Archive for October, 2009

A price comparison Internet company is now urging the government to formulate a better regulation of credit score ratings for consumers to encourage people to seek better credit card deals and maximize their financial resources.

Toby Van Der Meer, managing director of money at www.moneysupermarket.com, notes that cautious and wary consumers are not keen on getting even the best credit card offers, as their application could potentially impact their credit score rating in a negative manner.

Van Der Meer notes that the current credit rating system places consumers at such a disadvantageous position when they are shopping around for the best offers.

While newbies in the plastics would jump at the next opportunity to apply for a credit card, those who know better easily ignores a chance to get better interest rates and keep their existing cards instead. In some cases, the consumers would rather not maintain a credit card at all.

Each time a consumer applies for a credit card, it gets filed, documented and referenced upon for their credit score rating. This means that both credit card application approvals and rejections are kept on record. Naturally, some applicants who shop around get mostly approvals, and some others get mostly rejections. Whatever the case may be, these application records affect the credit score rating of the credit card applicants. Ultimately, it becomes a “no-win” scenario for the consumers, who are the prospective credit card applicants.

Consumers who want a clean and safe credit score rating would rather resist applying for a new credit card than risk tainting their credit score rating.

“Our research shows that many consumers don’t understand the impact shopping around has on their credit rating,” Van Der Meer stressed. “And those that do may be missing out on the best deals because they’re reluctant to make numerous applications in case it has a negative effect on their credit score.” In conclusion, Van Der Meer says, “(It’s) effectively a no-win situation at the moment.”

It is for this reason that the price comparison web site moneysupermarket.com has been lobbying the government to provide an improved system to regulate credit score ratings.

“We have asked the Treasury Select Committee to press for change in this market,” Van Der Meer announced. He added, “We need to see greater transparency and fairness in the consumer credit market, so consumers can shop around freely for products without any impact on their credit files.”

Writer: Arlene

In Wisconsin, anything can happen when you’re on the road – this is why you will need to have auto insurance to back you up. Having one will protect you from any financial losses in case you meet a driving accident. By paying a premium each month, you will be backed by an auto insurance company giving you the security for yourself, your car and other drivers as well.

Wisconsin auto insurance will also give you liability, property and medical coverage. The liability coverage will pay for your legal responsibility to others in case you have inflicted body injuries or damaged properties. The property coverage will pay for any damages made to your car or theft. And lastly, the medical coverage will be used to pay for the cost of treating injuries, rehabilitation and sometimes funeral expenses. There is also collision insurance which covers the damage to your own car.

In applying for a Wisconsin auto insurance, most companies will be asking you for your driving record, age, vehicle model, driving mileage and residence since these factors can determine and affect how much your auto insurance coverage will cost.

Young drivers – normally those under the age of 25, are generally considered to be high risk so the insurance rates are usually higher than the usual. Gender sometimes matter as well. There are insurance companies that give lower auto insurance rates to female drivers compared to male drivers. This is because females are generally safer drivers compared to males.

If you have a clean driving record for over three consecutive years then auto insurance companies would willingly extend their policies for you and give you lower premiums.

Compact cars like sedans have lower rates compared to sports models or exotic cars. Your car’s condition would matter and this would tackle the age of your vehicle and its maintenance. If your car is in a prime condition then you will be getting better premium rates.

Your financial status will also affect the rate of your insurance. If you have a good credit score then you will be paying lower premiums compared to those who have bad credit scores.

Your residence is also a factor since people who live in the city pay more compared to those who live in the country side. This is because there are higher crime rates in the city. The distance that you travel or mileage is also taken into consideration. Lower miles mean lower rates.

Writer: Marie Saycon

When it comes to car insurance most car owners always look for the cheapest rate. Unfortunately, many car owners don’t have any idea on how to find the right insurance deal for their car. Most of them just think that finding the insurance company that can give them the lowest rate is enough. Being aware of the few factors affecting your car insurance rate can give more value for your money.

Canvassing around for the best rate is basically important. However, there are other things that car owners need to put into consideration to get that cheapest car insurance rate they are looking for.

Wrecks

Car owners don’t have any idea that their driving performance is included in evaluating the rate for their car insurance. Insurance companies are good at calculating risks so avoid wrecks to avoid getting a higher car insurance rate. Wrecks can absolutely sky-rocket your car insurance rate.

Violation tickets

Most car owners lose safe driving discounts for violation tickets. You should avoid getting violation tickets such as illegal parking and speeding tickets. Insurance companies keep your records for three years so you have to avoid reckless driving to keep your driving record clean.

Driving education for young drivers

Including a young driver in your insurance plan can give you a little bit higher rate. Young drivers take with them a lot of risk and insurance companies know this very well. For the first few years, young drivers can pull up your insurance rate. However, if young drivers can show how responsible they are, then you can get more or less 25% reduction in your car insurance rate. This can be done by taking a driving education course and getting good grades. This minimizes the insurance company’s risk evaluation thus giving you lower premium.

Writer: Jodel

People with bad credit scores and history usually find it difficult to have their credit card applications approved. However, unsecured credit card offers are now accessible even for those who have bad credit history. When one applies for one of these unsecured credit cards, one’s application gets approved right away despite of one’s bad credit score.

Those planning to apply for unsecured credit cards should be aware that they have higher interest rates than those that are secured.  Additional costs for those who have bad credit scores are now a reality particularly after the recent credit crisis.

A tough choice

Putting a stop to one’s credit card usage may be advised to help reduce debts. However, one should also take note that rebuilding one’s credit score may be done by using credit cards and establishing a more reliable payment history. Applying for and using credit cards again to rebuild one’s credit history after a financial disaster is a choice that should be made after thorough consideration.

Although prepaid credit cards get approved easily, they are not helpful at all in rebuilding one’s credit score. They need deposit funds for collateral and do not meet credit requirements.

Here are some tricks of the trade on how to look for and choose the right unsecured credit card offers to build a new credit line.

Comparing offers

One common mistake among consumers is accepting offers that get approved first. A wise consumer should take the time to compare multiple offers first before deciding which credit card offer to accept. One can simply use the Internet to compare credit card company offers. There are a lot of forums online that discuss the pros and cons of certain unsecured credit cards.

Reading the fine print

Unsecured credit cards make money by charging their customers with too high charges like annual processing fees, high interest rates, low credit line limits, high missed payment fees and up front deposit fees. Since these companies know that one has a bad credit history already, they will take advantage of this fact by charging one with exorbitant fees every time there’s a missing payment. It is important to read the fine print of the agreement letter first and look for unnecessary fees. One can ask questions before signing the agreement letter.

Changing one’s credit habits

Since companies that offer unsecured credit card offers expect the customer to maintain their bad credit habits, it is highly advised that one should start changing this bad practice. To avoid paying the too high late payment fees, one should try paying on time.

Although unsecured credit lines are easy to apply for those who have bad credit history, their costly fees and penalties will surely contribute to difficulty in rebuilding one’s credit score. To avoid these unreasonable fees, one can simply change his old credit habits.

Author: Kai