Boosting credit scores
August 10, 2010 | customers, industry, personal finance | Comments (0)Important in these tight credit days. From the story:
Pay Off Debt
If you’ve already tried to make the denominator bigger, it’s time to focus on making the top number smaller. Paying off debt is the best way to do that because you lower your total balance owed, you lower the total amount of interest you pay, and you improve your credit score at the same time! It isn’t as simple as it sounds, however, because you probably wouldn’t be carrying all that debt if you could pay it off, right?
Charge Less
The credit report doesn’t care whether or not you carry a balance when it calculates your utilization. It takes your statement’s closing balance, even if you pay it in full that same period. If you want to get a quick boost in your score, use your credit cards less or don’t use them at all. By keeping your statement balances lower, you lower your credit utilization without much effort. If carrying cash makes you concerned, or you simply love the feel of swiping plastic, use a debit card.
Consolidate Credit Cards
If you have multiple cards from one issuer, consider consolidating the newer cards into the older cards. You can do this by calling up customer service and asking if they offer this. Only do this if they keep the total credit limit the same. The goal of this move is to increase the average age of your revolving lines of credit without reducing your total credit limit, which will affect your utilization.
Nothing in life is free
July 8, 2010 | personal finance | Comments (0)Except lemonade in one Chicago neighborhood.
Most exasperating consumer fees
April 12, 2010 | personal finance | Comments (0)Compiled by couponsherpa.com. I didn’t know about this one:
7. Low Balance Charge
Most banks have stopped charging a fee for accounts that fall below a minimum balance. However, brokerages charge low-balance fees for non-IRA accounts below a minimum balance. Leave a small investment untended and, by the time you remember it, your money may be gone.
The end of cheap credit
April 11, 2010 | alternatives, personal finance, research | Comments (0)From the New York Times:
Americans have assumed the roller coaster goes one way,” said Bill Gross, whose investment firm, Pimco, has taken part in a broad sell-off of government debt, which has pushed up interest rates. “It’s been a great thrill as rates descended, but now we face an extended climb.”
The impact of higher rates is likely to be felt first in the housing market, which has only recently begun to rebound from a deep slump. The rate for a 30-year fixed rate mortgage has risen half a point since December, hitting 5.31 last week, the highest level since last summer.
Gadgets that save you money
February 21, 2010 | personal finance | Comments (1)Had no idea about some of these things:
Concoct your own cola
Spend a fortune on fizzy drinks? You’re not alone. The average family of four consumes 2,400 sodas annually-totaling nearly $1,080. With a home fountain machine, you can save money and have fun making everything from soda water to diet root beer. After purchasing a startup kit, you buy refill canisters of CO2 and syrup. A liter of sparkling water is 21 cents, compared with $1.50 or more for the store-bought variety, and flavored soda costs roughly 25 cents per 12 ounces.Save about $720 per year for a family of four (you’ll also produce less household waste). SodaStream Fountain Jet starter kit, $100.
Back to the future?
February 18, 2010 | industry, personal finance | Comments (0)I’m guessing this idea won’t fly. From the story:
South Carolina Rep. Mike Pitts has introduced legislation that would mandate that gold and silver coins replace federal currency as legal tender in his state.
As the Palmetto Scoop first reported, Pitts, a Republican, introduced legislation this month banning “the unconstitutional substitution of Federal Reserve Notes for silver and gold coin” in South Carolina.
Prioritizing bills
February 9, 2010 | industry, personal finance | Comments (0)This is fascinating. More people are putting off paying their mortgages so they can pay their credit card bills first. From the story:
Amid high unemployment and sliding home prices, a growing number of struggling consumers are doing what was once considered unthinkable: paying their credit card bills instead of their mortgages. A recent study developed by TransUnion found the percentage of Americans who were current on their credit cards but behind on their mortgage increased to 6.6 percent in the third quarter of 2009, up from 4.3 percent in the first quarter of 2008. Meanwhile, the share of consumers making mortgage payments on time but behind on their credit cards moved in the opposite direction, sliding from 4.1 percent to 3.6 percent over the same time period.
The data reflects a “fundamental paradigm shift” in the way consumers prioritize payment of debt obligations, says Ezra Becker, of TransUnion. “This is dramatically different,” he says. “It is a clear manifestation of the dynamics that lead up to the recession and the recession itself.”
Pretty funny
February 8, 2010 | WalletPop, industry, personal finance | Comments (0)Yet, thoughtful. Colts Super Bowl “Champions” T-shirts are being sent to Haiti according to Walletpop.
Where are the consumer groups?
February 2, 2010 | personal finance | Comments (1)CNNMoney lists “America’s Biggest Ripoffs. I already knew about movie theater popcorn.
Doesn’t take a crystal ball
February 2, 2010 | federal legislation, industry, personal finance | Comments (0)I think this columnist’s predictions about financial trends this year are spot on if a little conventional:
While no one has a crystal ball to know exactly what is coming in the future, there are some trends we confidently anticipate will impact the financial industry in 2010.
For example, we anticipate continued regulatory activity to impact the way that the financial industry does business. In 2009, legislators and federal regulatory agencies began to focus on consumer protection initiatives, and we expect that attention to continue. Those efforts in 2009 resulted in revisions to existing regulations and creation of new legislation, the impact of which is still rolling out. And, of course, there is the potential for additional new legislation to be introduced this year. These regulatory actions aim to protect consumers from abusive credit card, overdraft and other practices characteristic of some financial institutions.
