SA Home Loans launched as an alternative to regular banks in 2001 and has since granted over 100 000 home loans.
Why are they such a popular alternative? It all started when they launched in that they aggressively advertised the 2% below prime bond.
Wouldn’t you like a bond that is at 2% below prime? Well everybody would like that, the only thing was that they couldn’t maintain that rate because their interest rates are liked to the JIBAR (Johannesburg Interbank Agreed Rate) which constantly changes. Jibar is the average interest rate at which banks buy and sell three-month money. This rate is calculated daily by SAFEX as the average rate quoted by the various banks.
So, many people switched their home loans to SA Homeloans and were disappointed to find that they changed their rates after 3 months, but this was mainly due to lack of communication and explanation of how Jibar works.
Does SA Home Loans grant 100% bonds?
The short answer would be no. Unfortunately they do not offer 100% bonds but only 85% of the value (in the case of a switch) or 85% of the purchase price in the case of a home purchase.
How easy is it to qualify for a loan at SA Home Loans?
Well they approach lending in a very similar way the conventional banks do. They also do a credit check and affordability check, in line with the NCA.
So, should you go with them? Well they do offer a good alternative to conventional banks, so why not compare them to what the other banks are offering. Ask your originator for more details.
Many altcoins are performing better than the mainstream cryptocurrencies in the market. Investors are not only focusing on leading crypto-assets, they are also trying to witness the potential of other altcoins. Some coins have the potential to return the gain to investors and some fail to perform well. As we all know, trading cryptocurrencies does not ensure users with only gain, it is an on and off switch every day.
Stacks is one such altcoin that is now presenting a bullish run. It has the potential to set up a new all-time high if the trend continues. Since its ATH in mid-May, this is the first time that the price of STX has hit above the $2 level.
Stacks is a layer-1 blockchain solution for bringing smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are added to Bitcoin without affecting any of the factors that make it so powerful, such as its security and stability.
Current Market Status
At the time of writing, the price value of STX is $2.09 with a trading volume of $595,870,210 in the last 24-hours. According to Coinmarketcap, STX has jumped over 43% within a day and it holds 57th position. The current circulating supply of STX is 1,818,000,000 coins.
The chart depicts the bullish pattern for the past 24-hours. The price value of STX has surged from $1.43 to $2.16 in a day which is 43% up. With the 7-day statistics, the chart displays a surge of 51%. The top exchanges where STX can be traded are Binance, Mandala Exchange, OKEx, FTX, and Upbit.
Bitcoin NFTs On Stacks
NFTs are being launched on Bitcoin via Stacks. This smart contract platform settles its transaction on the Bitcoin blockchain. Following that NFTs on Bitcoin began to explode through Stacks. Moreover, the firm has a list of upcoming NFT drops for the buyer to purchase.
Considering the recent updates, Bitcoin NFTs on Stacks might be the reason for the surge in the price value of STX. However, the users are expecting more highs and a new all-time high. Significantly, with the ongoing advancements, STX has the potential to reach new highs in the upcoming days.
In the fall of 2017, NFT projects like Cryptokitties took off like a rocket. I had the opportunity to have a lot of discussions about the crypto space, NFTs, and the emerging metaverse.
These conversations centered around how virtual land could become a viable alternative asset niche within cryptocurrency markets, and the metaverse. That’s when it clicked for me: humans have owned land for thousands of years all over the world, but now it’s being replicated digitally on computers around the world.
Virtual real estate will have its own set of economic principles just like physical real estate does, and Next Earth is leading the way in creating this new asset class. Next Earth was launched in August 2021 and has quickly become the metaverse’s largest virtual real estate platform based on a replica of Earth, with nearly $2M in the total value of land owned by users.
The importance of NFTs
In my view, NFTs are a continuation of our evolution from caves to cities to the blockchain – they’re just another tool for us to build our lives and connections digitally.
As we all know, technology is both a blessing and a curse, so I think we’ll have some growing pains as we figure out how to create safe spaces online while also allowing people to express themselves creatively and make money along the way. But if Next Earth is any indication, I think it will be very exciting times ahead for virtual real estate.
Buying virtual land NFTs on Next Earth
All that said, let’s look at the process of buying virtual land NFTs on Next Earth.
First, I just signed up at nextearth.io, with my email and password. Next Earth is the largest and most well-established of the current crop of metaverse real estate companies. I also joined a community of thousands of other landowners and NFT enthusiasts, through their Discord community here.
After creating my account, I created a Binance Chain address through the Binance Chain Chrome extension. If you don’t have a Binance Smart Chain address yet, it’s time to get one. Once you’ve generated an address, you need to send BNB (the BSC native token) to it in order to log into Next Earth and buy virtual land NFTs.
After connecting my wallet, I used the Next Earth map to find virtual real estate that I’d be interested in. Next Earth has a visual map where you can browse all available parcels of virtual land. You’ll also see the current ownership status for each parcel, as well as any bids placed by other users.
Beyond being able to browse the entire virtual replica of Earth, you can simply type in a location, like “White House,” and see if those tiles are available for sale. After connecting your wallet, you can purchase any available tiles. As you can see below, I decided to choose a nice mansion in Hollywood Hills.
Of course, you can also buy land from other users via the NFT marketplace. This is a newly active area of the Next Earth platform – people can buy and sell virtual real estate NFTs with each other. If the tile you’ve browsed was taken, you can head over to the NFT marketplace to see if it’s available for sale from the original buyer.
For example, you can buy Area 51, prime mall locations, wine tasting locations, and many more fascinating real estate plots through the marketplace.
From here, you can do one of two things: you can hold your NFT land and watch the prices increase over time, or you can let someone else put a bid on your virtual land. With Next Earth’s NFT marketplace, you can choose to either hold the item or re-sell it through the marketplace.
Ultimately, NFTs have steadily risen in popularity over time, but exploded recently in part due to the growing accessibility of blockchain technology and the rise of crypto-assets.
Consumers have plenty of options when it comes to buying NFTs. It used to be that buying virtual items was largely limited to popular online games (World of Warcraft, Minecraft, etc.). But now, there are plenty of non-game examples like Next Earth, where you can buy any virtual land as an NFT.
Have you ever thought of going prospecting for gold? Using a sluice box may help you find more of that beautiful yellow stuff. Here how you can plan and build your own gold sluice box. These do it your self projects are popular with lots of folks, and fun to think about even if you just end up buying a store bought product. Here are some thoughts on how to build your own do It Yourself, hand fed Gold Sluice Box – I think it’s a great project for beginners. A wooden sluice like this was the first piece of prospecting equipment I ever built.
A sluice box lined with riffles is one of the oldest forms of gravity separation devices still being used today. They are simple and have been in use all across the world for thousands of years. A sluice is really nothing more than an artificial channel lined with devices to catch gold through which water flows, moving the lighter materials such as clay, sands and gravels out of the sluice. They heavier materials remain behind, trapped by the riffles. For many years, most sluice boxes were home made affairs designed and built in the gold prospector himself. To this day, in the gold bearing regions of third world countries, prospectors design and build sluice boxes out the most unusual items – sometimes whatever materials are available locally. You don’t really need any special sluice box plans – the exact size is really not all that critical.
Making your own gold sluice is actually a very good beginning project for new prospectors in my opinion. Just take a close look at the sluices being offered by the manufacturers, and that will show you how to build your own sluice box. It won’t be difficult to get some ideas to make your own plans. Sluice boxes can be made out of wood, aluminum, plastic or steel. Injection molded plastic is not really an option easily available to the do-it-yourself prospector, and steel has a tendency to rust, so wood and aluminum are the preferred options.
In developing plans for a homemade sluice box, the more time you spend thinking about your design, the better. You don’t want to have to buy parts you don’t need, but on the other hand your slice box needs to work and catch the gold efficiently. A good plan and a good understanding of how a sluice box traps gold are important to your design. I think using miners moss underneath your riffles is a real important item for capturing that fine gold. That is why miners moss is used in the sluices of nearly all commercial suction gold dredges. Having a liner underneath the riffles is an important aid in catching small gold dust, and is very worthwhile. I went with miners moss under all the riffles in my sluice, and I strongly recommend it for you.
The typical wooden homemade sluice is made of boards and varies in width from 8 to 18 inches, usually with a depth of 6 inches to a foot. A typical length would be in the three to 6 foot range. Riffles can be made from half inch square dowel nailed about every 6 inches down the length of the sluice. The section without riffles in the top of the box about a foot long is often left for the spot where material shoveled in. This type of sluice box does catch gold, and is easy to build, but is hard to clean out at the end of the day. In addition, the gravel will beat up the wooden riffles over time. It is also possible to create steel riffles that fit inside a wooden sluice, and in that case you can also use miners Moss or some similar material to line the bottom of the sluice underneath the metal riffles.
Homemade sluices can also be made from lightweight aluminum. Wooden sluices tend to become waterlogged in increased greatly in weight after they have been in the water for time. This gives aluminum quite an advantage and it is certainly preferred in the construction of the homemade sluice. The trough of the sluice, whether aluminum or wood, is usually roughly about the same size.
For those interested in making their own home made hand fed sluice box from aluminum with steel riffles as a do it yourself type of project, I can say if you have any metal fabrication skills, you will find this an easy project. A little welding, a little metal folding and the project is done. If you purchase fairly thin aluminum sheet it will be possible to bend it yourself into the trough shape as a single piece (just don’t go too thin). More information and detail can be found on the authors website.
XYO is a decentralized crypto-location and data blockchain network.
XYO price has gained from $0.025 to $0.037 within one day
One of the well-known cryptocurrencies in the crypto market that operates on the Ethereum platform is XYO. XYO price climbs up over 51% in the last 24 hours.
Accordingly, XYO is a decentralized crypto-location and data blockchain network. As forementioned XYO built on Ethereum blockchain for making it usable in smart contracts, non-fungible tokens (NFTs), and decentralized applications (dApps).
More so, the XYO network has its special unique features among those is XYO users can have their smartphones become part of an XYO network node. In an XYO network, against unique ERC-721 tokens, XYO tokens can be traded and staked for representing real-world locations. XYO price is increasing along with the growth in the user population of the COIN app. COIN app is for geo mining users can download from Google as well as in Apply Playstore. SO XYO crypto accumulates from its recent highs and then gradually appreciates.
XYO Current Market Stautus
At the time of writing as per CoinMarketCap, XYO’s price was waving at $0.03751 with the 24-hour trading volume of $175,875,028. In the last 24-hour XYO price has climbed up 51.01%. The circulating supply of XYO is 12.84B XYO. XYO can be traded in top crypto exchanges such as Coinbase Exchange, ZT, KuCoin, Gate.io, and HitBTC.
The above chart clearly shows the continuous bullish trend of XYO in the past 24 hours. In the last 7 days, XYO price has gradually increased 17.41% and in the 30 days, it has surged over 10%. XYO price has gained from $0.025 to $0.037 within one day. So, if this uptrend is continuous we can expect XYO to hit his new all-time high (ATH) soon.
The diamond industry model of the 21st century should be considered as different from the diamond industry model of the 20th century. This is because there was a single company that monopolized the entire diamond industry.
Throughout the 20th century the diamond industry was monopolized by De Beer, whom some have considered used many underhand methods to achieve and sustain this monopoly on the diamond industry.
It has been suggested that the company used several tactics to take control of the market, for example, they would purchase stockpiles of diamonds that came from other competitors and then manipulated the prices through the aged old supply and demand.
Another underhand methods used was to flood the market with similar products of producers who refuse to join his monopoly.
At the time the family of companies was employing around 20.000 employers on five continents at different places around the world.
The family of companies were involved in all aspects of the diamond industry, from mining of the diamonds, to selling rough diamonds, to distribution and production and also the marketing and the making of jewelry.
The De Beer Family is credited as selling around 40% of the world’s rough diamonds, which came from their own mines or through their joint ventures with various governments.
It might be worth noting here for those who might not know, that it is not the name of a person, but it is the name of the company that was founded by Cecil Rhodes back in 1888 and which was funded by Lord Nathan Rothschild of the Rothschild family.
Cecil Rhodes started a company back in 1871 during the gold rush days selling water pumps to miners. This took place in South Africa where the largest diamond of 83.5 carats was found in Kimberly.
Using the profits from this operation he wisely invested in buying up claims from small diamond miners and in another bold move.
He secured further funds from Rothschild for a massive expansion and De Beer was created in 1888 with the merger of Cecil Rhodes and Barney Banarto, who subsequently became the owners of all the mining production in South Africa.
Cecil Rhodes was afraid that one day someone will find another diamond mine and that is just what happened, enter the Cullinan mine, which was discovered in 1902 and was to De Beer’s major competitor and subsequently the cause of the end of De Beer monopoly.
The owner of the mine refused an invitation to join the monopoly opting instead to do business with the Bernard and Ernest Oppenheimer, which delivered another blow to De Beer’s cartel.
The Cullinan mine was so successful that they are credited with finding the second largest diamond ever found, The Cullinan Diamond and their production soon matched that of De Beers.
However, business being the way that it is De Beer soon obtain ownership of The Cullinan mining industry sometime during the 1st world war.
In 1902 after the death of Cecil Rhodes the De Beer company had been controlling over 90% of the diamond production of the world.
In 2000 a number of diamond producers in places like Australia, Canada and Russia decided that they had enough of De Beer and would be seeking to distribute their diamonds outside of the De Beer cartel. It was this single act the saw the end of the De Beer monopoly.
While appraisal management is not a new concept, the change in the laws that forced their use has caused much speculation about their use, both for appraisers and lenders alike, but for completely different reasons.
Appraisers have several gripes about the appraisal management process and implementation. The first of which is the ethics of the management firms. Conditions have improved for the appraiser, but many are still upset about unfair pay splits, difficulty in getting jobs and the time frame that the firms require to have the job completed.
As the appraisal management companies have increased and experience more competition, they have been forced to change their policies to be more friendly to the appraisers. Where some companies used to take up to 50% of the appraisers fee, most are using a flat fee scale that can be as low as 5%. Also, when they used to require a 24 hour turn time, many now are accepting 48 to 72 hour turn times. Industry standards are definitely changing in favor of the appraiser.
The second issue appraisers have with the appraisal management industry is the inability to talk directly to the lender. While the management companies do serve the purpose of reducing the amount of possible improprieties that can happen with appraiser/lender communication, the inability to communicate also makes it more difficult to solve simple problems that must now go through a middle man.
A third issue appraiser have with appraisal management is just the fact that they have to spend a lot of time signing up with each one. Most companies want an application that can be filled out online, a signed contract that releases liability of the management company, as well as copies of the current state license and E&O insurance. Appraisers could spend days signing up for the hundreds of management companies to bring in the required work load they desire.
The management companies are not going away, although it will continue to evolve, hopefully, in a more beneficial way for the appraisers and lenders.
Down to the wire with choosing your options. Do I choose a subsidized student loan or an unsubsidized loan, or both? The difference between Subsidized and Unsubsidized is that the interest accrued on borrowed money must be paid back by someone, either the borrower or the federal government.
o A bank, lending institution or credit union lends a borrower money with the intent to make money. For simplicity sake, if someone was to borrow $1,000, the bank would require the borrower to pay back the $1,000 plus “interest”. The interest is the profit the lender makes. For example, the borrower pays the lender $100 in eleven payments for a total of $1,100. The original $1,000 is paid back plus an additional $100. The original $1,000 is called “principle”. The $100 is called interest.
There are two types of student loans Subsidized and Unsubsidized. They are also called sub and unsub loans. (There are other student loans but we will only discuss these.) The rules for a Sub loan is, the federal government will pay the interest during a deferment period. The deferment period is while you are in school (up to 4 ½ years) and the student must be attending an accredited college at least part time.
So if a student borrows $5,000 in a Sub loan at the end of the deferment period the balance of the loan would be $5,000. After the deferment period the borrower would pay any interest that accumulates AFTER that point. If the loan is paid off before the deferment period ends nothing else would be owed. Unsub loans don’t have a deferment period. The borrower is responsible to pay both the principle and interest.
Let’s say that a student borrows $5,000 in an Unsubsidized Stafford loan, (unsubsidized means that the interest on the borrowed money accumulates.) At the end of the deferment period the balance of the loan (principle plus accumulated interest) is $6,772.47. $1,772.47 is added to the principle loan balance of $5,000.
This means that at the end of the deferment period the total due on the borrowed money is $6,772.47. Interest will continue to accumulate until the entire loan is paid off. And if the minimum payment is made each month at the end, the borrower would have paid a total of $9,352.80. The lender would receive the original $5,000 plus $4,352.80 in interest profit. (These numbers are estimates and used for illustration purposes only.)
It is less expensive to pay the loan off early and/or pay more than the monthly minimum payment. It is best to pay off the Unsub loans first as these loans are more expensive over time. And if you are able, make payments during the deferment period.
Excerpt from the Guide to Federal Student Aid
Subsidized Direct* or FFEL** Stafford Loan
Loan: must be repaid Subsidized: The U.S. Department of Education pays interest while the borrower is in school and during grace and deferment periods; student must be attending at least half-time and have financial need; fixed interest rate of 5.6% for loans made to undergraduates with the first disbursement date between July 1, 2009 and June 30, 2010; fixed rate of 6.8% is set for loans made to graduate students $3,500-$8,500, depending on grade level.
Unsubsidized Direct* or FFEL** Stafford Loan
Loan: must be repaid Unsubsidized: The borrower is responsible for all interest; must be at least half-time; financial need not required; fixed interest rate of 6.8% for new borrowers $5,500-$20,500 (less any subsidized amounts received for same period), depending on grade level and dependency status.
Direct* or FFEL** PLUS Loan
Loan: must be repaid For parents of dependent undergraduate students and for graduate and professional students; students must be enrolled at least half-time; financial need not required Borrower must not have adverse credit history PLUS Loans are unsubsidized, the borrower is responsible for all interest; fixed interest rate is 8.5% for FFEL PLUS Loans and 7.9% for Direct PLUS Loans Maximum amount is cost of attendance minus any other financial aid student receives; no minimum amount.
BitTorrent, a leader in peer-to-peer protocols and products, announced the first-round winners of the Golden Wallet Sweepstakes – a new incentive program designed to reward the community members and drive more engagement.
Eray Özgen, a Turkey resident, was awarded the 1 million BTT in the first weekly drawing. Özgen, who owns a film production company with his brother, said he plans to invest a portion of that award into TRON Foundation projects (tokens and coins).
The Week 2 Giveaway winner was Clark Michael Gaya. The 34-year-old Filipino citizen works as a mechanical fitter on marine vessels. While waiting for his next assignment on a passenger yacht in France, Gaya plans to hold off and keep the 1 million BTT he won as he anticipates BitTorrent’s native token to appreciate.
Ben Huggins was the latest of the winners. “The money is a very significant windfall to me. I’ve never really had decent money in my life, so this prize would help in paying off almost all of my non-student debts and car loan. Without that stress, I can join a coding bootcamp and finally get my first start into software engineering.”
In particular, participants are required to download and install any of the sponsor’s free or paid applications that contain a BitTorrent Speed wallet. Then, entrants can activate the Golden Wallet Incentive following the steps outlined when launching BitTorrent Speed for the first time.
Participants in the incentive program – who activate the Speed wallet – can turbocharge their rewards. They will benefit from additional perks, including faster download speeds while receiving rewards in BitTorrent (BTT) tokens.
The grand prize winner of 10 million BTT is yet to be selected. Participants can enter through October 11th 3:59 PST. You can find more details about the Golden Wallet Sweepstakes here.
Founded in 2004, BitTorrent is one of the largest decentralized peer-to-peer networks in the world, with almost 100 million active users driving 22% of upstream and 3% of downstream traffic globally. As a pioneer in decentralized services, BitTorrent boasts nearly 100M monthly active users. The TRON ecosystem has gained incredible traction in recent years, with over 52 million users on the blockchain and upwards of 2.3 billion transactions.
First developed in the goldfields of the state of Georgia, the rocker was an important gold mining tool. At the very dawn of the Gold rush to California, the rocker box also known as a cradle was perhaps the most used piece of gold prospecting equipment. For a time it was perhaps even more important that the gold pan. Mostly this was because the miner could make a rocker for himself in the field from rough sawn lumber cut in the forest. They are also easily portable. Rocker boxes were also popular during the Klondike gold rush for working the hillside placers that were far above the creeks.
The ‘rocker’ is a box with a hopper about 3 to 4 ft. long and 1 to 2 ft. wide, sloped like a cradle, and is mounted on semicircular pieces of wood and worked by a, handle to give it a side motion; and it is also inclined so as to carry the material down to the lower end, which is open. At the upper end is a small hopper that may be removed and which has a sheet-iron bottom perforated with 1/2 -in. holes. Under the hopper is a canvas apron or tray inclined toward the head of the box but touching neither end of the hopper-box. Several wooden riffles are placed across the box. The material is fed into the hopper and screened through by water poured on top; the lighter material is carried over the end, while the riffles in the box catch the gold and magnetic sand. This concentrate is cleaned out and panned at the end of the operation. The rocker is used for the same type of work as the gold pan in that it is mainly a prospecting tool. A man is able to wash 3 to 5 times more yardage than with the gold pan, and the use of the rocker eliminates much of the backbreaking strain of continuous panning. On the other hand, the easy mobility of the pan as a prospecting device is lost.
So why might a modern prospector be interested in building his own rocker box? The principal use of a gold rocker is for mining small deposits where water is scarce. It is not really a desert device and it does use some significant water, but not nearly as much as a sluice. In a rocker, gravel requires about three times its own weight of water to wash it. So perhaps the best use is in streams and waterways with very little water – where some water is present, but not enough to run a sluice box. If enough flowing water to run a sluice is present, a sluice is faster and easier to run than a rocker. The rocker is only a primitive machine, having a capacity but one-fifth as great as that of the sluice box, but because it is cheap, requires but little water, and saves a high percentage of coarse gold, the rocker will continue to be used in many districts.
The operation of a rocker consists of shoveling gravel onto a screen or grizzly, pouring water over it from a dipper, and at the same time giving the device a back-and-forth rocking motion. The grizzly retains all the oversized stones, which are removed by hand when they have been washed clean. The operator briefly examines the oversize rock to be sure no large nuggets or gold specimens are being tossed out. The cradle must be placed on an inclination while being worked, and under the influence of the continued side-to-side rocking the dirt is quickly disintegrated, passes down through the hopper grizzly and the water and the undersize fall down onto the canvas apron which saves most of the gold and places the remainder at the head end of the trough. From the apron it is conveyed to the inner end of the cradle floor (the sluice box like section of the rocker), from which it flows over the riffles, or bars, and out at the mouth. Riffles, canvas, blankets, corduroy, burlap, or cocoa matting with expanded metal have been used to cover the bottom of the trough and all have met with varying degrees of success in saving the gold. The combination of cocoa matting covered with expanded metal lath has proven to be quite effective for most gravels. The frequency of cleaning up depends on the richness and character of the gravel, but clean-ups are usually necessary two or three times a day. The hopper is taken off first, then the apron is slid out, and washed in a bucket or tub containing clean water, and finally the gold is collected with a spoon from behind the riffle bars, and panned out.
The rocking motion used should be sufficient to keep the gravel disturbed, allowing the gold to settle out, but a too vigorous movement will cause a gold loss. The gravel bed should be shifted slightly with each motion and should be evenly distributed across the trough. Generally speaking, the rocker is not known for its ability to save fine gold, but with careful and expert manipulation, decent fine gold recoveries can be achieved. Tailings from both rockers and sluice boxes should be occasionally panned to check for gold losses. When gold is found near the lower end of the rocker or sluice box, the potential for losses should be investigated.
Because there is no one “right” design for a rocker box, I am not actually presenting specific plans, but on my website I am giving you the information you need to plan, design and build your own rocker box if that’s what you decide to do. My recommended design for a rocker is to start buy building a sluice box 40 inches long, 16 inches wide on the bottom, sloped like a cradle, and with rockers at each end. The hopper would be 16 inches square and 6 inches deep, with a sheet metal bottom made of perforated steel with 1/2-inch holes. This hopper box needs to be designed so it can be removed for clean up. A light canvas-covered frame is stretched under the hopper, forming a riffle. Square riffles of wood or steel are placed across the bottom of the sluice portion of the rocker. Curved feet are placed underneath the sluice portion of the box to allow it to be rocked back and forth. Historically, rockers are built of wood, as the early prospectors built them. However, there is no reason that a rocker could not be built from sturdy heavy gauge sheet aluminum. It would be much lighter that the wood version. Remember that wood also absorbs water, and water logged wood is much heavier than dry wood.
Here are a couple of general rules for your consideration. Your minimum credit score needs to be at least 650. If your credit score is below 650 then there are ways to fix it. Here’s how it works…
A. You can challenge anything in your credit report. If the merchant can’t provide proof of their claim, then the item must be removed from your credit report. For example, if Department Store X says that you didn’t pay-off your $72 balance on your X card in 1997, and you say that you did, then Department Store X has 30 days to provide the documentation proving that the bill is unpaid. If they can’t prove their claim, then the outstanding debt is removed and you’re moving toward a higher credit score. If Department Store X is right and you do owe them $72, then you now know the problem and you have the opportunity to pay the $72… again you’re moving toward a higher credit score.
B. Get and review copies of your three major credit reports annually-more often if you are nearing pivotal junctures where your credit score is especially important.
C. Between the reports from Federal Trade Commission (“FTC”) and CBS News, it is estimated that somewhere between five and eighty percent of credit reports contain errors. Some errors are actually good for you and some are not so good. In my mid-twenties I checked my credit reports, and I was very happy to learn that not only had I purchased a new car, but I paid it off with a perfect history of payments. It was great for my young credit history-never did find the car.
D. Your credit score contains five components. Here are the five components and their degree of importance by percentage:
Payment History (35%)-Here, the credit bureaus (CBs) are looking at mortgages, credit cards, installment loans, retail accounts, adverse public records like bankruptcy, lawsuits, judgments, liens, garnishments, past due payments… etc. If you have past due payments, the CBs will look at (a) amount past due, (b) amount of time past due, (c) number of accounts pat due.
Amounts Owed (30%)-CBs are reviewing the type of accounts you use and the amount of credit you are utilizing relative to the credit available to you. For example and all else being equal, a person carrying balances equaling 95% of credit available on ten personal credit cards for a total of $50,000 outstanding debt will have a lower credit score than a person carrying 50% balances on three credit cards for a total of $10,000 outstanding debt.
Length of Credit History (15%)-CBs are examining specific account types, how long the accounts have been open and the level and timing of activity within the account. Amazingly, for credit scoring purposes it appears that it is actually better to have credit accounts with outstanding balances (within reason) than to have no accounts open or no credit history. Being debt free can actually lower your credit score. I have a friend who is a very astute, very successful former international banker. He has done business in more than 20 countries and has lived in nine countries. This is a person with exceptional success, wealth, and highly responsible money management practices. He was turned down when he applied for a credit card at the very bank where he worked. Reason: No U.S. credit history.
New Credit History (10%) – In short, the CBs are looking to see if you have been opening or attempting to open lots of new accounts recently. As you might imagine, someone who is thinking about lending you money gets very nervous when they discover you are borrowing money from everyone.
Type of Credit Used (10%)-CBs look at the balance of debt as distributed throughout the various types of debt from credit cards to mortgages and secured to unsecured.
Your credit score is based on all of the items above. It is not a pass-fail circumstance for each of the categories. Your score is produced in the aggregate and that scoring constantly changes. The scoring for one person and their financial profile will be different from another person. The information presented here is for the fat part of the Bell Curve, but it provides solid guidelines.
E. If you are focused on an acquisition (or other type of loan) and your score is below the 650 mark, note that a business partner’s score that is 700 or higher can help to off-set your score. When lenders are considering borrower qualifications, they look at the entire “borrower” whether it is one person or a legion of people.