Figure Your Credit Score

You may want to know how your credit score is calculated.  The process is long and each of the three major companies in the United States will participate in reporting credit scores and histories with a different method.  This is why your credit score is going to be a little bit different from one to the next.  There are some factors that you can take into consideration if you want to estimate your credit score on your own.

The first thing is if you have not ever owned a credit card or had any type of bill in your name or if you have borrowed money of any kind, your credit score is going to be zero. Even though this is not considered to be bad credit, it is hard to even get a loan with no credit as it is with bad credit.  There are some companies that may be willing to take a chance on someone with no credit but it is much better to build up your credit little by little as you go by having cards in your name and living a comfortable and stable life within your means of income.

Your credit history is going to make up about 35% of your total credit score and it is very important.  The bills that are not paid or if you have debts that have defaulted you will hurt your credit score for 7 to 10 years before they are all erased. You need to think about this and all of the bad choices that you make today can hurt your credit in the future.  If you are repaying these debts now, chances are they will still show up on your credit report now as bills that were paid late.  There is 15% that is going to be the length of your credit history.  It is a good idea to start building credit as soon as you can. Your score is will improve as time goes on as long as you are maintaining a bank account.  The information like length of employment or residence so that it can be classified in this section so if you have a regular and stable life, you will have a better score than someone else that moves around all the time.

Then 30% of your score will depend on what you are currently owing to creditors.  Even if you are not late on paying your bills, if you have many loans out at one time, it may be possible that you are denied to have another.  Therefore it is important to only take out the loans you really need and to repay them on time or early if you can.  If you pay off your loans early, you will not only see your credit score rise, you will also save money on paying interest.  This will show up on your credit history.  You will also want to try and keep your money in one place if possible.  10% of your credit score is going to be based on new accounts.  They will look at how many different types of loans you have applied for and how many you have open now.  When you are opening and closing accounts too fast is not a recommendation.

You need to use your common sense.  Know your credit score and how it is calculated is going to help you find mistakes on it.  This may help you and your credit score in the future.  You are able to see a free copy of your credit report annually for free so you should review this as well as get your credit score to be sure that you are being treated fairly.

A short guide to travel insurance

Travel Insurance – A Need to Know guide?

Travel insurance protects holiday expenses against adverse events such as cancellation and interruption and also reimburses medical expenses, the loss or damage of property and transit delays.

Many millions of travellers and holiday makers purchase some form of insurance every year, but few people know really what it is and how it can be defined. If you know what is included, and what is not you will be able to make the most of your protection, and get reimbursed fairly.

There are four main categories of travel insurance:

1.    Health and Medical reasons

Emergency evacuation: This garuantees emergency transportation to either a local hospital in the event that the traveller is unable to get there by themselves or back to a hospital near the traveller’s home town. If family members are covered on the same policy they can travel back home also.    

Medical reasons: This reimburses emergency medical and dental costs. Nearly all holiday insurance plans work by reimbursing the traveller after they have paid locally for treatment. Claims are usually paid within 7 – 10 working days. Pre-existing medical conditions are covered by most policies if the policy is purchased within (at the most) 21 days from the date the traveller made the first payment or deposit.

2.    Delays and cancellation or curtailment

Cancellation: Re-imbursement comes into effect if travellers have booked and paid for a holiday, but are unable to embark because of personal illness or injury, death (of the individual or of a family member), adverse weather conditions, transport strikes, terrorism, bankruptcy, sudden unemployment, jury duty or by sustaining serious damage to their home causing it to be uninhabitable due to fire or flooding.

Delay: This reimburses travellers for hotel, food or clothing expenses in the event of a flight delay. Some plans also cover costs associated with catching up with a cruise should another delay cause the traveller to miss embarkation.
Interruption: Insurance companies pay money to policy holders abroad if they have to cut short their trip due to illness, death (of the traveller or a family member), terrorism, weather, airline strikes, bankruptcy, sudden unemployment, and other adverse conditions which mean that, due to events outside the control of the holiday-maker, a trip has to be curtailed.

3.    Death:

Accidental death – covers death or dismemberment at any time of your trip. Usually garuantees the lowest amount of coverage due to a higher risk
Air Flight accident – this covers death or dismemberment during an air flight only. Usually garuantees the highest amount of coverage due to fairly low likelihood of this occurring.

Common carrier – Covers death or dismemberment while travelling on public transport such as a plane, ferry, train bus or taxi.

4.    Loss or damage of property:

Baggage loss – reimburses travellers for lost, stolen or damaged personal items. This coverage is usually restricted to the duration of the trip and not confined to baggage damaged or lost by the airline. There are two policy limits, total claim and per item maximum. Some policies also place limits on the type of items that can be claimed for – such as precious jewellery, laptops and sporting goods

Hire Car damage – This reimburses travellers for damage or loss to a rental vehicle. It is designed to allow the traveller to decline collision damage waiver (CDW) coverage offered by the car rental companies. Liability coverage should still be purchased through the car rental company. Rental Car Damage coverage is also often included with the credit card used to pay for the car rental which is often matches the coverage provided in the policy.

Assistance services – garuantees a 24-hour collect telephone advice and assistance service to travellers. This service can be used anytime a traveller needs advice. Make sure you keep a copy of this number in several places in your luggage or on your person when you move around.

7 Things Seniors (and Everyone Else) Should Know About FDIC Insurance

Older Americans put their money… and their trust… in FDIC-insured bank accounts because they want peace of mind about the savings they've worked so hard over the years to accumulate. Here are a few things senior citizens should know and remember about FDIC insurance.

1. The basic insurance limit is $100,000 per depositor per insured bank. If you or your family has $100,000 or less in all of your deposit accounts at the same insured bank, you don't need to worry about your insurance coverage. Your funds are fully insured. Your deposits in separately chartered banks are separately insured, even if the banks are affiliated, such as belonging to the same parent company.

2. You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. There are several different ownership categories, but the most common for consumers are single ownership accounts (for one owner), joint ownership accounts (for two or more people), self-directed retirement accounts (Individual Retirement Accounts and Keogh accounts for which you choose how and where the money is deposited) and revocable trusts (a deposit account saying the funds will pass to one or more named beneficiaries when the owner dies). Deposits in different ownership categories are separately insured. That means one person could have far more than $100,000 of FDIC insurance coverage at the same bank if the funds are in separate ownership categories.

3. A death or divorce in the family can reduce the FDIC insurance coverage. Let's say two people own an account and one dies. The FDIC's rules allow a six-month grace period after a depositor's death to give survivors or estate executors a chance to restructure accounts. But if you fail to act within six months, you run the risk of the accounts going over the $100,000 limit.

Example: A husband and wife have a joint account with a "right of survivorship," a common provision in joint accounts specifying that if one person dies the other will own all the money. The account totals $150,000, which is fully insured because there are two owners (giving them up to $200,000 of coverage). But if one of the two co-owners dies and the surviving spouse doesn't change the account within six months, the $150,000 deposit automatically would be insured to only $100,000 as the surviving spouse's single-ownership account, along with any other accounts in that category at the bank. The result: $50,000 or more would be over the insurance limit and at risk of loss if the bank failed.

Also be aware that the death or divorce of a beneficiary on certain trust accounts can reduce the insurance coverage immediately. There is no six-month grace period in those situations.

4. No depositor has lost a single cent of FDIC-insured funds as a result of a failure. FDIC insurance only comes into play when an FDIC-insured banking institution fails. And fortunately, bank failures are rare nowadays. That's largely because all FDIC-insured banking institutions must meet high standards for financial strength and stability. But if your bank were to fail, FDIC insurance would cover your deposit accounts, dollar for dollar, including principal and accrued interest, up to the insurance limit. If your bank fails and you have deposits above the $100,000 federal insurance limit, you may be able to recover some or, in rare cases, all of your uninsured funds. However, the overwhelming majority of depositors at failed institutions are within the $100,000 insurance limit.

5. The FDIC's deposit insurance guarantee is rock solid. As of mid-year 2005, the FDIC had $48 billion in reserves to protect depositors. Some people say they've been told (usually by marketers of investments that compete with bank deposits) that the FDIC doesn't have the resources to cover depositors' insured funds if an unprecedented number of banks were to fail. That's false information.

6. The FDIC pays depositors promptly after the failure of an insured bank. Most insurance payments are made within a few days, usually by the next business day after the bank is closed. Don't believe the misinformation being spread by some investment sellers who claim that the FDIC takes years to pay insured depositors.

7. You are responsible for knowing your deposit insurance coverage.

Know the rules, protect your money.

Credit and the Law

The Equal Credit Opportunity Act says that all lenders will apply the same credit standards to all the consumers no matter what their race, sex, marital status, national origin, religion, age, or public assistance program that is involved.  This does not say for sure that the loan approved or credit will be given to you.  It will give you an equal chance to obtain credit. The only good measurement for creditors to use is your ability to pay the debts that you owe.

Many of the applications will have questions about some of the above things. However you are not required to answer them on an application for credit.  These may be asked because of the fair housing laws or affirmative action laws but these are at your discretion.  You should not be asked about your material status, unless your partner will help you secure the loan.  You may be asked your age because of the Equal Credit Opportunity Act, but only to determine if you are old enough to have the credit. This means that you have to be over the age of 18 in the U.S.

Creditors must tell any applicants of their decision within 30 days. If the application is not approved, the creditor must provide a written statement that has full detail of the outcome or decision along with the reason for the denial and the information on the applicant’s rights. This act will help to seal for certain it is kept with all applications for credit no matter who the applicant is.

The Fair Credit Reporting Act will also give people the right to see their credit report.  To make this better, everyone is entitled to a free credit report every 12 months.  This act will help people to receive their credit history for all three national credit-reporting agencies.  When you are reviewing your credit, you can dispute items on the credit report and this will allow the consumer to control some of what the credit reporting agencies have against them.  If the correction to your credit in not right, you can also add a statement of 100 words or less to help clarify the item that you want to dispute.

The act was started to uphold the accuracy and privacy of a person’s private information in the credit report.  It was passed with the intention of preventing identity theft, which has become more popular in recent years.  By reviewing one’s credit report each year, he or she will be able to determine if any kind of identity theft has happened. 

Both of these acts will protect you by helping the fairness of the lending industry while allowing you to take control of your credit history and making sure that it is accurate.  If you want to maintain good credit, you need to learn as much about it as you can.  Understanding these laws means that you are taking a good and positive step in creating good credit for yourself and making it possible to have a more stable financial future. 

Learning how to correct your credit rating

If you are checking out your credit report and you see an error what should you do? There are things that you may not realize and this is going to happen all the time.  There are mistakes that are accidental on your credit reports all the time.  However there is something that you can do about it.  Wrong numbers on your credit report may bring down your score and you should make sure that you get this fixed right away by contacting your credit agency.

You do not have to pay a lot of money and see someone to get this fixed. You first have to get a copy of your credit report and circle any items that you think is wrong and make sure that you are inspecting it again very well to make sure there is nothing left out of it.  The next thing that you need to do is write a letter to the credit agency and telling her of all the disputes.  The address for the agency should be listed on the credit report.  You need to be sure that you include all the copies of paperwork that is going to pertain to the disputes that you are reporting and that all of the documents that you are sending are copies and not the originals. You need to keep those for yourself.  You should send this all by certified mail and get a receipt to be sure that it was shipped and it was received.

It is up to the reporting agency to investigate your disputed claim and verify that there is a problem with the credit report information.  If the creditor cannot prove that the information is correct, the entry must be removed with no questions asked. It is probably that it is just an error on their part and they will tell the reporting agency about it and it will be removed from your permanent record.  Once the investigation is finished, and the changes are made, the agency will give you a copy of your credit report free so that you have proof of the changes that have been made.

There are errors that will occur in all stages of life and there is no surprise to learn that credit reports are not any different.  Keep your temper to a low and deal with the mistakes.  Your credit agency should take care of this and help you with no problems.  It is your responsibility to take care of your credit and to review all the paperwork that you receive all of the time.  If you do not go over them you may not even know if your credit score is being affected by these false entries. 

A Guide To Car and Motor Insurance

Whether you’re buying clothing or shopping for car insurance, you always want to get the best value for your money. So, what’s the secret to finding reliable, affordable car insurance?

Shop around for the best deal. Get several car insurance quotes from different insurance companies before you buy or renew your policy. Insurance companies vary, so you could get a better deal somewhere else.

Don’t be afraid to switch. You can switch insurance companies whenever you want, even if it’s in the middle of your car  insurance policy term. If you find a better rate, switch and save.

There are three types of Car Insurance:

Third party, which covers your legal liability if you damage someone else’s physical property (walls, vehicles, gates etc.) due to a driving accident.

Third party, Fire and Theft offers third party cover and adds on two useful pieces of cover - fire damage to and theft of your car, including damage caused by a theft or attempted theft.

A fully comprehensive policy includes Third Party, Fire and Theft and in addition will pay for damage to your own vehicle in the event of an accident. There are many extras, too, for example it will also give you cover when you drive other people's cars - useful if you borrow someone's car and their insurance does not cover you.

The following factors affect what you pay for your premiums.

Your age, your job, your driving record.

The car you drive. The higher the value of the vehicle, the higher the premium. High performance vehicles are also more expensive to insure than their stock standard equivalents.

Then there's the location of the car. You'll pay more if you keep the car in a high-crime area or park it on the street at night.

What you use the car for. You'll pay more if, for example, you plan to use the car for business delivery purposes.

Then there is the excess structure that you choose. The higher the excess the lower the premiums.

Gear Locks, Satellite Tracking - will help reduce your premiums

If you are buying a new car ? Don't forget to shop around for Insurance!

For a first-time car buyer, the process can be a difficult decision. Many buyers are not aware of the fact that they need to have insurance before driving their new car off the showroom floor. The financial institutions providing the finance for the purchase will insist on this, in order to ensure that their new asset is protected.

Don't just accept the first offer that is given to you, get at least 3 quotes before making your decision. "Many banks or finance institutions are affiliated to an insurance company or brokerage firm. New buyers therefore may find themselves feeling pressurized to take insurance cover through the bank's preferred supplier. It is important to know that this cannot be enforced and the decision lies with the client. This makes it essential to shop around for competitive quotes, to ensure that you are offered the best deal - from the perspective of both cover and price. For young drivers, this becomes imperative, as they are often penalized for their age and lack of driving experience, translating into higher premiums and excesses."

Cash buyers are not exempt from the need to insure their new car. Thefts and hijackings are still a reality and the growing number of cars on the road puts all drivers at increased risk of being involved in an accident. Choosing an insurance product that is suitable in terms of budget, value adds, cover and excess payable is a careful decision that, with the right advice, can be made sensibly and safely.

Many young, first-time buyers find that purchasing insurance through a direct insurer is actually a simple process.

They are likely to receive a tailored insurance solution catering for their specific needs - with direct insurance, clients don't pay any additional charges for getting what they want. Any driver about to embark on purchasing a new vehicle would do well to consider the time- and cost-saving benefits of direct insurance."

5 Tips to Finding the Right Dental Insurance Company

With so many dental insurance plans to choose from it can be a daunting task to determine which plan is best for your needs or the needs of your employees. And to note, these needs are extremely important, as the dental care should never be overlooked. There are five tips that may help you discover which plan is right for you.

1. Consider Online Comparisons - While a trusted broker can provide you with several options to choose from, an online comparison of companies and dental insurance options can provide a means of insuring the greatest flexibility and price. The available plan types are extremely varied and an online comparison can allow you to see what a plan will and will not be able to do.

2. Price Comparison - It may be easy to make a quick decision based on a simple query, however, if you are working with a broker there may be other options they can present that may decrease the overall cost. Again by using an online comparison, you may be able to view all options and all price ranges. This information can provide information that can help you select a plan that fits your budget.

3. Benefit Comparison - There are several questions that you should consider when purchasing a dental insurance plan. Here are a few samples to consider.

Ÿ    Will I be able to select my own dentist?
Ÿ    Are there select dates and times that a dentist may restrict visits by individuals that are a part of a particular plan?
Ÿ    Do I need insurance with co-pay?

4. Determine Personal Needs and Objectives - No one likes change, but you must ask yourself if certain components in a dental insurance plan are really a need or a want. You should determine what your objective is in obtaining dental insurance. When you understand your motivation and needs you’ll be better able to select a plan.

5. Understanding the Importance of Coverage - Once you understand that a dental insurance plan removes the barrier to oral health and that improved oral health is linked to improved physical health, a dental insurance plan begins to make sense.

Like major medical insurance, dental insurance provides a means of managing the rising cost of dental care. In certain cases premiums for dental insurance is tax deductible.

Stopping those creditors from calling

If you are having trouble maintaining good credit, you might find yourself being irritated by phone calls from the collection agencies. If your debt has been handed over to one of these agencies, you already have a black mark put on your credit report.  However it is important to know your rights when it comes to being in debt.  Phone calls from the collection agencies are unethical and if you understand the laws regarding good credit, you can protect yourself from the problems and all the illegal doings of these companies.

The most crucial law to know and review if you think that you are being treated badly is the Fair Debt Collections Practices Act, or FDCPA.  This is a law that will give you all the information that you may need so that you understand if that company is doing something wrong. If they are not, contact your government officials and police to file a compliant. 

The first thing that you should understand that you have 30 days to review the debt that they are putting upon you.  You should know that people do make mistakes, so this is a 30 day grace period that will give you enough time to make sure that it is all correct and in order.  Before this, the debt collectors should not start to all you and harass you by phone or any other form of contact.  After the 30 days are up, your phone may start to ring so much and this is going to be the collectors calling you to pay your bills.  Be aware that what they are saying is not only unethical it is also against the law.

The debt collector may not threaten you with anything that he or she says.  They do not have the power to do this.  For example, bill collectors cannot threaten to use your lack of good credit to ruin your reputation and tell others like your friends, boss or employer about your debt problems.  Most cases the collector may only share the information about your debt with you and your spouse and the lender.  Anything else is a violation and you can have the opportunity to sue a collection agency if they tell any of this private information to anyone other than that.

The collector cannot threaten to ruin your credit history. This is a very unacceptable threat.  The damage is already been done to your credit report.  Debts are not allowed to be reported for 7 to 10 years and this will depend on your credit-reporting agency.  The federal law does not allow a collection agency to further ruin your credit in any other way.  If they threaten this, or to tell anyone about your debt, the collection agency is in violation of the FDCPA and it is your obligation to report the agency to the authorities.  A collector cannot threaten to arrest you or garnish your wages in any way.

The only thing that a collection agency can do is taking you to court. If they are threatening anything other than this, you should not only get off the phone, you should also call the police and they will assist you in filing an official complaint.  Having good credit is on the line and if a collection agency is not doing their job right, they could be mis-reporting your debt as will. You need to know your rights and protect yourself too.