expertsoncredit.com syndication http://www.expertsoncredit.com Sat, 17 May 2008 00:21:48 +0100 FeedCreator 1.7.2 http://www.expertsoncredit.com/images/M_images/ http://www.expertsoncredit.com expertsoncredit.com syndication http://www.expertsoncredit.com/blog/starting-out/starting-out-2008-job-prospects-for-college-graduates The 2008 job prospects for college graduates who are just starting out look promising, according to a new study. According to Chicago-based Challenger Gray Christmas, an outsourcing firm, 22% of American companies plan to hire more college graduates this year than in 2007. The study found that only 12% of companies in the U.S. plan to cut back on new hires, making 2008 job prospects for college grads in some areas a little less promising. A recent financial headline (finance-headlines/boomers-face-important-financial-decisions.html) discussed how Boomers are choosing to retire early-in droves. The amount of talent leaving the job market may mean that there are more job prospects for college grads than there have been in recent years. Student credit cards help college graduates build credit and may improve 2008 job prospects for people starting a new career. More and more frequently, particularly in the financial sector, hiring companies will run credit reports on college graduates who are just starting out. This gives companies a big picture view of how new hires will be able to juggle different responsibilities. The credit report also provides companies with a sense of a graduating student’s reliability and character. Building and establishing a solid credit history with a student credit card (compare-credit-cards/student/) before college graduation might just help improve your job prospects this year. Experts Blog - Starting Out Fri, 28 Mar 2008 07:33:27 +0100 http://www.expertsoncredit.com/blog/credit-nightmares/avoid-credit-score-problems-with-experian-triple-alert You can avoid credit score problems with Experian Triple Alert. The credit monitoring service provides customers with advanced identity theft protection and also helps them to get the best loan rates. Learn how to avoid credit score problems with Experian Triple Alert. Credit Monitoring Service Gives You Advanced Identity Theft Protection The Experian Triple Alert credit monitoring service gives customers advanced identity theft protection. Sign up for this program to receive automatic, daily monitoring of your credit report. The credit monitoring service provides advanced identity theft protection that includes email alerts of key changes to any of your three national credit reports. The program also offers an unprecedented $10,000 Experian Triple Alert Guarantee that provides recompense for identity theft expenses. Get the Best Loan Rates with Experian Triple Alert You can get the best loan rates with Experian Triple Alert. The credit monitoring service provides detailed information about problems with your credit score. In addition to alerting you about potential pratfalls, Experian Triple Alert provides helpful suggestions so you can work to improve your credit score and be eligible to get the best loan rates. Learn more about Experian Triple Alert (https://www.experiandirect.com/triplealert/default.aspx) and sign up online for advanced identity theft protection. Experts Blog - Credit Nightmares Fri, 29 Feb 2008 06:26:20 +0100 http://www.expertsoncredit.com/blog/credit-tips/managing-your-business-portfolio-to-minimize-risk Manage your business portfolio effectively to minimize risk. When you do business with multiple accounts, getting that all-important “bird’s eye view” of your account management can be difficult. You can manage your business portfolio easily and minimize business risks with Account Advisor from Experian. Experian Account Advisor Provides Proactive Account Management Experian’s Account Advisor is an online account management system that lets you easily identify important changes for your accounts. Minimize business risk with online analysis of risk trends, account trends and business portfolio management that includes a risk score, payment history and balance (as applicable). The bird’s eye view of your business portfolio also alerts you to potential growth opportunities and account delinquencies, so you can plan account management activities accordingly. Minimize Business Risks with Online Account Management Tools Online account management tools help you minimize your business risks by providing information that includes overall business portfolio activities as well as information about individual accounts. The information provided by Experian Account Advisor (http://www.experian.com/products/account_advisor.html) can be easily viewed as spreadsheets or used in a mail merge. The multiple online account management tools make it easy to turn information about customers and clients into a presentation-ready document to use for weekly, monthly or quarterly performance reporting. Learn more about online account management tools (http://www.experian.com/credit_solutions/b2b/manage.html) from Experian. Experts Blog - Credit Tips Mon, 25 Feb 2008 10:24:38 +0100 http://www.expertsoncredit.com/blog/starting-out/finding-your-first-credit-card If you’re looking for your first credit card, there are a number of available options. Before you decide what you want, compare credit cards to find the best one for you. Student credit cards and prepaid credit cards are two of the most popular options for people who want to get their first credit card. Compare Student Credit Cards If you’re a college student, student credit cards offer a number of benefits for the first-time cardholder. Student credit cards are designed for the needs of kids still in school. When you compare student credit cards you’ll find low interest cards, rewards credit cards and balance transfer cards. The type of card you apply for will vary based on your individual needs. Finding a First Credit Card When You Have a Poor Credit History If you’ve already tried to use a line of credit, and made some mistakes, you can still get approved for your first credit card. Prepaid credit cards, which work like debit cards, often report to the credit bureaus so can help you build a strong credit history. Your credit history and your credit score change regularly, based on new information provided by reporting companies. The time you spend responsibly using your first prepaid credit card will quickly be reflected in an improved credit score. Read some pros and cons (pros-and-cons/) of different types of cards before you apply for your first credit card. Or compare credit cards for students (compare-credit-cards/student/) and prepaid credit cards (compare-credit-cards/prepaid-debit/) online now. Experts Blog - Starting Out Fri, 15 Feb 2008 12:28:58 +0100 http://www.expertsoncredit.com/blog/starting-out/the-five-biggest-mistakes-taxpayers-make The five biggest mistakes taxpayers make can result in penalties, paying additional interest and perhaps worst of all, a delay in receiving your refund. With the tax deadline rapidly approaching, make sure that your tax return is error-free. Learn more about the slip-ups people make on their tax returns so you can avoid them this year. The Five Biggest Mistakes Taxpayers Make: Mathematical errors are a common mistake people make on their tax returns. Double check your numbers to make sure everything adds up.More than 1 million people enter an incorrect Social Security number on their tax return every year.Forgetting forms will delay a tax refund. The IRS says it’s often W-2s that are missing from tax returns.Forgetting about interest and dividends is a common mistake on tax returns. Forgetting deductions and credits is common taxpayer mistake. Eligible people can claim tuition fees up to $4,000; charitable contributions and mortgage interest should also be claimed on a tax return. If you find an error on your tax return, go back and correct the mistake as soon as possible. You may have to pay more interest and penalties if you wait too long to fix your mistakes. Get a loan to tide you over until your tax refund arrives. LowerMyBills.com (http://www.lowermybills.com/) lets you compare loan rates from multiple lenders before you choose. Experts Blog - Starting Out Wed, 20 Feb 2008 16:26:40 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/get-to-know-the-money-lady-suze-orman-offers-unique-personal-financial-advice Best-selling author Suze Orman, widely known as “the money lady,” offers her own unique brand of personal financial advice to millions. With a popular TV show, products for sale on TV and a new book in stores, Orman’s name is everywhere lately- and for good reason. Her personal financial advice helps people rid themselves of debt and also work on successful financial plan for the future.Orman Understands the Money Woes of FansSuze Orman feels like she can relate to her fans who struggle with debt. Orman paid her dues, and then some, as a struggling student growing up in south side Chicago. After working as a waitress throughout her twenties and making just enough to get by, a customer gave her a $50,000 loan to invest in her future. She invested her savings with a shady stock broker and lost everything. This propelled Orman to become a stock broker herself, and she soon began writing books offering her own brand of personal financial advice- much to the chagrin of her peers.Orman Explains Biggest Money Mistakes The biggest mistake people make with their money is spending too much and saving too little, says Orman. The author and broker feels strongly that people spend to impress other people, worrying too much about unimportant matters. The risks, says Orman, lie in the fact that while spending too much to keep up with the Joneses, not enough money is being put into a 401(k) plan or in an emergency savings account (credit-tips/set-up-an-emergency-fund-to-help-plan-for-your-future.html). It’s a message that speaks strongly to both men and women, and the reason why her books, CDs, DVDs, TV show and column in O, the Oprah Magazine have an evergreen popularity.Orman’s Personal Finance Advice at the Heart of Best-Selling BooksOrman’s books highlight her ideas for personal financial advice strategies. Orman’s advice is folksy and easy to understand, without being condescending. Some of her internationally popular books include The 9 Steps to Financial Freedom, The Courage to Be Rich and The Money Book for the Young Fabulous and Broke. The books outline her personal financial advice and offer tips for saving money and getting out of debt.Suze Orman Makes a Splash with Latest Book on Money Suze Orman’s latest book, Women Money, was available through a free download for a day and a half on Oprah Winfrey’s website. The book was downloaded more than 1 million times. Orman stated she wanted to make the book available to as many people as possible, because she feels its message is so important. The book outlines a five-month plan to achieve financial security, in keeping with her personal finance advice strategies. In addition to being a favorite writer and frequent quest of The Oprah Winfrey Show, Orman also has a number of other products for sale, including kits to guard against identity theft (identity-theft/) and to set up wills and trusts.Find Suze Orman books at PriceGrabber.com (http://www.pricegrabber.com/search.php?form_keyword=suze+orman topcat_id=7). PriceGrabber.com lets you compare prices from multiple sellers before you buy, so you can get the best deal. Headline - Finance Headlines Thu, 21 Feb 2008 09:41:43 +0100 http://www.expertsoncredit.com/blog/starting-out/help-save-the-environment-when-you-shop-green-with-pricegrabbercom If you’re concerned about the environment, you can make a conscious decision to live your life in a way that does more good than harm. From recycling household items to building using eco-friendly products, there are a number of ways that you can help preserve the environment. Now, ShopGreen from PriceGrabber.com gives you a new way to support the environment, by buying green products. ShopGreen makes buying environmentally-friendly products easy. PriceGrabber.com built an entire website within their website that only features green products. It’s easy to go right to your favorite eco-friendly retailers and products. Best of all, there’s no confusion about whether the products you’re buying are environmentally-friendly- all of the products at the ShopGreen website fit some kind of green criteria. The environmentally-friendly products sold in ShopGreen fall into one of these categories: Products produced by eco-friendly merchants. Products made from recycled or organic materials. Energy Star products designed to help you save energy in the home.Products made from environmentally-friendly materials like soy and hemp.Biodegradable products that can go in the compost after they are used. These products will decompose and can be reused in the garden. Products like LED light bulbs and low flow showerheads that use less of our natural resources. Learn more about ShopGreen (http://shopgreen.pricegrabber.com/) and start your eco-friendly shopping online now. Experts Blog - Starting Out Mon, 07 Jan 2008 08:01:45 +0100 http://www.expertsoncredit.com/blog/credit-tips/borders-321-visa-rewards-credit-card-borders-on-brilliant The Borders 3.2.1 Visa rewards credit card is one of my favorite finds in my quest to find the perfect new credit card. I’ve been going back and forth from low interest credit cards to rewards credit cards and darn it, rewards credit cards are just so much more appealing. The Borders 3.2.1 Visa credit card provides rewards for one of my favorite things: reading books. The rewards credit card gives you points every time you use the card. You get 1,000 3.2.1 bonus points with your first (qualified) purchase. Then, for every $1 you charge to your Borders Visa card at Borders, Borders.com, Borders Express, Waldenbooks and Waldenbooks.com, you’ll bank 3 bonus points in your account. When you shop for gas, groceries or dine out you’ll receive 2 bonus points for every $1 charged to your rewards credit card at eligible locations. And, you’ll always earn 1 bonus point for every dollar charged at all other locations. There are no limits on the points you can earn with the Borders Visa credit card- a huge plus, since many rewards credit cards have a cap on rewards. Once you get some bonus points in your account, you can redeem them for cash, travel and gift cards at Borders, restaurants, gas stations and more. The Borders Visa credit card has no annual fee, a 0% APR on purchases and balance transfers for the first twelve months and a regular APR of 15.24% (depending upon your credit history). Learn more about the Borders Visa card (creditcard/borders-3.2.1sm-visa-card.html) and apply online today. Experts Blog - Credit Tips Tue, 18 Dec 2007 17:57:41 +0100 http://www.expertsoncredit.com/blog/starting-out/what-do-you-want-to-read-about-on-the-starting-out-blog This week on the Credit blog, we’re polling readers about what they’d like to read, and what posts have been most helpful to them. I’m totally open to your ideas for topics to write about, so feel free to post a comment with your suggestions below. So far, topics on the Starting Out blog have included: Establishing Your Credit History is a hot topic on the Starting Out blog. You have to have credit to get credit. It’s an unfortunate truth that’s left many of us scratching our heads. I’ve written a number of posts on ways you can start to establish your credit history and will keep looking for more creative ways to build credit in the future. Buying a Home is also a popular Starting Out blog topic. Whether you’re looking to rent to own or just buy outright, the tips on the blog talk about the pros and cons of buying a home, what to expect and how to plan for this eventuality. Comparing Credit Card Offers is something that takes time to do. It’s easy to get swept up in what looks like a good offer; the blog helps you separate the wheat from the chaff and find the best credit card for you. Credit Debt Impacts are an important blog topic when you’re starting out. A lot of times people don’t realize just how damaging a collections agency item or a judgment is on their credit report- until they try to get a low interest home loan, finance an auto or get a credit card. It’s near and dear to my heart and I’ll keep writing about credit debt on the Starting Out blog whenever I have new ideas or information to share with you. Please take a moment to comment and tell me what you’d like to read about on the Starting Out blog. Your input is welcome- and appreciated! Experts Blog - Starting Out Wed, 19 Dec 2007 14:57:49 +0100 http://www.expertsoncredit.com/blog/credit-tips/avoid-home-improvement-heartache-with-contractorcheck You can avoid home improvement heartaches with ContractorCheckSM from Experian. We’ve written about some of the home improvement repair scams (credit-nightmares/credit-nightmares-home-equity-loan-scams.html) on the Credit Blog. Homeowners trying to get work done on their homes have been stuck with shoddy work, no-shows and worse for years. With ContractorCheck, you can get a good idea of what you’ll be dealing with before you hire someone to do home improvement repairs with an unbiased review. What you need to know about ContractorCheck: ContractorCheck is a one-stop shop for home improvement repairs. You can use the online service to find reputable contractors near your home. You can also protect yourself from home improvement repair scams by reviewing a contractor’s business background before you decide if you want to entrust them with your home. ContractorCheck gives you up to date information about contractors. The easy-to-read reports include information about business licenses, insurance and bonding. The home improvement repair report also provides you with a credit summary, so you can review liens, bankruptcies and judgments (if applicable) that have been brought against the contractor. You can also see how long the contractor has been in business. That way, you know upfront what kind of company you’re dealing with. ContractorCheck doesn’t accept paid ads from the contractors in its listings; it’s all unbiased, third party home improvement repair reviews that you can use to make an informed decision about the company you hire to work on your home. This month, you can get free access to 10 ContractorCheck reports. For more information about reputable contractors in your area, visit the ContractorCheck website (http://contractor.smartbusinessreports.com/?link=5002 offercode=hmpgtest src=main). Experts Blog - Credit Tips Thu, 13 Dec 2007 07:28:37 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/enron-scandal-still-rolling-along The Enron scandal, which rocked the financial world a few years ago, has seemed ready to fade away into financial history, a cautionary tale against greed and carelessness. However, recent guilty pleas by some prominent British bankers have proved that the Enron story is not quite ready to die just yet.The Enron StoryThe Enron company was a Texas based energy company that enjoyed its status as one of the leading companies in the world for fuel, paper and communications. The company’s great success continued into the 1990s, when the government’s deregulation of electricity proved a boon to Enron’s bottom line. By 2001, Enron was reporting earnings of over $50 billion.The Enron ScandalLate in 2001, Enron began to show signs of strife. It posted third quarter losses and sold some assets. Analyst confidence in the company began to waver. The Securities Exchange Commission announced that they were investigating Enron on suspicions of insider trading. It eventually came out that much of Enron’s success came as a result of faulty accounting practices, aided and abetted by the accounting firm of Arthur Andersen. Enron filed for bankruptcy in December of 2001. On May 25, 2006, Kenneth Lay and Jeffrey Skilling, former CEOs of Enron, were found guilty of numerous accounts of securities and wire fraud. Lay was facing a sentence of up to 45 years, but died of a heart attack before he could be sentenced.The British BankersIt seemed like the Enron story might be basically over, but that was not to be. Three British bankers, David Bermingham, Gary Mulgrew and Giles Darby, formerly of the National Westminster Bank Plc have pleaded guilty to wire fraud connected to an initially undisclosed investment with former Enron executives such as former Enron CFO Andrew Fastow.The bankers confessed that they invested with Fastow secretly using a shell corporation called Southampton L.P. The three men had received roughly $2.83 million for their participation, with Fastow, former Enron global finance managing director Michael Kopper and other Enron personnel involved in the shady deal collecting $12.3 million. The British bank officers had originally pleaded not guilty and were scheduled to go on trial in January, but changed their plea to guilty as part of a plea deal that will allow them to serve some portion of their sentences in the United Kingdom. The bankers agreed to a 37-month prison sentence and a repayment of over $7 million to the Royal Bank of Scotland. Headline - Finance Headlines Fri, 07 Dec 2007 13:09:15 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/keeping-expenses-down-through-the-holidays This time of year, we can all use more budgeting tips. As our financial reserves are being tapped by the need to buy holiday gifts for all our friends and loved ones, anything we can do to save a dollar here or there will help. Here are five ways to keep those extra dollars in your pocket.1. E-communicationThis is the time of year for sending holiday cards or even writing old friends to catch up. In lieu of a traditional holiday card or long distance phone call, consider holiday e-cards and e-mails. In most cases these are free, and a holiday e-card will arrive at your intended destination immediately, a great benefit for those last minute holiday planners.2. Pay CashWhile modern commercials will exhort you to use check cards and credit cards at all times, it is easier to keep track of your money as you’re spending it if you use cash. If you leave the house with a certain amount of spending money, when it’s gone, you know you’ve done your spending for the day. Of course, there is the added bonus of not incurring any interest charges or fees as you do with credit cards.3. Eat More Meals InIf you eat out regularly, considering replacing one or two of those nights out with a night eating at home. Preparing and eating your own meals can actually be fun if you approach it the right way. Over time, you may even see considerable savings.4. Cut Down on Smoking and DrinkingWhile a good idea for general health reasons, reducing your cigarette and alcohol intake can have serious repercussions for your finances as well. In fact, if you are looking for excuses to quit smoking, try keeping track of how much you spend on cigarettes in a week, month or several months. What you find might just be enough to put you on the wagon for good.5. Credit Card ManagementPay your credit card bills down every month. If possible, switch your balances over to a card with a zero percent introductory APR. Most credit card companies charge extremely high interest rates once the introductory period has ended, which results in money charged to you that is essentially wasted. Keep those charges down and use the money you would use for those fees for things that really matter to you instead. Headline - Finance Headlines Thu, 06 Dec 2007 12:57:09 +0100 http://www.expertsoncredit.com/credit-resources/credit-headlines/government-assistance-may-not-do-the-job-for-subprime-borrowers The Federal government, alarmed by the recent subprime mortgage crisis, has taken steps to help mortgage owners avoid defaulting, but unfortunately, only a small group of these borrowers will be affected by the assistance.Trouble Looming for Subprime BorrowersThe problem on the horizon is that many of these borrowers, some from middle class families who may not have needed subprime loans to begin with, were enticed into accepting these loans with low introductory rates. At some point over the year, these rates will expire and the interest required will jump to levels much higher than those for standard mortgage loans, in some cases, a staggering 30 percent or greater. Industry analysts predict that many of the two million borrowers who find themselves facing these higher rates are in danger of defaulting.Federal Government Proposes a Temporary SolutionTo hold off the crisis and restore consumer confidence, Secretary of the Treasury Henry M. Paulson Jr. is promoting a plan that will freeze those introductory rates on a temporary basis for certain borrowers. While this is not an ideal situation for the mortgage lenders, it is certainly preferable to facing multiple defaults on loans they have made.Limited Assistance to Subprime BorrowersIn order to qualify for this assistance, borrowers would have to be up to date on payments and not miss any payments during the course of the freeze. In addition, borrowers would have to show financial need. Those who are financially capable of refinancing or making the higher payments would not qualify. Unfortunately, analysts have found that a similar plan in California will in all likelihood help only 12 percent of subprime borrowers. If this result reflects how the federal plan would go, it is clear that ideas that are more comprehensive are needed.Lenders of Subprime Loans Skeptical of Rate Freezing PlanOne problem is that lenders do not want to offer breaks to borrowers who can afford to pay with proper budgeting. In some cases, the subprime loans have been taken out by families with middle class incomes who could make higher payments if they were willing to cut back on other luxuries. It is possible that the fact that these families were unwilling to make cuts is why the lender was able to sell the subprime loan in the first place with the promise of short-term savings, but now that unwillingness to compromise has become a problem for lenders. Headline - Credit Headlines Fri, 07 Dec 2007 12:53:15 +0100 http://www.expertsoncredit.com/credit-resources/credit-headlines/subprime-loans-going-to-good-credit-borrowers-leads-to-trouble During the current subprime mortgage credit crisis, it has been assumed that the problem has stemmed from the poor money management of borrowers with bad credit. This is a logical assumption, since subprime mortgages are specifically designed as an alternative for individuals with damaged credit. By accepting higher than normal interest rates, these borrowers gain the opportunity to get the money they need and institute new, more responsible credit and money management styles.Subprime Loans Going to the Wrong BorrowersHowever, the Wall Street Journal found that over $1 trillion in subprime loans, more than half of the subprime loans made since the year 2000, were received by people with high enough credit scores to qualify for traditional loans with more favorable interest rates. Even some borrowers with high enough credit scores to qualify for preferred mortgage loans ended up taking out subprime loans.Why Do People with High Credit Scores Take Subprime Loans?There are a number of reasons why people who don’t necessarily need subprime loans would take them. For one, a borrower with a high credit score may qualify for a loan of a certain size that is insufficient for their needs. They may use the subprime loan option to obtain a larger loan than they would normally qualify for (or even be in a position to pay, a contributor to the current problem). Borrowers with good credit may also have been able to acquire subprime loans more quickly and with less need for documentation than would be possible with a conventional loan.In addition, since these subprime loans were seen as a boon by some mortgage lenders, the loans were marketed aggressively to potential borrowers regardless of their credit status. These lenders may have promoted the advantages of the subprime loans while downplaying the serious disadvantages such as higher interest rates and more restrictive repayment requirements.What Has Been the Effect of Good Credit Subprime Borrowers?It is suspected that many of these borrowers accepted less favorable terms in order to get a loan fast so that they could buy a house that they would then flip or refinance, allowing them to eliminate the high interest subprime loan. Unfortunately, the failing home market has made this difficult for many people who have ended up stuck with the high interest subprime loans. This has contributed to the overall crisis involving holders of subprime loans who have defaulted or been delinquent, damaging the value of securities portfolios, which include subprime loans. Headline - Credit Headlines Thu, 06 Dec 2007 12:40:14 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/about-the-alternative-minimum-tax Although in the past, the alternative minimum tax, or AMT, was not a real concern for most families, more and more families are finding out that they have to consider it. However, some families do not even realize they have to consider the alternative minimum tax until they do their taxes and realize that they have to pay it. Here is what you need to know about the alternative minimum tax.Origin of the Alternative Minimum TaxThe alternative minimum tax began in 1970 as part of the Tax Reform Act of 1969. The idea was to balance the problem of a few high-income households avoiding income tax because of the high level of tax benefits they were generating.Problems with the Alternative Minimum TaxUnfortunately, since the alternative minimum tax did not take into consideration the effects of inflation or future tax cuts, suddenly more and more middle class taxpayers are being victimized by the AMT. The AMT has been targeted by the National Taxpayer Advocate’s report as the largest problem with the current tax code. The report noted that under the alternative minimum tax, families are punished simply for having children or being in a high tax area. Although the majority of the AMT is still paid by those who make more than $200,000 a year, the fact that it does not compensate for inflation has caused Congress to consider a stopgap measure that would protect millions from the AMT this year and may consider more AMT reform in the years to come. How Does the Alternative Minimum Tax Work?Essentially, the alternative minimum tax rules require that you calculate your taxes under the normal tax code rules and under the AMT rules. Whichever results in higher taxes is the one you have to pay. Since many deductions and exemptions are not considered under the AMT, more and more people are finding that the AMT is what they have to pay.What Can You Do About the Alternative Minimum Tax?At this point, all you can do is pay it if you owe it. The best way to avoid AMT is to minimize the number of tax preference deductions you take on schedule A. If you can move some of these items onto the next year’s return in a year where your AMT requirements exceed your normal tax requirements, you may be able to sidestep the AMT. Headline - Finance Headlines Wed, 05 Dec 2007 11:56:36 +0100 http://www.expertsoncredit.com/credit-resources/credit-headlines/are-structured-investment-vehicles-safe One of the investment products that has achieved some infamy in the recent months of the credit crisis is the structured investment vehicle, or SIV. Although many investment plans can be risky, especially under less than ideal market conditions, there are both pros and cons involved with the SIV for investors to consider.What is the SIV?The structured investment vehicle works by using money borrowed for a short time from investors to invest in a securities portfolio. The SIV plays a borrowing rate that is a standard short-term rate and then invests the money in higher interest rate securities. The typical difference between the amount paid on the borrowed money and the earnings from the investments can be about .25 percent, which can add up if the investment fund is large enough.What is the Problem with the SIV?In the past, there has not been any special problem with SIVs. However, recent market fluctuations have put SIV holders in some danger. If the securities in the fund drop in value, the fund may become worth considerably less than the initial investment. This is known as credit risk. If the fund loses value, the creditors who lend money to the fund may get nervous and pull out. This would be a disaster and result in a liquidity problem. A liquidity problem occurs when the fund manager needs money to pay back investors immediately. Since the fund manager is not able to hold his position until the securities rebound, he must sell at a reduced rate in order to satisfy the creditors and take a permanent capital loss.Recent SIV ChallengesThe recent problems that have been occurring with the SIV are due to the fact that some SIVs have subprime securities in their portfolios. The current subprime default scare has spread to concerns about the solvency of these SIVs. Investors worried about subprime exposure are pulling out, leading to the above mentioned liquidity problem and in some cases, a selling of securities at a loss.What Investors Can DoThe recent issues surrounding SIVs that contain subprime securities do not make SIVs a bad financial move in and of themselves. Some SIVs are doing just fine, and SIVs that do not include subprime securities should not be having significant problems. Any investment requires careful research and consideration of risk, and the structured investment vehicle is no different in this regard. Headline - Credit Headlines Wed, 05 Dec 2007 11:39:09 +0100 http://www.expertsoncredit.com/credit-resources/credit-headlines/citigroup-gets-a-helping-hand Investors in Citigroup have reason to smile. Citigroup, which has faced numerous challenges in recent months, including stagnating revenues and market share losses in their credit card division, have been looking for help from anywhere they can find it. Now it appears that they have it, and the news has pushed stock markets back in a positive direction.A Middle Eastern sovereign fund called the Abu Dhabi Investment Authority has made a $7.5 billion investment in Citigroup, the banking giant that has been severely impacted by a staggering number of defaults and missed payments on subprime mortgages. This investment represents a 4.9 percent equity stake in Citigroup, making them the largest shareholder in Citigroup, above Saudi Prince Walid bin Talal, who made a similar investment bailout of Citigroup over a decade ago. The news of the Arab investment group’s confidence in Citigroup resulted in an early rise in share prices of 1.2 percent.The positive news for Citigroup has had rebound effects throughout the market. The Dow Jones Industrial Average rose 1.7 percent, a 215 point jump to 12,958.44. The NASDAQ composite index saw a 39.81 point rise to 2,580.80, and Standard Poor’s 500-stock index rose 1.5 percent to 1,428.23.The market may also have received a boost after Saudi Arabia’s announcement that they will increase oil production. This will lower oil prices and give consumers more disposable funds for holiday spending, a crucial element of fourth quarter economic success. In New York trading, oil prices dropped a little more than three dollars a barrel, bringing it down to about 94 and a half dollars per barrel. The prospects of the market experiencing no more than a correction a rather than a full recession now appears somewhat more likely to some, despite the fact that consumer confidence is at a two year low. Headline - Credit Headlines Tue, 04 Dec 2007 15:26:12 +0100 http://www.expertsoncredit.com/credit-resources/credit-headlines/confidence-in-financial-services-companies-in-question Things seem to be looking bleak for financial stocks as of late. It seems like nearly every financial company is reporting mortgage losses, subprime credit issues or other indicators of a financial crunch. As indicators of poor market conditions continue, many investors are searching desperately for a safe haven.Handling Financial Services Companies Through the Credit CrisisHowever, a financial crisis is often the best time for investing. Economic markets are cyclical, and a decline in the market will eventually be followed by an upsurge. In addition, the paper losses far outweigh the real cash effect of the current market problems, so complete financial disaster is much farther off than the signs might lead some to believe. Investing in financial service companies right now does carry some risk, but it could also pay huge dividends. These companies are designed to weather financial storms, and if and when they bounce back, they could bounce back more strongly than ever, making them a potentially big bon for investors.If you’re interested in investing in a financial services company, you should discuss the realities of such a move with your financial advisor. Look over as many options as you can and follow the companies you intend to invest in closely. Examine their history to see how they have handled similar crises in the past. This should give you an idea of which companies are worth your financial attention.Credit Crisis Affects Corporate Bond SpreadsOne effect the credit market decline has had is a four-year high in corporate bond spreads. Corporate bond spreads represent extra yields for investors to offset the risk of retaining investment-grade corporate bonds. The surge of subprime mortgage defaults has caused a great deal of volatility in the market, causing an increase in risk aversion, which tends to result in higher spreads. Headline - Credit Headlines Fri, 30 Nov 2007 08:42:11 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/holiday-shopping-extends-to-financial-markets Black Friday is a traditional day for shopping throughout the country. The day after Thanksgiving finds many retail outlets offering bargain basement deals for those getting a jump on their holiday shopping. This quest for bargains extended to the market as well, as there was a large push to pick up cheap equities after a large sell off on Wednesday. The NASDAQ rose to 2597, a gain of 34 points, and the S P went up 24 to 1441. The Dow Jones Industrial Average jumped 182 points to 12981.Holiday Market BoomAreas showing gains included materials, health care and the financial sector. While the bump may be indicative in a turnaround in market woes, it may be a bit premature to make any long-term predictions based on today’s performance. Credit and mortgage problems still exist for consumers, and economists are waiting with baited breath to see how these issues will affect the holiday shopping season. The issue is further complicated by a series of reports of tainted toys from China and the continuing issue of high gas prices.Retailers Make Their MoveRetail stores have responded by opening their doors as early as possible. In an attempt to catch the post-Thanksgiving gift rush, some stores opening as early as 4 a.m. Many stores are offering unprecedented deals on a higher volume of items than ever before. Consumers are responding, standing in line in the hundreds, even at the earliest hours. Large retailers such as Wal-Mart, Best Buy and Target expect to show tremendous shopping volume, as they offer extremely low prices on the most popular, state-of-the-art items. These stores and others have attempted to ward off reports of a poor shopping season by beginning their discounting in the weeks leading up to Black Friday and by offering expanded hours and special promotions. Headline - Finance Headlines Tue, 04 Dec 2007 08:38:44 +0100 http://www.expertsoncredit.com/credit-resources/finance-headlines/finance-tips-for-traveling If you’re planning a trip overseas this holiday season or any time in the future, you’ll want to protect your money. Here are a few tips for making sure you have a financially sound foreign adventure.Watch Exchange Rates It’s not easy to predict how exchange rates will go, but it is possible to follow trends and exchange your money when the exchange rate is particularly favorable. You don’t have to wait until the last minute to exchange your dollars for Euros or whatever monetary unit you may need. Figure out how much your trip will cost and make the switch when it will be most beneficial economically. By the same token, you don’t need to rush to change your leftover money back into dollars at the end of your trip.Make Savvy Travel PlansThanks to the Internet, you can search for great deals on airfare, hotels and travel packages almost anywhere in the world right from your home computer. If you wait until you arrive in a foreign country to find a place to stay, it’s highly unlikely you’ll get the best deal. Compare rates and options from home and have your entire trip taken care of well in advance.Carry a Few Credit CardsThe major credit cards are accepted in millions of locations all over the world, so even if you are out of the local currency, you should be okay. At the same time, make sure you keep information about how to contact your credit card company separately, so if your card is lost or stolen, you can report it immediately and in most cases, get an emergency replacement.Be AlertEven if you provide yourself with options in the eventuality of a stolen card, it still won’t be any fun if it happens. Have a good time when you travel, but be aware that there may be unscrupulous people out there looking to take advantage of people who don’t know the area or who may not be paying complete attention to their surroundings. Always try to remain vigilant while traveling abroad.Learn the LanguageYou don’t have to become as proficient as a native, but you may have difficulty haggling over the price of desired items if you can’t communicate with the seller. At the very least, you may want to learn some basics such as numbers and words like less, more and too much. Headline - Finance Headlines Fri, 30 Nov 2007 14:17:28 +0100