Credit scores are used in nearly every industry to determine the financial stability of a person or business. There are two main types of credit scores – PLUS and FICO – with the latter being the most commonly used. Credit reports are issued once every three months by the three major credit reporting agencies, although the credit score itself is updated on a monthly basis. Maintaining a good credit score is the key to gaining approval for credit cards, mortgages, vehicle loans, and any other form of financial assistance.

How is the FICO Credit Score Calculated?

The FICO credit score is calculated based on five main factors – payment history (affects 35% of the credit score), amount owed (affects 30%), credit history length (affects 15%), new credit (affects 10%), and types of credit used (affects 10%). Each

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A new report by Barclays has revealed that shoppers are expected to spend more this Christmas, despite the current economic difficulties people are facing. Read full article…

Australians are at greater risk of credit card fraud in December than in any other month of the year, an expert has said.

Beth Jones, a senior threat researcher with Sophos, a security software firm, observed that scammers aiming to con consumers out of their credit card information are often more active in the days before Christmas.

Speaking to Australian Macworld, she said: “The two-week mark before Christmas is when things start to ramp up out of control.

“Spammers and malware authors focus on when the attention is going to be there. Read full article…

A decade ago you would never have heard of high school student credit cards. In this day and age, though, parents want their kids to grow up with a strong financial sense. Also, as teens become more and more independent, they also become more informed about things like credit cards — and what they know about, they tend to want.

There are definitely pros to high school student credit cards. They help kids organize themselves and teach them financial responsibility. However, before you dash out to get one for your own child, there are some issues you may want to consider.

1. Is your teen responsible enough to use a credit card wisely?

Even with a low credit limit, these cards are just as capable of creating irresponsible spending habits as responsible habits.

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Australians now have a huge range of options available when they come to compare credit cards, a commentator has observed.

Herald Sun business writer Jason Bryce noted that there has been a total of 13 new credit cards launched in 2010, mostly from big retail chains and airlines seeking to expand their customer loyalty schemes.

He also pointed to the “surprising number” of cards that still charge around ten per cent or less on purchases.

“In addition to those new cards, there is noticeably more innovation in Australia’s credit market,” said Mr Bryce.

“Qantas Frequent Flyer relaunched with an improved deal for most cardholders. Read full article…