Not sure how this came to be, but there are three credit agencies that are keeping tabs on your credit rating: Experian, TransUnion, and Equifax.  Although they are competitors, they form a corporate abomination called Consumer Data Industry Association, which lobbies Congress on behalf of all three.

Their existence is justified: how do lenders know whether you are a meticulous on-time-bill-paying debutante or a thrice bankrupt, child support-avoiding methhead?  So they apply the same mathematical algorithm to your financial history and come up with a number, which represents your credit worthiness.  By “your financial history” I mean “how much outstanding debt you have, the length of your credit history, what type of credit you’ve received and the frequency with which you fill out new credit applications“.

The perfect score is 850, the lowest score is 300.  South Dakota has the highest average (710), and the Great State of Texas – the lowest (655).

So want to know your credit score?  Check out this site — 3 in 1 credit report.

If you own a small business and are looking for the best way to make businesses purchases while getting the biggest bang for your buck, consider a small business credit card. Business debit and check cards have their uses, but daily limits and other restrictions may reduce these cards’ appeal. Finally, business credit cards not only offer low rates and competitive APR’s, but they also typically offer added benefits in the form of best cash back rewards and incentives.

If you’re still not convinced, consider these additional benefits. Many business credit cards come as low APR cards if you have good personal credit and you can make purchases interest free regardless of the posted rate if you pay your balance monthly within the grace period. Business cards also offer a variety of credit limits so varying levels of purchases can be made without tying up cash on hand that could be used for operations or more profitable activities.

Business credit cards also offer additional flexibility because they allow small business owners to make cards available to authorized signers who may not be owners. This comes in handy when employees need to make purchases independently because you as the owner can set customized limits—both dollars available and types of allowable purchases—for each card you authorize. This gives you the best of both worlds: you give your employees the tools to do their jobs effectively while still protecting yourself and your money.

Finally, business credit cards not only offer low rates and competitive APR’s, but they also typically offer added benefits in the form of best cash back rewards and incentives. The types of rewards are many and varied, but there are a few standard programs to consider. If you travel frequently, most card companies offer some form of travel rewards program where you can accumulate points towards airline tickets, rental vehicles, and lodging. Many business credit cards also offer a general rewards program where every purchase adds to the general point pool. Double credit is sometimes given for dollars spent on fuel and food which adds to your buying power when the time comes to redeem your hard-earned points. You may also be interested in getting cash back for your purchases, which is typically redeemed in the form of statement credits that show up on your monthly card statement. These rewards may not seem all that special, but over time they add up and can be a very nice complement to the other benefits your business card already provides.

If you’re ready to pull the trigger and acquire your new business credit card, a little research can help you determine which type of card makes the most sense for you and your business. Go to CreditRoom.com and make sure that every card is a little different and may or may not be what you want, so prioritize your needs and get started. Most card companies offer instant approval cards, thereby your card can usually be instantly approved as long as your credit request is reasonable. A business credit card, if used properly, is a valuable tool that makes good cents.

If you’re thinking about buying a house, and you’re like me, you’re going to do a lot of research.  When my wife and I bought our Austin home in 2007, I scoured the web for good information, talked to home-owning friends and their parents, and read first-hand prep experience (mymoneyblog.com).

Now that we’re happily in our home, I occasionally check for deals in an effort to find a good investment property.  However, regardless of whether you’re thinking of buying, or just learning, you’ll have to bone up on FHA loans, since there’s a pretty good chance this organization is going to insure your mortgage.

FHA stands for “Federal Housing Administration” and rolls up to Dept. of Housing and Urban Development (HUD).  The entire point of FHA’s existence is ensuring the mortgages, so that the lenders still get paid if the borrowers default.  For example, if Chase Bank extend me an FHA loan and then I lose my job and Chase forecloses on my home, FHA will deal with Chase.  That’s really it — here’s the full source of information (Wikipedia.com)

If you ask me, this is a pretty relevant subject nowadays, since everybody and their uncle throws around “socialist” concepts and calling each other “socialists”.  At a risk of offending some people, I consider FHA’s activities a beneficial form of socialism, meaning that everyone helps you when you’re down, and when you’re up, you help someone else who is down … A sort of a “pay it forward” concept, like the healthcare systems in Canada and France.  Another upside is that FHA’s activities cost taxpayers nothing, since they are financed via mortgage insurance it collects until borrowers reach a certain percentage of ownership in the home.

Naturally, it acts as a catalyst for lenders because of the whole “guaranteeing that the lenders get paid” thing.

So what else is good about FHA loans?  Well, the down payments can be lower (as low as 3%), with no pre-payment penalties (great for sub-prime refinancers).

The downside is paying the mortgage insurance, which is where the “socialist” part comes in, so if you have enough cash upfront for a large down payment, you really wouldn’t take the fullest advantage of FHA’s offerings.  Also, it’s more of a middle-class kind of a hookup, so you probably won’t be able to buy a mansion.

I’d start reading at the FHA Mortgage Center site (http://www.fhamortgagecenter.com).  It’s a decent resource with wizards (which I love).  The site uses SSL and has a 1-800 number, so it’s legit in my book.

We have an FHA loan, and our down payment was 10%.  Bank of America actually waived our closing costs, paid our PMI, and gave us 6.25% on a 30-year fixed.  You can review the lending guide at the FHA Mortgage Center site (http://www.fhamortgagecenter.com/fha_lending_guide.html).  By the way, Austin home prices have been kind (knock on wood), and in the first year our home added $15k in value … Not sure how long this is going to go on for, but considering the rest of the country is down by as much as 20%, I’ll take the increase :)

Cya, Max

This site keeps paying, so one of the checks literally shamed me into writing a post … after a few months of silence :)

I was researching home loans to ensure my 6.25% is the best deal I can possibly get … and it is (for now). The very first site I went to for refinance information is … refinance.com, you geniuses. Most of these sites are all the same — visit, enter your refi goals, and hit submit.

Then it’s likely you’ll get clocked with home refinance loans emails. The goal here is to do research, so I suppose you can swing dodging email for a little bit while looking for a deal.

It seems kind of weird that I got my loan in October 2007 at 6.25%, and rates stayed pretty much unchanged regardless of rate cuts you hear about on TV. So I’m not currently thinking about mortgage refinance deals, but when I do, I’ll probably hit the site at the links.

By the way, since I am a soft money whore, I got paid for this post. So click on them links and don’t divulge your personal info.