Improve your credit score before it's too late

Improve your credit score before it's too late
Your credit score is everything these days. Maybe you are
just one of those individuals that would rather not know
what is on your credit report. Let's assume you just got
laid off, and now you have to find a job. Guess what
employers are doing now, they are pulling your credit
report to determine your risk. Typically people with good
credit are not going to steal; they seem to have their life
in order, etc......according to corporate companies. So if
you have had some bumps and bruises on your credit report
this is the time to get a recent copy of your free credit
score report and start working on your credit. Here are
some pointers on what is needed to increase your FICO score.

Secured Credit Cards
If you don't have any credit and your current credit report
is littered with collections and charge offs, you will need
to establish new credit. Yes I know credit cards are evil,
but they are a necessary evil these days. I would recommend
getting some secured credit cards with Orchard Bank. They
are a credit card bank with low fees, and typically require
a $200.00 deposit into there account to secure the card.
This process will get some good revolving credit reporting
to all 3 credit bureaus on your behalf. Typically you need
a couple of credit cards reporting. So go a head and get a
few different secured credit cards. Since authorized user
accounts don't help anymore, secured credit cards are the
quickest and most reliable way to get your credit
established or re-established.

Collections Accounts
There is a common misconception that collection accounts
can be removed even though you owe them money. A collection
account will not go away until the account is set to
expire, which is 7 years from the collection date. That is
a long time to wait for something to disappear on your
credit report. The fastest way to get your scores up with
collections is to pay off the newest collections first. I
guarantee you once the account is updated from a balanced
being owed to "paid in full" or settled, your scores will
go up. Once you pay off the collections make sure you get
letters from the collection companies stating what was
done, either paid in full or settled on. After about 60
days re-pull a copy of your credit report with scores and
make sure they updated with the credit bureaus.

Quick Credit Fixes
Folks there are no quick fixes to credit repair, Fair Isaac
shows that in their FICO® score model that time is also
part of the credit scoring recipe. Yes there are some
tricks I know that will get your credit sores up, but time
is also a factor as well. The main key is to make sure you
don't have late payments while you are doing this entire
process, make sure nothing goes to collection. The banking
industry will never be same again because of the amount of
mortgage foreclosures. I guarantee you the lending industry
is tightening so much currently that families with good
credit could have problems getting loans. So make sure it's
not too late, if you are getting ready to make a big
purchase like a new home for the family, make sure your
credit is in line with today's times. One thing I know for
sure, and that is the lending institutions are going to get
even tougher. So instead of getting told NO, get told YES.

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About the Author: Mike Clover is the owner of
http://www.creditscorequick.com/ . CreditScoreQuick.com is
the one of the most unique on-line resources for free
credit score report, fico score, Internet identity theft
software, secure credit cards, and a BlOG with a wealth of
personal credit information. The information within this
website is written by professionals that know about credit,
and what determines ones credit worthiness.

How Can You Take Advantage of the 0% Capital Gains Rate?

How Can You Take Advantage of the 0% Capital Gains Rate?
The capital gains rate for certain taxpayers will drop to
0% for tax years 2008 through 2010. How can you take
advantage of this 0% capital gains rate?

First, let's review the capital gains rate in general.

Gains from sales of personal investments held for more than
12 months generally are taxed at the capital gains rate
which is 5% or 15%. The 5% capital gains rate is available
only to those whose ordinary income is taxed at 15% or
less. The 15% capital gains rate will remain effective
through 12/31/10 (barring any changes to the law prior to
that time). The 5% capital gains rate will continue through
12/31/07; then the rate drops to 0% for tax years 2008
through 2010.

The 15% income tax brackets will be higher in 2008 as the
IRS makes its annual adjustment for inflation, which will
be announced later this year. However, to get an idea of
who may qualify for the 15% and under brackets, currently
in 2007 a married couple filing jointly must have taxable
income (which remember is all of the taxpayer's income less
their itemized deductions) of no more than $61,300; and for
a taxpayer with a filing status as single, the cutoff is
$30,650.

Next, let's review what is a capital gain.

The reduced rates for long-term capital gains generally
apply to the "adjusted net capital gains", which include
net long-term capital gains (the excess of long-term
capital gains over long-term capital losses) less any net
short-term capital loss (the excess of short-term capital
losses over short-term capital gains). This excludes sales
of collectibles (such as art work), qualified small
business stock (also known as section 1202 stock), and
unrecaptured 1250 gains (which result from the sale of
depreciable real property). These gains also include
qualified dividend income ("QDI"), dividends from domestic
corporations that qualify for the 15% tax rate. For most
taxpayers the adjusted net capital gains is merely the sum
of net long-term capital gains from real estate, stocks,
bonds, and mutual funds, plus any QDI.

Now, let's review how to determine which capital gains rate
is used.

In order to find out which capital gains rate (5% or 15%) a
taxpayer's gains are subject to, begin with taxable income
and then subtract the capital gains received during the tax
year. Subtract the difference from the maximum tax bracket
amount (e.g., $61,300 or $30,650). The result is the
amount of capital gains subject to the 5% rate (or 0% rate
in 2008), with the remainder subject to the 15% rate.

Of course, if taxable income without capital gains is
greater then the taxpayer's 15% ordinary tax bracket, then
all of the capital gains are taxed at the 15% rate.
Conversely, if taxable income including capital gains is
less than or equal to the taxpayer's 15% ordinary tax
bracket, then all of the capital gains are taxed at the 5%
(or 0% in 2008) rate.

Let's take a look at a few examples of how the calculations
work.

1. Suppose a taxpayer filing under the "married filing
jointly" status has total ordinary income of $36,100
included in taxable income plus adjusted net capital gain
income (ANCGI) of $25,000 for a total taxable income of
$61,100. Since taxable income is less than the cutoff of
$61,300 (see above), all of the ANCGI is taxed at the 5%
rate for 2007, and would be taxed at 0% if they had this
income in 2008, 2009 or 2010.

2. Suppose, instead, that the taxpayer filing under the "
married filing jointly " status has total ordinary income
of $65,000, and ANCGI of $35,000, for a total taxable
income of $100,000. Since the ordinary portion of the
taxable income is greater than the cutoff for the lower tax
bracket, all of the ANCGI is taxed at the 15% rate.

3. Finally, let's say the taxpayer filing under the
"married filing jointly" status has ordinary income of
$43,100, and ANCGI of $60,000, for total taxable income of
$103,100. Since ordinary income is less than the maximum
taxed in the 15% regular tax bracket, part of the capital
gains will be taxed at 5% (0% for 2008). The amount taxed
in the lower bracket is $18,200 ($61,300 - 43,100). The
remaining capital gains of $41,800 [$60,000 - 18,200] are
taxed at the 15% rate.

Let's go over the cautions to consider in your planning.

Caution #1: The kiddie tax

When Congress first passed the bill to lower the capital
gains rates, there was a huge loophole. Taxpayers could
gift appreciated stocks and mutual funds to their teenage
children, who are usually in a low tax bracket. Then the
teenagers could sell the investments at the 0% rate in 2008
and pay no tax on the gains. Lawmakers took exception to
this planning, noting that the intent of the bill was to
allow retirees to pay a lower rate on investments they may
need to cash out.

In response, Congress broadened the "kiddie tax", which
kicks in when a child's investment income (such as interest
and capital gains) exceeds a certain level. This investment
income is then taxed at the parents' top marginal rate.
Currently, that level is at $1,700, so any investment
income received by children in excess of $1,700 is taxed at
their parents' tax rate. In the past, the kiddie tax
applied to children under the age of 14. It has now been
raised to include those younger than 19 and up to 24 years
old if the child is a full-time student.

Caution #2: AMT

Regardless of the potential benefits possible from the
favorable capital gains rates, be aware that the
Alternative Minimum Tax (AMT) may eliminate any potential
benefit. As a taxpayer "cashes" out investments to take
advantage of the favorable rates, the additional income,
even if qualifying for lower tax rates, could push the
taxpayer's overall income into a higher bracket, which
could trigger the AMT and effectively negate the benefits
of the lower capital gains rates. Seem complicated? It
is. We strongly recommend you review all AMT and capital
gains issues with your CPA/Tax Coach.

What are the planning opportunities? Who stands to benefit
the most from the reduced capital gains tax rate?

Adults who provide financial support to their aging or
retiring low-income parents. Gifting appreciated capital
assets such as stocks or bonds instead of cash, can be a
good way to provide them with extra income. Taxpayers can
gift up to $12,000 a year per person with no gift-tax
consequences. If married, a taxpayer and spouse may give
up to $24,000.

Retirees with investment accounts. The capital gains breaks
do not affect the withdrawals from tax-deferred retirement
savings plans (i.e., IRA's). But if the taxpayer is retired
(retiring) and owns stocks, bonds, or mutual funds, the
2008 tax year may be the time to sell.

----------------------------------------------------
Tom Wheelwright is not only the founder and CEO of
Provision, but he is the creative force behind Provision
Wealth Strategists. In addition to his management
responsibilities, Tom likes to coach clients on wealth,
business, and tax strategies. Along with his frequent
seminars on these strategies, Tom is an adjunct professor
in the Masters of Tax program at Arizona State University.
For more information please visit
http://www.provisionwealth.com

How to Buy a Health Savings Account

How to Buy a Health Savings Account
Congratulations! Pat yourself on the back for wisely
choosing to open a self-directed health savings account, or
HSA, as a means to augment your low-premium high deductible
health insurance. Planning ahead by establishing a savings
and investment plan for the money you set aside for health
care each year definitely has its advantages—as long
as you know how best to work your HSA benefits to your
advantage, both now and in the future.

Established in 2003, HSA is the new kid on the block to the
financial planning scene, and has been extremely popular
with those who want to invest their money with an eye
toward affordable health care. A self directed health
savings account is an interest bearing account that may be
tapped now or later to pay for medical expenses. Interest
on an HSA account is compounded daily and credited monthly.

One distinct advantage to an HSA is that it places you in
control of the account; decisions on how to spend money in
your account are made by you without having to ask the
permission of your insurance company or a third party. You
may also decide what types of investments you would like to
make with the money in your account to help it grow.

The only requirement for establishing an HSA is that you
purchase a low-premium high deductible health plan (HDHP).
An HDHP, also known as a catastrophic health insurance
plan, is typically an inexpensive health insurance policy
that does not cover the first several thousand dollars of
health care expenses, but offers coverage once the
deductible has been met.

You may create your HSA through your bank, credit union,
insurance company, or any of a number of approved
companies, and it is also possible that your employer may
have set up an HSA as part of his or her employee package.

Generally, HSA policyholders have access to 24-hour
customer service and online enrollment. And usually, for a
nominal annual fee, the package includes a debit card and
unlimited check writing, as well as online access to
account information. You may authorize your medical service
provider or another person to initiate an electronic
withdrawal from your account, and you may also purchase
goods and services at medical service provider locations
that accept signature-based debit cards on their premises.

According to the U.S. Department of the Treasury, a HSA
offers distinct tax advantages. Contributions may be made
by the individual or as a family, even if you do not
itemize deductions. Also, an individual's employer may make
contributions that are not taxed to either the employer or
the employee, and employers sponsoring cafeteria plans may
allow employees to contribute untaxed salary through salary
reduction.

Distributed funds from your HSA are not taxed if used to
pay for qualified medical expenses. And, unlike funds
relegated to Flexible Spending Arrangements, funds in your
HSA account are not forfeited if not used by the end of the
year. Instead, your unused funds roll over to the next year
and remain available for your use in later years.

Sources:
www.ustreas.gov/offices/public-affairs/hsa/about.shtml
https://secure.mvnt4.com/harris/pdf/hsadisclosure.pdf
www.heartland.org/Article.cfm?artId=23034

----------------------------------------------------
US Insurance Online CEO Jim Waltrip is a self-taught
software developer and entrepreneur with a passion for
building things: teams of employees, software, and new
systems. Jim started US Insurance Online with business
partner Ryan Patterson in May 2005. Visit
http://www.USInsuranceOnline.com for insurance shopping
help and for free insurance quotes.

Inside Secrets of Failed Tax Strategies

Inside Secrets of Failed Tax Strategies
I have seen the inner workings of hundreds of tax
strategies. I recently did a study of tax strategies to
reveal the inside secrets of failed tax strategies. I was
searching for common causes of the failures. The most
common causes all centered around cost, but not in a way
you may expect.

- The real cost -

When determining if the cost of the strategy was outweighed
by the benefits, many people miscalculated a very important
cost - the guide, that is, your CPA. The cost of a CPA can
vary greatly. Take for example, the cost of a tax return.
One CPA may charge $750, another may charge $2,500. Now,
on the surface, it's easy to say the $750 return is the
lower cost. But what is the real cost of that $750 return?
What if that $750 tax return doesn't include any analysis
to reduce the amount of taxes paid and the taxes paid with
the $750 return are $5,000 more than the taxes paid with
the $2,500 return?

- Never getting started -

Many tax strategies failed because they simply never got
started. The time that most people think about a tax
strategy is usually the same time they are starting a new
business or investment strategy. A time when cash is
usually tight. The tax strategy then becomes an additional
item to add to the already growing pile of cash
commitments. The tax strategy gets put on hold temporarily
but the temporary status soon becomes permanent.

- DIY -

I often refer to this as the 3 most expensive words in the
English language - Do It Yourself. The people who took
this route were really forced into it. The options
available to them didn't have benefits that outweighed the
cost so they were forced to reduce the cost. The number
one way people reduced their cost was to do as much as
possible themselves. The problem with this concept is that
these people were not leveraging their intellectual
capital. They were relying on their own knowledge and not
that of proven professionals. Because they had nowhere to
turn for professional help that was cost effective for
them, they were relying on what little they could learn
from the IRS website and tax guides in the bookstore.
There was no low-cost, effective alternative to learning
the tax-savings concepts that are critical to paying fewer
taxes.

- No check up -

Do you see a doctor annually, even if you are not sick?
Most of us do, its part of our strategy for a long and
healthy life. The same needs to happen with tax
strategies. Many people set up their tax strategy, work
diligently with their CPA for the first year or two, then
let things slide a little bit. While its true that some
tax strategies can run themselves to some extent over time,
its never a substitute for checking in with your CPA to
determine if there is anything that has changed or can be
done differently. After all, even if nothing has changed
in your world, the tax world changes on a regular basis.

- What should you learn from these failures? -

* Start your tax strategy well in advance of your new
venture.
* Don't let DIY be your most expensive decision!
* Minimizing costs is admirable, but don't give up the
right guide to do so.
* Understand your real costs, which includes overpaying
your taxes with the wrong guide.
* Get your routine check up. Even if you have no new
activity, check in at least 3 times a year - once with your
tax return, once at the end of the year and once during the
middle of year.

----------------------------------------------------
Tom Wheelwright is not only the founder and CEO of
Provision, but he is the creative force behind Provision
Wealth Strategists. In addition to his management
responsibilities, Tom likes to coach clients on wealth,
business, and tax strategies. Along with his frequent
seminars on these strategies, Tom is an adjunct professor
in the Masters of Tax program at Arizona State University.
For more information please visit
http://www.provisionwealth.com

Lenders Finally Abandon UK Buy to Let Landlords

Lenders Finally Abandon UK Buy to Let Landlords
Banks are making it almost impossible for new entrants to
the buy to let market to obtain a financially viable
mortgage. The credit crunch is hitting lenders hard and in
response, they are hitting the buy to let landlord even
harder. The number of mortgage products available has
decreased by almost 75% since April 2007 and this decrease
shows no sign of stopping there.

HBOS, who is the owner of a number of lenders including the
Bank of Scotland and the Halifax, to name just two, has
recently taken steps to effectively price itself out of the
buy to let market. The other big lenders seem set to
follow suit and "shut up shop," for all but the most risk
free investments. They seem set to abandon the buy to let
investor until the property market shows serious signs of
turning around.

The rates that are being offered to UK buy to let landlords
are becoming so unattractive that it is causing many to
either seek a buyer for their portfolio or decide to hold
and not consider buying any new property or refinancing
their current portfolio until things get back to some form
of stability.

Banks seem to have made a conscious decision to effectively
price the novice or first time landlord totally out of the
buy to let market. They are doing this by asking for
larger deposits and changing rates to be so high that it
makes it almost impossible for the first timer to see the
value or profit in investing.

What are the options currently available to investors?

1. Many investors are now looking more seriously at buying
overseas properties

2. Investors are holding onto their properties and not
buying any more and not refinancing their current portfolio
until the economic climate changes.

3. As an alternative to investing in buy to lets, investors
are turning their hand to developing properties instead.

4. Investors are putting their money into other potentially
lucrative investments; in particular some are trying their
luck at venture capitalism.

5. Investors are having to travel further than their local
community and really seek out the undervalued properties,
that can still be found in certain parts of the UK. They
are then getting themselves the best mortgage deal they can
and sitting it out until the market turns around and they
can refinance to a better rate and draw out some equity.

Is there any good news?

For the experienced UK buy to let landlord who has a
surplus of cash, there are some great bargains to be had.
There is less competition at the moment, which means that
those investors that have the cash and the knowledge to
weather this storm are in a very strong position.

Home owners that have to sell their home are finding it
difficult to sell. Hence, the opportunity for investors to
pick up many BMV properties that previously they where
finding it difficult to get their hands on.

At the moment surveyors don't seem to have a grip on what
the real current market value of property is and in certain
situations this can open things up for the discerning
investor to pick up a bargain.

Any property investor, including the first time investor,
that is prepared to do double the work to find the bargain
properties and then is prepared to live with perhaps a
couple of years of higher mortgage rates, in a few years
time when they refinance, will potentially see huge gains.

The bottom line is that while many analysts are predicting
doom and gloom, there are always those landlords that will
thrive in adversity.

The question all investors, new or old, have to currently
ask themselves, is do they see opportunity or just a black
hole in the current buy to let market place. If it is a
black hole, then they are destined to find life difficult
over the coming months; however, if it is opportunity, then
they maybe amongst the few investors that thrive and
actually love this kind of uncertain property market.

Lenders do seem to be abandoning the large majority of UK
buy to let landlords; yet, what they are also doing,
perhaps unintentionally, is separating the men from the
boys, the strong from the weak, the experienced from the
novices and the low risk investors from the gamblers.

----------------------------------------------------
Carlton Johnson is a well respected author, investor and
webmaster. To learn more about how to be a successful
landlord in the UK visit the

http://www.investment-property-guru.com website, for all
the latest investment property tips and advice.

Don't Overpay on Individual Medical Insurance Claims

Don't Overpay on Individual Medical Insurance Claims
With ample opportunities for billing errors within today's
complex health care claims and reimbursements systems, it's
a wonder people carrying individual medical insurance don't
spend more time carefully checking each Explanation of
Benefit (EOB). The EOB shows what was charged less what the
insurer agreed to cover, the balance being what you owe.
Checking your EOB is the first line of defense against
overpaying on a health insurance claim.

Your EOB may not reveal a lot, but you can check to see
that your name, address, and policy information are
correct. You should also confirm that you were charged the
"allowable" rate set by your insurer and not a penny more.
Deductibles can be as high as $10,000, and payment comes
entirely from your bank account, which makes group
discounts all the more important.

Other common errors the EOB may reveal include: Failing to
get credit for a deductible that has been paid, in-network
providers classified as out-of-network, legitimate claims
denied as "medically unnecessary," "upcoding" (being
charged for more expensive services than you received), and
"unbundling" (when a single procedure is broken down and
billed as many). At Blue Cross/Blue Shield's Web site
www.bcbs.com/betterknowledge/anti-fraud/explanation-of-benef
its.html, there's a brief tutorial on how to read and
double-check an EOB.

According to a 2001 Harvard study, illness and its
associated costs are responsible for 50 percent of all
bankruptcies, so it literally pays to request itemized
bills from hospitals and other service providers. They are
your next line of self-defense against overpayment. The
problem is making sense of them, which may require hiring a
patient advocate.

Lee Taber works for HealthCare Mediation Group auditing
itemized bills, coordinating appeals, and, when possible,
negotiating reduced payments and workable payment schedules
to keep clients from getting a damaging credit rating.
While costly mistakes are rare, Taber estimates that 40 to
50 percent of hospital bills contain errors: "The potential
for error is high when a bill is 15 pages long and lists
every aspirin and other medical supply."

Advocates receive a percentage of the money they save you.
Their cut varies but can run as high as 30 percent. He
concisely sums up the benefit of working with an advocate:
"If you don't know what you're looking for, how would you
find it?"

Indeed, visit the Individual Services page at Medical
Billing Advocates of America at www.billadvocates.com/
where you can read about a patient who was charged $12 for
a "mucus recovery system" —a box of tissues.

If paying someone to fix a mess you didn't make gets you
mad, imagine being the victim of medical identity theft.
It's like losing control of your social security number and
private financial info, but this is a loss that can be
deadly. If a phony claim is made using your benefits, your
chart could contain wrong information when you need urgent
care. If your benefits are tapped out by an impostor,
you'll have none left for your own care. According to a
World Privacy Forum report on the crime, all levels of the
medical system may be involved, in addition to organized
crime.

When it comes to your individual medical insurance, do your
homework and prepare in the event of inflated bills or
medical identity theft. It can save your money and your
life.

----------------------------------------------------
Ryan Patterson is president of US Insurance Online, based
in Austin, TX. He graduated in 2000 from the University of
Texas with a combined business and computer science degree,
and started US Insurance Online in May of 2005 with fellow
entrepreneur Jim Waltrip. Visit
http://www.USInsuranceOnline.com for help shopping for
insurance and for free insurance quotes.