Category Archives: Guests

Expansion of the Money Reasons site thru a New Writer

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As you may have noticed, I’ve haven’t been posting as much as I use to…

That said, today I’m pleased to announce a new writer on the site!  While she is busy with her own blogging efforts, she has agreed to try to post occasionally for the Money Reasons site!  I’ve seen her writing style and I think you’ll find it a very refreshing break from mine.  Hopefully, you’ll like both of our writing styles, because I intend to get back in the saddle again and give blogging another try too.

Honestly, I’m excite for this new writer to start but at this point all I can say is that she’s coming soon!

Small City Fireworks

Thanks,

Don

Smart Financial Move When You Need Quick Cash

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The Smart Financial Move When You Need Quick Cash

Managing your finances is a constant juggling act, and every now and then it will become a bit too much to handle. Life can be incredibly unpredictable, and this means that from time to time there will be sudden unexpected expenses that you have to face, and as well as this there are always time of the year which can be a lot more expensive than others. When it all becomes too much it can start to have a negative impact on the way in which you feel and live your life, and if this ever happens then you need to take steps to counteract this.

It is perfectly natural to need to borrow some money from time to time, and this could be to cover expenses, repay debts, you may have an investment opportunity or just need cash to spend on yourself, so you should not feel bad if you need to borrow money. What you do not want to do though is to borrow from friends or family members, as this is an arrangement that can very easily turn into a terrible situation and put strain on the relationship. Even borrowing small amounts can change the dynamic of the relationship, so this is certainly not the wise financial move to make. Instead you can take something out called an unsecured personal loan, which is a type of loan where no collateral is offered up; instead it is based on your creditworthiness.

 

The Benefits of an Unsecured Loan

The advantages that unsecured loans offer are that they are the best way to get your hands on some quick cash, and with some companies, you can even get it the same day as your application. As well as this you can borrow up to around £1000, which should be plenty to cover your needs, and this is spread out over a repayment schedule between 3 to 12 months. The application process can be done online, and this makes it a simple and stress free way for you to get the money you need, without putting strain on important relationships that you have. So, if you are finding the juggling act a bit too much and need some quick cash then you can easily soothe your financial concerns with an unsecured loan, and the repayment plan will be spread out and easy to manage as well.

 

The above article is a guest post provided by Ralph
As for the content, I can neither agree or disagree the contents as I have no person experience with the content of the article above.

Thanks for being a guest contributor Ralph,

Don

 

Be Green and Save

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Lightbulb

Getting Green Ideas to Save Money

 

Be Green and Save
Let’s face it, saving money can sometimes be a chore, it can take a lot of effort and some serious willpower. However, if you make some small adjustments to your general lifestyle and some small alterations around the home, you can save some money by being green. Here are some tips to get you started:

 

Can you live without a car?It’s said that the average annual cost of owning a car is around $8,000, which includes the cost of insurance, payments, fuel and any maintenance costs. If you can live without a car then you can instantly save a lot of money and it’s a great benefit to the environment. If you must have a car for general use then you could consider buying a car that is more fuel-efficient than your current vehicle, it will help to save you money in fuel and maintenance costs.

Be clever around the home.
Try to be clever and frugal when dealing with things around the home. I read a stat that recently said around 25% of electricity, heating and hot water is wasted in an average home. Try adjusting your boiler temperature to save some money, and only put the heating on if you think you really need it.

Also make sure your home is energy efficient, make sure your windows and any cracks around the home are properly sealed to keep heat within your home. It has been said that by conducting some simple energy audits around the home can save you 10% on heating costs.

Consider some lifestyle changes.
There are many small lifestyle changes that can make a huge difference. Do you drive to your workplace? Have you considered cycling instead? You can save your weekly fuel costs and help the environment at the same time. Also, do you purchase your meals in work every day? Consider taking a packed lunch with you to save some extra cash.

Keeping on the subject of food, according to a book called “The Cheapskate Next Door“, a typical US family spends around $4,000 on meals outside of the home a year and you can save 75% of this simply by eating more at home by buying fresh produce. Eating at home can also be healthier than eating out as you know exactly what ingredients you’ve used.

Switch to energy efficient lighting – If you haven’t already…
We use our lights so much when we’re at home that they can account for up to 15% of our home energy bills. To save some money and do your bit for the environment switch out the old style light bulb for those that carry the energy efficient label, they can save you a huge 75% on your annual lighting bill.

 

Remember that when trying to save money you should make your savings work for you. As I’m based in the UK, I use a cash-ISA savings account (read more here) for my savings as the interest you earn is tax free, see what equivalent accounts you have wherever you’re based and reap the rewards.

FICO 101

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Do you know what your FICO credit score is?

Are you asking, “What is a credit score”?

Well, you had better get with the times if you don’t! Credit scores are used for everything from mortgages, loans, auto insurance, ordering utilities, buying cell phone service, renting an apartment, and even applying for a job, so here is a crash course – FICO 101.

Your credit score can be clinically defined as “a numerical expression, based on a statistical analysis of a person’s credit files,” used as tool “to represent the creditworthiness of person.” (So says Wikipedia.) The three major credits bureau each have their own formula for computing the scores, and they use competing scoring systems.

Your current creditors use this score to determine whether to increase your credit line – or charge you a higher interest rate. New lenders use this score to determine whether to approve a car loan or a mortgage loan and, if approved, what interest rate to charge, and the amount for which you should be approved. The higher the number, the better you look to lenders. People with the highest scores get the lowest interest rates.

MR: Mine use to be over 800, but I haven’t check in the last few years.

Just what goes into calculating the score? Everything in your credit report, with different kinds of information carrying differing weights, says Fair Isaac Corp. (FICO) Public Affairs Manager Craig Watts. The FICO scoring model looks at more than 20 factors in five categories.

1. Paying your bills (35% of the score) The most important factor is how you’ve paid your bills in the past, placing the most emphasis on recent activity. Paying all of your bills on time is good. Paying them late, on a consistent basis, is bad. Having accounts that were sent to collections is worse. Declaring bankruptcy is worst.

2. Amount of money you owe and the amount of available credit (30%)
The second most important area is your outstanding debt – how much money you owe on credit cards, car loans, mortgages, home equity lines, etc. The total amount of credit you have available is also considered. Statistics have shown that people who have a lot of available credit tend to use it, which makes them a less attractive credit risk.

“Carrying a lot of debt doesn’t necessarily mean you’ll have a lower score,” Watts says. “It doesn’t hurt as much as carrying close to the maximum. People who consistently max out their balances are perceived as riskier. People with the highest scores use credit sparingly and keep their balances low.”

3. Length of credit history (15%)
The third factor is the length of your credit history. The longer you’ve had credit, especially with the same credit issuers, the more points you get.

4. Mix of credit (10%)
The best scores will have a mix of both revolving credit (such as credit cards) and installment credit (such as mortgages and car loans). “Statistically, consumers with a richer variety of experiences are better credit risks,” Watts says. “They know how to handle money.”

5. New credit applications (10%)
The final category is your interest in new credit and how often you are applying. The model compensates for people who are “shopping” for the best mortgage or car loan rates. The only time shopping really hurts your score, Watts says, is when you have recent credit stumbles, such as late payments, or bills sent to collections.

What doesn’t count in a score

The scoring model doesn’t look at things such as age, race, gender, job or length of employment, income, education, marital status, length of time at your current address, whether you rent or own, and other information not contained in your credit report.
With that being said…these variables may not be factors in determining your FICO credit score, but lenders may consider all of those factors when deciding whether to approve a loan application.

Credit scores are not perfect

The major drawback to credit scoring is that it relies on information in your credit report, which is quite likely to contain errors. Checking your credit report annually can help alleviate some inevitable mistakes. If you plan to buy a house or a car, look at your credit report at least six months beforehand, to correct any mistakes on your report that may lower your credit score.

Recently enacted laws enable you to obtain a free credit report annually from each of the three bureaus. However, these days, it may be beneficial to belong to a service that enables you to check your credit report and FICO scores at any time. Not all creditors report data to all bureaus, or report it correctly. You have no control over which bureau a new creditor will use to determine whether to offer you more credit. Many services allow you to see your comparative reports with the scores.

In addition, with new credit requirements imposed after the bank bailouts and credit card reforms, banks are quicker to take actions that can lower your score. For example, they may lower your credit limit. This impacts your debt-to-credit ratio, and makes it seem like you are using more of your limit. They are also requiring higher score to get the best rates. More careful monitoring is necessary to keep up with this.

You have the right to know your FICO credit score at any time. Keep up with it, since this score is more important in your everyday life than you may realize!

This guest post was brought to you by CareOne Credit – they are Certified Credit Advisors. Check them out for any questions you may have on your credit!”?