Qualifying for a credit card has become increasingly difficult under the dark cloud of the global credit crunch. The lending standards are getting tighter. If earlier credit card holders applied their energy to accumulating cash back or frequent flier miles, now they do their best to improve their credit scores. They understand that positive FICO score is their best guarantee of getting a credit card with beneficial features and terms in future.Just a year ago a customer with FICO score of 680 - 720 would get the best credit card offers with the best interest rates from many lenders. Now, as financial experts say, that bar has been raised to 720 - 750. The days of easy credit have gone. Many lenders are requiring higher scores to grant applicants credit cards. The reasons are obvious: the number of consumer defaults is rising. According to the American Bankers Association, in the last quarter of 2007 it reached the highest level since 1992.
As a result, banks are changing the rules of granting credit. They have stopped giving money away to anyone who needs a plastic. Having a good credit score is far more important now than it has ever been. Several years ago the applicants didn't need to have such high scores unless you wanted to get some really lowest rates card or even a No balance transfer fee credit card . A positive credit history is important not only when you are looking for a credit card. It could even affect your career. Potential employers, landlords and insurers take into consideration your credit reports and evaluate your responsibility and trustworthiness according to your borrowing-payment record.
Due to the new lending standards and to the rising level of credit education, people become more and more conscious about their credit card usage. Everybody understands how important is to maintain good credit score. It is the key your future successful financial future. That's why most people not to rush to apply for any card they like, but first compare interest rates and other important features online and choose the plastics that suit their life style and spending pattern best.Improving your FICO score is a time, patience and responsibility consuming process. The basic steps to build and maintain good credit have not changed: you need to pay your monthly bills on time and do not max out your credit limit. If you have debt, try to keep it less than 30% of your total available credit.
Another important step is to obtain a copy of your credit report. Make sure that there are no errors or inaccuracies. According to a survey by the U.S. Public Interest Research Group, more than a quarter of reports contain errors. If it happens, contact the credit bureaus and ask them to correct the data.
Don't be scared to apply for a new credit card if you are a responsible customer. Just control your spending and don't accumulate more debt than you can afford. Having no credit cards or keeping them inactive won't play into your hands. There will be nothing to report, so it won't help you to improve your FICO score. Related Posts
Visa Bulletin for May 2007 carried a glimmer of hope for stagnant EB categories. On April 20, 2007, Sheela Murthy spoke on an immigration visa panel with Mr. Charles Oppenheim, Chief Immigrant Visa Control and Reporting Division, Department of State Visa Office, at an American Immigration Lawyers Association (AILA) Conference. After the panel, Mr. Oppenheim discussed the future of visa numbers with Ms. Murthy. He acknowledged that an earlier dialogue during a previous DC AILA Chapter meeting with Attorneys Sheela Murthy and Aron Finkelstein, also of the Murthy Law Firm, had played an important part in ensuing discussions with other government agencies as to the factors impacting the use of Employment immigrant visa numbers during the summer months. Through his deliberations with the U.S. Dept of Labor and the USCIS, Mr. Oppenheim determined that it was appropriate to release some additional visa numbers by moving some of the May cut-off dates, and that movement for India and China is likely to occur, possibly as early as June or July 2007! On April 26, 2007, Mr. Oppenheim confirmed and reviewed this MurthyBulletin article with Attorney Murthy personally once again to ensure its accuracy with respect to the various discussions with the Murthy Law Firm and his estimates on the movement of worldwide immigrant visa numbers.
Visa Numbers Based on Demand
As regular MurthyDotCom and MurthyBulletin readers know, visa number movement is based upon a number of variables, one of which is the amount of expected demand. [The U.S. Department of State's Visa Bulletin chart is always available on MurthyDotCom.] The U.S. Department of State (DOS) must estimate this demand when it determines what cutoff dates, if any, to establish in the monthly Visa Bulletin. If the demand which DOS has anticipated does not materialize, it is possible that visa numbers will go unused. When asked, Mr. Oppenheim mentioned that this did happen last year and resulted in about 11,000 immigrant visa numbers not being used last fiscal year.
Demand Overestimated : Our Input
Attorneys Murthy and Finkelstein spoke with Mr. Oppenheim on February 28, 2007 at an AILA meeting. Mr. Finkelstein pointed out that, based on our firm's experience it appeared that the DOL figures were exaggerated. One of these reasons was that the DOL's Backlog Processing Centers (BPCs) were to be processing cases in a First-In / First-Out (FIFO) order. Thus, they already have processed many of the older cases with earlier priority dates. These older cases have already made their way into the USCIS system, if the employers are intending to move forward with their respective cases.
Additionally, many of the BPC cases are not moving forward to the USCIS, even after approval from DOL. Although the BPC sent out 45-day continuation letters to determine ongoing employer interest, many employers are no longer interested, given the lengthy delays in the DOL processing of cases. Many of the employees have moved on to other job opportunities. Thus, it is not appropriate to look at the number of cases in the BPCs and assume that each translates to a demand for a visa number in the near future. The ratio is actually fairly small for the cases that are being approved at this time.
Also discussed was the possibility that the labor substitution process will end in the near future. This would reduce some of the demand for visa numbers and the use of older priority dates. Without substitution, many of the older cases will simply be abandoned because the employers will not continue to sponsor the original beneficiaries for any number of reasons.
Expectations
Based upon these discussions, we expect some movement for India and China as early as the June or July 2007 Visa Bulletin. We do not have indications of how far forward the dates will move. The Visa Bulletin for June 2007 would usually be issued around the middle of May. We believe that any movements could impact both EB2 and EB3 petitions at some point. For now, people should continue as usual. Anyone eligible to file the I-140 petition, should likely do so. S/he should continue to extend his or her nonimmigrant status and not make any assumptions about the ability to file the I-485.
We would also note that, while forward movement is expected for the summer in 2007, it is also expected that the cutoff dates could move further back during the fall of 2007. Therefore, those who benefit by the movement need to take advantage of it while they can.
Flexibility of DOS Visa Office is Appreciated
We at the Murthy Law Firm extend our most sincere appreciation and thanks to Charles Oppenheim for considering our input and verifying our theories. We know that each visa number represents an individual with potential benefits flowing to all family members. We know that wasting even a single visa number means that an employer's needs go unmet and a person's dreams go unfulfilled. While we think it is abundantly clear that more visa numbers are needed, we are very pleased that the DOS Visa Office has determined that the cutoff dates will likely be shifted forward in an effort to avoid wasting visa numbers this year.
Here is the scoop on savings bonds in a nice question-answer format.
What type of savings bonds are available?
* Series EE. Paper Series EE bonds can be purchased at half face value. For example, you pay $25 for a $50 bond. Bonds bought online must be purchased at face value. You can buy up to $30,000 ($60,000 face value) in EE bonds. They come in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. If you redeem bonds less than five years after purchase, you forfeit the three most recent months' of interest. There is no penalty after five years. * Series I. These inflation-indexed bonds can be bought only at face value in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. The maximum purchase is $30,000. Like EE bonds you forfeit the three most recent months' of interest if you redeem I bonds less than five years after purchase. * Series HH. The Treasury stopped issuing HH bonds on September 1, 2004. Prior to that date, the only way to invest in HH bonds was by trading in your EE bonds.
How are the interest rates determined?
As of May 1, 2005, newly issued Series EE bonds will have a fixed interest rate, based on 10-year Treasury note yields. The rate currently is 3.5%. These fixed rates will be announced every May and November and the rate that is in effect on the day you buy your bonds will stick with them for at least the first 20 years. The Treasury will still guarantee that the value of an EE bond held for 20 years will at least double its purchase price. If a fixed-rate EE bond's stated rate won't get the job done, the government will make a one-time adjustment so that the average annual return over two decades will be the 3.5% needed to double your money. You can check the latest rates on the Treasury's savings bond Web site. If you happened to buy that bond in April 2005 before the fixed rate took effect, the rate on your bonds would change in October (and be based on the rate announced in May). I bonds earn interest based on a combination of a guaranteed fixed rate and the rate of inflation. The current fixed rate for I bonds purchased between May 2005 and October 2005 is 1.2% and will stay with the bonds for their entire 30-year lifespan. The inflation-adjusted portion of the yield, now 3.58%, and the fixed rate are set every six months. HH bonds, currently paying 1.5%, do not increase in value. Instead, investors are paid interest every six months and get face value for the bonds when they redeem them. The interest rate is set when you buy HH bonds and then again ten years after the issue date. They stop earning interest after 20 years.
Who can buy savings bonds?
Residents of the United States and its territories (as well as U.S. citizens living abroad) can buy savings bonds. Canadian and Mexican residents who work in the United States, have social security numbers and who can participate in the Payroll Savings Plan through work also can buy savings bonds.
How do bonds compare with other investments?
They're very safe (and conservative), and compared with a number of other safe investments, the yield isn't too bad. As of May 1, Series EE bonds earn 3.5%. That's about the same as a one-year certificate of deposit, beats money-market deposit accounts and certainly is more than the typical savings or interest checking account. The current combined rate for I bonds is a respectable 4.8%. This beats many other conservative investments. Savings bonds are also free of state and local income taxes, so that adds to your yield, too. Check out the effect on the tax advantages calculator. But keep in mind that you can't redeem savings bonds for the first year. And if you redeem them in less than five years, you lose the most recent three months' interest.
Do savings bonds earn interest forever?
No. But "people are under the misconception that savings bonds earn interest as long as they hold them," says Dan Pederson of the Savings Bond Informer, a bond consulting service. Americans sitting on bonds that have stopped earning interest are making an interest-free loan to the U.S. government to the tune of $9 billion. If you've got savings bonds and aren't sure whether they still are earning interest, the Bureau of Public Debt's Treasury Hunt database can help you find out. EE bonds earn interest for 30 years. Bonds issued after May 2003 are guaranteed to double in value within 20 years, which is referred to as the original maturity date. The new fixed rate for bonds issued after May 1, 2005, applies to those first 20 years then is extended for the next ten years unless the Treasury Department announces a different rate. I bonds earn interest for 30 years. The interest accumulates monthly and is compounded every six months. HH bonds stop earning interest at 20 years. The interest rate is set when you buy them then again at ten years after the issue date.
Bonds no longer earning interest as of April 2005
E May 1941 through April 1965 and December 1965 through April 1975
H June 1952 through April 1975
HH January 1980 through April 1985
Savings Notes May 1967 through October 1970
A, B, C, D, F, G, J, and K All issues
How can I find out what my bonds are worth?
You can use the savings bond calculator on the Bureau of Public Debt's Web site. You can also keep track of and value each bond with the free, easy-to-use, Windows-based Savings Bond Wizard program. If you don't want to manage your savings bonds yourself, you can get help. For example, U.S. Savings Bond Consultant (www.savingsbonds.com) offers online bond-management tool called Savings Bond Guru.
Does it matter when I cash in a bond?
Yes. Interest is added to savings bonds at specific intervals. If you redeem your bond before the interest is posted, you lose it. For example, if interest is posted in, say, April and October, redeeming bonds in September instead of October would cost you six months' worth of interest. To see when interest is added to your bonds, use these tables.
Should I cash in my oldest bonds first?
Not necessarily. When figuring out what bonds to cash when, you can't go just by date. Older bonds are not by definition worse than newer bonds. Some of them still earn a 4% guaranteed minimum rate. In addition, series E bonds issued before December 1965 have a 40-year maturity period, but starting in December 1965 E bonds began to be issued with 30-year maturities. (All series EE bonds and I bonds mature in 30 years.) A lot of bonds holders lose sight of that (and the government doesn't send statements) so they accidentally cash in bonds that are still earning interest and hold on to ones that aren't. When you want to redeem bonds, start with any that have stopped earning interest.
Will I have any tax liability if I use my social security number when I buy a bond as a gift?
No, you shouldn't. The social security number on the bond is used for tracking lost bonds, for instance, and other record keeping. The person who cashes the bond -- normally the owner or a co-owner -- should get the 1099 form reporting the interest for tax purposes. However, banks have been known to make mistakes, says Pederson. Just to be sure, try to use the social security number of the recipient.
What do I do if I've lost some savings bonds?
Complete Form PD F 1048.. Pederson suggests that everyone file this as a matter of routine to make sure there are no bonds belonging to you that you don't know about, such as gifts that were never delivered. The key to getting the best search is putting as much information as you can on the form, including as many forms of your name as you can, your old addresses, whether the bonds were bought through payroll deduction and at what company and so on. A search generally takes three to six weeks. The Bureau of Public Debt's Treasury Hunt feature on its Web site may also help you find bonds that were never delivered (but not lost bonds).
Can I buy savings bonds online?
You can buy them at any Federal Reserve bank or branch, your bank and, often, through a payroll deduction plan. You can even buy them online through Treasury Direct with an automatic withdrawal from your checking or savings account.
