Money With Google

Many more ways that Money With Google can save you money - The Top Ways Your Credit Can Affect Your Mortgage Application:

Everyone dreams of having their own home one day. Many people start out in an apartment and dream of what it will be like when they can finally get a home of their own. Others start out in a small starter home and count down the years until they can make it into a newer, nicer and bigger home. No matter what the circumstances are to begin with, your credit score and credit report can either help you into the home of your dreams or hinder your dreams from coming true.

The first thing you have to do after you’ve found the home of your dreams, is to fill out a mortgage application. This is really the first step in the mortgage process. Lenders will pull your credit report to analyze how much of a financial risk you are. You are given a FICO score which comes from the Fair Issac Corporation. FICO scores can range from 300-850. Any score under 620 is considered poor. Anything above 720 is considered excellent. You can get pretty much anything you want with a credit score over 720.

If your credit score is around 500, you can still qualify for a mortgage. Your payments will be much higher than if you had better credit. Some lenders even specialize in poor credit mortgages. You can also get the help of a mortgage broker. A mortgage broker can advise you about what options you have and what the best option is for you.

Even if you have great credit and are already in the home of your dreams, it is so important that you watch your credit report carefully. You need to check your credit with all three credit reporting agencies to make sure there is no fraud on your account. Also, watch out for any mistakes on your record. It will also help to make your payments on time. If you need to increase your credit score, try to minimize your debt-to-income ratio. Pay off any credit accounts that have a high balance. Avoid making any large purchases before applying for a mortgage as well. These ways will dramatically affect your mortgage application. Not only will you get the home you want, you’ll increase your credit score.

Talking dollars and strategies for the money mistakes that nearly everyone makes.

Don’t co-sign on a loan. Don’t spend more than you make. Don’t touch the money in your retirement accounts. Don’t carry too much debt.

These are a few of the warnings we hear repeatedly throughout life as we try to become masters of our money and avoid major pitfalls. And yet, whether we make the smallest mistakes over and over (i.e. impulse buying), or a few catastrophic ones, we often don’t realize the long-term costs of our financial errors. The following is a list (in no particular order) of money mistakes large and small, with estimates of what each could cost you and some ideas to make sure you don’t fall for them:

Getting a Divorce

It isn’t always possible to avoid a divorce; sometimes couple just can’t seem to get along no matter what they try. In the event you find yourself in such undesirable circumstances, it’s important to know what you might be in for financially. Bankrate.com estimates that the average divorce costs between $20,000 and $30,000, most of which is eaten up in lawyer fees that range from $100- $475/hour. Nightmare divorces’ can run as high as $250,000 (or $110 million if you’re a former Beatle).

A lot can be done to minimize the cost, though, especially if it’s more of an amicable split and the finances are simple. Some of the options include formal arbitration, mediation or doing it yourself. Sites like divorce.com offer a variety of options that may only cost a few hundred dollars.

Not Having a Spending Plan

The problem with most people is that they have no idea how much they spend each month, each week or sometimes even on a daily basis. And most budgeting tools only show you how you’re doing after the fact. Financial experts agree that a spending plan can help individuals identify areas of hidden spending; in most cases, at least 10 percent of their income. In other words, without a good spending plan, you’re likely frittering away 10 percent of your annual income on impulsive buys and unplanned purchases.

One company that has pioneered the concept of the online money management spending plan is Finicity, makers of the personal finance software Mvelopes. Finicity uses a modern version of the time-tested envelope method of budgeting, where cash is allocated to various expense categories (gas, utilities, etc.) before it’s ever spent. Spending occurs based on what’s available in each envelope category; if the entertainment envelope is empty, you either have to wait until you get paid again or take money from a different envelope, knowing you’ll have less to spend in the second envelope as a result. The result is that every dollar has a name and a place before it ever gets spent, so you always know what’s available to spend, making it much easier to stay within budget.

Not Backing up Important Information

Nowadays much, if not all, of our personal information resides on our computers – tax information, loan information, family photographs and videos, usernames and passwords, etc. Lots of things that would be difficult or impossible to replace if lost. A recent survey by Harris Interactive found that more than 35 percent of adults in the US don’t back up their sensitive information at all. Of those who do, nearly 75 percent don’t do it often enough. The cost? Besides the headache and hassle of trying to recover data, recovery fees can often run more than $1000. Plus, there’s no guarantee the information will ever be fully recovered.

The most obvious solution is to back up your files regularly, but to help there are a number of external hard drives that have a “one-touch back up” feature, which makes the process incredibly convenient.

Retiring too Early

According to the Consumer Reports Money Labs, this little move could cost you anywhere from $237,000 to $309,000, depending on your circumstances. Some of the reasons: by retiring early, you’ll be missing out on potential income that would have come from the best-paid years of your career. Also, since you can’t qualify for Medicare until you’re 65, you may end up shelling out for ultra expensive insure.

In their example, Consumer Reports posed the case of a hypothetical worker with an income of $54,592, who quit working at 62 (the first year he could collect Social Security). He lost out on 4 years of income ($221, 665), $403/month in social security benefits, and insurance premiums that cost him anywhere from $6,501 to $44,985 over three years. Assuming good health, it’s advantageous to try and wait until full retirement age.

Swimming in Credit-Card Debt

It seems the horror stories of how much only paying the minimum balance will really cost have done nothing to lessen our appetite for plastic. But if the idea of taking more than 20 years to pay a $5,000 debt (15 percent APR) and accruing more than that amount in interest does frighten you, read on. The Federal Reserve claims that more than 45 percent of consumers carry an average credit-card balance of $2,200. 15 percent carry more than $10,000. It’s not easy to give up the plastic, but it is possible to use it less frequently. Another strategy is to write one of your financial goals on a post-it note (i.e. saving for a vacation) and tape it to the front of your credit cards. That way, you’ll be reminded of what you really want each time you’re tempted to spend.

The Big Picture

Add up just the financial blunders from this list and you’ll be well into the hundreds of thousands of dollars. And while there’s a seemingly endless list of money mistakes that can be made, some research, simple planning and common sense are all that’s needed to avoid most pitfalls and enjoy your money.

Finally and in conclusion - Some of the amazing tools and services that Finicty offers is an award-winning household budgeting software using the time-tested envelope budget system taken from the physical envelope budgeting systems of old. Using This home budget software tool will help you reach your personal finance goals and there is no other home budgeting software like it on the market. Couple this with Finicity’s powerful personal finance community and you’ll learn how to begin enjoying your money.

Don’t get me wrong by the title, I am a credit card user in all respects. I am talking about those who abuse the system, and who are making the credit crisis much worse. So here are some Ways A Credit Card Can Make Your Life Worse, so think about it, and change some bad habits.

If you aren’t careful, credit cards can make your life worse, not better. Credit cards have the potential to make your life extremely overwhelming due to increased amounts of debt. These are ways that credit cards can make your life worse.

1. Pay high interest rate-The average credit card rate is over 15%. This means that you’ll end up paying a lot more for each purchase if you don’t pay off the balance at the end of the month.
2. Fine print- Fine print is notorious for misunderstanding. Most people do not read all of the fine print, which details the terms of the contract. Because of this, they are unaware of different charges that could enslave them.
3. Late payments-Late payments are a great way to charge you for not being responsible. You’ll get charged every time you are slightly late making payments. The average late fee is $25.
4. Overage charges-Credit card companies give you a set credit limit. However, they let you go over this limit and then charge you an overage charge. Overage charges are often a percentage of the card balance. Overage charges can range from $30 to $80 to more. If this is happening to you more often then not, maybe some money management education wouldn’t be a bad idea.
5. Ruin your credit-If you aren’t careful, credit cards can absolutely ruin your credit. Things can get a little bit out of hand and you could get way over your head into debt.
6. Buy Now, Pay Later-This is a nice feature to have if you are disciplined. If you aren’t, if can be extremely detrimental because your debt can keep piling up.
7. Identity theft-Identity theft is common through credit cards. Credit card numbers can be stolen in the mail, over the Internet, from your wallet, or others. You must be very protective of your credit card information to prevent identity theft.
8. Minimum payment options-Minimum payments are horrible. They make the consumer think that they are paying less for what they get, but in reality, they are paying a lot more. Minimum payments force the card holder to remain in debt for longer periods of time.
9. Too many cards-Too many cards equal quite a lot of debt. Many people think that the more cards they get, the better off they will be. Having too many cards is actually a red flag to lenders because they worry what will happen if you lose control of your spending.
10. Poor management-Good money management is essential if you use your credit card often. You must be disciplined in paying off your debt each month and not becoming victim to the credit card companies.
11. Incremental debt- Credit cards allow you to become swamped in debt slowly. This slow debt accumulation can be unforgiving because it is extremely hard to get out of it.
12. Spend more-Studies have shown that buying with a credit card causes people to spend more than they would normally. Be careful this doesn’t happen to you.
13. High interest rate-Did I mention the high interest rate you’ll be paying?
14. High interest rate-Do you understand how much debt you can get into with such a high interest rate?
15. High interest rate-Get the picture?

It is so important to be careful with your credit card purchases. Credit cards can make your life either better or worse. Choose to make your life better with your credit card through good money management and smart credit cards practices.

Your credit card information can be stolen from several places. In fact, you’d be surprised to know how many places keep your credit card information. You need to be careful with your credit cards and keep them as safe as possible. Make sure you are aware of these places and avoid any chance of having your credit card information stolen.

1. Internet. The Internet has made online shopping a commodity. If you aren’t careful though, your credit card information can be stolen in a matter of seconds. When shopping online, only shop through secure sites. Update your computer with the latest firewalls and other security software. These simple steps can keep your credit card protected on the Internet.

2. Receipts. When you buy something with your credit card, it often shows the last four digits of your card number on the receipt. Often times the other numbers on your receipt show up as Xs. Not all receipts print like this. These updated receipts have only been around the past few years. When given your receipt, take a few seconds to make sure it didn’t print your entire credit card number. If it did, shred it as soon as possible.

3. Wallet. This situation is more rare, but it can still happen to you. Don’t lose sight of your wallet or misplace it. Your wallet contains some of the most important documentation about you. Don’t let it fall into the wrong hands. Chances are, the person finding it won’t return it to you. Be careful not to lose your wallet or let it get stolen.

4. Merchants/Retailers. When you use your credit card at a store, your information is kept in the terminal for only a few seconds (long enough to complete the transaction). However, some retailers have unsafe credit card terminals. There are a few terminals that store credit card information for a period of time after the point of sale. Try to only use your credit card at a store if you trust that company and are familiar with its business practices.

5. Mail. Believe it or not, your credit card information can be stolen through your mail. This can be through your monthly statement, credit card offers or receipts. Most companies now do not print your entire credit card number on each monthly statement or receipt. Don’t assume this though! Shred or carefully file all documents that could have this information on it.

The key here is to be smart and don’t assume. You can’t assume that other people are protecting your identity and credit card information as carefully as you are. Be aware of possible credit card threats and do everything you can to protect your credit card.

Here is a new series of articles that I will be posting talking about the success that people have had with Internet businesses, and the companies or strategies that helped them get where they are today.

Last night I was at the gym playing basketball and someone asked me “How did you become an Internet business owner?”  I haven’t been asked that question for quite a while so it took me a minute to formulate my answer.  After some thought, I replied “I guess it was like anything else I knew somebody that showed me the ropes.”  Back in 2000, I had just returned from a two-year church mission and was looking for a job, my new uncle (through marriage) gave me an opportunity to work on the hotline at his Internet business coaching floor.   Within weeks I was hooked on the idea of becoming a true ecommerce entrepreneur.  I started my first company that year and over the last eight years have gone on to start many others.

Although the hotline job was my start I think the experience, which probably helped me more than anything else in “getting from where I was to where I am today”, was my time working at Prosper Learning.  Prosper Learning is a mentoring company in Provo, Utah.  Our paths crossed at the right time.  Prosper had just formed and was not big enough to know any better, and I knew just enough about ecommerce to convince them to allow me to write the company’s ecommerce curriculum.  I was young, aggressive, and cocky enough to think that my eighteen months working with my Uncle and my BYU marketing degree qualified me to write an Internet marketing manual.  Fortunately, the manual was a success and Prosper Learning hired me to be the first Internet Division Leader.  Over the next two years I had the opportunity to help create jobs, businesses, and overall success for: myself, a few family members, several friends, and many complete strangers.

Of course, we had our fair share of failures and growing pains along the way.  However, today Prosper Learning is arguably the leading mentoring company in Utah if not the USA and I work for myself at home as an ecommerce entrepreneur.  Just in case I never told you before – Thanks Prosper Learning.