Do rich people have better credit than you?

3:03 AM better, Credit, people No Comments

Business Week | By Christine DiGangi, Credit.com

Not necessarily. Having lots of money and having good money management don't always go hand-in-hand.

Your credit score isn’t about how much money you have. It’s about how you manage it.

So in answer to this question: No, rich people do not necessarily have better credit than you do. Having a lot of money can be helpful, but it is in no way the secret to a high credit score.

You can be a millionaire and have a terrible credit score. In fact, your income has no direct effect on your credit scores, because they’re based on credit reports, which don’t include income information.

The most important aspects of your financial behavior factored into your credit scores are payment history and debt usage. Debt usage refers to how much of your available credit you use, so if you have a $2,000 credit limit, you want to keep your balance below $600, or at a 30% credit utilization rate. The lower that percentage, the better.

Here’s where income could help: Having more cash at hand means you could qualify for a higher credit limit, meaning you have more room to spend before hitting that 30% utilization threshold. Of course, having money might mean you wouldn’t have trouble paying your bills, which is also important.

Looking at the big picture, states with higher median incomes tend to have higher average credit scores. Household income estimates for 2012 from the U.S. Census Bureau and average VantageScores gathered from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool show a loose correlation between income and credit scores, but there are some notable exceptions. Maryland, which has the highest median income, isn’t even in the top half of states with the highest average credit scores. The VantageScore data (VantageScore is one of the common credit scoring models used by lenders) was pulled from the second quarter of 2013, the most recent data available.

But knowing what you can afford and budgeting for responsible credit card use means you can pay your bills and use a low amount of your available credit, which will improve your credit scores. You can see how your habits have affected your credit scores by looking at your personal Credit Report Card — it’s free and shows what areas of your credit portfolio are hurting or helping your scores. No matter the number on your paycheck, good credit reflects good behavior.

“There are a surprisingly large number of rich deadbeats,” said Rod Griffin, Experian director of public education. He said he’s been asked by consumers with a lot of money why their credit scores are terrible: “It’s because you’re not getting your credit card bill paid on time, or you’re not paying your utility bills on time, and you’re maxing out the credit cards that you have.”

While income has no impact on your credit scores, it comes into play when you’re applying for loans or credit cards. Lenders consider your ability to repay the debt, which is why you’re asked for your income on loan applications. Still, having a chunk of disposable income on your application may not overpower a history of late payments and maxed out credit cards.

“Regardless of your income or assets, the way that you use your credit will determine whether or not you have good credit scores and whether or not you’re a good credit risk,” Griffin said.

Improving your credit score requires a long-term plan, but there are small steps you can take toward better numbers. The biggest thing is to get started on making changes.

Read More

4 Ways women make better investors

11:00 AM better, investors, Women No Comments

| By Tom sightings, US News & world report

Guys could stand, a couple of things about the investment of their female pendants--risk-averse as the virtues of patience and learning research.

The proof is: after a number of studies by banks and investment firms over the past decade, women make better investors than men. The youngest, determined by the tax and advisory firm Rothstein of Kass, that hedge funds, led by women, which surpassed the managed by men by 6 percentage points over a nine-month period in 2012.

Why do women, better than the average? No one knows exactly. And of course there are exceptions, such as Warren Buffett.

But if in the long term, women generally have better investment returns than men produce. Here are four possible causes:

You think this would be a good thing, right? But as in so many areas to invest, the obvious answer is not correct. For many men, the most important thing is not the absolute return on an investment, but whether their rivals to beat. This leads often male managers of to risky bets that can pay off which are less.

Is one more important investment criteria for many men bragging about their income. And as we all know, men are less likely, for advice on issues. Somehow, it is seen as a sign of weakness. All of this leads to men focus on short term and lose the primary purpose of investments out of sight: to produce consistent, positive returns over a longer period of time.

According to a study by behavioral scientists, women are typically averse than men. Women are more inclined, to wear than men, seatbelts, cigarette smoking and blood pressure avoid checks. You are 40% less likely, that to run the yellow traffic light. So it should not surprise attracted the women towards safer investments and hold portfolios of stocks, which are less volatile.

An investment study showed, that if something goes wrong, men become angry fearful while women. Anger can cause that people ruthlessly trade will double to more losses, such as to lose investments or to try, "a falling knife to collect." However, afraid of women are more likely to avoid market downturn in the first place, and then if they suffer losses are more likely pull the reins and move away from large disasters.

Women, who are less confident than men are likely to less deceived to believe they know more than is actually the case. They want to control and therefore not more research to find out exactly what they invest.

Women are also more realistic ideas, what can reasonably afford an investment. In short, they have lower expectations from their investments. Therefore, they are less likely to jump on the "next big thing" or a "don't miss" fall on stock tip.

In a report found that a quarter of the men surveyed gave, that she would gamble on a "hot" investment, without any real research to do, because many women have the same while making only half of error would. As a result, trading women of less frequently. They are less transaction costs and less tax consequences. Women undertake their investments, and because they have done their homework, are more likely to their obligations to meet. You are patient investors and typically not by a short-term setback in the performance of one frightened company.

Surveys have shown that women more likely than men to the attribute success to factors outside themselves as luck or fate. This apparent contradiction lay - with the goal of achieving the control if you know that you can only so much control - are women the perspective they need to avoid panic. And yet paradoxically, it allows also to admit when they've made a mistake.

Women looking for the next storm. When it arrives, they batten to the hatches and it ride. You know the market like the ocean. It is much larger than an investor subject to any large global forces. But in the course of time, there is a certain ebb and flow, and if you're a good Navigator you can rich coastal sailing.

How is it that the best investor of all, the legendary Warren Buffett, happens to be a man? Maybe you should ask author Louann Lofton, who wrote the book "Warren Buffett invests like a girl: and why would you want to."

Read More

4 Better than the Twitter IPO stakes

12:00 PM better, stakes, TRI Pointe, Twitter No Comments

| By David Milstead, Kiplinger

It's not that Twitter could be a good investment. But investors should wait to leave 90 days on each IPO, the hype fall silent and allow the rational analysis.

Here's our advice for Twitter IPO, summarized in less than 140 characters: do not invest in the Twitter-IPO.

It's not that Twitter will prove to be no good investment stock. Maybe it will be. Or maybe it won't. The time will show. But our advice for all IPO is at least 90 days before sale in wait. Enough time for the hype to die down and rational analysis of company prospects can apply to.

This approach paid off nicely with the IPO of Facebook (FB). The stock made his debut on May 18, 2012, to $38. At the end of the session had its price just 23 cents, defying widespread predictions of a massive gained on the first day pop. Three months after the IPO, Facebook was up to $20 as opportunistic investors who bought at that time a 160% return (all prices stand October 17) enjoyed.

IPO expert Josef Schuster says that the risk for the individual investor caught in the buzz about hot IPOs is preserved, which later crash with views of less attractive "cold offerings."

"Our great interpreters of boring IPOs, the the individual investor-like HCA holdings (HCA), can it not do anything for a long time and is now neglected at all-time highs trading are", says Schuster, who runs a Chicago IPO research firm IPOX Schuster LLC. "Dollar General (DG)-there was no 'hot IPO'." It not about the first day. But it was in the long run."

Schuster creates an index of shares that come as IPOs or corporate spin-offs on the market. The index is the basis of an exchange traded fund, the first trust US IPO index (FPX). Schuster's rules for its index indicate that an IPO at the earliest six days are added after it debuts, to avoid the volatility of the first couple of sessions.

Check the investment in the ETF for wide exposure to the IPO market. The Fund is so far better than 24 percent of the standard & poor's 500index ($INX) back--38 percent year.

Looking for individual stocks? A number of IPOs that have made cold, since their debuts in the last few years investors with an appetite for out-of-favor stocks can intrigue. Here are four worthy of consideration:

SeaWorld entertainment(SEAS) Shamus owner went in April with a splash on the first day of the match. Sales growth of more than 7 percent, Cedar Fair (FUN) and Six Flags Entertainment (six) prebooked IPO 2012 better. In its first report as a public company, SeaWorlds result among analysts, however, was forecasts. Investors were frightened 2013 on the news of a 9.5 percent decline in the number of visitors in the second quarter. The shares at $29,57 now trade below their first day close and are valued at the price of 22 times 2014 earnings. SeaWorld's stock yields 2.7 percent.

In the second quarter, participating in almost all SeaWorld parks hurt bad weather. But the visitors who participated were more coming in, says analyst issued by Barclays Capital Felicia Hendrix, and more for concessions, once they were inside increase revenue per subscriber to 6.7 percent. Hendrix says that the performance of the company second-half short term affect the share price. In the long run keeping the strong brands of the company, including Busch Gardens and SeaWorld parks, filled to the brim-filled state coffers's namesake.

TRI Pointe homes(TPH) and ply gem holdings (PGEM) went this year as in the United States real estate market showed signs of life after the recession. Each stock won more than 10 percent on the first day of trading. Recently they have started but both fears, that the housing rebound in its title will stop rising mortgage interest rates.

TRI-Pointe is a homebuilder in Colorado and his native California. Analyst Steve Stelmach of FBR capital markets, who has a "buy" rating on the stock, says the company has a strong portfolio of country and generates purchase orders in a better than expected pace. Shares well below Stelmach are $24 price target at $13.92.

Ply gem sold builders, including siding, Windows and doors, construction products. Expectations a slowing recovery in house building accompanied recently analyst Daniel Oppenheim, Credit Suisse, the price target to reduce its "buy" rating on $21-43 percent higher than the current level of $14.68.

Millennial Media(MM) was a hot IPO, 92 percent jump on the first day of trading in March 2012. But investors quickly sour missed some analysts as a provider of mobile advertising financial planning in its first report as a public company. Today, at $6.88 is his all time high by a quarter.

Millennial Media has great competitive- Apple (AAPL) and Google (GOOG) - but he claims, the largest company that is not connected with an operating system or a mobile device. It is collecting samples, purchase privately held competitors JumpTap in the stock and cash offer initially estimated to be about $200 million.

The risk of acquiring large, coupled with the recent financial results that missed a number of analysts have to forecast of management "Reviews keep" led. But analysts say there is plenty of potential in a company, reported that a gain of 45 percent revenue growth in the second quarter. "The share current rating probably not enough credits expected growth will be", says Michael Graham, of Canaccord Genuity, whose 12-month price target of $10 an increase of 45 percent from current levels by represents.

Read More

Better jobs data a mixed blessing for Obama

1:54 AM better, blessing, mixed, Obama No Comments

The United States 200,000 jobs in December, but it added there are still 6 million fewer jobs than in December 2007. NBC Tom Costello reports.

By John W. Schoen, senior producer

President Barack Obama claim that help his economic policies Americans have brought back in work showed a shot in the arm Friday when Government unemployment rate dropped data of the country at the lowest level in three years.

"We have made real progress," said Obama Friday after the latest employment report was released. "Now is not the time to stop."

The Government reported on Friday that the labour market in December, to a healthy clip expands pushing the unemployment rate to 8.5 percent. The news followed a series of reports on a broad revival of economic growth.

Private employers 200,000 workers added last month, the Labor Department said. It was the biggest gain in three months and a much stronger results, win the 150,000 economists expected had. Unemployment rate in November was seen by a notch to 8.7 percent, easing widespread fears that the sharp decline in October a month was by accident.

Gaining momentum with the presidential campaign has the data the White House a welcome reprieve of grim economic data that has dogged his presidency. What must be Obama in the election year for the good news to place continue the front or even accelerate.

"When we took over the Government, we lose 800,000 jobs haemorrhage were jobs, with major losses only of depression," said Minister of labour Hilda Solis. "Now see we a better trajectory where we are in the right direction." "I believe that the public supports the types of solutions, which the President speaks, but we must still do more."

Republicans wasted no time to play down the impact of the economic policies of the President.

"I can not give Washington, Congress or the Administration, in a credit whatsoever," said Senator Bob Corker, R-Tennessee "we simply did not have things that need to be done." This (improvement comes from) the private sector and its resistance despite the fact have we had very bad behavior of Washington. "

Vote: Do you see signs of improvement in the labour market?

It is also clear that will continue to improve the employment data for the next 10 months. The most economic forecasters see economic growth slow down in 2012. The Outlook is clouded by the ongoing debt crisis in Europe, expected to slip into a recession, even if a financial disaster can be averted.

The decline of which heading may unemployment rate blocked, even if the US economy continue to heal. The rate is partly as a result of a decrease in the official size of the workforce decreased. So-called unemployed workers find "discouraged" you better chances of getting, we start counting again and then get to reverse back in the workforce, which slow decrease in the unemployment rate or price as he.

When that happens, Friday could long since forgotten optimistic messages from election day.

"If I were sitting in the White House, I would go for the unemployment rate to bump a bit now rather as spring or summer when people come back in the workforce", economic strategist said Matt McDonald, a Republican.

The Obama administration to kick off report prod Congress continue to guidelines, the expansion of last year's salary and payroll tax cuts and unemployment insurance benefits include. After deadlock for weeks, Congress voted in December continues to these guidelines only for two months.

"It is important that we the economic policy, which continue, helping us to dig our way out of the deep hole that was caused by the recession, 2007 began to the end of the year," said White House Chief Econmist Alan Krueger.

Republican opponents argue, that the costs of these policies and the impact on the deficit any suggestion compensate federal budget, which increases spending is the economy. Even Obama note supporters, that the White House can do it not much more is to create growth and jobs.

"Around in the basement, I was looking for", Austan Goolsbee, former Chief Economist of Obama said. "There are no big lever down there, you can flip and everything goes."

Although the jobs move numbers in the right direction, most voters think the country on the wrong track, according to the latest NBC News/Wall Street Journal, is the beginning of December. Only 22 percent believe taken the county located in the right direction; about 69 percent said pollsters that the United States in the wrong direction is headed.

"People still feel how labour market is hurting and they are right," said Stanford economist Ed Lazear, was Chief Economist for George W. Bush. "Even if this a very different labour market as we things better whenever 8.5 percent unemployment, you saw was the unemployment rate of 4.4 percent in 2007." "It's no wonder people so still fight the feeling like the labour market is, even if the move in the right direction."

Read More

Create a better toilet and is the world...

7:26 PM better, Create, toilet, world No Comments

NAIROBI, Kenya - in the crack of dawn every Sunday, Joseph Irungu leads an army of 50 men T-shirt hand carts with old 42-gallon oil drums through the narrow streets of one of the most densely populated slums of Kenya's equipped.

With their bare hands, they use buckets to the feces of pit latrines in Korogocho, draw, fill the oil drums and push them to a river, to deposit the waste. The men with patches of waste water leaves every trip on her face and hands.

Irungu has these hygiene Brigade leader since 1998 as the City Council of Nairobi his request to the pit latrine on his property rental houses rejected drain.

Worst of first life Inc.: Netflix was the company the most beloved in their industry. Then there was the price hike. Guess is how people feel now? Life Inc.: Sorry IRS, but I am my sister's keeper life Inc.: it's the economy, not the fault, stupid, Nissan has big plans, and leaf life Inc. beginning: what your boss hates most about meet

"It was too much," he said. "I had to do something, so I picked up a bucket and it drains me." "I know that many other landlords with similar problems faced and a business opportunity presented itself."

Irungu was the entrepreneurial spirit across the continent, Tuesday, when the world's largest charitable foundation announced the latest venture: try the toilet to safe, clean reinventing hygiene to millions of poor people in developing countries.

At the AfricaSan Conference in Kigali, Rwanda, the Bill & Melinda Gates Foundation announced$ 42 million in grants for the promotion of innovation in the collection, storage and re-use of waste as an energy resource.

More than 2.6 billion people around the world don't have access to safe sanitation. Associated with sewer lines instead of toilets, most are their waste on the ground or in a ditch or pit. The result is unsightly, unhygienic and contributes to the disease.

Approximately 1.5 million children die each year from diarrhoea-related diseases. As the foundation of gates, that most of these deaths could be avoided with proper sanitation, clean drinking water and improved hygiene believes, are to start Foundation officials in Africa this week, this new initiative.

Sets the Foundation to toilets and sanitation, in extracts, Frank Rijsberman, Director of the foundation of water, sanitation and hygiene initiative said, because it is the least attractive part of the development of the world.

Almost taboo
"It is almost taboo." Who wants to talk to shit? It isn't an issue in polite conversation ", he said."

The Foundation wants to have before the end of the year 50 to 60 groups working on ideas for the next generation of toilets, which should run without water and electricity and are connected to a sewer. Rijsberman said that it targets, who turned in more than a way that is useful, the waste into something that can be used for a toilet for energy.

If all goes as planned, said it will serve in three to five years a handful of solutions, which will lead to millions of people, products or innovations.

Irungu, 47, says the main problem in communities such as the Korogocho slum, the lack of sewage facilities and access to water is. He has seen are positive the cholera outbreak already of its efforts, including a drop in.

"This place to smell, because people would go to the toilet in (plastic) bags and throw them in the streets, because she could not go to the toilets which were crowded with waste," he said.

To use pay, clean toilets and water is extra effort which can't afford many of slum-dwellers, so that they end up with dirty facilities that they can be exposed to diseases. The use of a toilet costs about two cents or two Kenyan shilling.

If better toilets introduces Irungu loses his business, but he says he feels guilty disposing waste in a river. He says he has no alternative. The slum built on rocky land, so many landlords digging shallow pit latrines, which fill quickly, because they are sometimes used by more than 30 people.

Drains for every latrine Irungu takes home over $2, a solid returns in an area, where many residents of less, that earn $1 per day. Through this work he said able to educate his five children, he.

Korogocho resident Veronica Wanjiru, 29, has two children at the age of 7 and 11, says that cleanliness is a problem.

"Select most of the tenants to use, that you a donor-funded toilet facility 2 shillings figures", she said. "Many of us this fee does not provide, so that our children use potty training until they still 14 years are or for those who cannot afford, they use paper bags, which are then thrown into a ditch."

WANJIRU said that if her family twice a day used the public toilet, it would you 12 shillings (13 cents), costs that they cannot afford. Instead, let their children their waste in a portable, self-contained toilet Chair. It gives the content into a ditch.

"I know that the disposal of feces in the ditch is bad, but I have no other choice." I have no toilet. I have a steady job, "WANJIRU said, washes clothes for a living." "Disposing is bad, the feces in the ditch because that's where my kids play."

The Gates Foundation was founded in 2000 by Microsoft Corp. Chairman and his wife. (Msnbc.com is a joint venture of Microsoft and NBC Universal.)

Copyright 2011 associated press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read More