...Building Good Credit Today, parents are unsure on when and how they can guide their teens to start building up their credit. First, they need to encourage their teens to get a job. Second, parents need to talk to their teens about saving techniques and opening up their own bank accounts. Third, teens should apply for a credit card for themselves; if not possible then become an authorized user on their parents’ credit cards. Fourth, teens need to be aware that the more inquires they make for credit cards; the more that it can hurt their credit. Fifth, teens need to understand that they need to pay their bills on time or suffer the consequences. Finally, teens need to use their credit card wisely and responsible in order to build their credit. It is wise for parents to encourage their teens to withhold a job. When teens are working for their own money they tend to be more cautious towards spending it. Without their own income, they will expect their parents to continue paying for everything” (Todorova). Law requires credit card issuers to check income for applicants under age 21.” Credit card issuers do such things to assure themselves that the teen will be able to repay their credit card balances. The next step in guiding teens to build up their credit is for parents to have a mature talk about money saving techniques and opening up their own bank account. “Establishing a good banking history can help your child build a strong financial foundation, which is a stepping stone...
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...Find the Most Important Variables In Predictive Models A commonly used method in determining the most important variables is to examine how well each variable individually in predicting the target variable. However, this approach has its limits. The first limit is that it excludes variables that are actually good ones. For example, to find if credit score is a good indicator of account default, we calculate the default rate for each credit class as shown below (or we may perform some statistical tests such as a Chi-Square test for that matter). As we can see, the low credit score class have a default rate of 18% vs that of 6% for the high credit score class. Thus, credit class is considered as a good variable to build a default model. Credit score and account default. However, this approach has its limit because it does not take the relationship among variables into consideration. This can be illustrated using an imaginary example. We want to asses if height and weight of people are indicative of getting a disease. We can calculate the following tables for height and weight, respectively. Since short or tall people have the same percentage of sick people (2%), we may conclude that height is not relevant to predicting the disease. Similarly, we also think weight is not important. Height and Disease Weight and Disease If examining weight and height at the same time, we can develop the following matrix. There are four groups of people, high/heavy (normal), short/light...
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...benefits? There is! Credit cards and most Americans should use them. It is estimated that 80% of American households have at least one credit card (Fast facts about credit card debt, 2006, para 10.) There are many types of credit cards, allowing anyone to choose the one best suited for his or her needs. Although there are some disadvantages to using credit cards, the advantages outweigh them by far. Most important, using credit cards can help to build credit history, which will allow the user to gain more credit and maintain a good credit score. Many types of credit cards offer perks or rewards and different interest rates (APR). One type of card is a major credit card such as Visa, MasterCard, Discover, and American Express. Each of these may offer rewards or perks such as frequent flyer miles, points for merchandise, travel, car rentals, or cash back. Another type of card is a store or gas station credit card; this type of card is issued by a particular store or gas station. These cards usually come with some sort of a rewards program, helping your dollar go further. For example after spending a certain amount of money, you receive a 10% discount coupon toward a future purchase. Many credit cards offer low interest rates to new members, on balance transfers and to members who keep their account in good standing. However, missing payments or paying them late could result in your interest rate being raised to a higher percentage. Using credit cards can offer many...
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...building credit. She mentioned that we should start building credit by our the beginning of our senior year, which I was semi-surprised about. We have to learn how to start becoming financially independent, and learning how to overcome that challenge. Not only is building good credit a must, but it will help you qualify for loans, auto insurance, rental applications, cell phone plans, and it can even affect whether you get a job. She listed out steps, but didn’t go into much detail on how we can build our good credit. The fist step is to become an authorized user on your parent’s account, which I’m currently in the process of doing. The reason for being an authorized user on my dads account is considered “piggybacking”, when my dad has good credit my credit gets a boost. For some, this is the only choice when it comes to building credit. The second step for me would be to open up my own credit card, if I can provide proof of income. Full responsibility will fall on me then. We also learned why good credit is important. Lenders, employers, landlords, and insurance companies all use your credit report or your credit score to decide if they want to approve your application. First off, having too much credit debt will leave a negative mark on your report and can impact your credit score. You shouldn’t miss payments because that can also decrease your credit score. You don’t want a landlord to require you to have a co-signer, or an employer to not sire you, do you? If you have good credit...
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...make sense to use a credit card? | You can use credit any time as long as you plan to pay off the card at the end of the month. | Don't use a credit card unless you need it to gain a benefit or because the transaction requires it. | Just be careful not to over-use your credit card and you'll be fine. | Really, just never use a credit card. They're dangerous. | | How many credit cards should I have? | Do not get a credit card under any circumstances! | Get as many as you need in order to gain all of the benefits possible. | Make sure you have a few cards with different interest rates and options. | Limit yourself to a small number of credit cards. | | I want to buy something but don't have the cash on hand. Is it ok for me to put it on a credit card? | Just don't use credit cards at all! | No, never. You should only buy things on credit that you can pay for with cash. | Sure, just don't go crazy. That's what credit cards are for, after all. | You can do this only if you have a specific plan in place to pay off the debt. | | Signpost A, Part 2: Learning Check | I heard that there are actually several credit agencies. Is that right? | No, there is only one. | Yes, there are three. | Yes, there are five. | Yes, there are seven. | | What does the score range from? | 1 to 100. | 100 to 850. | 300 to 850. | 300 to 1000. | | What's generally considered a good score? | Anything...
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...The Wall Street Journal Guide, ‘Credit: Getting a Good Deal on Your Credit Card’ corresponds well with the subject matter taught in Chapter 6. Credit cards give one a sense of financial freedom. However, if not used carefully, they might add to one’s existing burdens. This guide helps us understand the benefits of a credit card, how to choose a card and get a good deal on it. A credit card comes in handy when purchasing expensive items. The credit card company allows one to use the money as long as the card bill is paid by or before the due date. It bails one out in case of a cash emergency and also enables a person to carry less paper money or bills. Some cards also offer rewards in terms of trips, cash refunds, and discount coupons based on your spending. A person can avail more than one credit card. Credit card companies grant a card on the basis of the applicant’s credit report. However, there are some disadvantages of having a credit card. Since a credit card gives a freedom to spend, it might lead to overspending...
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...analyze said case. In addition, I will provide recommendations on how the manager, Michelle Jefferies, should act going forward. This case started back in the 1980’s, where by the end of the decade the traditional markets for credit cards had become saturated. The middle and working classes already had their plastic of choice and it was time for credit card companies to start looking for alternative ways to bring in revenue. Their solution was simple; in 1990 there were nearly 14 million undergraduate students enrolled in colleges across America. That number was projected to grow as we neared the turn of the century, and it would naturally replenish itself with new students every year. This “new to credit” market was virtually untapped and would provide card issuers with a huge opportunity for growth in both short and long-term areas. If the company could hook college students on their specific brand of credit card, i.e. Visa, MasterCard, American Express, etc., they hoped to secure them as life long, brand-loyal customers. The big companies used very aggressive tactics to secure college students as card users. These companies would go to the universities and strike a licensing agreement, so the card companies could use the college logos on their cards. They never ran a credit check, or even asked how the student would be able to pay off their expenses. They manipulated the students into signing up for credit cards by offering free t-shirts and mugs with the college logo on...
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...Learning Check When does it make sense to use a credit card? You can use credit any time as long as you plan to pay off the card at the end of the month. Don't use a credit card unless you need it to gain a benefit or because the transaction requires it. Just be careful not to over-use your credit card and you'll be fine. Really, just never use a credit card. They're dangerous. How many credit cards should I have? Do not get a credit card under any circumstances! Get as many as you need in order to gain all of the benefits possible. Make sure you have a few cards with different interest rates and options. Limit yourself to a small number of credit cards. I want to buy something but don't have the cash on hand. Is it ok for me to put it on a credit card? Just don't use credit cards at all! No, never. You should only buy things on credit that you can pay for with cash. Sure, just don't go crazy. That's what credit cards are for, after all. You can do this only if you have a specific plan in place to pay off the debt. Signpost A, Part 2: Learning Check I heard that there are actually several credit agencies. Is that right? No, there is only one. Yes, there are three. Yes, there are five. Yes, there are seven. What does the score range from? 1 to 100. 100 to 850. 300 to 850. 300 to 1000. What's generally considered a good score? Anything over 500. Anything...
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...to quite good. Pricing is moderate to above average. Customer service ranges from medium levels of sales help, credit, delivery, and so forth to high levels of each. Therefore, their target market tends to middle-class shoppers. (Berman and Evans 2010, 138)Myer is one of Australian department store group which stayed at the top in customer satisfaction for department stores. According to the Roy Morgan Retail Satisfaction Report for September 2011, Myer remained top in customer satisfaction for Department stores with 89% of their customers either ‘very’ or ‘fairly satisfied’. (David Jones and Myer narrowly lead Department and Discount stores in satisfaction, 2011) At present, Myer have been issued different types of Myer cards as their customer loyalty programs. For example, Myer Visa Card is a part of customer loyalty program. The features are people can reward yourself with Myer Visa Card by spending on the things you need. People can earn Myer one Shopping Credits when they fill up their cars, buy groceries or pay bills. Shopping Credits can then be turned into Myer one Gift Cards for use at any Myer store. (Myer Visa Card Contract Documents and Credit Guide, 2011) Earn 3 Myer one shopping Credits for every dollar spent at Myer and up to 3 MYER one Shopping Credits with Myer one affiliates. And when people use your Myer Visa Card for their everyday shopping, people earn 1 Myer one Shopping Credit for every dollar spent. (Myer Visa Card Contract Documents and Credit Guide,...
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...Improving your credit report Many people nowadays get confused how their credit score really work. Some think that the best thing to do is pay their credit card balance in full; others think making minimum payments is the best solution. The truth is, it doesn’t matter if you are paying in interests or paying in full. Your credit score is based on your credit report and whether you carry a balance or not isn’t noted in your credit report. A high debt-to-credit limit ratio, or utilization, can result in a lower score. According to “Whatsmyscore.org”, a credit score is the numerical value calculated from information in your credit file that is used by lenders and landlords to assess your “credit risk” at that time. A total number of points—a credit score—help to predict how creditworthy you are, that is, how likely you are to repay a loan and make the payments on time. Credit reporting companies calculate scores in different ways, but all use a complex mathematical model to take into account factors like payment history, amounts owed, length of credit history, new credit and types of credit, among others. This score changes over time to accurately reflect your current financial behavior. In order to ensure that credit reports are fair for everyone, certain factors are not included in your score. To name just a few, race, religion, national origin, sex, age, salary, and any other information not proven to be predictive of future credit performance are never included in calculating...
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...statements of right/wrong, and they should not be used as grading elements. Also, at present, WritePoint cannot detect quotations or block-quotes, so comments in those areas should be ignored. Please see the other helpful writing resources in the Tutorials and Guides section of the Center for Writing Excellence. Thank you for using WritePoint. Although many Americans may believe that marketing credit cards to college students on campus is setting the student up for financial suicide. There are ["There are" is an awkward phrase if "there" is not clearly a location] many advantages to students whom obtain them. I. Obtaining credit cards helps students build credit. A. Your [Eliminate second person (you, your) in academic documents and avoid addressing the reader directly. Use third-person pronouns (he, she, it, they)] college years are an important time to establish and build a good credit history. B. Establishing a good credit history allows you [second person] to apply for loans or an apartment, buy or finance a car. C. Having [Writing...
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...How to manage credit and staying out of debt Sega Bunn US101 07/29/2012 Kimberly Phelps Better credit equals less stress and easier life. Do you understand credit score and how they work? Is your credit up to par or do you get denied everywhere you go. If you don’t understand credit or you get denied for credit lines a lot you should take look at this information to get a better understanding of what credit is and how it works. Then maybe you can start working toward that dream car or home that you want. How to Managing credit to stay out of debt. The three major credit agencies are Experian, Equifax, and Transunion. These credit bureaus keep track of your credit information. Things like loans, credit card and bills. Have one bad score in one of the three bureaus can make your credit bad and stop you from getting approved for thing like auto loans and home loans. A good credit score is anything 700 and above. The longer your credit history of on time payment the better your score will be. Keep track of your credit report. At least use the free annual credit report that you can receive from each of them once a year. You can do this on annualcreditreport.com Thing you should avoid when trying to keep you credit good high interest loans. These loans will make you lose a lot of money in the long run you will end up paying way to much pack and falling behind because the interest rate is so high. Don’t use you credit cards for everyday expenses...
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...Defining goals is Crucial after defining these goals you must formulate and develop plans and strategies in order to reach these goals. These plans goals strategies all need to remain realistic and attainable. It’s important to consider priorities and can raise them into long-term and short-term goals. Ann’s and strategies which to me is the most difficult because it requires control and monitoring. Spending money wisely and would be an example of implementing financial plans and strategies in order to reach financial goals. 2. Credit In what ways do you use credit in your daily life? Why is it important to maintain a good credit rating? What plans have you established to maintain or build your credit? In order to obtain a large loan creditors will consider your credit history and credit score when deciding whether or not to take on such risk and dish out money on your behalf. The plans and I have established to maintain and build my credit include the...
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...Overspending One possible effect of providing your teen with a credit card is the potential for large debts. Swiping a plastic card in exchange for goods or services can prove too much of a temptation for some young people. Also, spending money on the Internet is quick and simple with a credit card. Teens can easily access online shopping, Internet gambling and other spending activities. According to Todd Mark, President of the Consumer Credit Counseling Service, in an article on the Connect With Kids website, online shopping allows kids to spend excessively because it doesn't feel "real." This is because it may take days or weeks for the items to arrive and teens may forget what they've purchased in the interim. Anxiety and Desperation Credit card debts can bring about severe anxiety for young people. While making the purchases might have had little psychological impact on the teens, those who have to pay the monthly bills connected to their credit cards might experience negative feelings. A 2008 report by Sallie Mae on "How Undergraduate Students Use Credit Cards" discusses a survey of students in which 45 percent stated that paying credit card bills brings them “high levels of anxiety," while 24 percent stated that credit card bills bring about a feeling of extreme anxiousness. In extreme situations, teens might do things they wouldn't normally do out of desperation. For example, in a May 2010 article on the Daily Finance website, New York Bankruptcy Court Judge, Honorable...
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...Section I The Market at the Bottom of the Pyramid CEMEX: Innovation in Housing for the Poor CEMEX is a multinational cement manufacturing company operating out of Mexico. It is the largest cement manufacturer in Mexico, the second largest in the United States, and the third largest in the world. The company has operations on four continents and recorded global revenues of $6.54 billion in 2002 with a gross margin of 44.1 percent. THE INNOVATION. . . CEMEX leads the paradigm shift of companies profitably providing housing for the poor, the Tier 4 population, instead of governments or not-for-profit organizations. CEMEX manufactures and sells raw cement, ready-mix concrete, aggregates, and clinker (used to make cement) under different brand names. As the largest cement company in Mexico, CEMEX operated in a highly protected legal environment with little competition until the 1990s. It competed mainly on price and controlled 65 percent of the market share in Mexico. However, during the 1990s, the legal barriers in Mexico broke down, paving the way for international competition. CEMEX found itself operating in a highly competitive open environment. Starting in 1987, under the leadership of Mr. Lorenzo Zambrano, CEMEX experienced explosive growth, mainly through acquisitions and global expansion. Today, the company has 235 cement and ready-mix plants in Mexico, 60 in the United States, 85 in Spain, 45 in Venezuela, 4 in Indonesia, and 4 in Egypt. In the new competitive arena...
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