BUSINESS

Impact on Taxation and Finance July 15, 2007

We all experience financial ups and downs depending on real life style situations on a daily basis. Undoubtedly, some decisions can ruin your credit for a long time. If you are a victim of these circumstances I will attempt to deliver some of the more common credit mistakes people make and give you some tips to guide you back to good credit.
Late payments

Payment history is an important factor both in terms of your credit score and as a deciding factor for lenders and others who check your credit. Lenders may be less likely to lend to you or may charge you a higher rate based on your payment history. You may not realize it, but in most states, auto insurance rates are determined largely by your credit score.
Poor payment history can also affect your ability to get a job. Employers usually look at your credit report, rather than your credit score, when they look at consumer reports to build a picture of you, particularly if you are being considered for a financial post.

This is territory you should avoid and never want to tread. You'll see activity here on your credit report if you have judgments against you -- say you skipped out on rent or utility bills. It usually falls under the heading "negative information" and stays on your record for seven long years.
It is imperative that you understand that unsatisfied judgments are worse than those paid off. Reach out to the original creditor and come to a payment arrangement or schedule that fits your budget. Typically, judgments are not reported with the company through which you got your judgment, but rather they go through a third party or collection agency that deals with the court system. They are not quite as quick as with credit card companies in reporting accounts that are satisfied. You may want to submit a dispute to the credit reporting agency stating that the account has been satisfied.
Also, you could add a statement to your credit report explaining why this mark is uncharacteristic of you. Perhaps you got in a bad situation with large and unexpected medical bills and that set you back. Adding a comment may help you with lenders who look at full reports, as mortgage lenders do.
Bankruptcy

This is something that will work against you longer than most mistakes, lasting 10 years on your credit reports. Bankruptcy is very significant to lenders and has a huge impact on your credit score. Since it's a proxy for measuring how likely you are to pay debts in the future, bankruptcy proves that at one time you were not able to. There is a good chance this information will show up quickly on your report. Be proactive and upfront with your bank if you're looking for a mortgage. This isn't something that will slip by them. But if you're looking for a job, let them bring it up first. You don't want to call their attention to information they might not have.
Foreclosure

Here's another significant event that is impacting a growing number of Americans right now and one that will have a negative impact on credit scores for years to come. How negative depends on the person or agency looking at it, but by the time you are foreclosed upon, your payment history has already taken a significant blow, so it's a double whammy.
Lenders know that foreclosure is expensive and use it as a solution of last resort. Always be in contact with your lender if you land in dire financial straits. They will usually try to work with you, either setting up a payment schedule or forbearing your loan.
Debt collection

Once you're referred to collection it's up to the collection agencies to report that you have a collections account. Being placed in collection is more negative than just being late on payments. Remember that this just does not go away or disappear. Pay off past-due accounts. Don't expect the inactive status to make this negative mark fall off your report any faster.
Put a brief note on your report explaining this uncharacteristic lapse. It won't change your score, but if an actual human being is reviewing your credit application, he or she will see it and can consider it when making a decision about doing business with you. Building good credit takes patience, commitment and persistence.

Solution

Are you carrying too much debt? The higher the utilization of your credit, the greater the negative impact on your score. Be aware that a lot depends on the point in the statement cycle at which your credit card company reports figures to the credit reporting agencies, such as Equifax, TransUnion, and Experian. Even if you pay credit card balances in full each month, you may appear to be overextending yourself. The smartest idea in terms of your credit score is to spread charges over several cards so you never use more than 35 percent of your credit limit on any one card at any given time.

If you've been denied credit, insurance or employment because of your credit report, you are entitled to a free copy of your report from the reporting agency. The company you applied to must supply the credit bureau's name, address and telephone number. You have 60 days after receiving the denial notice to request your personal copy.

Examine your reports carefully

Nearly every consumer has an error on at least one credit report from one of the major credit bureaus. Credit bureaus generate your report on information they receive from your creditors; they don't verify accuracy. Carefully look for everything from typing errors, outdated and incomplete information to inaccurate account histories. Be meticulous.

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Impact on Real Estate and Business July 15, 2007

Over 40 Job Hunting Difficulties

Without condoning ageism and the fact that we are all aging gracefully, we need to admit one uncomfortable truth: Older job seekers often make it too easy for companies to reject them.

Unfortunately this is true no matter how we twist or turn it. Job seekers over 40 often face discrimination and may confront hurdles getting an interview that younger applicants do not. But before putting the spotlight on others, let's examine ourselves, the over-40 job seekers. No doubt, if you are over 40 and scouting the job market, you must be mentally prepared to compete with younger employers who in many cases represent a bundle of energy and enthusiasm; are willing to work for less pay; and are generally savvier concerning the latest technology.

Because the employment playing field is not altogether level, you will need to develop the mental resolve to compete and win as a serious contender. To accomplish this mentally, one has to focus on the positive attributes of one’s age and experience. Think of what you are bringing to the employer’s table; a more mature job candidate; sound decision-making skills; experience in relating to a wide variety of people; broader perspectives on life, and mature judgment on business matters.

Start with the resume. Resumes of older workers tend to be a lengthy recitation of job descriptions and accomplishments, impressively demonstrating an ever-increasing level of responsibility and compensation. As such, they are probably the least persuasive documents you could show a human resources manager.

The approach

Job seekers over 40 need a resume that looks forward, not backward. As a younger job seeker you need to emphasize experience. By mid career, however, the focus of your resume should change for obvious reasons. Place all of your accomplishments and experience in the context of future service. A resume shouldn't read like the testimonial at your retirement dinner or an obituary.

When over 40 job seekers apply for a job it is noticeable that they painstakingly document a career of prominent positions at top financial services firms. Your resume should persuade a potential employer to grant you an interview, not for your old employer to give you a medal.

Change the perspective from "look at everything I have done," to "look at everything I can do for you." Take the time and effort to tailor your résumé to each job you apply for, so the particulars of the job are addressed in the context of your prior experience. Your resume must demonstrate how you will put your experience and skills to work for your new employer, not how much time and energy you exerted in the past for someone else.

Be positive and aggressive

Don't be defensive, and don't omit dates. Fear of age discrimination leads many job seekers over 40 to take graduation and employment dates off their resume. Not a good idea. HR managers know all about this strategy. Put all relevant dates and jobs on your resume, but tell your story energetically. Be positive and enthusiastic about the future, not defensive and deceitful about the past. Don't waste a good opportunity by defensively obscuring the truth. Instead, rewrite your resume to emphasize your skills, your vitality and your commitment to doing a great job.

Sell yourself

Be creative. Too many candidates confuse sending a resume with buying a lottery ticket. Merely sending out twice as many resumes doesn't make you twice as likely to get a job. The converse is true. Make your own luck by applying to half as many jobs, but following up twice as often. Determine relevant ways that will help establish your qualifications for the job and your ability to learn new skills. Find ways to demonstrate your skills, not your frustrations about your job search.

Use your experience in order to sell yourself. Create a Web page showing why an employer should hire you. Embark upon a free promotional campaign, offering to work for free, on a trial basis and if the employer is satisfied then he can hire you. Introduce data points so that an HR manager can evaluate your work habits and not just your year of graduation. Your revised resume radiates with energy; now back it up with action.

Look physically fit

One of the biggest concerns employers have in hiring mature workers relates to personal health. It is statistically true that aging increases certain health risks, particularly hypertension, diabetes and cardiovascular disease. Furthermore, according to current medical research, racial minorities are more susceptible to these diseases. No employer wants to hire someone whose attendance and productivity might be diminished because of chronic health problems.

Staying physically fit is not only good for your health in general; it can give you an edge in job hunting. Looking over your resume or CV, the interviewer can pretty much guess your age. On the other hand, it he notices that you participate in competitive sports such as cricket, tennis, racquetball, softball, basketball or at least if you profess to work out regularly that is certainly to your advantage.

If you present yourself in an interview as someone who is physically fit and energetic, that will definitely enhance your candidacy. First impression counts. Looking physically fit is also a matter of how you dress and present yourself to an employer. Perhaps it has been a while since you had to actively job hunt. Should that be the case, you may need to update your interview wardrobe. It’s probably a good investment to buy a couple of up to date business suits that are more contemporary in style. Get with it.

"It is always better to have information and not need it than to need it and not have it."

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