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Credit Scores

Thursday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: Avoiding financial aid scams. Also in the news: Escaping the credit card fee trap, a beginner’s guide to your company’s stock plan, and the credit score for small businesses.

Not So FAFSA: How to Avoid a Student Aid Scam
Protecting both your information and your child’s.

How to Escape the Credit-Card Fee Trap
Don’t give the banks more than they already want.

A Beginner’s Guide to Your Company’s Employee Stock Plans
Learning the ins and outs of your company’s stock options.

The credit score you’ve never heard of
If you’re a small business owner, pay attention.

Should you send your kid to college with a credit card?

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teen-creditSavvy parents know the importance of building a good credit history. They also know that paying with a credit card can be more convenient and secure than other methods.

But personal finance expert Janet Bodnar has one word of advice for parents thinking of providing their college-bound children with a credit card: don’t.

“It’s dangerous and it’s not necessary,” said Bodnar, editor of Kiplinger’s Personal Finance and mother of three college graduates.

On the other hand, personal finance columnist Kathy Kristof—who also writes for Kiplingers and who has sent two children to college—says students who have been taught how to handle money can be responsible credit card users. She added her kids as authorized users to one of her credit cards, and said it’s worked out well.

You can read more in my Reuters column this week, “Start college kids with bank accounts, not credit cards.” Bodnar has more tips for parents at “Rules for raising money-smart kids.”

 

 

 

 

 

Tuesday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: More than half of college students don’t check their credit scores. Also in the news: Avoiding common home buying mistakes, the habits of successful savers, and three employee benefits you may be missing.

More Than Half of Students Don’t Check Their Credit Scores
A very big mistake.

How To Avoid Common Home Buying Mistakes
Don’t turn your home into a money pit.

6 Habits of Highly Successful Savers
Learning from the best.

3 Sweet Employee Benefits You May Be Missing
You may be leaving money on the table.

What’s a Tax Consultant, and Do You Need One?
Deciding when you need tax help.

My FICO score is 846. And 796. And 878. And…

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Zemanta Related Posts ThumbnailOne of the most persistent credit scoring myths is that you have one.

You don’t have one, you have many, and they change all the time.

The dominant model is the FICO, but even that comes in many flavors. You can get a taste for how many at MyFICO.

When I bought my scores there recently, my FICO 8 from Equifax was 846 on the 300-to-850 scale. But my FICO 5, the score Equifax most commonly sells to mortgage lenders, was 797.

There was even wider variation in my auto and credit card scores, are calculated on a 250-to-900 scale. My FICO Auto Score 8 was 867, while my FICO Auto Score 5 was 810. My FICO Bankcard Score 8 was 869 and my FICO Bankcard Score 5 was 797.

My scores from Experian ranged from 796 (FICO Score 3, used by some credit card issuers) to 878 (FICO Auto Score 8). The clutch of numbers from TransUnion ran from 806 (FICO Score 4, used by some mortgage lenders) to 874 (FICO Auto Score 8).

MyFICO used to serve up just one score per bureau. I like this wider view, since it better reflects the fact that lenders use different versions and generations of the formula.

TMI? Maybe. But I’ll take it over the days when credit scores were such a closely-guarded secret that you weren’t even supposed to know they existed.

Monday’s need-to-know money news

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Zemanta Related Posts ThumbnailToday’s top story: What you need to know about the huge US data breach. Also in the news: What lenders are looking for, checking in on your financial health, and making sure your extra student loan payments are going to the right place.

The Massive U.S. Government Hack: What You Need to Know
Four million current and former federal employees are at risk.

Lenders Look at More Than Just Your Credit Score
What lenders are looking for.

6 Telltale Signs You’re in Great Financial Health
Taking your financial temperature.

Make Sure Your Extra Student Loan Payment is Applied Correctly
Make sure it’s going to the principal, not the interest.

Wednesday’s need-to-know money news

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o-CREDIT-REPORT-facebookToday’s top story: How to shop for a mortgage online. Also in the news: The risks of ignoring your credit score, websites that can help you save on hotels, and how you can meet the minimum credit card spending requirements while remaining frugal.

A Guide to Shopping for a Mortgage Online
The differences between applying online and in person.

The Financial Risk of Ignoring Your Credit Score
Needless to say, they’re big.

5 Websites That Will Help You Save on Hotels
Don’t overpay.

How Frugal Folks Can Meet Credit Card Spending Requirements
It’s important for your credit score.