Help! My Credit Sucks!

The Challenge

Credit has become more important than ever for creating and maintaining financial stability.


The use of credit touches practically every aspect of our life. Not only is it used to purchase large ticket items such as homes, cars and education and small businesses, but it can determine whether you receive low rates on your insurance premiums, utility services like phones and electricity as well as some employers determine if you are hired for your next job based on your credit score.


With so much at stake, wouldn’t it make sense to stay in control of your credit report?


You bet it does. Yet many consumers and small business owners are kept confused and in the dark about the rules and laws surrounding this critical financial tool.


There was a time before the recent economic down turn and credit crunch that money flowed easily and a credit score of 620 was considered very good. However that is not the case today. Banks and lending institutions have made it very difficult to get a mortgage, start or expand a business or even get credit cards without a score of 720 or more.


The paradox is the more difficult the banks make it for individuals and business owners to borrow money, the longer it takes the economy to recover. As long as recovery stalls, the tighter the credit crunch becomes.

And with individuals losing their jobs and small and big businesses closing, the increase in credit derogatorys skyrocket as borrowers fall behind in payments.


So how do you get off the vicious cycle of credit craziness?!!


Good question. And I am here to provide you with some great answers.


Read more

Credit Scores Are Not Created Equal!

Fico Scores/Reports


Do you know your credit score? You don't? It's no wonder since you never know what you are getting when you get it. Did you know you can have a difference credit score depending on which credit bureau is providing it and just because you receive your score, that doesn't mean its the same score your lender is evaluating you. Confused yet?

Well I certainly was recently when researching for my score and seeing a significant difference between the 3 bureaus and based on how I received it.

So after searching around, I found a great article which explains the difference and where you can get a true FICO score to get the best idea of where you stand.

Check it out below:

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Saturday, March 26, 2005

Why credit scores don't always add up

By MICHELLE SINGLETARY
SYNDICATED COLUMNIST

Humorist Mason Cooley once said, "Every path to a new understanding begins in confusion."

That quote applies to e-mails I received from confused readers, who recently ordered their credit scores to gain a better understanding of where they stood credit wise.

In one case a husband and wife paid for and got all six of their credit scores (one for each of them from the three major credit bureaus). The scores ranged from a low of 602 to a high of 712.

But when a mortgage bank pulled the credit scores not long after the couple did, their scores were significantly lower, ranging from 598 to 649.

"Why are our scores from the mortgage company different than the ones we pulled online?" the husband asked. "Shouldn't they be the same scores I pull from the three credit bureaus?"

Another reader from Los Angeles wrote that his wife bought her credit score online from TransUnion. The score she received was 864. Three days later, after applying for a home equity loan, the score the lender got from TransUnion was 775.

"That's a drop of over 67 points. It doesn't seem plausible," the reader wrote.

There's nothing amiss here. Here's why.

Most of the credit scores you buy or get free online are not the exact ones used by lenders. The gold standard is what's called a FICO score, named after the San Rafael, Calif.-based Fair Isaac Corp., which devised a mathematical model to predict the credit risk of consumers based on information in their credit report. FICO is the model most widely used by lenders.

It's only been in the last few years that consumers could even buy their credit scores, three-digit numbers that are generated using information from their personal credit files. The higher your score, the better credit risk lenders think you are. A high score often translates into better rates on the money you borrow.

All three major credit bureaus -- Experian, TransUnion and Equifax -- use different scoring models, including FICO, which ranges from 300 to 850. Lenders also use different credit-scoring models, including FICO. Is there no wonder there is confusion?

Several years ago, largely because of pressure from consumer groups and public officials, the bureaus began selling credit scores to consumers. It was long overdue. Now, knowing their scores, people can take steps to improve their credit ranking.

Equifax and Fair Isaac teamed up to provide consumers with their FICO credit scores. The other two credit bureaus, TransUnion and Experian, decided instead to sell to consumers a score that was similar -- but not the real McCoy -- to the FICO score.

"The confusion and irritation of (consumers) is understandable," said Craig Watts, public affairs manager for Fair Isaac. "It could be avoided if Experian, TransUnion and their various consumer Web sites would only be upfront to consumers about the nature of the consumer scores they sell -- they aren't FICO scores, they aren't widely used (if used at all) by lenders. They are at best someone's estimate of what the consumer's true FICO score is."

To be fair, Experian and TransUnion do have disclaimers that inform consumers that the scores they provide aren't FICO scores. But the information is buried in fine print.

When you order your credit score from the three bureaus, here's what you're getting:

# Equifax's credit score is called "Score Power." Even though this uses the FICO scoring mode, you may get a different score than one pulled by a lender because the information in your credit file is constantly changing, which means your score can change as well. The score you get this week may not be the same score a lender would get from the credit reporting company the next. In fact, the last two statements are true for any score you may buy.

# Experian calls its credit score product "PLUS Score" and is based on factors similar to but not the same as FICO. The PLUS Score ranges from 330 to 830.

# TransUnion's credit score product is also not a FICO score, but based on the bureau's own proprietary scoring model, which is why the Los Angeles reader's score was outside the FICO range.

So in addition to scratching your head, you may still be wondering which score to buy.

Well, keep this Cooley quote in mind: "In the theater of confusion, knowing the location of the exits is what counts."

At least you now know why you may have gotten a different score than one shown to you by a lender.

"The key message is that there isn't one credit score, there are a lot of different credit scores," said Heather Greer, a spokesperson for Experian.

I think the key message here is that until there is one uniform credit scoring system, consumers will continue to be confused and probably be forced to buy more than one score from one source to get a rounded picture of their credit standing.

Michelle Singletary welcomes comments and column ideas, though she cannot offer specific personal financial advice. Her e-mail address is singletarym@ washpost.com. Readers can write to her c/o The Washington Post, 1150 15th St., N.W., Washington, D.C. 20071.

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Well there you have it! So make sure you check with FICO and get the monitoring system, since that is where your lender will begin his search. You could even ask your lender which bureau he'll be using to make his determination.

But check regularly because it's your financial future.


Do you have any credit stories, suggestions, solutions to share? Don't forget to add your comment

7 Steps to go from idea to cash!

Ok, so you've got a ton of ideas on how to make money and put some cash in your pocket, but where do you begin? Not to worry, I've got a few strategies to get you started. These are not the only way, but should give you a boost in the right direction.

1 Skills vs. Experience

What are your skills? What are you really good at? Maybe you are good with people, or are really technical and analytical. Are you a good organizer or have writing skills? Your skills will be extremely vital to the success of your endeavor.

Example - Maybe you are a stay-at-home mom, chances are you are a good planner, organizer, problem solver and multi-tasker.

What about your experience. Have you worked as a teacher, an attorney, a manager or a community organizer? What are you really good at? Consider what you've done in the past. Use these skills and experiences to determine what you bring to the table and what you need to get your new venture off the ground.

Write your skills down, get friends and colleagues to help you assess your best attributes

Did you know you can use OPE and OPS? You can borrow others peoples skills and experience to accomplish your business goals. If you are good with sales and people, but not a good organizer, then find someone with those skills and put them on your team, or hire them on a consignment basis.

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2. Find a model and duplicate it
There is nothing new under the sun. Chances are some one already has a successful business like the one you are starting. Find a company doing what you want to do. Do your research, then call them up and interview them. Take a field trip and investigate the business you're considering. Determine your target market, who needs your product/service
Locate them and hang out where they are. You'll be surprised at what you'll learn. You may even be able to do a joint venture or take their overflow work.

3 Income streams

Write down how much money you need to make per month, per week and per day to cover your expenses and then to profit. Then come up with as many ways to generate revenue from your venture as you can.

Example: If you can do it, can you teach it? Can you record to audio or video and sell it? Can you have others teach it and receive percentage of their profits? How many ways can you teach it, live classes, seminars, workshops, ebooks? Write them all down.

4 –Draft a plan.

Outline your concept. Determine what makes your business different from others. What your twist? What's your USP (unique selling proposition)? Then create your action steps. Sequence your strategy, what comes first, second, third and so on. Get someone else to help map out your


5. Team Power

Since success is not created in a vacuum, the fastest path to cash is with a team. Figure out what team members you need:

1. Vision team - help to get a clear understanding of what your business looks like
2. Professional team - helps with entity structure, legal formalities, bookkeeping, accounting
3. Sales team - execute sales
4. Marketing team - create and promote marketing strategies and materials
5. Coaching team - helps you stay on track, stay focused, analyzes your strategies and provide constructive criticism to improve your results. Also your coach and mentors should hold you accountable and not let you off the hook for achieving your dream.

6 -Develop the Marketing and Sales Strategies

Determine who are your clients and go where they are. Are they online; if so, where? Forums, social networks, online groups? Are they offline? Do they network with associations, trade organizations, community groups, business referral exchanges, churches, schools, etc.?

Find out what they need and what media are they using.

Beginning marketing ideas: newsletters, newspaper ad, internet sites, radio, email campaigns, posters and flyers, parties or get togethers, third party endorsements, craigslist, twitter, facebook, etc.

Make your marketing pieces full of benefits for the customer. Communicate to them in plain english. Craft your message to let them know why your product will help resolve their problem, or enhance their life

7. Ask for the sale

No matter how good your product or service is, no matter how many networking functions you attend, how good your website looks, you will never make any money until you ask for the sale.

Make the sales process simple and easy for your customers. Your website should be simple to navigate and your call to action should be clear. Let them know what to do, then make it easy
for them to do it.

People buy from those they know, like and trust. Help customers get to know
you. Use video in your marketing campaigns to help customers get to know your
personality. Use 3rd party endorsements for added credibility. Provide samples or FREE services if possible, then ask for feedback. Use these are testimonials. Provide value.

Always give more than your customer expects. Be truthful, don't exaggerate. And don't be afraid to ask for the cash!

There you have it! Seven simple steps that will help you go from concept to cash!


Now get off your duff and make it happen!

Gail

If you have a business idea and would like to bounce it off of someone to help you
come up with strategies and implementations, contact me at divatalk@helloworld.com


Gail Turner Brown, CEO of Small Business Network TV. Business marketing strategists and consultant. Provide tools, resources and information to small business owners to start, build and grow their.

Save for college, feed a child, with NO out of pocket money!

What if you could turn your everyday spending in to college savings?

What if you could help feed America's children in need?

What if you could do all this without it costing you a dime?

Would you consider that's a pretty good deal? I thought so.

That's why I teamed up with Upromise and the Feed the Children

What's this all about? I'm glad you asked. Let me tell you about it.

I am a marketing consultant and one of my clients is Upromise. Upromise allows you to save toward college for anyone you designate just by doing what you
already do, shop. When you buy groceries, go out to eat, buy gas, go to your local drug store,
a percentage of your receipts is placed in a College Savings account. Join Upromise for FREE and let hundreds of America’s leading companies help you save for college

Not bad, huh?

Heat or Eat? America's parents are facing a tough choice. Help families avoid the dilemma of heating their homes or feeding their children.

Helping Hungry Children and Families in the United States

Feed The Children believes that no child should go to bed hungry in this blessed and plentiful country. There are many ways that we try to feed those in desperate need right here in America.

You are helping us make an important difference in the lives of families for whom hunger and need are daily realities.

What do these two have to do with each other? Nothing, except I've decided to combine these two powerful organizations to make a huge difference. When you enroll in Upromise and register your grocery store, credit/debit card or pharmacy card, you will begin building college savings, I will donate $2 to Feed the Children The idea is for a lot of people to do a little, to make a big difference in the lives of millions.

My goal is to feed 2,000 families during the month of March..

Isn't that awesome!, So let me recap:

You enroll in Upromise for FREE, register your grocery store, pharmacy or credit/debit card to begin your college savings when you shop for everyday items.

1. I will donate $2 to Feed the Children to feed hungry children in the United States
2. You will receive special savings and bonuses for items you buy everyday while saving for college
   
3. and we will all help in eliminating hunger in America for so many needy families
   

It can't get any better than that. Imagine, never can so little do so much for so many. And you didn't have to spend a dime, nothing, nada, zilch!

Why not get started now. The deadline is March 31st for this promotion. So do it now while you're thinking about it.

Join me as we help make a difference in the lives of many struggling families in America to provide higher education and put food on the table.

Do it today!

Gail Turner Brown
Small Business Network TV

P.S. Remember it costs you NOTHING when you join Upromise and begin saving for college for anyone, and I will donate $2 to Feed the Children

I’m Facing Financial Leprosy, Help!

The economy is not in the greatest of shapes at the moment, you’d have trouble borrowing a pen from a bank let alone money and if you entered this crisis with a credit history report that looked like a marker pen wielding, epileptic, tic-tac-toe fanatic had gone to town on it, then you haven’t got a chance.

Lenders don’t want to know you unless you have a credit history that resembles Christ’s resume; but all is not lost. This is the time when you should look to preserve what credit score you have and possibly improve it by some positive action.

We’ve already mentioned that lenders will treat owners of bad credit histories like social lepers, well that’s not completely true. If you are a home owning leper you may have a chance!

With the government urging banks and financial institutions to start lending again the likelihood is that the first borrowers who will benefit, are those able to offer collateral so if you fall into this bracket you may be able to apply for a secured consolidation loan, it won’t be easy though, and hopefully, by the time you will be able to do this, you may even have some value left in your!

If you don’t have any collateral I’m afraid it is about making the best of a bad situation and the best way to do this is to manage your debt effectively. You need to work out your income and your vital expenditure (mortgage or rent, utility bills, telephone, car costs, taxes, gas, basically everything you need to live, get to work etc.). Now, what you have left over is what you have available to pay off your unsecured debt each month.

Your biggest concern should be if you are struggling to make monthly payments yet you have more than enough to cover your monthly repayments – this generally means that you are partying way too hard and you probably have a drug problem too, get some help. If, however, and I suspect this maybe the case, you don’t have enough left over to cover your debts, then you need to start the process of negotiating with your creditors to lower your monthly payments before things start to get ugly and you’re debt keeps growing.

There are two ways to go about this; the first is to approach one of hundreds of debt management service companies currently available, many of them are excellent but just as many deserve to be put up against a wall and shot. I don’t, and never will, condone this sort of behavior towards financial institutions, it doesn’t work for a start; best to hit them in the pocket.

Seriously though, check out whoever you are considering speaking too with the Better Business Bureau first.

Debt management companies are excellent at negotiating with your creditors and will manage your debt by asking you to make a singular payment to them each month which they will distribute between your creditors, after taking a small management fee of course, even the non-profit companies have to eat!

The other alternative, and it is the one I would advise to use is as above but you act as your own debt manager; it is not as hard as you may think and the biggest benefit is you remain in total control the whole time.

If you want to know about the methods that the banks and other financial institutions hate people using to eliminate their debt quickly check out the sites at the end of this article. I have knick-named these methods ‘MEL’, which stands for Moral, Ethical and Legal, no wonder the banks hate them!

By: Daniel Major

Now Is the Time says Donny Deustch!

People are scared! Everywhere you turn the bad news keeps coming in. Recently the jobs report came in at 10% unemployment and over 100K people lost their jobs in 2 days. Whoa! that's enough to make your hair stand on end! Are you wondering is your pink slip next?

If you have finally figured out that job security is an 'oxymoron', and you have watched your 401K turn into a $1k and discovered your blood pressure and your home value is about the same, chances are you maybe scared to death and ready to jump out of the nearest window.

Before you take the plunge think about one valuable asset you may have forgotten. Think about it, there is someone you can always count on to get you out of any financial disaster. Someone who can never be fired and that has the capability to build a huge portfolio that can never go down. It's YOU! Yes, you heard me right, "You" are the best asset you can have. Your ability, your brain power, your creativity and imagination.

According to Donny Deustch of the "Big Idea", now is the best time to rely upon you. Let's face it, you can't rely upon anyone else. Not your boss, your company, your government. It's time for you to invest in "YOU".

I know what you are thinking " ARE YOU CRAZY IN THIS ECONOMY?" Stop yelling at me and just listen for just a minute. Even during the "Great Depression" there were millionaires created because they understood that the best time to create and innovate was during bad times.

This will be the most innovative, creative, robust time in a generation. We have to learn to do more with less. So why not put your thinking cap on and figure out what you want to offer. Everyone has great ideas, often times million dollars ideas, even you.

Listen to Donny Deustch of the "Big Idea" and hear what he has to say about it.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Ok, feel better now? Maybe you are still a little skeptical and think no way can you, just an ordinary Joe or Jane can do this.. is that's what's going through your mind? I see you still need some convincing. Take a look at this lady. Donny Deustch highlights her in his new book.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Come away from the window, sit down at your desk, take out pen and pad and start sketching out your "Big ideas". I know they are in there. Just let it flow. Don't second guess or judge just allow your creative juices to go for it. You have nothing to lose. I know you can do it!

Get on your mark, GO!


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Need some help with your ideas? Would you like to have someone to bounce some suggestions back and forth in a positive, supportive way? Looking for a way to share your thoughts with confidence? We are here to help work with you to get your ideas out of your head and into the marketplace. Just contact us at sbntvlive@gmail.com for a FREE 30 minute brainstorm session. Our consultants and strategists will help guide you toward your "Big Idea".
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