Credit Score: Why It's Important

Credit Score: Why It's Important
Anytime we are in a bank or see something even remotely
finance related, we hear the common phrase of credit score.
Anytime we see a credit card application or open a bank
account, somewhere on this bit of paper will be those two
little words.

Most of us can likely make a fairly educated guess as to
what the credit score is. However, many of us are unaware
of the profound impact this little number can have over our
financial lives.

The credit score affects much more than if you are going to
get that new credit card or not. Credit scores can be the
deciding factor in many of our life's decisions and
challenges.

In this article we will look at why it is so important to
maintain a good credit score in this day and age.

The credit score is most commonly associated with loan
decisions. It probably comes as no great surprise that
whenever, you apply for credit card, loans, installment
payment plans and mortgages the credit score is one of the
major deciding factors.

People with low credit scores will likely struggle to get
approval on any of these more so than those with high
credit scores. By keeping on top of your finances, you can
insure that your credit score remains solid.

The credit score not only decides yes or know on various
types of financing, but what rate of interest you will
receive. Those with good credit scores are likely to get
the premium rates of interest. Those with low scores are
going to be charged more. Those with low credit scores can
still obtain financing but quite often they are forced to
use sub-prime lenders. These lend the money but at much
higher costs.

Many are surprised to hear that your credit score can now
affect the rate you receive on car and homeowners
insurance. Several states have started employing this
policy on the evidence that statistically, those with
better credit scores are less of a burden. They make fewer
claims than those with poor credit.

Finally, sometimes potential employers will look at credit
scores when making the decision on whether or not to hire.
Those positions in the financial world are known for this.
A poor credit history will make some employers reluctant to
offer expense accounts and company credit cards.

Many of us need credit accounts to get the things that we
need today. Most of us would struggle to buy a new car
without financing or a house without a mortgage.

Having credit is important and so is maintaining a good
score. Keeping the credit score high can offer better
finance opportunities as well as more favorable insurance
rates and even that dream job.

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Jim Moore comes from a background in engineering and
financial services software. Jim has spent the last 20
years as a professional writer working for some of the
world's largest engineering and financial companies.
Jim's personal goal is to pass on what knowledge he has
gained throughout his career to help as many people as
possible.
http://www.improveyourcreditscoring.com

The Lottery Financial Security Plan

The Lottery Financial Security Plan
Start young guarantees you win the compounding interest
lottery.

Are you counting on winning the lottery to secure your
financial future? According to Farm Credit of Western New
York, 16% of Americans are. Unfortunately, for those 16
percent, you would have better odds playing the tables in
Vegas or getting struck by lightning.

Sure most of us know counting on winning the lottery for
retirement is a big gamble. But for young adults if you're
expecting social security or pension plans to secure your
retirement that is just as risky. Chances are ' for those
of you under 35 - you won't receive much from any of these.
Don't be scared, there is an easy way to make sure you can
afford to retire young without a lot of effort on your part.

What if I told you for only $73 dollars a month you have a
good chance at enjoying a $1,000,000! No not the lottery '
by investing $73 a month starting at age 18 you or your
child could reach the million dollar mark without a lot of
effort. You can live worry free and relax knowing that you
are financially secure well before you reach retirement age.

Young investors have a huge advantage and by following a
simple and consistent plan you will have what 16 percent of
people are desperately hoping for everyday. A lottery
jackpot that is guarenteed! Fix the game, retire young and
secure your own big winner by using a powerful financial
force.

This powerful money principle, that will almost guarantee
every young person generates their own lottery winnings, is
'compounding interest'. Compounding interest has a
snowball effect on your money and the earlier you start a
consistent investment plan the easier achieving financial
freedom will be.

Compounding interest? If you have you ever experienced debt
you've seen compounding interest work against you. You pay
your bill every month but your credit card bills keep
getting bigger and bigger. That's compounding interest
working against you. If you have experienced this then you
have felt how powerful the effects of compounding interest
can be. Avoid the debt traps that have plagued so many of
us and get compounding interest to work your favor.

The definition of compounding interest is: income from
interest that is earned by the amount you invested plus the
interest already earned from prior periods. To break it
down, your investment is paying you money on the principle
amount you invested plus the return you that you have
already earned. Basically you are generating money from
your hard earned cash that you personally invested and what
that original investment has already paid you.

By getting compounding interest working in your favor you
are able to make money off money you already made. This
creates a snowball affect on your money where it is able to
grow larger and larger over time. The earlier you start,
the more time your investments are able to benefit from the
effects of compounding interest.

Just by reinvesting money that you're investments returned,
the money you earned in interest last year is making you
money. After 15 years you have 15 years of interest
earnings making you money.

Jump online and check out free compounding interest
calculators to see for yourself. You'll be motivated to
start a saving and investing plan once you see for yourself
just how powerful compounding interest is.

Calculating compounding interest. Take a few moments and
play with a compounding interest calculator. Seeing the
effects of compounding interest first hand is a powerful
motivator. You can access a compounding interest
calculator by visiting www.FreeBy30.com/investing.html.

What's more, you can calculate it manually by using a hand
held calculator. In order to do so just enter the initial
amount that you are planning on investing or already have
invested. Then multiply that by the rate of return you are
estimating.

To illustrate, if you had $2,000 invested and thought you
would get a 12% return then you would multiply $2,000 x
1.12 = $2,240. The second year you would use $2,240 x 1.12
= $2,509. After 10 years that would be up to $6,212,
$19,293 after 20 years and $59,920 in 30 years. That's
$59,920 from a $2,000 original investment ' that's an
example of the power of compounding interest!

Compounding interest goals. This section will give you
investment goals that you can attain using the power of
compounding interest. The examples presuppose that an
investor is starting with $0 and using an annual return of
12%.

Investing $100 per month and you may reach the million
dollar mark in 38 years. Investing $200 per month and you
may reach the million dollar mark in 32 years. Investing
$400 per month and you may reach the million dollar mark in
27 years. Investing $700 per month and you may reach the
million dollar mark in 22 years. Investing $1,200 per month
and you may reach the million dollar mark in 17 years.

How leverage can boost the effects of compounding interest.
Using leverage will supercharge the effects of compounding
interest. Using real estate investments is one way to
benefit from leverage.

With investments in the stock market for example, you are
earning interest based on the amount you invest. When you
purchase real estate your returns are based on the value of
the asset you control. To illustrate, if you had $20,000
invested in the stock market and your stocks appreciated
10% you would make $2000 the first year. Not bad.

Now with real estate you could purchase a home with a 10%
down payment. That would allow you to buy a $200,000
property with the same $20,000. Your return would be
calculated off the value of the property - $200,000 in this
case. So the value of your property after the first year
would be $220,000 ($200,000 x 1.1).

If the property continues to appreciate at 10% annually,
the value of the property would be $242,000 the second year
and $518,748 after 10 years. The power of compounding
interest works faster when you have the ability to leverage
your investments. Investing in real estate may allow you
to amplify the power of compounding interest.

Compounding interest - your advantage. Using the power of
compounding interest - whether in the stock market or real
estate investments ' will give you a many financial
benefits. It is important to note that the sooner you are
able to start saving and investing money the greater
financial benefits you will experience.

So the next time you're thinking about dropping ten bucks
on the lottery ' think again. Go for the sure lottery
jackpot by investing that in your future.

----------------------------------------------------
Vince Shorb, creator of 'Financially Free by 30' home study
course and the leading young adult financial literacy
expert, prepares young adults for the financial real world.
Get your free copy of his latest book and instructional
videos at http://www.FreeBy30.com .

More Women 'Taking Financial Control'

More Women 'Taking Financial Control'
The roles men and women take, in terms of control over
household finances, are changing, a new study indicates.

According to research carried out by Egg, the proportion of
males who make less money than their partners has doubled
over the past five years. In 2002 about a tenth of men had
a lower income than their loved ones, however this now
stands at one in five. More than half (53 per cent) of
females surveyed state they are happy to be the main earner
in their home. Meanwhile, a fifth report that having a
higher salary than their partner allows them to have a
bigger say on what money is spent on. Consequently, women
may be taking greater control of the household finances,
whether relating to paying mortgages and utility bills or
applying for a loan.

Meanwhile, men were indicated to be leading an increasingly
laid-back lifestyle. Just under a third of males regularly
meet up with their friends for lunch, while ten per cent
often visit the gym. Meanwhile, some 43 per cent go clothes
shopping at least once per week. Overall, 15 per cent of
those surveyed state that they are not prepared to give up
a life of luxury to rejoin the rat race.

However, findings by the Citi Group-owned online bank
showed that some women are taking a negative view of the
laid-back lifestyle that their male partners lead. Just
over a fifth (21 per cent) of females reported that they
would prefer it if their significant other was the top
earner, while 27 per cent resent their position as being
the household's main breadwinner. The study also indicated
that a further 25 per cent believe that their financial
role, whether this relates to paying back credit cards,
creating a budget or managing loan repayments, is "highly
stressful". Meanwhile, 14 per cent of women surveyed assert
they would like to pursue a "life of leisure" similar to
the one their male partners enjoy.

Commenting on the figures, Alison Wright, chief marketing
officer for Egg, said: "It is encouraging seeing how many
women are now financially savvy and taking control of the
household's finances. There really has been a change over
the last five years with some of the old stereotypes of who
earns the money and who pays the bills being broken down.
Whereas men have now fully appreciated that their female
counterparts are capable of being the main breadwinners and
as a result they seem to be embracing a life of leisure -
much to the annoyance of most partners."

Those who find that they are beginning to struggle with
their finances, whether they are the top earner in the
household or not, may wish to apply for a personal loan to
help get to grips with money management and meet essential
demands on their spending. In research released earlier
this year by Axa, 82 per cent of Britons who have helped a
loved one out with their finances, whether this is due to
difficulties in paying off loans, plastic cards or
otherwise, have in turn suffered from a negative
experience. Consequently, taking out a cheap personal loan
may well be an advisable way for many people to get out of
financial difficulties.

----------------------------------------------------
Abbi Rouse writes for All About Loans. Visist us today to
apply for secured UK loans, low cost personal loans, and
loans for tenants. Visit today
http://www.allaboutloans.co.uk

SBA Loan Solutions - Business Finance and Commercial Mortgage

SBA Loan Solutions - Business Finance and Commercial Mortgage
There are many business finance and commercial mortgage
misunderstandings involving the use of a Small Business
Administration loan (SBA loan) to buy a business
opportunity investment or commercial real estate. This
article will provide an introduction to several factors
that business borrowers should explore before proceeding
with this specialized type of business loan.

Two of the most difficult business loan and commercial
mortgage situations for a business owner involve obtaining
a Small Business Administration loan and refinancing an SBA
loan. There are practical business finance solutions for
both of these common business investment problems.

Are SBA Loan and Business Finance Programs Difficult?

There are usually two schools of thought about getting a
Small Business Administration loan to buy a business:

(1) Avoid this kind of commercial loan at all costs.
(2) Use such a business finance loan whenever possible.

These conflicting investment financing viewpoints are due
to a commercial mortgage business loan process that is
perceived as complex and difficult by many commercial
borrowers.

In reality SBA loan programs are more practical than they
often appear. It is critical to the success of a Small
Business Administration loan program to be working with a
business finance advisor and lender that is proficient at
this difficult commercial mortgage and commercial loan
process. There are many potential commercial financing
problems to avoid when attempting to obtain a small
business loans, and very few lenders are skilled in this
business financing area.

Anticipating Business Investment Problems Before They
Occur: Business Loan Refinancing

One of the major investment drawbacks of an SBA loan has
historically been the difficulty of refinancing the Small
Business Administration business financing later. Recent
developments have changed this commercial loan situation so
that it is now more practical to refinance a small business
loan. It is still accurate to say that refinancing is not
routinely available, but more importantly it is much easier
to obtain than it was in prior years.

Advance commercial real estate loan and commercial loan
planning can avoid some of the SBA loan refinancing
problems. First and foremost, if the original business
financing is arranged without a small business loan, this
will make later business refinancing easier than if a Small
Business Administration loan is involved. This means that
commercial borrowers should at least consider if the
initial business loan requires this form of commercial
financing before proceeding.

Obtaining a Small Business Administration Loan: Two Common
Commercial Loan Misunderstandings

One of the most frequent criticisms of an SBA loan program
is the amount of paperwork required to complete the
business loan and commercial mortgage process. What many
commercial borrowers fail to understand is that any
business financing process is likely to involve substantial
paperwork and formal documentation requirements. In the end
the key is working with a business finance advisor that
understands what is required and can facilitate the
submission procedures.

Beyond the paperwork concerns, a more critical and real
problem is working with an SBA lender that is not very good
at successfully completing Small Business Administration
loan requirements. Even though there are many commercial
lenders that publicize their ability to process these
complicated and specialized commercial loans, in reality
there are very few lenders nationwide who are consistently
successful at completing the complex loan process in a
timely manner.

Alternatives to SBA Loan Financing - Conventional Real
Estate Investment and Business Opportunity Loan Options

Conventional business finance options should always be
considered simultaneously with the possibility of obtaining
an SBA loan. As noted above, the feasibility of refinancing
a business loan or commercial real estate loan in the
future will depend heavily on the choices made by a
commercial borrower when obtaining the initial commercial
mortgage.

A conventional business loan or commercial mortgage might
be more feasible than many borrowers realize. The
possibility of refinancing either an SBA loan or
conventional business financing will ultimately be more
practical and successful when working with a skilled
commercial investment financing advisor and business
finance lender.

----------------------------------------------------
Steve Bush is a business finance and commercial real estate
investment property loan expert. Find out more about
commercial mortgage - business opportunity loan strategies
recommended by AEX Commercial Financing Group at =>
http://aexllc.com

2 Reasons Why A Gas Rebate Credit Card Is The Best Way To Save Money on Gas

2 Reasons Why A Gas Rebate Credit Card Is The Best Way To Save Money on Gas
If you think a gas rebate credit card isn't the best way to
save money on gas, you haven't done your homework.
Wondering just how much money a gas rebate credit card can
save you and why some of the other money-saving methods
just don't add up? Here's your answers...

1. Driving Across Town Costs You

So you live in Town A and want to drive 20 miles to Town B
so you can save 10 cents a gallon on gas? It's really not
worth it.

Let's say your tank holds 20 gallons of gas and gas costs
$3.00 a gallon in your town. If you fill your tank near
home, it's going to cost you $60. If you drive the 20 miles
to Town B so you only have to pay $2.90 per gallon, it's
going to cost you $58 to fill your tank. That's only a
savings of $2.

Now, if you get 20 miles to the gallon (and if you drive an
SUV or other gas guzzler, you probably don't) you are
paying $2.90 to get to the gas station in Town B and $2.90
to get back home.

You just took a $2 savings and turned it into a $3.80 loss
(not to mention the time you wasted). Congratulations. If
you had used a gas rebate credit card with a 5-percent gas
rebate, you could have saved $3 instead of losing $3.80 and
you would have saved time too.

Do yourself a favor, don't drive two towns over to get gas,
even if it is 10 cents a gallon cheaper. It's really not
worth it in the long run. Use a gas rebate credit card
instead.

2. Those Gas-Saving Products Might Be Bad For Your Car

If you've seen the infomercials and have been tempted to
buy the latest gas-saving additive for your car, you might
want to think twice. The EPA has already concluded that
these products really don't conserve gas and they might
even harm your engine.

Instead of spending $20, $30 or even $100 on a product that
isn't really going to save you any money at all, use a gas
rebate credit card. Not only is it guaranteed to get you a
rebate, it won't hurt your engine if you use it.

Of course, a gas rebate credit card doesn't have to be the
only way you conserve on gas. There are many things you can
do in conjunction with your gas credit card usage. For
example, get rid of that "lead foot" habit and drive more
conservatively and, of course, keep your tires properly
inflated.

The next time you're tempted to run across town to save a
few cents a gallon or buy that new "miracle additive" that
will double or triple your gas mileage, remember what I've
said here. The best way to save money is to drive sensibly,
keep your tires inflated and, of course, make use of a
great gas rebate credit card.

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For more tips on gas credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/gas_credit_cards/