Have you ever been in a restaurant when a mismatched couple openly feuded a few tables away from you? You weren’t directly affected by the sparring match, but chances are it was uncomfortable because you were trapped in the same eatery and forced to witness the whole sordid affair.

Well, the always strange bedfellows of Fair Isaac, the mastermind behind the FICO score the credit reporting agencies (who are themselves made up of an odd alliance of TransUnion, Equifax and Experian) are at it again. Worse, we, as credit consumers, are all trapped in the same restaurant with little hope of escaping their quarrel. Whether the fuedin’ twosome will merely frustrate us or make us very uncomfortable remains to be seem.

The pair have always had a co-dependant, can’t-live-with-them-can’t-live-without them relationship. The credit bureaus keep a detailed record of your credit history. But the problem is, when a potential lender wants to check a client’s credit, they don’t want to filter through pages of raw data to determine if the client was a good credit risk. So to help with this, Fair Isaac developed several formulas algorithms to crunch this information and develop a numeric score to represent a person’s credit risk. The FICO score usually range from 300 to 850, the higher the number the better someone’s credit was.

While this arrangement is convenient for potential lenders, it wrangles the credit bureaus who have to pay Fair Isaac to use the bureaus’ own data and assign a number to it. The credit bureaus reasoned that it would be much easier (and a lot more profitable) if they developed their own scoring system, and weren’t forced to siphon off part of their profits to a third-party company.

Enter VantageScore, developed by the credit bureaus themselves. Like the FICO score, the new scoring system assigns a number value to your credit history. VantageScore’s scores range from 501 to 990. The score is further assigned a grade and is designed to give creditors and consumers a easy way to tell how good their credit is.

For example, a score between 990 and 901 represents an “A”, a score between 801 and 900 a “B”, a score between 701 and 800 a “C” and so on, down to a failing grade of F.

The VantageScore system is currently in the test phase and is not currently in use. But once the system goes on-line, the bureaus are hoping lenders will stop using the FICO scores and switch to VantageScore enabling them to keep their profits.

Though VantageScore was launched as a strike against Fair Isaac, it is easy to see how the duel between the two parties could catch a few consumers in the cross-fire. First consumers will have to learn a new scoring system. After 50 years of dominance, consumers understand a FICO score of 745 is a good score. But the same number with the new system isn’t so hot.

Further, while both scoring systems use similar scoring systems, differences between the two methodologies, so a consumer may have a better score on one system that an other.

What’s more, the VantageScore system promises lenders that the new system will do a better of job of rooting out bad credit risks than the FICCO system. Exactly how it does this has yet to be seen, but some financial analysts worry the tighter net for people with bad credit will also unfairly trap a those with an average or above average credit history.

But whatever happens, one thing seems clear—the duel between the co-dependant pair won’t go away soon. Currently FICO is used by 80 percent of the banks and 75 percent of the mortgage companies; the credit bureaus will no doubt be fighting hard to claim their share of the market. How uncomfortable the fight for become for consumers, the hapless bystanders, is unclear.

By David Plowman

To many people, completing a home improvement means also means taking out a home equity loan.

While that may be a good option for some homeowners, others may not want to get one of these loans, either because they do not have a lot of equity in their home or because they do not want the hassle of applying for a new loan.

But that doesn’t mean a home improvement project has to be put on hold, there are several other ways of funding a renovation project.

• Cash. As with any other major purchase, paying with cash could save you a lot of money in interest and finance charges. While the option is not always viable, carefully weigh the pros and cons of financing your project versus waiting until you have saved enough money to pay with cash.
• Credit cards. If you don’t have a major project, you may be able to charge the expenses to a major credit card or an in-store charge card. Be cautious with this option however, because unless you can pay off the balance quickly, you may be charged a lot of interests. If possible, you may want to sign up for a low interest credit card and plan to pay the balance off before the interest rate spikes.
• Title I Property Improvement Loan Programs. These loans, available from most commercial lenders is insured through the Federal Housing Association (FHA) may be a favorable option for residents who do not have a lot of equity in their home. There are be some restrictions on the type of worker covered by the loan, and there strict loan limits. Check with your local bank for more information.
• IRA loans or borrowing from life insurance.  While these options sound like they are equivalent to “borrowing money from yourself” there are some very serious tax penalties to think of. Basically, these options should only be considered if all other potions have been exhausted and the work needed on your house is severe and cannot be differed until a later date.

While a home equity loan might be an option for may people looking to fund a home improvement project, it is not the only option.

By David Plowman

When buying a house, you will undoubtedly need to take out a mortgage. As you look for one, you will quickly realize that getting a bank to loan you the money for the biggest investment you’ll ever make is no easy task.  You quickly realize that are many mortgage pitfalls you need to steer clear of in order to get the best deal possible.  To help you find the way, we’ve provided a few pointers:

• Know your credit history. Any lender you work with is going to check your credit history and your credit score, so you should do the same, long before you fill out a loan application. Errors can and do happen, so should be familiar with your history and correct any errors before potential lenders look at your history.
• Know if you eligible for homebuyer programs. Most areas will offer government-sponsored first-time homebuyer programs that may offer better loans rates than you’d find elsewhere. Some programs may also offer loan options for people with damaged credit.
• Get pre-approved for a loan. There is a big difference between “pre-qualified” and “pre-approved.” A pre-qualification is a general review of your income and debts, usually based solely on information you provide the mortgage company which gives you an idea of how much of a loan you could receive. The process to be pre-approved is more complex. You will generally have to provide proof of your income and debts (in the form of tax returns, pay stubs and credit information. The potential lender will also check your credit history. If you complete this process successfully, the lender will provide a written verification that they will actually loan you the money, pending appraisal, title report and purchase contract. In almost all cases, a seller would opt to sell to someone who is pre-approved for a loan as opposed to someone who is just pre-qualified.
• Borrow what you can afford to pay back. Just because you are approved for a loan, doesn’t mean you can afford the monthly payments. Don’t opt to get the maximum loan amount you can only find every cent you make has to go back into making your mortgage payments.
• Shop around for the best rate. Just as your would shop at different retailers for different rates for similar products, lenders may offer different rates for the same loan. Check with several companies to know you are getting the best deal.(Click here for more information on shopping for a loan.)
• Know what you are getting charged for. Lenders may add a litany of fees to their loan amount. When you shop for a loan, ask about any miscellaneous fees in addition to the interest rate and any points you may have to pay.
• Budget for closing costs. It is a reserve corollary of the adage “you need money to make money.” When it comes to getting a home loan, “you need to pay money to lend money.” The day you close on your home and sign the final loan papers can be a very expensive day. You may need to pay for attorney’s fees, taxes, prepaid homeowner’s insurance, the miscellaneous lender’s fees discussed above and points. Your lender should give you a solid estimate of all the closing fees involved, but you should start a savings fund for those fees well before then.
• Keep a savings reserve. With all of the home buying charges and the monthly payments, it might seem like you are hemorrhaging money. While that may be the case, you should also make sure you have some emergency reserves. You need to be prepared if the roof on your new home suddenly springs a leak or if the air conditioning goes on the fritz. If you are already tapped out by buying the home, e such an emergency could turn into disaster.

When looking for a home mortgage, being prepared could save you time and money.By David Plowman

Tech savvy students are used to using their ipods or MP3 players to download their favorite music and television shows. But now, some are downloading podcasts of their Biology 101 lectures.

The podcasts featured at Stanford University in California, Calhoun Community College in Alabama and Indiana University are currently meant as a supplement to attending traditional lectures, not as a substitute. For example, if students oversleep and miss an early morning class, they will no longer have to scramble to find another student’s notes.  It will also come in handy before finals, allowing students to cram or review information that they just don’t quite grasp. Officials at Calhoun also allow students to log on to the net to view many of the visual aides professors use in class.

Calhoun officials are currently stressing the value of attending the classes in person with some professors offering “attendance incentives,” and likening the service to “a tutor in a pocket.”

But it may be just a matter of time before the tutor is upgraded to a full-time professor. In fact, Even Calhoun is investigating the feasibility of integrating the service for their distance learning students in the future.

So the next time you see someone wearing headphones, don’t assume they are jamming to their favorite tunes. They may be studying.

By David Plowman

For many people, an on-line degree can be an effective and efficient way of advancing their educational goals. But an on-line degree program may not be for everyone, as some learners may need the structure of a traditional classroom setting. Before you sign up for classes on-line, you should take an honest assessment of how you learn best. 

 To help you do so, consider the following questions:

• Are you self-motivated? One of the advantages of taking on-line classes is that “classes” don’t meet at set times. While there will certainly be due dates you have to complete your work by, you won’t have set times to meet with the instructor and go over the reading material. While this may be arrangement may be great for a student who is already employed full-time and travels a lot for business, it may not be good for an easily-distracted student who procrastinates. Instead, such students may find they work better in a classroom setting with an instructor applying a thumbnail of pressure on them.
• Are you able to “speak up” when you don’t understand the material? It is a common misconception that on-line classes are for introverts who don’t want to be called on during a class discussion. But in fact, on-line learners will have to take the initiative to contact their professor if they don’t understand something. In a classroom setting,  good professors can tell whether or not their students understand the material by looking at them and seeing if they have looks of understanding or blank stares. But in the on-line environment, it is up to the student to contact the instructor (usually by phone or e-mail) if they have a question.
• Do you learn well from reading and writing? Different students learn things differently. Some read and comprehend dense texts and volumes of material. Others may be overwhelmed and need an instructor to verbally flesh out the most relevant information.

If you answered “yes” to most of the questions above, you will probably thrive in an on-line program.

By David Plowman

Hearing the term “on-line student” often conjures up images of anti-social shrinking violet hermits holed up alone in their darkened studio apartments lit only by their monitor’s dim light as they “attend classes” in complete solitude. Those Bo-Radley types couldn’t cut in interactive classrooms with lively discussions where they’d actually have to interact with their classmates, we reason.

Not so, say both teachers who have lead on-line classes and students who have attended them. Rather, both say there are many opportunities for students to interact with the teachers, as well as other students.

Many on-line classes compensate for the lack of live interaction between students by requiring them to post their thoughts on the class on discussion boards set up by the teacher. These requirements actually make it more difficult for students to “hide” than traditional bricks-and-mortar schools where a shy student can sit unnoticed in the back of the classroom.

The course’s instructors disseminate the “lectures” to students in a variety of ways. Some may provide simulcasts of the lecture. Others may offer recorded class seasons available on the web. More commonly, teachers will upload their lecture notes and study aides on the web.

However the student views the lecture on the site, the teacher will always be available for follow-up questions. Often times, the learner can e-mail the instructor, and the teacher replies back with the answer. Others keep regular office hours where they can be reached over the phone to answer questions.

Some programs even feature group projects where students bridge the gaps of geography by using the web or teleconferencing to work collaboratively. This approach enables students in New York, Bismarck, North Dakota and Los Angeles to work together on the same project.

Rather than being isolating, taking an on-line course can connect you to people you wouldn’t meet in a traditional classroom.

By David Plowman

In today’s faced-paced world, your company is doing a lot to get make the most of the web, whether it is search engine optimization, price per click advertising, or behavioral targeting. But when was the last time you sent out a press release? 

While these alerts send to journalists and media representatives may seem like an antiquated concept from years gone by, press releases are surprisingly relevant in today’s world, and may actually offer a better return on your investment than some of the more modern tools of the trade.

Press releases can benefit your company in several ways:

• Increase Incoming Links. You may choose to have a press release service set up a distribution list for you, compile your own list or a combination of the two. Which ever way you choose, your press release, along with its incoming links to your site will be filtered to hundreds (or even thousands) of sites throughout the web. This in turn may also increase your search engine ranking.
• Increase traffic on your site. Of course, the purpose of the incoming links is to direct traffic to your site. Note that while your press release will be directed toward journalists, many of the sites that receive press releases aren’t limited to media professionals. You will be able to reach consumers directly through your press release.
• Generate interviews. The benefits listed above will happen even if your press release is never picked-up by a media organization. But if your press release achieves its chief goal and you are contacted for an interview, the benefits can be exponential. One interview can be noticed by thousands of potential customers who will head to your site. In addition, you can use media exposure to generate even more attention from the media by contacting other organizations.

These unexpected benefits come with another pleasant surprise, distributing press release can be relatively inexpensive, compared to some of the newer tools available to web marketers, including price per click services on search engines.

Of course, not all press releases get picked up by the media, and to maximize their benefit, you should take care to make sure they are well-written and that both your website and your company are receptive to journalists, should they come a calling.

In order to do so, consider taking the following steps:

• Write to your audience. Remember, you are not writing an internal memo or to distributors who are already familiar with your products or services. Make sure the press release is both interesting and understandable for the editors. Avoid using any technical jargon, and explain any terminology you do have to use.
• Use standard formats. Remember you won’t be writing the news story in the press release itself, but a description of the story. Press releases follow a standardized format. Search the web for a sample to model yours after.
• Make your website journalist-friendly. It may be helpful to put up a “for the media” section of your site where you can list the appropriate contact people and their information. Additionally, have a description of what your company does and any other press releases your have issued.
• Be able to reply to answer inquires quickly. Journalists work on tight deadlines. Make sure your company is able to attend to questions promptly.

While SEO and PPC services play an important role in today’s e-commerce world,  the old-world press release are still surprisingly relevant.

By David Plowman

For many high school juniors and seniors, summer is a time to relax. No classes to attend, homework to study or tests to take. It can be a time to take things easy, sleep in and hang-out with friends. While you should certainly enjoy this freedom while you have it, there are many things you can do during the summer that will benefit you now and in the future. 

• Volunteer. Find an activity you enjoy and find an organization matches your talent. For example, if you play the piano, see if you can play at your church, perform at nursing home or even score an internship at your city’s symphony. If you are a writer, see if you can intern at a local paper or help with a non-profit organization’s newsletter. Not only will you be starting an early habit of giving back to the community, you will be gaining real-world experience which will look good on a college (or job) application.
• Attend a camp. This doesn’t have to be the “back to nature camp in the woods” you may have experienced when you were just a little kid. Rather, there are a variety of specialized camps catering to teens with a variety of interests including music, sports, artists and, inc case you actually enjoyed the “back to nature” camps when you were a kid, you can always camp in the wilderness again as a teen.. Whatever activity you choose, you’ll have a chance to do something you love and meet others with similar interests.
• Find a job. O.K. you’ve probably heard this enough from your parents, so I’ll keep this section brief. Whether it is a job that requires you to say “would you like any fries with that?” or a job more aligned with your career or academic goals, you’ll be getting extra spending money, and build positive work habits. More importantly, you won’t have to hear your parents nag you to get a job because you’ll be at work!

Enjoy the summer off from school, but don’t let it just pass you by, get involved in something that will serve you well, now and in the future.

By David Plowman