Archive for category Finance
Personal Liability on Business Credit Cards
Richard Gilliland asked:
If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.
Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.
Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.
The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.
You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.
When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.
So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.
Marvin
If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.
Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.
Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.
The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.
You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.
When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.
So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.
Marvin
The Importance of Credit Reporting Laws
Jeremy L Roberts asked:
Credit reporting laws in the United States can be rather difficult to understand if you are not an attorney or don’t happen to work in finance. When it comes to your personal credit, understanding credit reporting laws is important.
The Fair Credit Reporting Act is one law every consumer should know. It was originally signed into law in 1970 and it guarantees the confidential, accurate, relevant and proper handling of all consumer information collected and recorded by the credit bureaus. It also gives consumers the right to request a copy of their credit report and scores. The only provider that is legally authorized to give you this report once a year is annualcreditreport.com.
This law also requires that written disputes be investigated within 30 days by credit bureaus. Here, any information deemed inaccurate or unverifiable shall be removed and kept from reappearing on your credit report.
Another important credit reporting law is the Fair Debt Collection Practices Act. This law was enacted in 1977 in an effort to eliminate abusive debt collection practices by debt collectors and to ensure that those debt collectors who refrain from using them are not competitively disadvantaged. It also promotes state action that is consistent in protecting consumers against such debt collection abuses. It prohibits several activities considered to be deceptive or harmful to consumers such as: lying, misleading or harassing. This law is enforced by the Federal Trade Commission and annually reports to congress regarding any issues that involve it. Here, a debt collector is defined as any person who uses any method of interstate commerce of the mail in any business for the purpose of collecting debts.
This means the rules of this law do not apply to the company who extended the original credit line, but instead are only relevant for collection companies who were hired or contracted by the initial creditor involved.
When it comes to how your credit is reported and what the scores mean, you need to have a rough idea of how it all works so you will be able to interpret any problems and come up with a solution for repairing them. After all, your credit is a very important part of your life in general as it affects many different aspects all at once.
Pamela
Credit reporting laws in the United States can be rather difficult to understand if you are not an attorney or don’t happen to work in finance. When it comes to your personal credit, understanding credit reporting laws is important.
The Fair Credit Reporting Act is one law every consumer should know. It was originally signed into law in 1970 and it guarantees the confidential, accurate, relevant and proper handling of all consumer information collected and recorded by the credit bureaus. It also gives consumers the right to request a copy of their credit report and scores. The only provider that is legally authorized to give you this report once a year is annualcreditreport.com.
This law also requires that written disputes be investigated within 30 days by credit bureaus. Here, any information deemed inaccurate or unverifiable shall be removed and kept from reappearing on your credit report.
Another important credit reporting law is the Fair Debt Collection Practices Act. This law was enacted in 1977 in an effort to eliminate abusive debt collection practices by debt collectors and to ensure that those debt collectors who refrain from using them are not competitively disadvantaged. It also promotes state action that is consistent in protecting consumers against such debt collection abuses. It prohibits several activities considered to be deceptive or harmful to consumers such as: lying, misleading or harassing. This law is enforced by the Federal Trade Commission and annually reports to congress regarding any issues that involve it. Here, a debt collector is defined as any person who uses any method of interstate commerce of the mail in any business for the purpose of collecting debts.
This means the rules of this law do not apply to the company who extended the original credit line, but instead are only relevant for collection companies who were hired or contracted by the initial creditor involved.
When it comes to how your credit is reported and what the scores mean, you need to have a rough idea of how it all works so you will be able to interpret any problems and come up with a solution for repairing them. After all, your credit is a very important part of your life in general as it affects many different aspects all at once.
Pamela
Equifax Personal Credit Report – Phone and Address Information
Hector Milla asked:
There are plenty of places that you can receive a detailed credit report. Equifax is one of the three credit bureau agencies. Everyone is entitled to one free finance report each year. There are a couple of things the report will show including; credit scores, opened and defaulted accounts, phone and address information and much more.
Many people seek an up-to-date credit report to make sure their identity has not been stolen. With the increase of identity fraud, account agencies are now offering people the chance to protect themselves. Some of their account services include annual credit report requests, fraud alerts, freezes and dispute options.
How To Request a Free Annual Report From Equifax
To get an up-to-date report from Equifax, go the agency’s main website. Next, you will be asked to request a report by choosing your current state of residence. After that, you will be taken to another page which will require you to fill out some basic information such as your name, date of birth, social security number, current address (and past address if it applies). People have the option to receive reports over the web, or in the mail (or a combination of both). The site is also sponsored by the other two account agencies; TransUnion and Experian.
From there, you will receive a report that shows all of your activity regarding loans, lines of credit, employment and address history.
It is important to check your financial status every year in order to monitor for scams, fraud and unlawful charges. Some people’s lives have been tarnished because they didn’t know they were a victim of identity fraud.
Viewing Credit Scores
There is a small fee for viewing specific scores. This is essential to those who want to know what their chances will be of getting a loan from creditors in the future. Most creditors are worried about lending money to those who have a poor credit score.
Fraud Alerts and Freezes
Requesting a fraud alert is quite simple. The alert will remain active for 90 days. There are options to extend the alert (the information is available in a free downloadable PDF document on the main website). When a fraud alert is made, your personal information and alert will be forwarded to the other two agencies (which means you don’t have to contact them separately). This is a good option to protect your identity and credit.
Lance
There are plenty of places that you can receive a detailed credit report. Equifax is one of the three credit bureau agencies. Everyone is entitled to one free finance report each year. There are a couple of things the report will show including; credit scores, opened and defaulted accounts, phone and address information and much more.
Many people seek an up-to-date credit report to make sure their identity has not been stolen. With the increase of identity fraud, account agencies are now offering people the chance to protect themselves. Some of their account services include annual credit report requests, fraud alerts, freezes and dispute options.
How To Request a Free Annual Report From Equifax
To get an up-to-date report from Equifax, go the agency’s main website. Next, you will be asked to request a report by choosing your current state of residence. After that, you will be taken to another page which will require you to fill out some basic information such as your name, date of birth, social security number, current address (and past address if it applies). People have the option to receive reports over the web, or in the mail (or a combination of both). The site is also sponsored by the other two account agencies; TransUnion and Experian.
From there, you will receive a report that shows all of your activity regarding loans, lines of credit, employment and address history.
It is important to check your financial status every year in order to monitor for scams, fraud and unlawful charges. Some people’s lives have been tarnished because they didn’t know they were a victim of identity fraud.
Viewing Credit Scores
There is a small fee for viewing specific scores. This is essential to those who want to know what their chances will be of getting a loan from creditors in the future. Most creditors are worried about lending money to those who have a poor credit score.
Fraud Alerts and Freezes
Requesting a fraud alert is quite simple. The alert will remain active for 90 days. There are options to extend the alert (the information is available in a free downloadable PDF document on the main website). When a fraud alert is made, your personal information and alert will be forwarded to the other two agencies (which means you don’t have to contact them separately). This is a good option to protect your identity and credit.
Lance
Don’t Pay For Your Free Personal Credit Report
Tim Parker asked:
All over the Internet, advertised on TV and radio, and saturating magazines are reports for services that will help you obtain your free personal credit report. Here’s the bottom line: Although I don’t have personal experience with these services, if they are charging you fees, they are banking on the fact that you don’t know that you can get it for free.
As you probably know, you are entitled to view your free personal credit report from the three reporting agencies for free once every 12 months. Notice that I said, FOR FREE three times. You don’t have to pay anything if you view it online. It’s extremely easy to obtain but you don’t do it by going to one of those advertised sites. Instead you go to a site that isn’t advertised. It’s the official site to get your free credit report called Annualcreditreport.com.
The process is very easy. Go to the above site, select your state and answer the questions. Select all three credit reporting agencies and get each report. Make sure to print each report and go over it with a fine tooth comb. If you see any errors, go to each reporting agency’s website and follow the instructions to dispute the misinformation.
While you may be tempted to close out your unused credit cards that have been sitting idle, the credit experts recommend not closing these accounts. Apparently it is better for your credit score to keep these accounts open By closing your cards, it decreases the amount of credit available to you which increases your debt load. Also, keep track of your FICO score. Your FICO score is what qualifies you for a loan and sometimes a job.
The most important thing to take from this article is this: Do not pay for your FREE personal credit reports. It’s quick, it’s painless, and it’s free when you go to the site that is set up by the government.
Philip
All over the Internet, advertised on TV and radio, and saturating magazines are reports for services that will help you obtain your free personal credit report. Here’s the bottom line: Although I don’t have personal experience with these services, if they are charging you fees, they are banking on the fact that you don’t know that you can get it for free.
As you probably know, you are entitled to view your free personal credit report from the three reporting agencies for free once every 12 months. Notice that I said, FOR FREE three times. You don’t have to pay anything if you view it online. It’s extremely easy to obtain but you don’t do it by going to one of those advertised sites. Instead you go to a site that isn’t advertised. It’s the official site to get your free credit report called Annualcreditreport.com.
The process is very easy. Go to the above site, select your state and answer the questions. Select all three credit reporting agencies and get each report. Make sure to print each report and go over it with a fine tooth comb. If you see any errors, go to each reporting agency’s website and follow the instructions to dispute the misinformation.
While you may be tempted to close out your unused credit cards that have been sitting idle, the credit experts recommend not closing these accounts. Apparently it is better for your credit score to keep these accounts open By closing your cards, it decreases the amount of credit available to you which increases your debt load. Also, keep track of your FICO score. Your FICO score is what qualifies you for a loan and sometimes a job.
The most important thing to take from this article is this: Do not pay for your FREE personal credit reports. It’s quick, it’s painless, and it’s free when you go to the site that is set up by the government.
Philip
No Credit Check Loans – Approval Without Credit Report
Ashley P Lewis asked:
It is important for people to have a credit report made from time to time so that they do not face a problem when they need to take up a loan suddenly. But for those people who have never taken up loans, it is a new concept and they do not have any credit history. For such borrowers to take up money, no credit check loans have been structured.
The people who are in need of money may find a slight problem when it comes to taking up loans for the first time. Also, for the people who do not have a recently updated credit report can face a similar problem. So for getting money for their needs without any hassle, the borrowers can take up these loans very easily.
The money is available through these loans in the secured as well as the unsecured form. It totally depends upon the needs of the borrower and his ability to pledge his asset as collateral. If borrowers have needs that will require money in the range of
It is important for people to have a credit report made from time to time so that they do not face a problem when they need to take up a loan suddenly. But for those people who have never taken up loans, it is a new concept and they do not have any credit history. For such borrowers to take up money, no credit check loans have been structured.
The people who are in need of money may find a slight problem when it comes to taking up loans for the first time. Also, for the people who do not have a recently updated credit report can face a similar problem. So for getting money for their needs without any hassle, the borrowers can take up these loans very easily.
The money is available through these loans in the secured as well as the unsecured form. It totally depends upon the needs of the borrower and his ability to pledge his asset as collateral. If borrowers have needs that will require money in the range of
Instant Credit Report
Paul Abbey asked:
Today actually getting hold of an instant credit report is much easier to achieve than it was a couple of years ago. As we are all beginning to realize being able to know where we stand in relation to how credit worthiness is extremely important to many of us today. Unfortunately if your credit history is poor or bad actually getting a loan or mortgage is very difficult to achieve.
But by getting hold of a copy of your credit report from any of the three major credit reporting agencies you will be able to see just where you stand when it comes to your credit worthiness. Today not only are there personal credit reports a person can obtain but there are also business credit reports available.
The main feature of any of these types of reports is that they contain data relating to either you or your business which the various credit reporting agencies have collected. It contains information relating to your financial position and will show if you have any problems relating to late payments or debts remaining unpaid.
But when it comes to you getting hold of a copy of your credit report you need to be very careful when you are trying to obtain it. This is because the report will contain very important and personal information about you including details of your name, your address, any contact numbers and your date of birth. Plus it will also contain your social security number all of which can be extremely beneficial to those people who like to use other people personal details to obtain funds and goods fraudulently.
Therefore if you choose to arrange to get hold of your credit report through one of the many online services that offer such a facility you need to make sure that it is a completely secure website. With a site such as Experian they have a padlock which they use to denote that this is a secure site and no one else will be able to gain access to your personal and financial information.
The biggest advantage to be had from getting hold of a copy of your instant credit report especially if you are considering taking out some form of credit (loan or mortgage) is you will be able to see whether you are likely to be declined or approved. Certainly by keeping abreast of your credit history and how you are being scored will ensure that when it does come time to take out any kind of loan or mortgage you will be able to do so more easily. Plus it allows you the chance to help to improve your credit history if at any time you find that your financial situation changes.
Minnie
Today actually getting hold of an instant credit report is much easier to achieve than it was a couple of years ago. As we are all beginning to realize being able to know where we stand in relation to how credit worthiness is extremely important to many of us today. Unfortunately if your credit history is poor or bad actually getting a loan or mortgage is very difficult to achieve.
But by getting hold of a copy of your credit report from any of the three major credit reporting agencies you will be able to see just where you stand when it comes to your credit worthiness. Today not only are there personal credit reports a person can obtain but there are also business credit reports available.
The main feature of any of these types of reports is that they contain data relating to either you or your business which the various credit reporting agencies have collected. It contains information relating to your financial position and will show if you have any problems relating to late payments or debts remaining unpaid.
But when it comes to you getting hold of a copy of your credit report you need to be very careful when you are trying to obtain it. This is because the report will contain very important and personal information about you including details of your name, your address, any contact numbers and your date of birth. Plus it will also contain your social security number all of which can be extremely beneficial to those people who like to use other people personal details to obtain funds and goods fraudulently.
Therefore if you choose to arrange to get hold of your credit report through one of the many online services that offer such a facility you need to make sure that it is a completely secure website. With a site such as Experian they have a padlock which they use to denote that this is a secure site and no one else will be able to gain access to your personal and financial information.
The biggest advantage to be had from getting hold of a copy of your instant credit report especially if you are considering taking out some form of credit (loan or mortgage) is you will be able to see whether you are likely to be declined or approved. Certainly by keeping abreast of your credit history and how you are being scored will ensure that when it does come time to take out any kind of loan or mortgage you will be able to do so more easily. Plus it allows you the chance to help to improve your credit history if at any time you find that your financial situation changes.
Minnie