Want To Apply For Bad Credit Score Car Loan Access Online Car Loan Sites and Go Ahead

August 23rd, 2011 by admin

Bad Credit Loan Sources

Bad Credit? No Credit? No Problem! Guaranteed Approval Loans Are Available Up To $25,000 more info…

How do I refinance my home with slightly bad credit?

We have to refinance our home by January or face a balloon payment. Our credit is not the best and we have had some late house payments. We do however have wonderful credit through our credit unoin and have never been late with any loans through them(car and camper payments and a past loan).They do not handle conventional home loans though. Our bad credit is mostly medical debit. Does anyone know of a place that will work with people in our situation? We don’t want to lose our home.

Answer
You might have to go with a personal loan from the credit union and just bite the bullet with interest.

Your other option is the bank you are with presently, they might refinance you instead of foreclose.

It does not matter who you are screwing over, not paying your bills results in situations like this. If you dod not get a loan by January your credit will take another hit of over 200 points.

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Checking Interest Rate To Find The Best Credit Card Offers

August 23rd, 2011 by admin

With so many offers available today, it’s not difficult to find a right type of credit card offer. But the problem is that sometimes it becomes confusing to determine the type of card that suits your needs adequately. That’s the big reason why it makes a lot of sense to do some research and then pick a credit card.

In order to select one of the best credit card offers, you need to keep a few important points in mind. For instance:

Always make sure you select a credit card after paying full attention to the interest rate it charges. It is important to check this point because some credit cards don’t require you to pay any interest; these cards work as debit account. On other occasions, you have to deal with a high interest rate; this happens when you choose credit cards for bad credit. in both cases, it’s important to determine your needs and then pay attention to the interest rate to clinch the perfect deal.

At the time of submitting your credit card offer, it’s important that you also check the change in the interest rate after a specific period. Some credit cards come with low or zero interest rate, but this goes on like this only for a set period of time, known as ‘grace period’.

The problem here is that though you enjoy the benefit of not paying high or any interest for a limited period, but everything takes a bad shape when this grace period is over. The interest rate takes a hike and it becomes difficult to deal with it. That’s why it’s of immense importance to check this point before finalizing a deal. And make sure you check the interest rate before and after the completion of a specific period.

The fact of the matter is that you have to pay attention to the interest rate when picking credit cards. Make sure you know the exact interest rate, not only at the time of shopping for a card but also after a few months of use. Paying close attention to these two points is surely going to help you select a perfect credit card deal.

Credit-land.com is the place to find all the very best credit cards. Whether you are searching for debit cards or you want business or student apply for a credit card, you can easily select one according to your needs and requirements. So, come have a look at what’s available for the taking.

Insatant approval AND Rush delivery credit cards?

my credit score is 684. are there any credit card websites where I can get instant approval online AND get rush delivery shipping so I can get the credit card in 2-3 days? Also, is 684 good or fair credit (b/c I need to apply for the right card!).

Answer
I read your previous question, and put it together with this one into one answer for you. Capital One will not give you a second account, you may only have 1 account at a time. SOME card issuers DO overnight cards to you after it has been processed. Do not be fooled by others saying that they wont do it. My BOA card was rushed overnight to me a few years back when I took the fam on vacation. Some companies will charge the fee to ship it. There is a problem here, you have decnt credit, which most companies will probably not approve you instantly, and will say to wait 14 business days for approval status, which means from the sound of your situation, you will keep applying at other places. This will put bad marks on your credit, further hurting your chances of approval.

In closing, think about whether or not you REALLY need to go on this cruise. Also, think about if you can afford to pay the card back. From how it sounds to me, you can’t afford this trip. It is not a necessity, maybe call your parents.

Bad Credit Credit Cards–3 Perks You Can Get with Them

August 23rd, 2011 by admin

If your credit rating has taken a nosedive, you may no longer qualify for traditional unsecured credit cards.  That’s why bad credit credit cards are so popular!
Despite the name, bad credit credit cards are not a punishment.Instead, they come with specific rules and guidelines so that you can get the plastic purchasing power you need –like what you need to book a plane ticket, rent a car, or spend the night in a hotel – without forcing a credit card company to take too much risk on having you for a client.That way, everybody wins!

But are these cards really as powerful as traditional unsecured credit cards?

Absolutely!

In fact, when you get a bad credit credit card, you get to take advantage of many of the same perks as people with traditional credit cards, like:

1.Prepaid purchases

In many cases, the temptation of having a credit card is enough to get into trouble.Sometimes, getting a credit card with a firm limit can be enough to keep you out of debt.With a prepaid debit card, you can do just that!Most of the bad credit credit cards out there are actually a prepaid debit card.Before you can buy anything, you have to deposit money onto the card.You can use them to buy whatever you want, as long as you have enough prepaid funds to cover the cost.

By being able to make prepaid purchases, you don’t have to worry about racking up debt, mounting interest charges, or any of the temptations that come with an unsecured credit card.For the credit card company, these transactions are worry-free because they don’t have to worry about you not being able to pay them back.

2.Freebies

A rewards credit card doesn’t have to come in the form of a traditional, unsecured credit card.Even if your credit is less than perfect, you can get a bad credit rewards credit card that offers you things like airline miles and cash back.That way, you can get many of the same perks that your higher credit rating counterparts do.

3.Guaranteed approval loans

When you have bad credit, asking for a loan can feel like you’re stepping into the lion’s den.However, if you already have a good relationship with a company that offers bad credit credit cards, you may also qualify for guaranteed approval loans.The key, though, is to work with a credit card company that handles both.Otherwise, you’ll wind up back where you started–struggling to get the help you need.

Richard A. Manfredi has written about www.mycredittree.com.Receive credit cards for bad credit and bad credit credit card rebuilding advice.My Credit Tree helps individuals get bad credit credit cards, personal loans, auto loans and credit scores.

I have roughly 5 -10k in bad credit card debt. I was wondering if I pay them off, will I get my cards back ?

Its been over a year since Ive been able to make any type of payment on them. Also, they all been turned into collection agencies. I know I will have to build up my credit again. I was just wondering if the cards I have will be turned back on again, or will I have to start fresh ? Also, lets say I was able to pay off all my bad debt tomorrow, will my credit report be cleared of all the bad things ?

Answer
Creditors can either enlist collection agencies to recover debt on their behalf, or they can sell your debt to the collection agency. If it is the latter, then the account is closed. If it is the former, the account is probably “active”, but there may be a block on it. For example, when I worked in the library, we used an outside collection agency to collect on library fines over $50. The library card is blocked. Only until they pay off their balance will we allow them to use the card again. (The books are assets of the City….a library card is like a credit card in which you’re borrowing property.)

Your credit report will show that your collection accounts have been closed. They’ll still show up on your credit report, so your credit will be ruined until you are able to repair it (through time and more responsible care of your credit).

Even if your accounts are still active, you will be paying high interest rates because you defaulted, which allows them to charge the regular rate. You might want to start anew, so that you have a better interest rate and your limit will be much lower, allowing you to maintain control of your credit.

Pros and Cons of Secured Student Credit Cards

August 23rd, 2011 by admin

Many college, and even high school, students have a need for carrying a credit card. Often, however, these students are not yet financially responsible for themselves and still rely on their parents to help take care of their financial responsibilities. Therefore, secured student credit cards may be a great option for parents with children who are still in school. Nonetheless, the pros and cons of secured student credit cards need to weighed in order to determine if they are the right choice for you.

Pro: Secured Student Credit Cards Allow You to Monitor Spending

Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time. Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don’t have to worry about your child creating a humongous debt that you have to pay for.

In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance. You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations. This makes it much easier to get money to your child quickly if needed.

Con: Secured Student Credit Cards have a Number of Associated Fees

Although secured student credit cards allow you to monitor your child’s spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly. Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.

Pro: Secured Student Credit Cards Provide Freedom and Flexibility

One of the best pros of credit cards for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places. Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.

This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.

Pro: Secured Student Credit Cards Teach your Child Financial Responsibility

One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility. When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child’s name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future. Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.

How easy are student credit cards to get? Do u have to have a job?

Answer
First off, dont listen to anybody that says “dont get a credit card” In todays society it is crucial to have one so you can have a good FICO. And how will you buy a home without a line of credit?

Back to your question, my first credit card was with Credit One
www.creditonebank.com (Im pretty sure thats the URL)
I was just graduating high school and I didnt even have a job. They gave me a card with a $200 credit line. When you’ve never had established credit its harder than hell to apply. Try Credit One. I hope it works for you

Instant Credit Card Decisioning Itamp#039s Everywhere

August 23rd, 2011 by admin

Instant credit card decisioning can be used by multiple institutions. Of course it can be used by traditional financial institutions like banks and credit unions, but it can also be used to determine credit worthiness for consumers in other establishments, such as department stores. Instant decisioning that takes at the point-of-sale provides benefits to both the lending institution and the consumer.

For traditional lending institutions, instant decisioning at the point-of-sale has benefits that include increased customer satisfaction; an increased ability to up-sell, cross-sell, and down-sell other products; and the ability to acquire more customers in less time.

Increased customer satisfaction is achievable because the consumer application can be submitted and processed, and within a matter of seconds or subseconds they can know whether or not they are approved for a credit product. This is a vast improvement over traditional decisioning systems that could take days or weeks until a result was returned.  

An increased ability to up-sell, cross-sell, and down-sell products is beneficial because consumers sometimes apply for cards for which they are over or under-qualified. In the case of instant credit card decisioning, at the point-of-sale the FI can make an offer for a card for which the consumer would be better suited. This way, if the consumer is under-qualified, the FI can suggest another product instead of just rejecting (and losing) a potential customer. If the consumer is over-qualified, the FI can offer a product for which the returns from the card would be more beneficial to the consumer. The ability to cross-sell is also important, because many times when applying for a credit card, a consumer will also qualify for a product from another line of business. Because they are already in the mindset of buying, cross-sell efforts at the point-of-sale have proven to be very effective for FIs.

For retailers, instant credit decisioning helps increase consumer loyalty and can increase the volume of purchases made. Instant decisioning for store-branded cards increases consumer loyalty because the consumer receives rewards for that store when they use the branded card, so the rate of attrition or substitution is decreased. Instant decisioning can also increase the volume of purchases made because when a consumer is approved for a retail-branded card, often, the consumer can begin to use the account that day and for a certain period of time can get a special discount for purchases in the store. In the case of these time-sensitive rebates, consumers are apt to spend more.

Instant credit card decisioning can be used by various institutions for different purposes. Because of its realtime application, the consumer buying process is improved and the institutions can cater the offer to the qualifications of the consumer at the point-of-sale. In every case, both the consumer and lender can realize benefits at the point-of-sale and for the duration of the banking relationship.

Kelty Wallace is an online marketing intern at Zoot Enterprises in Bozeman, Montana.

how get bad credit instant loan or credit card?

Has anyone tried any of those bad credit instant loan offers? Has anyone tried one that works? I need about $1500 fast.

Answer
credit-report-free.totalh.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

Different types of Debit Card and Credit card

August 23rd, 2011 by admin

Life today to a large extent revolves around plastic money. Credit or debit cards are used to buy tickets, pay for holidays or purchases, and even pay college fees. Children are given a credit or debit card the minute they turn 18 and, more often than not they tend to keep the same card for many long years.

Each of these cards will require funds to be deposited in advance before using them, so what’s the difference? The truth is there are some distinct differences that may work better for people from different walks of life. I have listed these differences below.

Prepaid Debit Cards:- Prepaid debit cards are a descendant of the secured credit cards that you are probably familiar with. Prepaid debit cards are just that, debit cards that have the Mastercard or Visa logo on them and are accepted worldwide. Much like your bank debit cards they deplete funds in your account as you use them, they do not require monthly payments and do not charge interest.

The major difference is how you qualify for one and how much it cost to use the card. Prepaid debit cards are not concerned with having card holders qualify for their cards. Most issuers do not verify employment, credit, addresses or even legal residency. This makes these types of cards very popular with immigrant workers in the United States illegally.

Debit cards are also more fee intensive than traditional secured credit cards. They have fees that are usually measured by transaction. Other fees include, loading fees, transfer fees, check deposit fees, annual fees and more. This is the price people have pay for convenience and anonymity. These cards will not report cardholder transactions to the credit bureaus, which is not ideal for those who are trying to establish credit.

In our society it is virtually impossible to live without some type of visa or Mastercard, debit cards fill this void. They offer a ‘de facto’ banking system for those unable to qualify normally. They offer direct deposits for paychecks and many other features to a segment of society that traditional banks have left out in the cold. All in all, prepaid debit cards are pretty cool for some people.

Secured Credit Cards:- are credit cards that are specifically designed for people with bad credit. Most people that apply for these types of credit cards do so to build or rebuild their credit. The other advantages are they appear, look and act exactly like a regular credit card. Most prepaid cards are clearly marked as debit cards with outrageous designs and colors.

The price you pay for rebuilding your credit is interest. The worst thing is that you are paying interest on your own money! Unlike prepaid debit cards, secured cards usually carry pretty steep interest rate, usually around 15%. Secured credit cards are not usually ‘re-loadable’. Meaning, once you make your initial deposit this becomes your ‘credit limit’. Your payments will bring down the balance giving you more purchasing power.

Secured credit cards report to the credit bureaus exactly the same way a regular credit card does. Creditors that review your credit for purchases have no idea if your credit card is secured or not. Another thing to watch is that most people will fund their cards with money that they intend to use immediately. Meaning they send in $500 and expect to be able to go out and spend that $500 immediately on receipt of their card. This is not good borrowing practices and will actually bring down your credit score.

Student Card:- A student credit card is issued by Visa, Master Card, Discover, or American Express Card. These credit card giants and their associates generally fix a credit limit of around USD 500-1000 to begin with. While some grant a card without a guarantor others request the parent or guardian to cosign and agree to take on complete responsibility for the card.

A debit card is issued by Visa or Master Card and is prepaid. Such a card does not need a consignee and a debit card requires no credit history to be eligible. Further more, used up money can be replenished online, through an ATM, and via a phone. In the case of debit cards the bank or financial institution is not offering a credit line it is just issuing a card for the amount held in security by them.

Essentially, a debit card is a card that accesses your own money. It adjusts expenditure against money in your savings account or against the amount pre paid. In this case instead of paying cash you are swiping a card and paying out of money already held by you. On the other hand in the case of a credit card it is a buy now pay later business. It is a kind of borrowing where you promise to pay the credit card company in full or part when the money arrives. Interest on the amount spent is payable only if you do not settle the bill in full.

Debit or credit cards are universally accepted and one can even purchase plane or train tickets or pay for unforeseen medical or hospitalization expenses using them. They are extremely useful as a stand by and can be used to establish a good credit report and score. A student credit or debit card trains kids in the effective handling of finance and puts them on the path to becoming responsible adults.

Find the differences between debit card vs Credit card. Visit http://www.TheMoneyTimes.com to get latest Finance News.

How many credit cards should I have open for a good credit score?

I have 4 credit cards (limits are 1000, 3300, and two 500s) and was considering getting rid of one 500 credit card. Should I pay the whole thing off and KEEP it or GET RID of it??

Answer
Keep it with a 0 balance. As long as it doesn’t have an annual fee you aren’t hurting yourself. Having more accounts (3-4 minimum, not more than 6-7 revolving accounts) helps you by giving a lender MORE evidence that you can manage your debts over a longer period of time. If a person has no late payments but only has one credit card with a 500 limit for the last 6 months – how do you know they are a good risk?

It Pays to Be Aware of Your Credit Reporting Rights

August 23rd, 2011 by admin

Negative information on your credit report can harm you and impact your life in many ways. Creditors and debt collectors don’t always play fair when it comes to the items they report to agencies. The Fair Credit Reporting Act sets out certain credit reporting rights that are important for you to know and understand.

 

Your credit report contains a great deal of personal, private information about you, information gleaned from many sources. That collection of information can greatly impact your life in many ways. It may determine whether you get a job or are accepted as a tenant in an apartment you want to rent. It determines whether you get a credit card, auto loan or mortgage, and how much interest you’re charged for it.

 

One of the places that consumer credit agencies like Experian, TransUnion and Equifax – the three largest reporting agencies in the country – get their information about you is through reports made by your creditors. Because your credit score has such a big impact on your life, there are laws regarding how your report can be used, who can access your report, what can be listed on your report and what you can do if your report contains erroneous information. The Fair Credit Reporting Act and the Fair and Accurate Credit Transactions Act, commonly known as FCRA and FACT, also provide penalties for debt collectors who falsely report negative information about you and for those who improperly use your report. They also provide tools that allow you to check your credit report at no cost under specific circumstances.

 

Your Right to Know

 

You have the right to know what’s in your credit report. Under FCRA and FACT, you have the right to receive your report free of charge from each of the three major credit reporting agencies once each year.

 

If you’ve been denied credit, turned down for a job or refused insurance because of something in your credit report, you have the right to request a free copy of your report within 60 days of being told you were denied. The credit card company or other entity is obligated to tell you on which report they based their decision so that you can request the right report.

 

You also have a right to know when a creditor, debt collector or other reporter sends negative information about you to a consumer reporting agency. Under FCRA rules, creditors must inform you before they report negative information to a reporting agency. But that notice doesn’t have to be separate. It’s enough for them to include a statement on a bill or other communication stating that the company may report information about your account to consumer reporting agencies. They must also notify you within 30 days if they report negative information about you to a consumer reporting agency.

 

Disputing Inaccurate Information

 

Consumer research says that 70 to 80 percent of all credit reports contain inaccurate information, and that 25 to 30 percent of reports contain inaccurate information that can make it difficult to get credit or a good interest rate. That inaccurate information may include such things as old credit lines that you no longer use, outdated information that should have been removed from your credit report because of age and inaccurate information reported by debt collectors. Any of that information can have a serious impact on your credit. That’s why it’s important to check your credit report regularly and to dispute any inaccurate information that you find.

 

If you find inaccurate information on your credit report, you should notify the consumer reporting agency that you dispute the information. The credit bureau must investigate your dispute and require the entity that reported the information to prove the accuracy of their report. If the creditor finds that you’re correct, they must notify all three credit bureaus of the error and make a correction. If they refuse to do so, you can request that the credit bureau include a letter of dispute from you with your credit report and send a copy of your letter to anyone that requests your credit report.

 

In addition, there are special provisions for those who have been victims of identity theft or fraud, and rules about who must get your permission before accessing your credit report.

 

If you believe that a creditor has falsely supplied information about you to a credit bureau, or that your report has been accessed or used improperly, it’s important to fight back. There are fair credit lawyers who will help you file a federal lawsuit for violations of the FCRA. If your suit is successful, you may receive a judgment for actual damages or between $100 and $1,000, as well as court costs and attorney fees.

Sergei Lemberg, Esq. is the Principal of %26lt;a href=’http://www.lemberglaw.com’%26gt; Lemberg %26 Associates%26lt;/a%26gt;, a law firm specializing in %26lt;a href=’http://www.stopcollector.com’%26gt;fair debt collection law%26lt;/a%26gt;, lemon law, and other consumer law.

How do I get a real free credit report without having to use a credit card to get it?

I need to find out what my credit report looks like. But, I have run into several sites where I have to enter my credit card information. My husband found a site where he did NOT have to use any credit card information but we cannot find the link anywhere. Do you know where I can find this site/link?

Answer
Every consumer in America has the right to a free credit report once every year by law as of September 2005. But since that law has passed there has been nothing but confusion.

The web sites that say they are offering this so called free credit report, are asking us to give them our credit card information. Does that sound like a free credit report to you?

You may have even given your credit card number to these companies to sign up for a thirty day trial for a credit service that has almost nothing to do with getting your free credit report.

In all fairness, you can cancel this service after thirty days. But how many people do you think forget and end up with monthly or even annual credit card charges?

In fact, these companies are counting on you forgetting about the thirty day trial and charging that fee on your credit card. But if the law says you get a free report, what’s the deal?

A lot of people are confused about these free credit reports because of how some companies are marketing the free credit report. Hopefully, this information will clear a few things up for you.

For people who just want the bottom line, a free credit report is available at www.AnnualCreditReport.com and this is the only official site that helps consumers to obtain their annual free credit report.

This site’s security protocols are excellent with physical and technological security and encryption. That’s important for identity theft purposes because the information on your credit report should be seen by your eyes only.

So if this site is readily available and anyone can get a free credit report once a year, what’s the catch? Here is the catch: the credit report you get from www.AnnualCreditReport.com does not have any credit scores.

Now you may be asking, “Then what good is getting this free credit report without a credit score?” There are a few good reasons why you may want to look at your credit report even without a credit score.

Did you know that more than forty percent of all credit reports have errors? If you spot these errors, you can get them cleared up before it affects your credit score. If you contact a credit bureau about an error, they have to clear it up or remove it after thirty days by law.

Bye Good Luck…

SAP Credit Management

August 23rd, 2011 by admin

Table of Contents

What is Credit  Management ?. 3

Types of Credit Management 4

Simple Credit Check. 4

Dynamic Credit Check. 5

Organizational Structures %26 Master Data. 6

Customization. 7

Example. 9

What is Credit  Management ?

Most enterprises extend credit to their customers. This literally means, selling their goods and collecting money at a later point of time. The amount of credit extended is determined by the customer’s credit worthiness (Also called credit limit ) . The number of days for which credit is extended is based on the payment terms associated with that transaction.

For ex., Customer A could be given a credit limit of $ 100,000 by the company.

Now lets say the customer orders goods worth $ 20,000 with payment terms of Net 45 2 % ( Meaning if the customer pays for the goods within 45 days of purchase, he will be given a 2% cash discount. So instead of paying $20,000, the customer would need to pay ($20,000 – 2% of 20,000) = $ 19,600. This is to encourage timely payment of their bills and improve cash flow).

The same customer could also place another order for $ 60,000 and still be within his credit limit.

The value of Order A ( $ 20,000 ) and Order B ( $ 60,000 ) put together is called the credit exposure of the customer. If the customer places another order for $ 30,000 more, he now exceeds the credit limit set for him.

So, at the point of ordering (Order C) the customer’s total receivables ( Value of Order A + Order B ) along with his current order ( Order C ) is checked against this credit limit. Since the customer exceeds the credit limit set for him, the order would be blocked.

Credit Exposure = Value of all Open Items + Value of the current Order

$ 110,000       =  ( $ 20,000 + 60,000 )   +  ( $ 30,000 )

This is a very simple example of credit management. In reality, credit management can get pretty complicated and not all the scenarios will be covered in this document.

Types of Credit Management

Types of credit checks:

Simple credit check Dynamic Credit check Static Credit Check Dynamic Credit Check Simple Credit Check

This is very similar to the example we have discussed earlier. Simple credit check compares the Customer’s credit limit to the total of all the items in the order and the value of all open items.

Credit Exposure in Simple Credit Check = Value of all Open Items + Value of the Current Sales Order.

Open items are orders that have been invoiced to the customer but the payment for the invoices have not been received yet. The system can be configured to either block the delivery, send a warning or an error message when the credit exposure has exceeded the credit limit of the customer.

Dynamic Credit Check

Simple Credit Check alone is not sufficient for most businesses. Instead of just considering open items only, there is a need to consider existing open orders and open deliveries as well. Also, for old and seasoned customers, even if the credit exposure exceeds the credit limit set for the customer, the order can still be processed because of the good payment history with the company.

However, for new customers credit needs to be strictly monitored. For the purpose of Credit Management, SAP allows us to recategorize customers into different ‘Risk Categories’. Some examples of risk categories could be Medium Risk, High Risk, Low Risk etc.

Dynamic Credit Management can be broadly divided into 2 components.

Static Credit Check

Open Deliveries + Open Invoices + Open Items

Dynamic Credit Check

Open Sales Order Value with a Time period ( Called Time Horizon )

Horizon:

The use of time horizon can be best explained with an example. Most orders for the holiday season are pre-ordered because of the holiday rush. Orders might start to pile in as early as June, July. The delivery however is to be done in November or December.

For example, in August ,  Order A for $ 50,000 is a Pre-Ordered to be delivered in November.

Similarly for the month of December, another order, Order B is placed for $ 40,000  to be delivered in December.

In case of static credit check, the credit exposure is already $ 90,000. If a regular order is placed in August for another $ 30,000 the credit exposure would exceed the credit limit of $ 100,000. However, in case of dynamic credit check, a horizon of say 2 months would be used to exclude all orders for which the delivery has to be beyond the stipulated horizon.

So, order C would not be blocked in case of dynamic credit check.

Organizational Structures %26 Master Data

Monitoring Credit during SD Processing

The master data for those customers whose credit we wish to monitor is created in SD.We determine how high a customer’s credit limit is to be when creating this data.

Credit Control Area

An organizational unit that represents the area where customer credit is specified and monitored.Credit Management takes place in the Credit Control Area.A Credit Control Area can include one or more company codes.It is not possible to divide a company code into several Credit Control Areas.

Path: IMG -%26gt; Enterprise Structure -%26gt; Assignment -%26gt; Financial Accounting -%26gt; Assign Company Code to Credit Control Area.

Customization

Customization Settings for Credit Management in SD

1. Define Credit Groups

Credit Group groups together different business transactions which should be dealt with, in the same manner with regard to credit check.We enter Credit Groups when we configure the Sales document types for Credit Management.

The following credit groups are contained in the standard SAP R/3 system:

01 = credit group for sales order

02 = credit group for deliveries

03     credit group for goods issue

2. Set Sales Documents and Delivery Documents for credit management

We can specify in Customizing when,at the point of Order, Delivery or Goods Issue a check on the customer’s credit limit is to take place.We can specify the Sales document and Delivery document types  for which a credit check should be carried out.We can also specify if Credit check can occur at the time of Goods Issue.

We can specify the system response if credit check is set.The system can respond in the following ways:

-        Warning Message

The document can be saved.

-        Error Message

The document cannot be saved.

-        Setting a Delivery Block

The document can be saved, but a delivery block is automatically set.

3. Set Sales and Distribution document items for credit management

We can specify for each item category whether credit check is to be carried out.

Path: IMG -%26gt; Sales and Distribution -%26gt; Basic Functions -%26gt; Credit Management/Risk management-%26gt; Credit Management/Risk management Settings -%26gt; Determine Active Receivables Per Item Category.

4. Define type and scope of credit checks

Simple Credit check

A credit limit check can be carried out when sales documents are created or changed.The check is carried out within one credit control area. Simple credit check compares the Customer’s credit limit to the total of all the items in the order and the value of all open items.

Automatic Credit check

The automatic credit check can target certain aspects during a check and run at different times during order processing.

We can determine an automatic credit check for any combination of the following:

-        Credit Control Area

-        Risk Category of the Customer

-        Credit group

Path: IMG -%26gt; Sales and Distribution -%26gt; Basic Functions -%26gt; Credit Management/Risk management -%26gt; Credit Manageemnt -%26gt; Define Automatic Credit Control.

Example

Now lets see an example, by creating 3 Sales orders.

Check the Credit Limit for the Customer.

Transaction Code:  FD32

Here the Credit limit is set at 1,000,000 and the credit exposure is currently 0.

Now lets start creating the orders.

Transaction Code: VA01

Order Value 1: 200.000,00

Create a second Order.

Order value 2: 600.000,00

The credit exposure now is 800,000 ( 200,000 + 600,000 )

Create a third order.

Order value 3: 300.000,00

We get the following error message when we create the Order, because the total of the net document value and the open items value has exceeded the credit limit of the customer.

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Do You Require Credit or Insurance

August 23rd, 2011 by admin

Ever wonder how a lender decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you’d be a good risk for credit cards, auto loans, and mortgages. These days, many more types of businesses – including insurance companies and phone companies – are using credit scores to decide whether to approve you for a loan or service and on what terms. Auto and homeowners insurance companies are among the businesses that are using credit scores to help decide if you’d be a good risk for insurance. A higher credit score means you are likely less of a risk, and in turn, means you will be more likely to get credit or insurance – or pay less for it.

What is credit scoring?

Credit scoring is a system creditors use to help determine whether to give you credit. It also may be used to help decide the terms you are offered or the rate you will pay for the loan.

Information about you and your credit experiences, like your bill-paying history, the number and type of accounts you have, whether you pay your bills by the date they’re due, collection actions, outstanding debt, and the age of your accounts, is collected from your credit report. Using a statistical program, creditors compare this information to the loan repayment history of consumers with similar profiles. For example, a credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points – a credit score – helps predict how creditworthy you are – how likely it is that you will repay a loan and make the payments when they’re due.

Some insurance companies also use credit report information, along with other factors, to help predict your likelihood of filing an insurance claim and the amount of the claim. They may consider these factors when they decide whether to grant you insurance and the amount of the premium they charge. The credit scores insurance companies use sometimes are called ‘insurance scores’ or ‘credit-based insurance scores.’

Credit scores and credit reports

Your credit report is a key part of many credit scoring systems. That’s why it is critical to make sure your credit report is accurate. Federal law gives you the right to get a free copy of your credit reports from each of the three national consumer reporting companies once every 12 months.

The Fair Credit Reporting Act (FCRA) also gives you the right to get your credit score from the national consumer reporting companies. They are allowed to charge a reasonable fee, generally around $8, for the score. When you buy your score, often you get information on how you can improve it.

To order your free annual report from one or all the national consumer reporting companies, and to purchase your credit score, call toll-free 877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P. O. Box 105281, Atlanta, GA 30348-5281
How is a credit scoring system developed?

To develop a credit scoring system or model, a creditor or insurance company selects a random sample of its customers, or a sample of similar customers, and analyzes it statistically to identify characteristics that relate to risk. Each of the characteristics then is assigned a weight based on how strong a predictor it is of who would be a good risk. Each company may use its own scoring model, different scoring models for different types of credit or insurance, or a generic model developed by a scoring company.

Under the Equal Credit Opportunity Act (ECOA), a creditor’s scoring system may not use certain characteristics – for example, race, sex, marital status, national origin, or religion – as factors. The law allows creditors to use age in properly designed scoring systems. But any credit scoring system that includes age must give equal treatment to elderly applicants.

What can I do to improve my score?

Credit scoring systems are complex and vary among creditors or insurance companies and for different types of credit or insurance. If one factor changes, your score may change – but improvement generally depends on how that factor relates to others the system considers. Only the business using the scoring knows what might improve your score under the particular model they use to evaluate your application.

Nevertheless, scoring models usually consider the following types of information in your credit report to help compute your credit score:

Have you paid your bills on time? You can count on payment history to be a significant factor. If your credit report indicates that you have paid bills late, had an account referred to collections, or declared bankruptcy, it is likely to affect your score negatively.

Are you maxed out? Many scoring systems evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, it’s likely to have a negative effect on your score.

How long have you had credit? Generally, scoring systems consider the length of your credit track record. An insufficient credit history may affect your score negatively, but factors like timely payments and low balances can offset that.

Have you applied for new credit lately? Many scoring systems consider whether you have applied for credit recently by looking at ‘inquiries’ on your credit report. If you have applied for too many new accounts recently, it could have a negative effect on your score. Every inquiry isn’t counted: for example, inquiries by creditors who are monitoring your account or looking at credit reports to make ‘prescreened’ credit offers are not considered liabilities.

How many credit accounts do you have and what kinds of accounts are they? Although it is generally considered a plus to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many scoring systems consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may have a negative effect on your credit score.

Scoring models may be based on more than the information in your credit report. When you are applying for a mortgage loan, for example, the system may consider the amount of your down payment, your total debt, and your income, among other things.

Improving your score significantly is likely to take some time, but it can be done. To improve your credit score under most systems, focus on paying your bills in a timely way, paying down any outstanding balances, and staying away from new debt.

Are credit scoring systems reliable?

Credit scoring systems enable creditors or insurance companies to evaluate millions of applicants consistently on many different characteristics. To be statistically valid, these systems must be based on a big enough sample. They generally vary among businesses that use them.

Properly designed, credit scoring systems generally enable faster, more accurate, and more impartial decisions than individual people can make. And some creditors design their systems so that some applicants – those with scores not high enough to pass easily or low enough to fail absolutely – are referred to a credit manager who decides whether the company or lender will extend credit. Referrals can result in discussion and negotiation between the credit manager and the would-be borrower.

What if I am denied credit or insurance, or don’t get the terms I want?

If you are denied credit, the ECOA requires that the creditor give you a notice with the specific reasons your application was rejected or the news that you have the right to learn the reasons if you ask within 60 days. Ask the creditor to be specific: Indefinite and vague reasons for denial are illegal. Acceptable reasons might be ‘your income was low’ or ‘you haven’t been employed long enough.’ Unacceptable reasons include ‘you didn’t meet our minimum standards’ or ‘you didn’t receive enough points on our credit scoring system.’

Sometimes you can be denied credit or insurance – or initially be charged a higher premium – because of information in your credit report. In that case, the FCRA requires the creditor or insurance company to give you the name, address, and phone number of the consumer reporting company that supplied the information. Contact the company to find out what your report said. This information is free if you ask for it within 60 days of being turned down for credit or insurance. The consumer reporting company can tell you what’s in your report; only the creditor or insurance company can tell you why your application was denied.

If a creditor or insurance company says you were denied credit or insurance because you are too near your credit limits on your credit cards, you may want to reapply after paying down your balances. Because credit scores are based on credit report information, a score often changes when the information in the credit report changes.

If you’ve been denied credit or insurance or didn’t get the rate or terms you want, ask questions:

Ask the creditor or insurance company if a credit scoring system was used. If it was, ask what characteristics or factors were used in the system, and how you can improve your application.

If you get the credit or insurance, ask the creditor or insurance company whether you are getting the best rate and terms available. If you’re not, ask why.

If you are denied credit or not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information with the consumer reporting company.

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What credit card to get at 18 and not a college student?

I always thought at 18 they love to give you credit cards, I’ve tried Capitol One, Chase, a QT credit card, and a Best Buy one. All deny due to no credit history. I obviously can’t get Credit history if they won’t let me have credit. I Work 2 jobs and just want to have one just in case and to actually build my credit. What’s going on and why do i keep getting denied?

Answer
Stop applying for the cards, you will only be denied. You will have to start building your credit rating with secured credit. Make sure the banks report to the credit bureaus, otherwise it does no good.

Go to the bank you do business with, ask them if they have a secured credit card, if they do open a new account with $300 – $500 tell them you want a secured credit card against that account. Use the card for small purchases like gas or food and pay the card off entirely each month on time.

Also you can take your savings account and save until you have $1,000. Tell your banker you want to take a installment loan out against the savings account. Take the money you receive and put it in your checking account to repay the loan. Pay it off in 12 months. Lenders like to see a mixture of credit, revolving, installments, personal loans.

After a few months you can try for an unsecured card again. Retail store cards and gas cards are normally easier to get.

It takes 24 months of consistent on time payments to build a good credit rating.