bold statements that will hopefully be listened to by all who see and hear the protest. Cheap banners shout louder than hundreds of people and can carry more weight as its meaning lingers for longer than the last handcuffed activist hanging from a fencepost.
Advertising
A great advertising banner is worth a lot of money. Just as political and protest banners have an impact on citizens; an advertising banner or series of exhibition displays have the power to influence everyone who reads it into spending money on a product. (Or so the advertising agency hopes.) When an agency designs a banner to be used in an advertising campaign they need to think about everything including: who their target audience is, where they are going to put the banner, what they want the reader to do, how the message reflects on their company as a whole and so much more. Every detail is crucial as the power of a banner can also backfire.
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