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Navigating a credit report can be a bit confusing but it is important to understand how all of those numbers affect you whether or not you are considered credit worthy. A credit report is broke into four basic sections and each one is important to your credit score.

The first section contains your identifying information

This is just the basic information that identifies who you are. It can include a list of addresses where you have lived, your name and any other names you have gone by, your social security and driver’s license numbers, spouse’s name, date of birth and telephone numbers that have been linked to your name.

The second section contains your credit history

This section will list all of the credit accounts that you have. It will tell how long you have had the account, what kind of account it is, if it is a joint account, amount that the loan was for or the credit limit you have, total amount that you owe, amount of monthly payments, Status of the account, and if you have been making your payments on time. This section might also include notes that tell if you typically pay late or have a debt that was never able to be collected.

The third section contains your public records

This section includes any bankruptcies, tax liens, or judgments against you. If it is in the public records, it will show up in this section of your credit report.

The fourth section contains inquiries

Anytime someone requests your credit report, that information goes into this section. That means that every time you fill out an application for credit, that credit request will be noted on your credit report. Not all inquiries on your credit report were initiated by you. Soft inquiries are those requested from companies looking to contact you unsolicited and offer you a pre-approved loan or credit card.

View our recommended sources for a personal credit report.
Also, check out our recommended online companies to help you eliminate credit card debt, or view our recommended lenders for home refinancing for people with problem credit.

“Are you kidding me? You really never buy online?” Asks your friend.

Your friend continues his pursuit of the truth oblivious to your
discomfort. In the meantime, you fidget around while trying to find a graceful way out of this situation without revealing the truth.

You don’t want to tell him that you cannot buy online not because you are worried about identity theft. You can’t rent a car not because you are underage. The limitations you face are entirely related to the requirements of our credit based society. You simply don’t have a credit card. Your past credit
problems haunt you like a relentless dog in pursuit of a game. There may be a solution: Prepaid Credit Cards.

What are prepaid credit cards?

Prepaid MasterCard cards and/or prepaid Visa cards look exactly like a regular credit card. Neither you and your friends, nor the merchant who accepts MasterCard and Visa will be able to identify it as a prepaid credit card.

You obtain these prepaid credit cards by “pre-loading” them, which means you deposit cash into your account up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or Visa anywhere these cards are accepted.

Prepaid Credit Cards are more practical than cash for many with
previous credit problems since you pay for your purchases before you even buy anything. This helps you plan your purchases better and avoid impulse buying.
Prepaid credit cards offer other advantages:

• They are easy to get since they do not require stringent credit check or income verification.
• They can be purchased online and at many retail stores.
• They have very short credit card application.
• They do not have any interest charges since you are not borrowing money.
• They cannot lead into credit problems due to inability to pay borrowed funds. Again, you are not borrowing money.
• Prepaid MasterCard or VISA have world wide acceptability virtually any anywhere VISA and MasterCard are accepted.

Don’t forget the downside of prepaid credit cards:

• They are costly to get with set-up fees of $5-$50.
• They are costly to maintain – “Loading” fee of $5 or more every time you deposit money into them.
• They requires up front cash.
• Some prepaid credit cards cannot be used for recurring payments like monthly subscriptions.

After all said and done, prepaid credit cards may be your only
solution to carry and use a credit card. With prepaid credit cards you no longer have to carry your past credit problems like a sign on your forehead. Instead you can reach into your pocket and pullout that prepaid credit card.

They may be a blessing that helps you take care of day to day needs and make personal changes to help you get on track to a disciplined attitude toward money and spending. If you decide to get a prepaid credit card, compare several offers and select the one that most closely matches your needs and special circumstances.

Don’t rush it.

And while you go about your struggles with this and other of life’s ups and downs, remember Robert Johnson who said, “Measure yourself by your best moments, not by your worst.”

For more information about free

Prepaid Credit Card,

Bad Credit Credit Card, and

Online Credit Card Applicationcheckout FreeCreditReport.ws

The balance transfer credit card is one of the starkest examples of how competition benefits the end consumer. Consumers with good credit and high credit card usage can use balance transfer credit card to save dollars from a few hundred to much more depending on their credit card usage and the amount of balance transfer.

In simple terms, if you have good credit, companies are looking to provide the offer, even if they do so at a lower rate of interest. You benefit from low interest and they acquire a valuable customer. So, a balance transfer credit card enables you to transfer your existing balance or even debt to a credit card with low or no interest.

Credit Card Balance Transfers Math

A look at the math of a credit card balance transfer will make the situation clearer. For instance, suppose you apply for balance transfer credit card from a reputed online vendor. Now, your interest on credit card debt runs up to, say $1450 dollars a year at an average with your credit card that has an APR of 10.99% assuming you have a good credit rating. Now the competing credit card company offers you a credit card with a 0% introductory APR for the first 12 months. By making a simple balance transfer to your new credit card, you save on one year’s credit card interest. Now that is math that one can live with!

Shopping Guide To Balance Transfer Credit Cards

Initially consider the size of the balance transfers to be made, and correspondingly the amount of financial gain that follows. The period of 0% APR is important, how much credit do you expect to use, and correspondingly how much interest will you save from credit card balance transfers during the offer.

Do the balance transfers incur a transaction fee and if so how much? Consider how long the introductory APR lasts and the APR after that in your calculations. And, as always, be sure to read the fine print. You don’t want to encounter unexpected costs. The best offer sometimes is not the one with the lowest rate of interest.

Balance Transfer Trivia

The best type of balance transfer credit cards are the ones with a 0% rate of interest. Many companies have begun offering such cards, at an incredible introductory period of up to one year. It is possible to transfer your debt to a credit card with a 0% APR, and then retransfer it to another one at the end of the introductory APR period on the existing card. However this is not a recommended action as it can result in a lower credit rating for you. Credit card balance transfers can be done online; most companies offer this system of balance transfer.

Credit Card Balance Transfers In A Nutshell

Substantial savings can result if you get you balance transfer credit card arithmetic right. Before applying for one look, be sure to look at the fine print. Good financial sense with credit card balance transfers can make for good finances. If you have spent substantially utilizing “plastic” money, a balance transfer credit card just might make good financial sense for you.

You can use credit services to finance your needs. From buying a home or a car to financing your everyday purchases, credit services can help you meet your needs.

The credit services you seek will depend on your situation. A home mortgage can help you buy your dream house. Auto loans can finance your vehicle. Credit card services can help you make everyday payments.

A credit card companies may offer many credit services. The credit services will differ depending on the card you get. These include securing customers from fraud or theft, providing benefits and rewards on purchases, and offering low interest rates.

Many large credit card companies even offer financial and credit services to help you better manage your credit use. Financial services can allow you to build household budgets and saving plans. They offer a variety of other services, from setting up a retirement account to finding auto insurance.

Credit services can help you navigate the complex world of credit. A credit services company can help you become a better informed user of credit. They can help you with credit repair if your credit score is low. A credit service can also help you acquire your credit report from a credit reporting bureau and help you review it. A credit service can provide advice if you are unsure of how to handle your credit on your own.

If you are opening your own new home business, credit services can help you acquire business loans and help you manage your business finances. Credit services usually employ finance professions who can help you understand your situation and help you build up your credit score.

The credit services you need will depend on your situation. If you have a low credit score you can use a credit repair service to guide on how to fix your situation. If you end up getting into unmanageable debt, debt and credit counseling services can help you out.

A credit report service can help you analyze your credit report. If you have mistakes on your report, a credit report service can help you dispute those items. The fees may differ from company to company.

A credit report monitoring service can periodically review your credit report for you. They can pick out major changes and inform you about them, such as inquiries on your report.

Managing credit on your own is often difficult and confusing. Many people end up with huge debt burdens due to misuse of credit. Credit services can help you in whatever situation you find yourself.

The Speedway SuperAmerica Platinum MasterCard by Chase targets consumers who reside in the Midwest region and who frequent Speedway, SuperAmerica or RichOil stores.

Rebates of 8% are credited into card holder accounts directly for all purchases made with the Speedway Reward Card at SuperAmerica stores during the first 60 days of membership. Subsequently, cardholders are also eligible for a 4% rebate on their Speedway SuperAmerica purchases and a 1% rebate on all other purchases. These rebates expire in twelve months unless they are redeemed for free gasoline. However there is no limit to the rebates that can be earned.

On the flip side, the card imposes a steep interest rate in comparison to other reward cards of a similar genre. Furthermore, finance charges are configured according to the “Two Cycles Average Daily Balance” which works out to higher charges as compared to than the “Average Daily Balance” configuration used on most cards. However, there is a six-month long interest-free introductory period for both purchases and balance transfers. Also, this credit card does not require any annual fees to be paid.

Moreover, cardholders of the Speedway Reward Card can also expect common platinum cardholder benefits offered such as travel accident insurance of up to $500,000, auto rental insurance and purchase protection plans. Members are eligible for discounts at various merchants, with the full list participating retailers listed on the Chase Manhattan website.

In conclusion, the Speedway Reward Card is ideal for residents in the Midwest who often shop at Speedway & SuperAmerica locations and who own a motor vehicle. This consumer group would stand to benefit the most from the reward program. However, those who plan not to pay off their outstanding balances should look at other offers as the finance charge and the interest rates for this card would strip away any potential benefits.

Credit when used as a financial term, used in such terms as credit card, refers to the giving way of a loan and the formation of debt. Any movement of financial capital is in general quite reliant on credit, which in turn is dependent on the reputation or creditworthiness of the entity that takes responsibility for the funds. An identical treatment is in commercial trade, where credit is used to refer to the approval for overdue payments for goods purchased. From time to time if a person has financial instability or difficulty, credit is not granted.

Companies regularly offer credit to their customers as part of the terms of a purchase agreement. Organizations that propose credit to their customers frequently provide work for a credit manager. A unit of account provides denomination of credit. Not like money credit itself cannot act as a unit of account. Credit is as well traded in the market.

The purest form is the Credit Default Swap market which is for all intents and purposes a traded market in credit insurance, i.e. a credit default swap represents the price at which two counter parties will exchange this risk – the protection seller takes the risk of default of the credit in return for a payment, commonly denoted in basis points of the notional amount to be referenced, at the same time as the protection buyer pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount.

Credit history
Credit history or credit report is, in a lot of countries, a record of an individual’s or company’s precedent borrowing and repaying, together with the information about late payments and bankruptcy. The term credit reputation can also be used synonymous to credit history or to credit score.

Once a customer fills out an application for credit from a bank, store or credit card Company, their information is forwarded to a credit bureau, along with regular updates on the condition of their credit accounts, address or any other changes you may have made in view of the fact that the last time they applied for any credit. This information is used by lenders such as credit card companies to settle on an individual’s or entity’s credit worthiness; that is to say, determining an individual’s or entity’s means and willingness to repay indebtedness. This helps concluding whether to extend credit, as well as on what terms.

With the adoption of risk based pricing on more or less all lending in the financial services industry, this report has become even further vital since it is more often than not the sole element used to choose the APR (annual percentage rate).

Credit score
In the United States, a credit score is a three-digit credit rating that represents a calculated approximation of an individual’s financial creditworthiness as intended by a statistical model. A credit score attempts to calculate the likelihood that a potential borrower will fail to repay a loan or other credit obligation satisfactorily over a specified period of time. A credit score is characteristically based on the information in an individual’s credit report.

Lenders such as banks and credit card companies use credit scores control the risk posed by lending money to consumers. Examples of such uses take account of determining who qualifies for a loan, assigning an interest rate, assigning credit limits, and managing accounts that are already open. For instance, treatment of accounts those are in default. The use of credit or identity scoring prior to authorizing right of entry or granting credit is an implementation of a trusted system.

Alison Dalton is a credit counselor for banks and she regularly writes for finance journals and credit.blogtastic.com

Paydex is a system developed by financial reporting giant Dun and Bradstreet (D&B) to provide reports to credit agencies, banks and financial institutions, as well as other businesses on the payment record of other companies. Dun and Bradstreet compiles this information from data collected through banks and credit agencies and individual businesses who report on the payment habits of their dealers, distributors and suppliers.

This information is then recorded in Dun and Bradstreet’s massive data bank which produces a score on how well each company performs in paying its bills. This score is called a Paydex Score. The Paydex system is a dollar weighted numerical system and a higher Paydex Score means that a company almost always pays their bills on time to suppliers and other businesses. A lower Paydex score means that a company is more often late in making these payments.

The Paydex Score is regarded by many in the business community as not a sign of being good corporate customers, but even more as an indicator of the management and financial health of the business. Companies with a low Paydex Score often have difficulty making supply and credit arrangements with other businesses and in some cases have to pre-pay all or part of their orders in advance. That makes it very difficult to operate in many areas of business and can even cause a business to go under.

Banks, other lending institutions, and credit reporting agencies rely heavily on the Paydex Score to determine the creditworthiness of individual businesses. Low Paydex Scores will usually mean limited access to business credit and almost always result in higher interest rates and higher costs to the company in question. On the other hand a higher Paydex Score is seen as an attractive element of a business portfolio and can often lead to expanded business credit opportunities and the most advantageous lines of business credit.

In order to maintain a high Paydex Score companies must be vigilant in making payments to suppliers and other creditors within the agreed upon terms of payment. There may often be situations when it is not possible to meet these deadlines but businesses are encouraged to contact their creditors and make alternative arrangements if they want to keep their favorable Paydex Score and business credit rating.

If a business has difficulties that lead to a poor Paydex Score they can take actions to have Dun and Bradstreet review their file and their Paydex Score. That includes making arrangements with creditors of course, but it can also help to provide letters of reference from satisfied customers and suppliers who are prepared to signify their satisfaction with the payment capacity of the business.

The best way to keep a high Paydex Score is of course to pay all outstanding bills on time and within the allowed time frame.

David Gass is President of Business Credit Services, Inc. His company publishes a weekly e-newsletter on Starting and Growing a Small Business at http://www.smallbusinessconsulting.com You can sign up for their free newsletter by visiting http://www.smallbusinessconsulting.com

You see all the ads for 0 APR credit cards all around you today. However, are they for real? The truth is yes, they are for real, however, this special 0% APR does not last. You can find all kinds of credit card companies offering a 0 APR credit card for people with excellent credit. Many credit card companies are now offering 0 APR credit cards as part of their incentive program to get you to apply and begin using their credit card for all their purchases. However, there are downsides to some of these offers.

Although they are advertising a 0 APR credit card, the 0 percent APR is not for the entire time that you are a cardholder. You will have to pay close attention to learn how many months they are offering this “special 0% APR”, you can find them for 3 months, 6 months, 9 months, 12 months and if you are lucky for 15 months. However, now you must check if the offer also includes all new purchases and balance transfers. One company may offer 0% only on balance transfers. If you are using one of these 0 APR credit cards, you will find that you will have to pay the normal interest rate for all new purchases and all money that you pay monthly will be for paying off the original balance, so you will get stuck paying the higher interest rate on your purchases.

It goes something like this … say you did a balance transfer of $5,000. This money will not incur finance charges. But then you make a purchase of $1,000 and this money will incur finance charges. You then pay off the $1,000 before you think you will incur any finance charges, however, the $1,000 is applied against the original $5,000 balance transfer. So now you will have $4,000 on the original balance transfer without any interest being charged but the $1,000 in additional purchases is being charged the regular APR, which tends to be pretty steep. Therefore, you may find that it really was not worth the money to use this 0 APR credit card after all.

Another downfall to the 0 APR credit card is that if you do not pay off the entire balance transfer before the introductory offer expires, you may find that you are paying a higher interest rate than you were with your other credit card. Reading all the terms and conditions can aid you in making an educated decision about a 0 APR credit card and whether it is for you.

As such, many of the 0 APR credit cards may sound appealing, however, after the introductory period ends on these offers, the ongoing interest rates and other fees tend to be higher than average, so you may find yourself between a financial rock and a hard place. Just because you can find a 0 APR credit card and get approved this does not mean that you are necessarily going to enjoy a financial life of luxury. Remember, however, there are other fees that are applicable so the credit card issuers are still making tidy profits with annual membership fees and fees for balance transfers. So as usual, it always pays to read the fine print.

For more on what to watch for in 0 APR credit card, Robert Alan recommends that you visit CreditCardAssist.com.

Black collegians are often faced with a major decision, one that often times has little to do with their field of study, which pre-approved credit card offer they accept. Overall, “Generation Xers” have 18% of the credit cards but amass 25% of such debt. Lenders are recklessly issuing cards to those who can least afford them. For black consumers credit card use is often a means of extending their monthly incomes. These individuals are burdened by interest rates that typically exceed 16%, higher fees and insurance premiums.

The end result has been African Americans having to use a larger percentage of their financial resources to pay off credit costs. This can serve as an additional hindrance to those seeking mortgage credit. According to the Federal Reserve, blacks are denied such credit more often than whites and pay higher costs for such loans when they do get them.

According to a study conducted by the public policy group Demos, blacks higher credit card balances can be due to the fact that they have lower incomes, less access to financial education and higher unemployment levels. Black annual credit card debt is almost $750 more than that of white credit card users and outpaces black incomes. And once these debts become unmanageable, African-Americans must often resort to “legitimized loansharking” in the form of “payday loans,” which typically charge interest rates as high as 30 %. These loans are typically repaid bi-weekly, but the majority of these borrowers “roll over” their loans and after a year, cumulative interest can exceed 1500%.

Another faulty strategy is “credit card hopping,” that is, switching from one card to another and continuing to do so in an attempt to minimize their debt. But such behavior causes lenders to become hesitant making loans, especially for big ticket items such as cars and homes.

Consumer columnist Julianne Malveaux asserts that many blacks that do attain wealth and keep their debts within reason often utilize poor investment strategies. Rather than investing in the stock market, bonds or even real estate, many particularly those who are young and affluentbuy items such as clothes, jewelry, cars, furniture, electronics and appliances, which do not gain appreciation. In fact, many of these purchases depreciate.

Lenders are raking in record profits and pay little, if any attention to the record number of bankruptcies except in terms of how it effects their bottom line. Such corporations are seldom willing to assist blacks in their search for more credit-friendly programs. Author Robert D. Manning (“Credit Card Nation: The Consequences of America’s Addiction to Credit,” Basic Books) states, “Lenders know that once they have you paying month-to-month, it’s hard to break free. The sooner they have people in debt, the longer the revenue stream persists.”

Blacks also fall victim to what are called “debt zombies.” These are companies that purchase your old debtseven ones that are no longer in force due to expired statute of limitationsand demand payment or settlement. These “debts” are often reported to credit agencies under the guise of them being new debts. (For more information see Liz Pulliam-Weston’s online article, “Zombie debt collectors dig up your old mistakes).

Also, blacks must educate themselves on debt settlement. (One such article can be found at http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P65141.asp see, Financial literacy is unlikely to be taught in schools, which means black social organizations such as churches, must be willing to tackle the role.

Timothy N. Stelly, Sr. is the author of three novels and a regular contributor to several e-zines. He resides in Northern California with his three youngest children Dante, Kimberly and Lawrence.

Credit scores are used to determine the credit risk of loan applications. This is done using historical data as well as statistical techniques. The score can be used by banks to produce a rank for the loan applicants and borrowers in terms of risk factors.

To build this model developers analyze historical data of previously made loans. They do this to determine which borrower characteristics will help them to predict whether the loan had a good performance or not. The better the model design, the higher the percentage will be. A higher percentage of high scores are awarded to borrowers whose loans perform well and a lower percentage is given to those whose loans do not. However, no model is absolutely perfect so some bad accounts receive higher scores then some of the better ones.

Reports on borrowers come from loan applications and from the credit bureaus. They will contain such information as the applicants’ monthly income, their outstanding debt, their financial assets, how well they performed on a previous loan, whether they own a home or rent one, the type of bank they use, and even how long they have been at their job. The regression analysis relating loan performance to the many variables is used to discover which combination of factors will best predict how much weight each factor should hold. Because of the correlations between each of the factors, it is very possible that some of the factors the model developer begins with will not be in the final model, due to little value added considering the other variables in the model.

According to Fair, Issac and Company, Inc, a leading scoring model developer, it is quite possible that sixty variables will be considered when developing a model but only about twelve might end up in the final score card. In most scoring systems, the higher the score means the lower the risk. A lender may have a set cutoff score based on the amount of risk they are willing to take. If they followed the model carefully, the lender would approve all applicants whose score was higher than the cutoff and deny all applicants whose score was lower than that of the cutoff. Although this system is very accurate, it still cannot predict with certainty any individual’s loan performance. Even so, it should give a fairly accurate prediction.

In order to build a good scoring model, developers need a large amount of historical data that will reflect the loan performance of the applicant in both good and bad economical conditions. In the past, banks only used personal history, credit reports, and judgment to make credit decisions. During the past twenty five years however, credit scoring has become the way to go as far as applicant decisions for credit cards and any other form of credit. Scoring is now also used in mortgage origination. Both the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Corporation have encouraged the use of credit scoring.

Credit scoring has become such a necessity in the issuing of loans that even private mortgage companies are using it to screen their potential customers.

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Michael Russell
Your Independent guide to Credit Reports
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