2013년 11월 30일 토요일

About 'credit advice'|Credit Card Advice From An Insider







About 'credit advice'|Credit Card Advice From An Insider








               Unfortunately,               many               people               fall               into               credit               problems               not               because               they               are               irresponsible               but               because               they               listen               to               the               so-called               "facts"               that               they               hear               from               relatives,               neighbors,               colleagues               and               friends.

When               a               car               mechanic               is               giving               your               advice               about               credit,               it               might               be               best               to               check               the               facts               before               making               any               decisions,               especially               ones               that               can               affect               your               entire               future.

Misinformation               spreads               just               as               fast               as               good               information,               so               you               should               be               sure               that               you've               received               accurate               advice               before               going               any               further.

Following               are               the               top               five               credit               misconceptions               that               many               people               believe.
               Credit               Misconception               #1:               Your               Credit               Score               Drops               When               You               Check               Your               Own               Credit
               There               are               two               different               types               of               credit               checks:               soft               inquiries               and               hard               inquiries.

When               you               check               your               own               credit               -               such               as               ordering               a               credit               report               from               one               of               the               credit               bureaus               -               it               qualifies               as               a               soft               inquiry               and               does               no               damage               to               your               credit               score.

When               creditors               and               lenders               -               such               as               credit               card               companies               and               mortgage               lenders               -               check               your               credit,               it               is               a               hard               inquiry,               and               will               damage               your               credit               score               if               too               many               are               conducted.

The               reason?

Multiple               inquiries               produces               a               red               flag               for               lenders               because               it               demonstrates               irresponsible               credit               behavior.

Checking               your               own               credit               score               is               a               matter               of               personal               knowledge,               and               doesn't               do               you               any               harm.
               Credit               Misconception               #2:               It               is               Best               to               Close               Old               or               Inactive               Accounts
               Many               people,               when               they               order               a               credit               report,               discover               that               accounts               they               opened               twenty               years               ago               are               still               open               even               though               they               no               longer               use               the               credit               card.

In               an               effort               to               "clean               up"               their               credit               report,               they               close               those               accounts,               which               can               actually               harm               your               credit               score.

Your               credit               score               is               calculated               by               a               complex               algorithm               that               takes               into               consideration               many               points,               including               the               length               of               your               credit               history.

When               you               close               old               accounts,               it               shortens               your               credit               history,               and               may               keep               you               from               acquiring               loans               or               lines               of               credit               in               the               future.

If               you               want               to               get               rid               of               a               few               accounts,               start               with               the               newer               ones               first.
               Credit               Misconception               #3:               Paying               Off               a               Delinquency               Removes               it               From               Your               Credit               Report
               Unfortunately,               this               is               not               true.

As               soon               as               an               account               goes               into               collections               or               is               unpaid               by               the               borrower,               it               is               marked               on               the               credit               report               as               such,               and               will               remain               for               at               least               seven               years.

If               you               pay               off               the               delinquency,               the               creditor               is               required               to               mark               the               account               as               "paid",               but               it               will               not               be               removed               from               your               credit               report.

While               having               a               "paid"               delinquency               is               better               than               having               one               which               isn't,               you               should               still               know               that               future               creditors               will               see               the               delinquency               on               your               credit               report.
               Credit               Misconception               #4:               Co-Signing               for               a               Loan               or               Account               Does               Not               Initiate               Responsibility
               It               is               almost               never               a               good               idea               to               co-sign               on               a               loan               or               to               become               an               authorized               user               of               a               credit               card.

When               your               name               goes               on               an               account               or               loan,               you               take               financial               responsibility               for               whatever               money               is               borrowed               or               used.

This               means               that               if               the               principle               on               the               account               fails               to               pay,               you               must               make               the               payment               for               them               or               your               credit               score               will               suffer               just               as               much               as               the               other               person.

Unfair?

Certainly!

That's               why               you               should               be               careful               about               signing               your               name               to               applications.
               Credit               Misconception               #5:               Paying               Off               a               Debt               will               Add               "X"               Points               to               Your               Credit               Score
               As               mentioned               above,               credit               scores               are               not               simple               calculations               and               it               is               impossible               to               determine               how               many               points               by               which               your               credit               score               will               increase               when               you               pay               off               a               debt.

I've               heard               different               numbers               where               this               is               concerned               -               50,               75,               even               100               -               but               none               of               them               are               true.

While               paying               off               a               debt               will               improve               your               credit               score,               the               exact               amount               will               depend               on               many               different               factors.
               Check               out               CP               Rachel               Pickett's               article:               The               Importance               of               Having               Good               Credit.






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                   Recently               there               have               been               a               number               of               calls               by               liberals               ranging               from               President               Obama               to               Warren               Buffett               for               the               "wealthiest               Americans"               to               pay               their               "fair               share"               in               order               to               help               the               economy               recover.

    According               to               this               theory,               taxes               for               the               rich               were               cut               to               virtually               nothing               by               President               Bush.

    This               led               to               the               deficits               and               mounting               national               debt               that               we               face               today.
                   According               to               2008               tax               data,               the               most               recent               that               is               available               from               the               I.R.S,               in               the               Heritage               Foundation               2011               Budget               Chart               the               prevailing               liberal               view               that               rich               Americans               are               getting               a               free               ride               is               not               accurate.

    The               top               one               percent               of               wage               earners               paid               38               percent               of               all               federal               income               taxes               in               2008.

    When               the               view               is               expanded               to               include               the               top               10               percent               of               wage               earners,               the               richest               10               percent               of               Americans               paid               almost               70               percent               of               all               taxes.

    Conversely,               the               bottom               50               percent               of               wage               earners               paid               less               than               three               percent               of               all               taxes               in               2008.

    Democrats               have               not               said               what               percentage               of               the               tax               burden               they               believe               would               constitute               a               fair               share.
                   Interestingly,               the               charts               show               data               back               to               1980,               so               claims               that               tax               cuts               benefit               the               rich               can               be               examined               on               a               yearly               basis.

    Under               President               Reagan,               taxes               were               cut               in               by               the               Economic               Recovery               Act               of               1981               and               the               Tax               Reform               Act               of               1986.

    The               tax               data               for               the               top               one               percent               earners               shows               that               their               share               of               the               tax               burden               rose               after               the               1981               tax               cuts.

    In               1986,               their               tax               burden               rose               over               1985,               but               declined               in               1987.

    It               rose               sharply               in               1988,               before               declining               as               the               economy               slowed               to               a               recession               in               the               early               '90s.

    After               falling               with               the               recession               of               2000,               the               tax               burden               of               the               top               one               percent               rose               to               over               sixty               percent,               an               all-time               high,               in               2007               after               the               Bush               tax               cuts.

    The               tax               burden               of               the               top               one               percent               earners               has               doubled               since               1980,               in               spite               of               several               rounds               of               tax               cuts.
                   When               the               bottom               50               percent               earners               are               examined,               the               results               are               the               opposite.

    The               bottom               50               percent's               tax               burden               peaked               in               1981               at               7.45               percent.

    Their               tax               burden               declined               slightly               after               the               1981               tax               cuts,               but               fell               sharply               in               1986               and               after.

    In               2008,               the               tax               burden               of               the               bottom               50               percent               was               less               than               half               of               the               amount               of               their               1980               tax               burden.

    This               is               because               many               low-income               families               have               been               totally               removed               from               the               tax               rolls.

    An               astonishing               47               percent               of               Americans               don't               pay               any               federal               income               tax               at               all               according               to               Yahoo               Finance.
                   Because               of               the               system               of               tax               withholding,               many               people               may               not               even               realize               that               they               don't               pay               taxes.

    These               people               may               have               federal               income               taxes               deducted               from               their               paychecks,               but               then               get               a               refund               of               all               income               taxes               paid               when               they               file               a               tax               return.

    Unless               a               taxpayer               examines               their               tax               return               closely,               they               will               not               know               how               much               they               actually               pay               in               taxes,               or               whether               they               pay               them               at               all.
                   The               Tax               Foundation               publishes               data               which               examines               the               net               cash               flow               to               the               federal               government               from               the               states.

    The               most               recent               data               is               from               2005.

    The               states               that               send               the               most               tax               revenue               per               capita               to               the               federal               government               were               Connecticut,               New               Jersey               and               Massachusetts.

    The               states               that               paid               the               fewest               taxes               per               capita               were               West               Virginia,               Louisiana               and               Mississippi.
                   The               states               that               pay               the               most               taxes               do               not               receive               the               most               federal               spending               however.

    The               states               with               the               highest               ratios               of               federal               spending               to               tax               dollars               per               capita               were               New               Mexico,               Mississippi,               and               Alaska.

    The               states               with               the               lowest               ratios               were               Connecticut,               Nevada,               and               New               Jersey.

    In               practice,               this               means               that               blue               states               with               high               wages               and               high               costs-of-living               are               subsidizing               red               states.
                   Georgia,               which               ranks               29th               in               taxes               paid               and               40th               in               federal               funds               received,               has               historically               received               federal               funds               that               are               approximately               equal               to               the               taxes               that               it               sends               to               Washington.

    Georgia               ranked               34th               in               the               ratio               of               federal               spending               per               taxes               paid.
                   When               Warren               Buffett               tells               says               that               millionaires               don't               pay               their               fair               share,               he               isn't               telling               the               whole               story.

    Much               of               Buffett's               income               is               from               capital               gains               and               dividends,               which               are               taxed               at               15               percent.

    But               this               money               has               already               been               taxed               once               as               corporate               income,               which               is               currently               taxed               at               35               percent,               the               highest               corporate               tax               rate               in               the               world.

    Second,               Buffett               uses               the               charity               deduction               to               avoid               paying               taxes               on               much               of               his               income.

    He               is               a               generous               giver               to               a               variety               of               charities               and,               in               2006,               made               the               largest               donation               to               charity               ever               given               by               an               individual,               a               $37               billion               donation               to               the               Bill               and               Melinda               Gates               Foundation.

    This               gift               was               tax-deductible.
                   Buffett's               company,               Berkshire               Hathaway               owns               several               Georgia               companies               including               Berkshire               Hathaway               Homestate,               an               insurance               company               in               Alpharetta.

    Shaw               Industries,               the               world's               largest               carpet               manufacturer               which               is               headquartered               Dalton,               is               a               Berkshire               Hathaway               company.

    Berkshire               Hathaway               is               also               heavily               invested               in               other               companies               that               many               Georgians               recognize               including               Wal-mart               and               Costco.
                   Far               from               being               an               answer               to               the               country's               spending               problem,               the               Wall               St.

    Journal               reports               that               millionaires               are               an               endangered               species.

    Between               2007               and               2009,               the               number               of               millionaires               fell               from               390,000               to               237,000.

    This               is               a               decline               of               39               percent.

    With               fewer               millionaires               to               "share               the               sacrifice,"               Democrats               will               have               no               choice               but               to               turn               to               the               middle               class               to               finance               their               spending               spree               unless               federal               spending               is               cut               sharply.






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