Archive for August, 2009

These days, people are often complaining about how hard it is to obtain credit and how even the credit score that had once been “very good” had been demoted to simply “good”. What must be done to have a good score to get a good deal on a loan?

What is It?

A credit score is simply a score, a number that represents the level of creditworthiness of a person – the higher the score, the better. Although there are many different types of tools used to gauge this score, the FICO system is the one most commonly used. FICO is comprised of the following:

1. how timely the credit is paid (35%),
2. how much credit is owed in comparison with the credit limit (30%),
3. the length (i.e., number of years) of the credit history (15%),
4. recent credit (10%), and
5. various credit types availed of (10%).

Getting a High Score

Because the final approval of the loan will depend on the borrower’s credit score, getting a high score is ideal – something around 700 to 850. Looking back into the FICO system, it is easy to see that the timeliness of payment is the most important item. According to the guidelines, delinquency could only be reported by the lender when the credit is 30 days past due; still, to ensure that this factor is maximized, the borrower should always pay on time.

The second significant factor is the amount owed versus the credit limit. Most finance experts advice borrowers to keep the credit below 20% of the limit. Still, this percentage can be affected when a credit card is cancelled or if the company or the bank lowers the credit limit. To keep the risk at a minimum, borrowers should always check their limits and stay below 20% – if going beyond the limit is really unavoidable, applying for another credit card can actually add to the overall limit.

The last 3 factors may not be as significant as the two but when these are combined, they still total at 35%. It is important to understand that the longer the good credit history is, the higher the score. Therefore, it is best to keep old credit issuers active.

Still, it all boils down to how far is one willing to go to obtain a high credit score – is it worth applying for a new car loan plus housing loan just to boost the 10% portion of the “various credit” or the “new credit” factor? Maybe not.

Writer: JAdalia

If you are running a business and make use of vehicles to transport goods, employees or important clients from one place to another, then business car insurance is something you might want to consider getting.

Basically, there are two types of auto insurance policies: personal car insurance and business car insurance. The former offers coverage of vehicles for personal use while the latter covers those used for business activities whether they are company-owned, leased or for employee use.

Business car insurance offers larger coverage compared to personal car insurance as vehicles for commercial use come with greater possible risks: the risk of losing goods, injuries or death of a person, as well as vehicular damages.

Also called commercial auto insurance, business car insurance is essential in every enterprise that makes use of transporting vehicles as it helps cushion any damages they may incur or cause during company transactions. It is crucial to take note of this as insurance companies are very strict when it comes to coverage policies.

Sometimes, employees and businessmen tend to use company cars for running personal errands. When accidents or other damages occur during these times, insurance companies will have the right to deny possible claims and would instead let you shoulder all the settlement costs.  Hence to avoid these kinds of circumstances, employees must be well-versed and well-reminded of the policy. Insurance companies should as well be made aware of the number and terms of use of the insured vehicles.

There are various options you can choose from when getting business car insurance, usually depending on the type of coverage you want to avail.  These ranges from the basic ones such as basic auto liability coverage, to customized ones where you get to decide which settlement costs will be covered or not be covered by your insurance company. Shopping first for business car insurance or getting an insurance agent to assist you will help you pick the best and most convenient insurance policy for you.

Since commercial auto insurance safeguards you from greater risks, it also comes with a bigger price tag. However, insuring your company properties as well as the lives of your employees will in the long run save you from shredding greater amounts of money and possible lawsuits in the future in case accidents do happen during business operations.

Be reminded that company vehicles and people are good investments, so it is always best to be ready for possible external setbacks to keep your businesses on the right track.

Writer: ABalanag

A lot of people do not consider insurance policies as investments they can fall back on when something uncontrollable happen or simply when they retire in the future. Insurance for old age is a matter that should be deemed important. Who would not want a comfortable life when retirement comes?

I was talking to my insurance agent a couple of weeks ago and I was offered a career in selling insurance policies. She said that I will be making my prospective clients a big favor by discussing their policy options, and not the other way around. Those who do not think twice about insurance policies probably do not have an idea about the benefits of pension plans, or any other insurance plan for that matter. They will have to thank me, she said, later on when they finally see the light and understand insurances.

What are the benefits of a Retirement or Pension Plan, you might ask? Well, it actually depends on the company which you will choose. Investing in the right and stable company is the key to a successful and sound decision. You would not want to invest in a company that just might announce bankruptcy, in say fifteen years, would you? Weigh your options and study the quotes of your short-listed pre-need companies. Talk to your agent/s and express your concerns. Some companies, you will be surprised, listen and consider your needs now and in the future. Your agent might be able to design the perfect plan for you. He will whip up a plan that fits your budget now and your would-be lifestyle after your retirement.

After having chosen your partner company, then you can look further into the benefits that you may reap for investing early on. Insurance quotes are cheaper when started early. You can be done paying in five years for lifetime coverage. It is actually a good option to start paying for an Old-age Insurance as soon as one starts working and earning own money. Some questions that might be lingering in your thoughts now: Will my coverage take care of my medical needs? Will my beneficiaries be covered too? Things like these are also considered. Most policies cover most or your needs. They are not “insurances” for nothing, right?

Yes, the government has programs for its Senior Citizens, but the assurance of a personal plan seems more comforting. Don’t you think so?

Writer: KSalvador

Expect many changes in your credit card policy as President Barak Obama finally signs the CARD act into a federal law. The law, which stands for Credit Card Accountability, Responsibility, and Disclosure, took effect last Thursday.

Partial Launch

The law will be fully implemented on February next year. As of now, only some provisions of the law have kicked in. One of which is the week’s increase in payment notice. Credit card companies should now mail you 21 days before your bill is due. Previously, you are only given 14 days’ notice.

Also, if your credit card company plans to raise your interest, you must be notified 45 days in advance.  That is a month’s increase from the previous notification period of 15 days. Another change that you should be informed of 45 days in advance is the increase in your minimum payment.

This will give you more time to look for a less expensive credit card. If you do not want to keep your card anymore, you can easily cancel your account by sending the company a letter. However, credit card companies are not required to give you 45 days’ advance notice if they plan to cut your credit limit or close your account.

In another provision, you can now opt to avoid rate increases in the future and pay off your remaining balance under your present rate. Taking these options, however, will invalidate your card. In other words, you can no longer use your credit card once you notify the company that you want to avoid rate increases. You will also be required to payoff your remaining balance within five years. This implies that you may have to pay higher monthly dues in the next five years than you did in the previous years.

Taking Advantage

Analysts say that credit card companies are increasing their rates now while they still can. They are also increasing credit standards for new applicants and lowering the credit limits of current clients. Within this week, about 24 million card holders reported a cutoff on their limits. Even clients who have good credit scores saw cutoffs on their credit card limit. Another measure that credit companies take to maintain profit is by increasing transfer fees.
The CARD law may aim to protect 80% of the population who hold credit cards, but we still have to find out its full effects.

Writer: BValdehueza

Paying for auto insurance is a necessary evil when it comes to owning a car. No one would willingly shell out cash to compensate for the premiums; however, the thought of facing an accident often makes people think twice. Luckily, the availability of online auto insurance quotes presents time and savings benefits. The following tips ensure that you save money effectively.

By allotting time to shop around by yourself, you can instantly save a lot of money. The problem is that we’re usually discouraged by the thought of contacting insurance companies for their rates, or by having to personally visit several offices. Thankfully, online shopping grants hassle-free alternatives to traditional shopping.

Nowadays, you can now request quotes from many auto insurance companies and get results in a matter of minutes. In effect, you save a lot of money by going through this task single-handedly.

You can also save money on your premiums by delegating all your coverage’s to only one insurance carrier. For example, you can opt to combine your home and auto insurance to only one insurance carrier. This entitles you to save 25% or more. That’s a lot of money saved yearly.

Accident-free discounts are granted to those who didn’t encounter any accident during the past several years. The amount of discount is dependent on the insurance company, but it usually ranges from 5-10%. You can also save an additional 5% by taking a defensive driving course.

The installment of safety equipment such as car alarms and safety restraints may also grant you additional discounts. If you are involved with the military, you may also be granted a military discount.

Online auto insurance quotes and lowest possible premiums are easy to get nowadays. And if you qualify for additional discounts, you can really save a lot of money.

Writer: RDavidas

Statistics estimate that roughly 60 percent of Americans today are obese or overweight. This means a lot of people missing out on a good quality of life.

An overweight body is prone to a variety of serious health concerns, including diabetes, cancer and heart ailments. Keeping weight under control keeps you far from these ailments and lets you get more out of life. a

If you have gained excess weight, the best time to start on a weight loss program is now. Natural weight loss programs generally focus on two areas: diet and exercise.

Dieting does not mean you should quit eating altogether. Nor does it mean drastically changing what you eat. The key is to pay careful attention to your eating habits and your lifestyle. Getting into a natural diet regimen should not cause you to quit too early that you eventually miss out on the results. Many begin with a firm determination but end up frustrated because of unrealistic goals.

Start by taking note of the food you eat. First, take a look at your snacks and replace them with healthier options. Substitute the bag of chips for an apple. Swap the soda for fresh fruit juice. Slowly take yourself away from the junk food. Taking baby steps helps you stick to the diet regimen longer.

Another aspect to losing weight is a regular exercise routine. This will help you burn the excess calories and cause you to lose weight. Getting into an exercise routine should not be too rigorous. And it is quite unrealistic to lose 15 pounds in a week.

Just like dieting, ease your way into the exercise routine. Begin with light routines. Move on to more challenging routines as your body adapts to the healthy kind of stress that exercise gives.

These are just ways to help you ease into a weight loss regimen, but you still need to have a full action plan with realistic goals. The good news is that there is a lot of resources that will help you lose weight.

One weight loss guide includes a proven method to help you lose 9 pounds in 11 days. You can learn more about losing 9 pounds in 11 days on the next page.

Many people have a hard time losing weight simply because they don’t know about the proven weight loss methods. The following page contains a simple weight loss plan with a step-by-step guide. The pointers are easy to follow and incorporate into your daily routine. The best part is that it won’t require extra effort just to get your weight under control.

This guide is ready for you only if you are serious about weight loss. A slimmer, sexier and healthier body can begin today. Otherwise, excess pounds will just pile on day after day, making it more difficult to lose weight. You need to decide to be healthier now. Stop wasting time. Start your first steps to a healthier and sexier you today.

Writer: TSimon

Guaranteed asset protection (GAP) insurance closes the gap between standard car insurance benefits and the amount still owed by a car owner in the event of road accident, theft and related risks. GAP insurers will pay the amount beyond the coverage of a standard insurance policy should the coverage is not enough to fully discharge the debt of the car owner.

How are GAP insurance claims computed?

Let’s say that a GAP-insured owner had a $27,000 car and still owes $20,000 to his car dealer, which is amortized throughout a three-year period.  The car is damaged in a road accident and is revalued by the owner’s insurer at $15,000. The owner is thus relieved of his $15,000 debt through his car insurance, but still owes $5,000. This is where GAP insurance proves to be beneficial, as it shoulders the remaining $5,000 debt (the difference between ordinary insurance claims and the total debt of the car owner).

Is GAP insurance for me?

GAP insurance is a wise investment for those who are at high risk of paying more than what their cars are worth. For those who have a low down payment, a car that depreciates rapidly, or a high-interest loan, GAP insurance offers security and peace of mind.

Lessees have also good reasons to buy GAP insurance. Leased cars are under the liability of lessees, that is, they are obliged to pay the full-price of rented cars if they get stolen or damaged. Since such financial risks are quite high, many lease contracts actually require GAP insurance on the part of the lessee.

On the other hand, buyers that have paid a large down payment will benefit less from GAP insurance. Since amortization is set at a minimum level, the risk of paying more than the market value of a car does not warrant GAP insurance.

Opting out of GAP insurance

As discussed above, GAP insurance is not cost-effective for all types of car owners. However, many car dealers are automatically adding GAP insurance contracts to car purchases regardless of the lack of need for such insurance.  Consumers have the right to opt out of GAP insurance contracts that are readily sold along with their car mortgages should their circumstances do not warrant such insurance.

What to look for when buying GAP insurance?

Discounts – A number of insurers do not openly advertise their discounts, but they are nevertheless available to consumers who are on the look out for the best prices.

Coverage for used cars – Some GAP insurers do not cover vehicles bought from the second-hand market.

Insurance premiums – Remember that cheaper insurance premiums often come with a price. Read GAP policies and verify if the coverage meets your needs at reasonable costs.  Pay particular attention to collision provisions, disclaimer, and terms for the cancellation of contract.

Writer: EVillamin