Credit Reports – Why Your Credit Score is ImportantWritten by Charles Essmeier
If you have never heard of a FICO score before, you should become familiar with term. Named for firm that invented it, Fair Isaac Corp., FICO score is three-digit credit summary that, in essence, reduces your entire financial life to a simple set of numerals.
The score represents a distillation of information gleaned from three main credit-reporting bureaus – Equifax, Trans Union, and Experian, regarding your loan and payment history, as well as any bankruptcy filings you may have made. Andy liens or payment defaults will be incorporated into score as well. The score, which can vary from a low of 300 to a high of 850, represents an attempt to quantify a lifetime of financial dealings into a single number. It has been quite successful. In fact, most people would be surprised to see just how important that score has become and how many businesses use it for reasons that aren’t entirely obvious.
Most people would assume, correctly, that lenders would check score of a potential borrower who was applying for a car loan or a home equity line of credit. Many would be surprised, however, to see that score is often accessed by potential employers, landlords, or even insurance companies. While some states have strictly forbidden use of FICO scores as a guideline for setting
| | So What's Life Insurance All About?Written by Jason Hulott
LIFE ASSURANCE Life insurance (also called Life Assurance) is a way of financially protecting your family should you die. The most frequent reasons people take out life cover are to pay off debts upon their death - such as a mortgage - or to provide a lump sum payment when they die to their dependents (thus ensuring their dependents are financially secure). Usually sold as a single or joint life policy, there are many different types of life insurance contracts available. CRITICAL ILLNESS Also known as 'Serious Illness Insurance', this contract pays out a tax-free lump sum if you are diagnosed with one of a number of specified 'critical' illnesses during term of policy (eg heart attack or stroke - see list below). The lump sum payment can be used for anything you want but most people use it to provide an income if they become too ill to continue working. Other uses may be to pay off a debt, such as a mortgage, or if necessary, adapt your home. Most companies offer policies which cover you for death and critical illness, though it should be noted that normally policy will cease if you claim on critical illness aspect (ie you will no longer have life cover). What should I consider when selecting a Life Insurance policy? The sum insured Calculate how much money would be needed in event of your death to pay off all your debts plus how much income your dependents would require to continue same lifestyle they currently enjoy.
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