What elements factor into the calculation of a credit score?

Your credit score is based on the various information that is present in your individual credit report. The score is based on the different categories, which vary amongst different scoring models. In addtition, how much weight each category holds in a specfic scoring model also varies.

However, there are a handful of core elements that most likely factor into any type of credit scoring model. These are important components to keep in mind when attempting to get a better understand of and/or improve your credit score.

Elements of your credit score include:
- Payment history
- Amounts owed
- New credit
- Types of credit used
- Length of credit history

A clean payment history without missed or late payments is something to strive for. In addition, paying attention to total amounts owed versus total available credit is recommended. It is generally a good idea to not utilize a large portion of your available credit if at all possible.

Closing accounts is a complicated topic. Closing an account can reduce your length of credit history and can also reduce the ratio of credit used versus credit available. But in some cases, closing an account can be beneficial. It is important to examine each account carefully to determine whether closing it or keeping it open is the right choice.

For more detailed information on the topic of credit scores and what factors into the credit scoring equation, be sure to read our recent article, How a Credit Score is Calculated.

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How much income do you need to qualify for a mortgage?

Especially in the current economy, it’s a good idea to have a general idea how much income you need to qualify for a certain mortgage amount. Our Mortgage Required Income Calculator will help you to determine how much income you need to qualify for a specific mortgage amount and how different interest rates (and other factors) affect your required income.

How much income is required to qualify for a certain mortgage amount largely depends on your monthly debt payments and also on the current interest rate. This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.

Try it now: Mortgage Required Income Calculator

This calculator is only one of more than 20 financial calculators on e-wisdom.com. Make your next loan decision a knowledgeable one — utilize the tools and resources available in our knowledge center to help answer questions and compare available options.

Posted in Loans, Miscellaneous, Personal Finance | Permalink

Home Budget Analysis Calculator

Managing your monthly budget can be a frustrating experience. And if you don’t currently have a monthly budget, creating one can be difficult and time consuming. Yes, these tasks can be difficult and frustrating, but they don’t have to be. Our home budget calculator can make budgeting a much easier process.

One of the most important aspects of controlling your home budget is to determine exactly where your money is being spent each and every month. The budget calculator can help you do just that and more.

By entering your income details and typical monthly expenditures, you can easily see where your money is being spent and you can also calculate how much money you may have left to save, on average, at the end of each month.

In addition, you can alter the net monthly pay amounts and other miscellaneous income that you currently receive or may receive in the future. Once this information is entered, you are able to view your income breakdown alongside your monthly expenditures breakdown.

This calculator is one of more than 25 financial calculators available on e-wisdom.com to help you save time and money. Make your next financial decision a knowledgeable one, visit our knowledge center for tips, advice, tools, resources and more.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Insurance, Personal Finance | Permalink

Changes in the student loan industry

A recent article detailed the current state of the student loan industry in relation to the credit market turmoil and also what it all means to current and potential student loan borrowers. It is a must-read for anyone currently seeking student loans.

Many lenders are currently cutting back on all or some of their student loan offerings, tightening their credit standards and/or raising interest rates. Some of these moves are directly connected to the state of the credit market at the present moment. All in all, it is getting tougher to find funding and options are getting slimmer.

See full article: Navigating student loans tricky in the wake of credit crunch

If you are currently seeking student loan funding or will be in the near future, it is recommended to stay on top of the situation by following the news and frequenting reliable sources of information on the topic. Good places to find this type of information are listed below.

Student Loan Resources

FAFSA - Free Application for Federal Student Aid
Find out what information you’ll need to apply, fill out the application and view your results online.

NSLDS.gov - National Student Loan Data System for Students
Provides a centralized place where students can access and inquire about their loans and/or grant data.

Student Aid on the Web - Federal Student Aid on the Web
Information, from the U.S. Department of Education, about preparing for and funding edcuation.

In addition to the above student loan resources, you can also make use of our student loan calculators and student loan advice center. Make your next student loan decision a knowledgeable one. A little research can help in many different ways.

Posted in News, Loans, Personal Finance | Permalink

Protect Your Identity with an ID Theft Prevention Service

We’ve all heard the reports about the growing threat of identity theft and fraud. If your personal information is compromised, any fraudulent financial activity that happens as a result can negatively affect your credit score and ability to borrow for years. Not many can deny that the threat of ID theft should be taken seriously. But when is it time to consider signing up for an identity theft protection or prevention service?

The answer to that question varies from person to person. If you feel that your personal information either is or was vulnerable in the recent past, the answer should be easy. On the other hand, if you don’t have reason to believe that your personal information has been compromised, the answer depends more on your overall comfort level and how closely you wish to monitor your personal financial situation.

One thing that is certain, however, is the fact that identity protection and prevention services are beginning to offer more and more useful products to help individuals actively monitor their credit and also protect themselves from potential fraud.

We recently compiled a list of ID theft protection services for comparison purposes. You can easily compare the various products and services offered by each company to find a good fit for your specific situation, whatever it may be at this point in time.

Compare identity theft protection and prevention services now

For more information about credit monitoring and identity theft protection, see about credit monitoring, which is a subtopic within our credit tips and advice area. And be sure to visit our knowledge center for more information about any topic found on e-wisdom.com.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

Many Students Graduating With More Than $20,000 in Debt

A recent article discussed the overall state of student loan debt in the U.S. According to the article, the average student graduates with about $21,000 in debt and it may be getting more difficult for many borrowers to repay their student loans.

Full article: Student loan debt — how to get relief

The article discussed relief options that may be available to those who are having trouble repaying student loans. In addition, the article touched on the differences between private student loans and federal student loans and how the repayment of these two types of student loans can differ.

Understanding student loans can be a difficult task, but there is an abundance of information out there that can serve to answer a lot of the questions that arise along the way. See the list of top resources below.

Student Loan Resources

FAFSA - Free Application for Federal Student Aid
Find out what information you’ll need to apply, fill out the application and view your results online.

NSLDS.gov - National Student Loan Data System for Students
Provides a centralized place where students can access and inquire about their loans and/or grant data.

Student Aid on the Web - Federal Student Aid on the Web
Information, from the U.S. Department of Education, about preparing for and funding edcuation.

In addition to the above student loan resources, you can also find more helpful information, advice, tips and tools right here on e-wisdom.com. Our student loan calculators and student loan advice center can both help you make your next student loan decision a knowledgeable one.

Posted in News, Loans, Personal Finance | Permalink

What does the lowering of interest rates mean for borrowers?

The Federal Reserve lowered interest rates once again on March 18, 2008. This marked the sixth time since September 2007 that interest rates have been lowered by the Fed. So, what does this mean for borrowers?

According to a Wall Street Journal Online article, the new, lower interest rates will only help with certain kinds of borrowing. According to the article, rates on many auto loans, credit card accounts and home equity lines of credit and adjustable rate mortgages have fallen. But borrowers looking for a new mortgage or looking to refinance a current mortgage may not see the benefits.

See full article: Why Only Some See Benefit From Fed’s Cuts

The article goes into great detail about different perspectives and strategies for homeowners who are either seeking a new mortgage loan or are looking to refine their current home loan situation. There are a lot of factors to consider before making any major financial decision right now, and understanding how the current interest rates affect your specific situation can be beneficial in many different ways.

Make your next financial decision a knowledgeable one. Learn more about any of our financial topics at our knowledge center and be sure to utilize our financial calculators to assess your current situation before deciding on your next move.

Posted in News, Credit Cards, Loans, Insurance, Personal Finance | Permalink

Find out how much money you can save by increasing your monthly auto loan payment

Have you ever wondered how much money on interest you could save if you added an additional $20 or $50 per month to your auto loan payment? Our auto loan early payoff calculator makes it very easy to find this answer.

Simply enter:
- The loan term (in months)
- Number of months remaining
- Total loan amount
- Loan interest rate
- The additional monthly payment that you wish to make

With this information, the calculator will then let you know how much you can expect to save in overall interest payments by making these addtional payments.

The early auto loan payoff calculator is only one of five total auto loan calculators available on e-wisdom.com. In all, there are more than 20 total financial calculators available to help you assess your financial situation. Also, be sure to browse our tips and advice centers for help finding answers to common questions that may arise in the decsion-making process.

Posted in Loans, Personal Finance | Permalink

Alternative credit scores being used to to evaluate
the credit-worthiness of potential borrowers

A recent article discussed in detail how many lenders are now looking beyond what some consider to be the “traditional” credit score in order to determine the credit-worthiness of a posssible borrower. These lenders are instead looking at alternative credit scoring methods to evaluate the risk involved with certain individuals.

Some lenders are now looking beyond total debt amounts and payment histories, and are instead looking at other factors, such as rent and utility payments.

Credit scorers find creative new ways to judge you

Whether or not this is good news depends on your specific financial situation as well as the details of your credit history (or lack thereof). One thing that is certain, though, is that some lenders are looking beyond the traditional methods when determining the risk involved in extending credit to potential borrowers.

One time each year, consumers can request a free copy of their credit report. Read Can I get a free credit report? for more information about this guaranteed right. There are also a number of companies that offer credit score services and a variety of credit monitoring services.

Staying on top of your credit can really pay off when the time comes to apply for your next loan or financial product.

Posted in News, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

New Loan Tips and Advice Center

The latest addition to the constantly expanding e-wisdom.com knowledge base is our loan tips and advice center. This comprehensive area has answers to common questions about various types of mortgage loans, home equity loans, auto loans, and more.

Topics include:
· About Auto Loans
· About New Mortgage Loans
· About Refinance Mortgage Loans
· About Home Equity Loans
· Loan Terminology
· The Loan Process Explained

This new tips and advice center, along with our easy-to-use loan calculators and other useful tools and resources can help you in your loan decision-making process. Make your next loan decision a knowledgeable one.

Posted in Site Updates, Loans, Personal Finance | Permalink