Who is keeping your credit information?

Many of us are very familiar with the three digit FICO (Fair Isaac Corporation) score.  It is important in determining new credit as well as the interest rate charged to you.  The higher the score, the lower the rate a lender will charge you for your car loan, insurance premium, revolving credit such as credit cards and your mortgage.

There are three major credit bureaus that keep tab on your credit: Equifax, Experian and TransUnion.  The law allows you to obtain one free copy of your credit information per year.  However, the free report may not provide you with a score and you may have to pay to get it.  Many lenders use the FICO score to determine new credit lines as well as to increase credit limits.

All credit bureaus consider your payment history (35 percent), credit utilization (30 percent), length of credit history (15 percent), credit mix (10 percent) and new credit (10 percent) in order to come up with a FICO score.  One proven strategy to obtain a higher score is to use only one half of your credit limit on each card.  Additionally, pay the monthly minimum due amount on time, and limit the number of credit lines available to you.

Paying off your credit card bills

It is that time of the year that you use your credit cards to buy holiday gifts and next month you receive your bill from each credit card company.  With limited budget, it is obvious that we don’t have enough money to pay off all credit card balances and we have to pick which to pay off first.

One strategy that some people use is to pay off the smallest balance first and pay the minimum on others.  Not a bad strategy, but consider the following.

Some advice to pay the credit card balance with the highest interest rate first.  Not a bad idea either.  This will allow you to save on interest charges.  However, you may not get the same satisfaction as having one less card to pay if you can’t pay the entire balance.

Your credit card balances as well as the number of credit lines open have a direct link to your credit score.  If your balance is closer to the limit and you have too many cards, you may get a lower score.  Also important is the payment when it is due.  Late payments could result in a lower score.  One strategy is to maintain a balance no more than half of the limit.

Is Your Company Considered As A High Risk Merchant Account?

This article submit by How Merchant Accounts Work.

Based on the type of industry that your company operates in, it is possible that you could be considered to be a higher risk in the eyes of banks than other businesses in different industries.  Knowing where you fall in terms of the eyes of banks in the pyramid of different risks is very important.  This will help you gauge where you fall compared to other businesses and what you can expect to get in terms of support in having a merchant account set up.

There are different businesses that fall into different risks.  The rule of thumb though is that you will considered to be a high risk merchant account if you fall victim to certain situations.  These can include being subject to excessive charge backs, as well as delivering products that are typically not considered to be satisfactory in the eyes of customers.  This can result in low quality of product and excessive returns across the board.

If you have a high risk merchant account you need a good partner that will help you get the best deal possible.  This can help you reduce the fees and such you have to pay to maintain the merchant account.  Professional companies such as Solidtrustpay will work with businesses in the high risk category to ensure they get a good deal on their merchant account.  Solid trust pay can make all of the difference in being able to accept payments online.

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