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When I read this article, it made me want to throw something. I am not usually the type to act out but reading this was maddening. Now I count myself as one of those fortunate not to have lost their job in the past year and a half ( as the unemployment rate still stands at 9.6% ). For that, I am very grateful, however there were sacrifices including a wage freeze. It seems that things are slowly improving and the worst is behind us. According to what I have read, we all were not subjected to the stress of recession.
Read more: Congress Gets Richer While Unemployment Stays at Record Highs
Credit is a very important part of Americans day to day life. Some may even argue it has grown to be too much a part of our lives. Whatever your view is, it is important that you have the knowledge necessary to understand the credit system so that you may use that information to your advantage. Yes, there are certain practices that until laws are change the consumer is helpless but there is also information that can help you become more fiscally responsible and take control of your credit. First of all, Fair Isaac has updated their model calling it FICO 08. They were hoping to have the necessary updates made by spring 2008 so it should be fully integrated at this point. So below is what you need to know to master your credit score and make it work for you. 1- Scoring Range = 300 - 850 * 780 - 850 = Low Risk * 740 - 780 = Medium-Low Risk * 690 - 740 = Medium Risk * 620 - 690 = Medium High Risk * 300 - 620 = High Risk or sub-prime ( sound familiar ) 2 - Components used in determining your Credit Score * Payment History ( 35 % )
Consumers have finally won a battle that was long over due. Last May regulators began discussions on passing new banking rules that would stop some of what I consider criminal tactics, used in the daily business of the Credit Card industry. These in my opinion are the first real Pro Consumer rules to pass in my 27 years of existence. The banks will argue that they are going to lose billions of dollars. They are estimating as much as 10 billion at this point. However their argument has one rather large hole. The banks have calculated this using the revenue generated from the unlawful practices they have been using on consumers for years. Fees that if banks were the mafia they would have been charged with racketeering and loan sharking. But because they have "lobbyist" they have been allowed to screw the consumer in excess. Below is a summary of the Final Rule on Unfair Credit Card Acts or Practices. The Office of Thrift Supervision is urging banks to adopt this practices as soon as policies and systems can be updated but I will not hold my breath.
Small banks are now trying something to get depositors from the big names that have been decimated in the current economic crisis. They are offering something called Rewards Checking. Basically the promotion is, if you open an account and follow certain guidelines they will pay between 5% to 6% interest. In addition other banks are offering a sign up bonus. The amount varies but is roughly anywhere from $25 to $200 in cash or bonds. This can obviously be a good way to take advantage of the current environment to earn yourself a little extra cash. Remeber these two important things before signing up for any of these promotions. One, you must follow their requirements exactly or forfeit all the perks. Two, these are PROMOTIONS and in the fine print they remind you that they can change at anytime.
So the auto industry has their hand out for Uncle Sam , asking for some of the federal bailout. More specifically they would like 25 billion dollars to divvy up among themselves. General motors would get more than Ford and Chrysler. Now at first glance I was like , yeah we need to do this because so many people would lose their jobs. Then I thought about it more and I have to agree with the senators that have taken a firm stand against providing aid. These guys have run their businesses unprofitably for years. They have not kept up with trends, better fuel mileage and improved factory efficiencies through technology. They have also lacked in the style department when compared to their foreign peers. They became so complacent in the continued raping of their companies money that they may soon be without a company to run. So I agree that we should let them go out of business. It happened to the airline industry, why not automobiles. I am tired of my tax dollars being used to buy mansions for CEO's that are already overpaid.