How Closing Accounts Can Kill Your Credit Score

One of the major factors of how your credit score is calculated is your capacity. This is the ratio of credit used to the amount of credit that is available. This accounts for 30 percent (almost a third!) of your credit score. For example if you have 5 credit cards with a $1000 limit and you have 3 of them maxed out and 2 of them inactive your capacity would be at 60 percent, $3000 of your $5000 total credit limit. This is not good in the eyes of the lenders and your credit score would suffer because its ideal to be at 10 percent of your capacity.

Remember a credit score is a formula measuring your ability to pay back your debts and obligations. If you have a high capacity and little room left for your maximum then your ability to pay back your obligations is viewed as more limited.

So in the example above, lets say you decide to close the 2 inactive cards for whatever reason. Nowadays, the credit card companies will charge a fee to inactive cards so a lot of people are now closing their inactive accounts. Well unfortunately, they are killing their credit score. If you are maxed out on three cards and you close the other 2, guess what, you are now at 100 percent capacity because your total credit limit is now $3000 instead of $5000. I know from personal experience this will cause your credit score to plummet.

My advice? Don’t close your inactive cards. Use them once a month, maybe for gas, or treat yourself to a latte from Starbucks. Then pay them off immediately so you don’t incur any interest. Do what you can to pay off the cards that are maxed out, or at least get them down to where your balance is under 10 percent of the limit. If you can, try to transfer the balance to a lower interest card, so it can save you a few bucks on the interest. This strategy is sure to improve your credit score because capacity is a major factor, and if your capacity improves, your score improves.

Asking your bank for a credit limit increase on some of your cards isn’t suggested nowadays, this is a strategy that old credit repair people recommended but in today’s economy with the credit crunch, it prompts an account review, which for some quirky reason, may cause the banks to LOWER your credit limit. This would damage your capacity as well.

You are already disciplined enough to not spend on two cards. You are unique in today’s credit crunch world, use your discipline to your advantage, don’t close your accounts. You will be doing more harm to your credit score than good.

Cooking Utensils: the Truth Behind the Hype

Using the most suitable cooking utensils can make the difference between a wonderfully planned gastronomic banquet and an awkwardly made excuse-for-food. Or so the celebrity chefs who are sponsored by the major kitchenware companies would have us believe. The question we novice chefs have to ask is, ‘Do the correct tools genuinely make all the difference?’ ‘Does the way you chop, slice, dice and dish out your meat and two veg physically affect the flavour?’

Okay, granted, if you lack the appropriate utensils, it may be tricky to drain your pasta without picking up a couple of third degree burns, and you might find those curly radishes to top your salad bowl difficult to pull off, but is there really an optimal shape and size for food intended for the human mouth? To get a short answer to this question, we need to take a look at Chinese cuisine.

Chinese recipes emphasize the importance of presentation. Eating is a sensory experience. If the food looks, smells and even sounds good (think of sizzling woks wheeled to your table in a good restaurant) we’re salivating even before the first morsel gets anywhere near our mouths. Chinese chefs have long understood that your senses are connected. Your senses all lead to the same place – your brain. And it’s your brain that makes the final assessment. As innumerable sponsored-up-to-their-eyeballs master chefs will fall over each other to inform you, the way you prepare your veggies and present your dishes will have an enormous affect on the way your meal will taste The other definitive feature of Chinese cooking is the way the vegetables and meat are cut. There are strict rules concerning the size and shape of the food on the plate. Each dish should be easy to handle – it should invite you to pick it up… but then again you’ll have to use chopsticks.

Cooking utensils, it would seem, really can transform a mundane meal into a feast… if you know how to use them. Owning the appropriate set of knives to chop and cut, nip and tuck, is one thing; owning the skills to use them is another. However, to develop your technique, you need to own the utensils in the first place. You have to start somewhere, and leafing through a kitchenware brochure at the behest of some celebrity chef or other is as good a place to start as any – the best place to start is from the recipe. After all, the recipe is what you are interested in, and what you and your family is going to end up eating.

What makes a cook into a master chef? The salient factor is their ability to shower their creations with loving care and attention, as anyone who has read an Isabelle Allende novel will testify. Once you have your tools and skills, the possibilities for experimentation and gastronomic exploration are boundless. And you can bet there is a specially designed set of cooking utensils to cope with any culinary creation you might dream up. For the majority of us, one appliance can be adapted to manage a diverse range kitchen tasks, but for the experts there is a specific tool for each and every kitchen task.

This apparently trivial distinction between the two ways of thinking about cooking can have a profound affect on your meals. Take an onion, for example. According to the experts, it should be sliced a particular way to enhance the flavour, although, as we have learnt from the Chinese, the visual result is at least as big a factor in determining how the food will taste. Viewed in this way, slicing the onion ‘after the book’ becomes as important as, say, the amount of oil you add to the pan. It would seem that using the right kitchen utensil in the chef’s domain is imperative. In short, prepping your ingredients by following someone’s mealtime master plan can transform the appearance and flavour of the final dish. Get this right and you are no longer a cook. You are a chef

Selecting The Best Utensil

Selecting the right set of cooking utensils is dependent on the content of each individual recipe. Suggestions for cooking utensils are very often presented within the cooking book or online recipe page and, traditionally, they are accompanied by clear instructions to enable you to choose the right utensil for the right job. Cooking utensils, it would seem, do have a central role to play. Your family is certain to enjoy the excellence of your cooking if it is prepared with skill and loving care, but if not, they may reach for an entirely different set of utensils.

There are many companies that produce fine cooking utensils, but on balance, it is better to start from the recipe book and build up a collection of what you need as needs arise before you start leafing through the pages of glossy catalogues.

Earn Money From Home Fast

If you're looking for ways on how you can earn money from home fast for you to be able to make an additional income without having to give up your current job or spend more time away from your family and loved ones, you should consider the wide range of jobs that you can get online. These jobs will allow you to earn an amount much more than your previous job.

These types of work opportunities that promises to allow you to earn money from home fast could certainly fulfill your lifelong plans and make your dreams come true because you can earn a great deal of money while being with people that matters to your heart the most. But let it be reminded that your income will still depend on the time you spend for work.

One benefit that a person can get from these works at home jobs is the fact that they do not require you to work 5 days a week for at least 8 hours a day. In fact, a lot of these home jobs could have been done at your own leisure. You can work even for 3 hours if you wish, just as log as you meet your deadline and you deliver your work in good quality.

Another point why people would rather opt for this kind of job is the fact that they can be paid immediately or after every after after work is finished since they can get the fruit of their labor all at once. However, this is not always the case since other employers prefer paying twice a month or once a month depending on what is agreed upon.

Imagine learning more than what you even receive from your regular job. Would not that be so much fun on your part? No need for you to worry about your future because work at home jobs have got that covered for you.

Some Things Your Car Insurance Company Won’t Tell You

1. How to determine the value of “total loss.”

Most companies will tell you that they use at least three methods or schemes to determine the actual a totaled vehicle’s value including value books, computer-generated quotes from dealers, and local market research. In this case, you will probably think that local area is your current neighborhood, but it is not specifically defined by the insurer. If, in any case, the company cannot find an auto replacement in your neighborhood, so they have to find it not from your “local area,” your totaled car’s value is certainly affected. For example, if you currently live in New York, replacing your totaled vehicle in suburbs will be cheaper than in the city. Insurance company will, of course, use quotes from suburbs area as the most-reasonably-priced estimates. The main purpose in totaling a vehicle is to allow the consumer (the insured person) to purchase the same car that is totaled in an accident within the local market. Since they use three different schemes to figure out real value of a totaled car, a consumer may end up with a cheaper car than the totaled one. It is impossible to be sure what value you will get when your company does not tell you how they determine it.

Fortunately, you can do some smart methods to help yourself and your company to do the value determination. First, you have to produce valid proof that your car was in good conditions when the accident occurred; car in good condition has better value than a wreck. Bring a copy of maintenance records including oil changes and inspection by an authorized mechanic. The records will tell your company that your auto was regularly maintained, meaning it was actually in great shape (in terms of appearance and performance) when the accident occurred. Moreover, you probably had special features installed such as multimedia system, anti-theft system, anti-lock brakes, rear view camera, or 5-harness seat belt. The car insurance company may charge you more because of some special upgrades, so make sure that your insurer includes that in the evaluation.

Another good thing is to find at least three dealers and get quotes on replacement from them; make sure all dealers in your local area or at least within short driving distance from your home. Present the quotes to your insurer and ask your insurer to provide a list of some car dealers who probably can provide a car for the price listed in the quotes. If you are not satisfied with the company’s value determination or you get less than you expect, you can choose to do mediation. So, meaning you present the case to third party (neutral) to get help to settle the dispute, or arbitration, or you can even request a formal inquiry to the court.

2. If you want to cancel your policy, do it officially

Most companies say that consumers can cancel their policies at any date, but you need to notify the insurer concerning the exact date you want to end the coverage. The statement is clear enough; in other words, it says consumers have to notify their companies when they want to cancel their policies. However, consumers often think that when they ignore the last bill before renewal, the company will automatically end the policy. Too bad, this is not how it is done. People can forget and deliberately miss a bill, and the company totally understands that. After this first missed bill, your insurer is going to send you one more bill for premium payment; if you don’t pay the bill, you will be cancelled for non-payment, and the record will hurt your credit score.

What you should do when you want to cancel auto insurance policy is to let the company know that you are canceling. Please make sure that you provide a specific date; it helps you avoid being totally uninsured for a certain period, time, term. The cancellation request will be sent to you, and all you have to do is to put your signature. It is recommended that you carefully check the document before signing it. Some companies may require you to provide valid proof that you indeed have another coverage before they can approve the cancellation. If you’ve financed your car, the dealer needs the updated policy information because valid proof of insurance is required in the purchase contracts.

Credit history still matters

The use of credit information to determine approval and premium rate is still common, despite the fact that some states already started to ban such practice. Some (if not most) companies use the credit history to generate risk score. They believe that it strongly linked or correlated to the likelihood of the consumer reporting a claim. More likelihood of filing a claim is exactly the same with high-risk driver that usually also pays more expensive premium fee compared to “safe-driver” or “the preferred class.” The preferred consumers are those with stable credit card history as it suggests financial stability, meaning they are not likely to miss a payment. People of this category are safer consumers to insure compared to people with shaky credit history. Auto insurance companies do not like consumer who pays sporadically or changes accounts quite frequently.

There are some credit card issuers who offer free credit score checking, but in most cases, you need to pay for the service. Unlike credit score, risk score for insurance-related matters will not be available for you, but both probably indicate the same thing which is financial stability. If you are currently in the market to purchase auto insurance, and it turns out that you have quite unusual activity on your credit history within only certain time frame, you can wait until one month to allow the credit activity to go back to its usual condition. If you cannot keep the credit score stable, prepare yourself to pay more expensive premium fee.

3. Budgeting by installments is not always efficient.

Installments can pay almost all items, and consumers think that it is indeed the best way to budget the expense. When it comes to auto insurance, you can ask the company to divide the annual premium into a monthly basis, quarterly, or on six month. Please put in mind that dividing the annual premium will cost you “fractional premium.” You can consider this additional service fee to arrange the installment. It can be as cheap as $10 per payment; the more you break it down, the most fractional premium to pay.

Most companies will probably offer you to pay in installments since it makes more money for them. When you apply for insurance, it is wise to ask whether there is any additional charge for installments option, and then you can compare the difference. If the fractional premium is not very expensive, then perhaps it is worth it. Another big difference between upfront payment and installments is that certain companies will immediately cancel your coverage if you miss one payment; even worse, they can do it without notification. It is best to pay up front if you can; the entire process will be easier, and you can indeed save few dollars.

Every vehicle model and type has certain premium rate

Of course, you all know that sport cars need more expensive insurance policies than a van, but insurance companies will not tell you the exact numbers. In general, it is true that attractive, sporty, luxurious car with turbocharged engine will go very quickly on the road, and it increases the risk of accidents, but this is not always true considering the discounts for safety features, security features, mileage (especially when you drive it less), etc. Auto insurance companies have a specific system to know the premium for all car models you can buy, based on the system rating by ISO (Insurance Service Office). Every type of car is rated from 3 to 27; higher number means a higher premium. Insurance Service Office says that it will not release the rating system for publication because its clients are insurance companies.

You will not get the rating system from your insurer; you may not even find it anywhere at all. The best thing you can do when you want to purchase a new auto is to ask the insurance how much insurance premium you need to pay for a new car that you want to purchase. If you keep a good relationship with an independent agent, he/she should be able at least to predict the price based on raw calculation.

4. Filing claim increases your premium.

People are always interested to see insurance companies reduce premium fee to attract potential customers. It is indeed one of the best things customers get from the competition in the market, but your insurer can increase the price right away after you file your first claim. The industry standard is to increase premium fee up to 40% of the base rate after first-at-fault accident. With the help of an online car insurance calculator you get a base rate of $500, your premium increases by $200. Some companies have different rules, but there is always a big chance your premium will go up after the first-at-fault claim. Some insurers offer “first-accident forgiveness,” meaning your first actual claim will not affect the premium at all, but the variable and requirement for eligibility can be different from company to company. You should ask your insurer if such discount is available and how to qualify for it.