Money Management

What Is A Good Credit Score?

December 4, 2014 By Sherry Tingley

Good credit can save you money when applying for a loan.

It’s not one of those things that demand your attention. But knowing your credit score can be a real benefit when it comes to borrowing money – and getting a good interest rate when you do.

But determining a “good” credit score can be tricky. Several agencies have different ways of scoring and there are more than one schools of thought on the subject. Fortunately, you can check your own credit score and it won’t adversely affect that score.

Each lender develops its own credit score range. Knowing that is important when you want to know what your numbers mean. Among the various scoring models and the range they use are:

FICO Score, 300-850; VantageScore, 300-850; VantageScore scale (versions 1.0 and 2.0)m 501-990; PLUS Score, 330-830; TransRisk Score, 100-900; Equifax Credit Score, 280-850.

With all of these scores, the lower the number you have, the higher the risk to a lender. Those with the higher figures are more likely to obtain loans, get discounts on insurance and other financial advantages. For instance, if your FICO score is 840, you are near the top of the range and your credit is considered “superprime.” In essence, if the range is 301 to 850, the following categories would emerge. Excellent credit, 750-plus; Good Credit, 700-749; Fair Credit, 650-699; Poor Credit, 600-649 and below.

Within this range, however, lenders have their own definitions of what they will accept. Some who want to qualify a larger number of borrowers may be willing to look at a credit score of 680 or higher, while one that wants to be more selective may up the minimum score to 750 or higher. Some lenders will raise the interest rate for borrowers below a score of 700.

You can get a free Credit.com account simply by applying. It includes the score and a personalized action plan to improve it. It is free and updated every 30 days.

The only way to assure that your credit score is good is to check. Having paid bills consistently and on time does not fully guarantee a good score. Requesting a score once a month provides you with a breakdown of the factors that affect your score.

In general, the score factors in payment history, debt levels and the age of credit accounts. The objective is to predict how new and existing customers will handle credit.

A good score will facilitate your purchase of a home or car, opening new credit accounts and getting the best interest rates. Over time, you will pay less for the use of lent money. Bad credit could add as much as $90,000 to a home, for instance.

It pays to know where you stand credit-wise and to work to improve your score if needed.

Black Friday, Cyber Monday – And the Rest

November 28, 2014 By Sherry Tingley

Wal-Mart said Thursday, Nov. 28, 2014 was its second-highest online sales day ever after last year's Cyber Monday, which is the Monday following Thanksgiving when online retailers promote bargains. — Wal-Mart said Thursday, Nov. 28, 2014 was its second-highest online sales day ever after last year’s Cyber Monday, which is the Monday following Thanksgiving when online retailers promote bargains.

For years, the commonly accepted wisdom for shoppers is that Black Friday is THE day for holiday deals. Not necessarily true.

While that Friday and its electronics copycat Cyber Monday are packed with bargains, experience shows that there are even greater opportunities on both sides of those days. For instance, thousands of shoppers take time out from turkey on Thanksgiving Day to hit the stores, jam-packed tummies notwithstanding. One survey conducted by DealNews showed that the price breaks on Thanksgiving were better than those on the following day. In a month already noted for sales, it stuck out

Not only that, but the stores offered deals on more of the most-wanted items likely to be on holiday shopping lists, the analysts found.

The advice of experts is to begin looking for deals before the turkey is thawed. Like, say, right now. The holiday shopping period long outgrew single days. All of November is dedicated to the best deals of the year.

DealNews found that Cyber Monday sales last year lagged Thanksgiving by 16 percent, but that it offers more top-shelf bargains than stores that don’t deal primarily in e-commerce items. The research organization suggests that those looking for e-commerce deals also begin shopping the ads before the traditional days.

The circulars will soon be flooding homes. Peruse the ads and if you spot a wanted item that fits your budget, don’t wait for a better deal. DealNews editors and other market-watchers post sales critiques as the annual frenzy begins.

Black Friday Perks Of The Season

November 28, 2014 By Twila Van Leer

Walmart report that 22 million shoppers went through their stores on Thanksgiving day in 2014.

Black Friday is changing. Stores are spreading their holiday bargains over more days and shoppers are looking for deals earlier than they used to, or even later, as the gurus predict a long season of specials. Some even have rewritten the term Black Friday to Black November.

Bankrate.com, an organization that tracks spending habits among Americans, did a survey of 1,000 adults and found that only 28 percent had plans to rise early and hit the stores on Black Friday. The figure rises to 40 percent if you count the online shoppers.

Many retailers are simply swapping Thanksgiving Day for the day after, getting a jump on the Black Friday event. Major discounts are being offered before the turkey cools. Among those retailers planning to make the early dive into the shopping frenzy are Walmart, Target, Amazon and Toys R Us.

The early sales are a bonus for shoppers who like to avoid the dense crowds that have characterized Black Friday. They are making their plans to avoid the super-shopping day, rather than being in the midst of it. The over-stuffed stores of the past have helped push the move to spread the bargain days over a longer period, the experts say.

Of course, there are those who thrive on the push-and-pull of big crowds and count it as a part of the holiday fun. They’ll be there for Black Friday early and stay late, the survey said.

Cyber Monday, the electronics equivalent of Black Friday, will attract even fewer shoppers, the Bankrate.com poll indicated, with only one four folks looking for techie bargains expecting to hit the specialty stores. And they said they will spend less than in the past, an average of $361, compared with $399 last time around.

The Consumer Electronics Association estimates that some 6 million more shoppers will join the online shopping than last year, when some 103 million shopped online. The record number is expected to keep the ordering hot throughout the Thanksgiving weekend. Three quarters of them are expected to use a mobile device to do their shopping, the association says.

The hot-ticket tech items for the year include TVs, laptops, tablet, iPads, Xbox One, Playstation 4 and Call of Duty.

So rev up your engines, put the turkey on hold for just a short time and join the 2014 version of shop-‘til-you-drop.

10 Worst Toys Of 2014

November 25, 2014 By Twila Van Leer

Toys That Cause Harm Are No Fun

This toy gun is a replica of a real machine gun and can be mistaken for a real gun. On The 10 Worst Toys For 2014 list.

The World Against Toys Causing Harm (WATCH) doesn’t play around when its reps find toys on the market that could be dangerous for children. The agency has just released its list of the 10 worst toys for 2014 – just in time for Santa to take note.

For instance, be on the lookout for a “pencil catapult,” or the Alphabet Zoo rock and stack pull toy that has plenty of string to strangulate a small child – 20 inches worth, while safety standards call for 12 or less. More disturbing is the Swat electric machine gun that can be mistaken for a real gun by police

These are the types of hazards WATCH looks for when it assesses toys. The list includes long strings that can choke children, small parts that can be swallowed and those with potential for eye injuries. Toys made of hard materials that can lead to impact injury are on their no-good lists, as are those with long, slender parts that pose choking risks.

“The numerous recalls in the past year (17, with 4.8 million units that were being sold in the U.S. and Canada,) as well as the recurrence of many known hazards in toys are clearly suggestive of a broken system that needs fixing before more children are harmed,” said WATCH president Joan Siff.

On the list for 2014:

#1 – Zing Air Storm Fire Tek Bow: The toy comes with instructions not to aim the arrows at people or animals, especially the eyes and face. But it is unfeasible that children in the age group most likely to use the toy could be expected to follow those precautions, WATCH says.

#2 – Radio Flyer Ziggle: The problem the watchdog group found with this toy was in the advertising. Although instructions warn users to “always wear a helmet and other safety gear,” The ads show a child who wears no such protection, which could easily influence how the toy is used.

#3 – Toysmith Catapencil: The directions advise children “of all ages” using this toy to “play safe and enjoy,” but the idea is to use a catapencil as “target practice for your desktop.” Wow. Eye damage on its way! Sharpened pencils are not playthings, WATCH declares, and a miniature slingshot-style launcher should not be marketed as a plaything.

#4 – Alphabet Zoo Rock and Stack Pull Toy: The 20-inch pull string is clearly a safety hazard, the nonprofit agency declares. Industry safety guidelines call for a string 12 inches or less. The risk for strangulation makes this a gift parents and others should avoid.

#5 – Junxing Toys Industrial SWAT Electric Machine Gun: Even the name should serve as a warning. In today’s violent society, handing such a toy (weapon?) to a child is inexcusable, Watch says. They are potentially dangerous and generate unhealthy thrills for a young person. Such detailed replicas of actual weapons have caused injury and deaths in the past and should not be sold as toys, the agency says.

#6 – WalMart Spark. Create. Imagine. Wooden Instruments: A small child could easily choke on the drumstick that is part of these toys.

#7 – Science Wiz Bottle Rocket Party: Labeled for children as young as 8; kit poses the risk of eye, face and other injuries, the watchdog warns. The toy imitates rocket-launching projects at schools and camps over recent years, but lacks the adult supervision necessary for such events and involves propellants that can be unpredictable.

#8 – JC Toys Lil’ Cutesies Best Friend: With a name like that, how dangerous could it be? Plenty, WATCH warns. Sold as suitable for children as young as 2, the dolls have a decorative ribbon bow that detaches from the head, posing the potential for swallowing and choking.

#9 – Legends Orcs Battle Hammer: Inviting a 3-year-old to become a savage Orc with a hard plastic battle hammer to use against playmates is not a good idea, WATCH advises. The two-foot-long hammer is capable of doing damage on young flesh, they suggest. No warning cautions are included on the packaging.

#10 – Plush Colored Hedgehog: A stuffed animal with long, fiber-like hair that isn’t sufficiently rooted and easily dislodged invites ingestion and aspiration injuries, the agency says. Not the right gift for the infants for whom it is targeted.

Avoiding these specific toys and being watchful that the toys that are purchased do not have elements that could be dangerous is the objective. And WATCH will continue to monitor in the interests of keeping children safe.

What’s Hot? What’s Not? Let the Shopping Begin!

November 21, 2014 By Twila Van Leer

Hot selling Christmas items include products featuring Disney's Frozen characters. — Hot selling Christmas items include products featuring Disney’s Frozen characters.

Thousands of Americans will step away from the Thanksgiving table, leave stacks of dirty dishes and head right into the front lines of the annual shopping barrage. More stores are opening on the Turkey Day holiday to accommodate early shoppers.

Last year, Macy’s, one of shopping’s bellwethers, opened at 6 p.m. Thanksgiving. That prompted several large retailers to open a bit earlier. And so it goes in the world of selling. And there’s no whimsy about it. The science of money spending indicates that the retailers who aren’t careful about when they open could lose substantial amounts to competitors.

According to the researchers, here is what you can expect:

The word from the gurus is that most stores will hold off until at least 5 p.m. to allow potential customers to stow the turkey (and do the dishes). Some folks who are tired of the “holiday creep” may even reward those such as Costco and Nordstrom, which have opted to close on Thanksgiving.

If you think “frozen” refers only to the weather this year, be aware that the popular animated Disney feature this year is fueling all kinds of products that will top the list of many a small fry. Shortages may occur. (Remember the Cabbage Patch and Tickle-Me Elmo.)

Target, for instance, has gained exclusive rights to 60 Frozen items. And there is a widely available Snow Glow Elsa, complete with a gadget that plays some of the movie’s top tunes, including “Let It Go.”

Even so, the retail experts say there are not likely to be big lines or crazy antics related to Frozen items. No must-have toy has hit the stores since the 2009 craze for Zhu Zhu Pets. Today’s children have become attached to video games and the erstwhile adult toys such as iPad.

The shift in kiddy preferences has such tech sites as Twitter, Facebook, back-in-stock apps and Black Friday forums practically dormant and waiting for anxious parents and grandparents to show up eager to know where they can find the newest toys.

Brick-and-mortar retailers have marshaled new delivery options to offset the competition from online sales. Many will ship purchases direct to a customer’s address, more conveniently than an online source can get things through their fulfillment centers miles away from the customer. Target, Walmart, Macy’s and Amazon all are testing same-day delivery in certain markets. Many retailers also are bringing the competition home, allowing customers to buy online and pick up at the store.

Retailers, Target among them, are offering free shipping through Dec. 20, but some outlets are going in the opposite direction. Amazon, for instance, has raised its free shipping threshold to $35, where it used to be $25. Walmart officials are watching warily, but think Target will lose money on its free shipping police and they are not likely to follow suit. Nordstrom, Neiman Marcus and Reebok will stick with free shipping policies they established a long time ago. Freeshippingday.com will offer free shipping from more than 1,000 merchants on Dec. 18.

Red flags are up in all areas of commerce as the memories of recent data breaches continue to reverberate. CreditCards.com predicts that 45 percent of American shoppers will avoid stores such as Target and Home Depot because of drastic data breaches in the past year.

Price matching is becoming more common among retailers as competition heats up. Fewer than 5 percent of shoppers actually press for a price match, especially if the price difference is not substantial enough to warrant the inconvenience. Many retailers suspend price match policies during the mania of Black Friday and Cyber Monday.

To accommodate shoppers, some retailers such as Target and Best Buy are creating their own Wish List apps. The lists include more holiday gifts in certain dollar amounts to facilitate shopping. Wishybox and Wishlistr and several other apps also appeal to shoppers with specific items in mind.