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Protecting Your Credit When You Lose Your Job

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protecting your credit

According to the Bureau of Labor Statistics, 5.5 million job separations occurred in May 2019 alone. Of those, approximately 3.4 million people quit their jobs during the month. Then there are 1.8 million that were laid off or discharged. This usually means fired with cause. While those that quit may have known that they were going to leave, employees who are laid off or terminated might not be prepared. As a result, they have to make critical financial decisions. These include how to protect their credit, while in crisis-mode, and that isn’t easy. Luckily, there are certain steps that are effective for protecting your credit. If you’ve lost your job, here’s what you need to know.

Your Income Change Doesn’t Impact Your Score

First and foremost, it’s important to understand that your income level has no impact on your credit score. Your credit report only includes details about your credit history, such as the amount you’ve borrowed, whether you made payments on time, and your credit utilization.

Losing your job doesn’t inherently impact your credit score. However, if a job loss causes you to miss payments, relying heavily on credit cards (increasing the size of your debt), or similar actions, those could affect your score.

Check Your Credit Accounts

While you don’t necessarily want to contact your creditors immediately, particularly if you aren’t in immediate risk of falling behind, you should check your credit accounts to see if you have any form of payment protection in place. Many lenders offer credit protection as a paid-for service, allowing you to pause the payment requirements if you become unemployed.

If you believe you may have signed up for payment protection, check your statements to see if you have paid premiums for the service. It may be present on your credit card, auto loan, mortgage, or other accounts, so it’s wise to take a look. Then, if you have it, you can contact that creditor and use the payment protection to preserve your credit, at least for a period.

Apply for Unemployment

Regardless of the reason you lost your job, it is always wise to apply for unemployment. While many people who are fired for cause won’t qualify, most others will. However, even if you aren’t sure that you will be approved, it is wise to initiate the process in case you are incorrect.

While unemployment payments won’t equal your former salary, they do give you a source of income in the interim. Any additional incoming money can be beneficial. Just make sure you learn the rules of the program, such as any job search requirements, to maintain your eligibility.

Create a New Budget

When you lose your job, you need to adjust your budget immediately. Even if you have a healthy emergency fund, reviewing your expenses allows you to make adjustments to limit the likelihood that you’ll need to rely on credit cards or end up unable to make a payment.

Examine each of your bills, including everything from utilities to auto insurance to credit cards, and record the minimum payment amount. The goal should be to make minimum payments on every bill as that can preserve your credit.

A single 30-day late payment can cause your credit score to fall by up to 100 points. Plus, the derogatory mark will remain on your credit report for years. By aiming at the minimum payment numbers, you can prevent this from happening.

Once you allocate funds for the minimum payments, you can use the rest for other expenses. While you may have to adjust what you buy for groceries, limit you driving to only essential times, and take similar steps to stretch your money, it is worth it if you are able to preserve your credit while unemployed.

Speak with Your Creditors

If you have a new budget and know that you won’t be able to make your monthly payments, it’s time to talk to your creditors directly. Find out if there are any programs that can help customers experiencing financial hardships, as many would rather work with you and get something than tell you no and get nothing.

Deferments Help in Protecting Your Credit

Additionally, some debts can be deferred when you experience a period of unemployment. Federal student loans usually have deferral or forbearance options, which can help you reduce or eliminate the need for a payment for a period.

Dealing with a job loss is always difficult. But, if you follow the steps above, you can work to keep your credit score intact until you find a new position.

Have you ever lost your job? What steps did you take in protecting your credit? Tell us about your experience and share your tips in the comments below.

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What is UltraFICO?

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UltraFICO

FICO credit scores range from 300 to 850. With higher scores typically allowing borrowers to get lower interest rates and qualify for credit with greater ease. In the United States, the average FICO credit score is around 695. This still falls into the “good” range. Still, many people struggle to raise their score out of the poor and fair ranges. Leaving them stuck with subprime borrowing options. However, the launch of a new FICO scoring model – the UltraFICO – is giving consumers the ability to boost their credit by factoring in new financial activities.

What is UltraFICO?

Unlike a traditional FICO score that relies on information provided to the credit bureaus by lenders. The UltraFICO uses an opt in model. Consumers have the option to include data from a variety of accounts.  These include checking, savings, and money market accounts.

After opting in and providing banking details, UltraFICO reviews the accounts to learn more about a consumer’s financial activities. The calculation considers not just the person’s history with lenders.  It also factors in the amount in savings, the age of each bank account, and how actively the person uses their accounts.

Essentially, UltraFICO considers a consumer’s cash-handling activities. Those who keep a healthy balance in their savings account, keep their accounts open for long periods, avoid overdrafts, and regularly pay bills that aren’t factored into a traditional FICO (like utility payments and rent). These factors may be able to boost their FICO score by signing up for UltraFICO.

However, it’s important to note that UltraFICO is still in the pilot phase. Not many lenders are involved in the trial program. There is also no guarantee that the UltraFICO will become a widely accepted approach to evaluating creditworthiness in the eyes of lenders.

Consumers That Can Benefit from UltraFICO

The UltraFICO model primarily benefits two kinds of consumers. First, people with “thin” files – usually those with very little credit history – could see their scores rise by signing up for UltraFICO. By allowing daily banking activities to factor into their scores, these consumers essentially give the model access to more information that could determine their creditworthiness.

The second group that could benefit are those who are struggling with a low credit score. If a consumers activity as a borrower has some blemishes. For example, late payments or an account in collections, the UltraFICO could use the additional data to offset some of the credit score damage.

If your score is in the low 600s or lower, the UltraFICO model could be beneficial, allowing you to work your way up into the “good” range faster. However, that doesn’t mean UltraFICO will make a big difference for everyone in that category. For example, those who regularly overdraft or have less than $400 in savings on average might not see a credit score boost.

Consumers That Won’t Benefit Much from UltraFICO

Along with consumers who don’t have a great banking history, people who already have good to excellent credit may not benefit much from the UltraFICO model. Usually, getting access to credit isn’t much of a challenge in these categories.

Plus, these borrowers usually qualify for competitive interest rates already. While those with excellent credit do the best when it comes to financing terms, the UltraFICO model might not cause a substantial credit score increase for those who already have scores above 670. As a result, borrowers in the good to excellent score ranges might not experience much of a benefit.

The only exception may be consumers who have scores that are just under the number for getting into a higher category. For example, if you have a credit score of 735, which is on the high end of the “good” category,” the UltraFICO scoring model might get you above 740, putting you into the “very good” category instead.

The Drawback of Signing Up for UltraFICO

While the ability to boost your FICO score using the UltraFICO model is enticing, there is one drawback to consider. In order to include bank account activity in your score, you have to give the program access to a substantial amount of personal data.

Along with connecting the bank accounts to the program, which requires entering your username and password, you also hand over transaction records. Many people classify these kinds of details as sensitive, and you have to trust the data is protected adequately.

Ultimately, the UltraFICO has the potential to help borrowers with limited credit histories or poor to fair credit. Just make sure you are comfortable with handing over your banking data before you choose to sign up.

Do you participate in UltraFICO? Did you find it beneficial? Share your thoughts in the comments below.

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Here’s What You Should Know About 7-11 Free Slurpee Day

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7 11 free slurpee day

Since 2002, the 75th anniversary or the popular chain, 7-Eleven has celebrated July 11 (7/11) as Free Slurpee Day. Over 13 million cups of the 7-Eleven exclusive beverage are purchased each month, and the retailer decided that everyone should be able to get a taste of the chilly drink for free one day a year. In 2019, 7-11 Free Slurpee Day falls on a Thursday. If you want to get your hands on the no-cost slushee-style beverage this year, here’s what you need to know.

Where to Get Your Free Slurpee

If you want to enjoy a free Slurpee during the event, all you need to do is head to a participating 7-Eleven. Slurpees are exclusive to the chain so that you won’t find them anywhere else.

When You Can Get Your Free Slurpee

In another nod to the retailer’s name, Free Slurpee Day runs from 7:00 am to 11:00 pm each July 11. You have to arrive during those hours to get your drink discount. Otherwise, you will have to pay full price.

The Size Included in the 7-11 Free Slurpee Day Deal

You can’t get just any size Slurpee on Free Slurpee Day. The deal is limited to the 12-ounce (small) size only. You are not allowed to bring your own cup, even if it is 12 ounces. You can only use official 7-Eleven cups for the deal.

How Many Free Slurpees You Can Have

You are limited to one free Slurpee from a participating location. If you try to get more than one, you will have to pay for the others.

However, every member of a family can get a free Slurpee. The one drink limit applies to each person, not each party. Just be aware that everyone might have to go through a separate transaction at the register, as locations typically run the deal through the registers to track how many are given away.

The Slurpee Flavors You Can Have

On Free Slurpee Day, you can choose any available Slurpee flavor for the deal. Often, the chain debuts a special flavor every year, so you can select from traditional options like wild cherry and coca-cola or try something new.

Additionally, you can also mix the flavors if you like. There is nothing to stop you from layering some pina colada and blue raspberry (or any other combinations) during the deal period.

Can You Get Another Drink for Free Instead?

No. The deal only applies to Slurpees. If you want another beverage, including fountain sodas or bottled drinks, you have to purchase those at the regular price.

Are You Guaranteed to Get a Free Slurpee?

No. 7-Eleven does not promise that you will get a free Slurpee, even if you arrive at a location between 7:00 am and 11:00 pm on July 11. The deal is only available while supplies last.

If you want to increase your chances of getting the drink at no-cost, then it is wise to head to a location as soon as Free Slurpee Day starts. Otherwise, you might miss out.

Do you plan to take advantage of Free Slurpee Day? Tell us about your plans in the comments below.

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Guide to Prime Day: Here’s What You Should Know

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guide to prime day

Last year, Amazon had nearly $233 billion in net sales, representing about 50 percent of the total U.S. e-commerce market. Earlier this year, Amazon Prime hit a remarkable milestone, crossing 100 million subscribers for the first time. Now, everyone who is an Amazon Prime member has a major event to look forward to: Amazon Prime Day. Before the event kicks off in 2019, here’s a guide to Prime Day and what you should know.

Guide to Prime Day: How the Sale Works

Amazon uses a variety of approaches with its Prime Day event. In some cases, an item will have a discount for the duration of the sale, allowing you to buy them for less at any point during the two days.

However, Amazon also has other special deal categories. Lightning deals offer major discounts but are only available for a short period, such as a few hours or less. Additionally, these items can sell out. If you don’t get one when it goes on sale, you might have a chance to join the waiting list and hope another shopper backs out. But, if that doesn’t happen, you can’t get a raincheck.

With the Lightning deals, Amazon does try to help you score a great price on items you want. Head to the “Today’s Deals” section of the website and open the “Upcoming” tab. There, you can scroll through items that are going to go on sale and select “Watch this deal.” Then, once that sale launches, you’ll get a notification.

When Amazon Prime Day Kicks Off

Amazon Prime Day is back for the fifth year in a row. Many liken the event to Black Friday, as the retail giant typically offers dramatic markdowns and great deals, enticing Prime members to spend.

While it’s called Amazon Prime Day, it is actually a two-day event. In 2019, the sale starts at midnight Pacific Time on Monday, July 15 and comes to a close at 11:59 pm Pacific Time on Tuesday, July 16.

It Is a Prime Member-Only Event

If you aren’t an Amazon Prime member, you can’t access any of the deals the retailer will offer during the event. Those who already subscribe – either on an annual or month-by-month basis – will be able to shop the sale without having to do anything extra.

However, if you aren’t a member yet, that doesn’t mean you have to miss out. You can sign up for the free 30-day trial if you’re account has never been Prime before. Just make sure to get signed up before the event kicks off on July 15.

Where You Can Find Amazon Prime Day Deals

Once Amazon Prime Day begins, you can find all of the information on the website page dedicated to the event. It will show some of the most enticing deals and give you the ability to shop by category, allowing you to narrow down the results based on what you want to buy.

What Items Will be on Sale?

Amazon is usually somewhat tightlipped about its Prime Day deals before the event launches. However, it does preview parts of its sale as Prime Day draws near.

One of the first confirmed deals is a Toshiba HD 43-inch television. It’s the Fire TV Edition of the Smart TV. Instead of costing $299.99, it’s available for $179.99. That’s a 40 percent discount.

Amazon also commonly discounts its own devices, like Echoes, Kindles, and Fire tablets, during the event. Alexa-enabled devices are expected to have some massive discounts. Additionally, services like Amazon Music Unlimited, Kindle Unlimited, Audible, will likely also be involved in the deals event.

Otherwise, expect discounts in nearly every product type Amazon sells. Sales items will likely span a wide range of categories, including gaming, health and fitness, home and kitchen, and more.

Are you going to take advantage of the Amazon Prime Day Deals? Tell us what’s on your Amazon shopping list in the comments below.

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UK Innovator Visa | what is required?

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The UK Innovator Visa is for Entrepreneurs or a Business enthusiastic who is ready to venture into a new business in the UK. As a business person it is normal to feel the need to spread your tentacles and build something new for yourself and you can do that with the new Innovator Visa.

Also, this new category can lead to settlement in the UK, so you can run your business smoothly without hiccups. With the UK Innovator Visa your loved ones are also not left out.

Who is an innovator Visa for?

An innovator visa is for an experienced, certified business entrepreneur who seeks to establish a viable business in the UK with the prospects of further growth. An original business idea is important for a successful Innovator Visa application.

The Innovator visa is a substitute for the Tier 1 Category (Entrepreneur). With a minimum investment of €50,000, the entrepreneur is offered the opportunity to start a proposed viable business in the United Kingdom. Applications are easy to process if the necessary due process is followed. You are endeared to do the due diligence to ensure the successful completion of your application.

Also, when applying, you need to be endorsed by a governing authority. It is paramount you get a professional business plan writer, who would guide you properly as your business idea will be scrutinized. The scrutiny would be based on three major factors; its innovation, scalability and viability.  You can also switch from a Graduate Entrepreneur Visa, or a Start-Up Visa, to an Innovator Visa. You can also make a fresh application if you don’t want to start a business in the UK.

WHAT IS REQUIRED FOR A UK INNOVATOR VISA?

Original business idea purposing innovation

The purpose of the visa is to encourage entrepreneurs from all over the world to bring their business expertise with them into the UK. A scalable idea with prospects for growth is therefore the most important ingredient to ensure the applicant’s Visa is given a chance by the approving authorities. It’s important for the idea to be presented with verifiable data, and key performance indicators which will be used to measure growth, as well as check the viability of the idea as the business grows.

Verified by an endorsed body

Innovator visa applicants must secure endorsement from a home office approved endorsing body. As of May 2019, the current list verified endorsing bodies are

  • The Bakery
  • Bethnal Green Ventures
  • Capital Enterprise
  • CodeBase
  • CyLon
  • Deep Science Ventures
  • Ignite
  • Invest Northern Ireland
  • Level39
  • MDR LAB
  • MedCity
  • NatWest
  • Royal Bank of Scotland
  • Scottish EDGE
  • Seedcamp
  • Seed Haus
  • SET squared Bristol
  • Wayra
  • Zinc
  • Ulster Bank Entrepreneur Accelerator
  • The Royal Society of Edinburgh
  • TechX
  • Techstars
  • Tech Nation

It is important for you to check out which of the endorsing bodies suits your business, as the endorsing specifications of the verified bodies varies. Some bodies only approve tech related ideas while some only focus on health services, for example.

The endorsing body may withdraw its enforcement of an applicant during the process of decision making. A withdrawal of consent or approval by an enforcing body will also lead to a refusal of the entrepreneur’s innovator visa application.

A Minimum Business Investment of £50,000

It’s expected of you to be equipped with at least €50,000 as a criterion for the processing of their visa application. The authenticating body will go through the commercial bank of the applicant to check their financial status.

A Level of Communication in English 

You must (at the least) have a basic understanding of the English Language to facilitate settling down and doing business. Some language professional exams might need to be taken to prove this during the visa application.

Maintenance Fees 

Adequate maintenance fees will be required to ensure the entrepreneur and his/her family or loved ones (if around) can live comfortably before their business starts making enough revenue (and ultimately profit). Expenses might include accommodation, feeding, energy bills etc.

Other criteria may include being at least 18years old without a criminal record. Entrepreneurs also need to have at least €945 for 90 consecutive days before the application is submitted.

It is important to note that the required €945 is not included in the minimum €50,000 business investment fund.

Duration of the Innovation Visa

The innovation visa allows the entrepreneur a stay for three years after which they can apply for permanent residency. The application of permanent residency will be based on whether the idea of the applicants has really grown and ultimately helping the UK economy. Some other basic visa application and renewal process will be gone through.

Investment From a Third Party 

It is not impossible to have investors backing an innovator visa applicant. The investor or company itself could be based in the UK or not to fund the applicant.

Forming a Team

You can form a team for the UK innovator visa, which can also include a UK resident. The important thing to note is they must each have their own minimum business investment requirement fund of €50,000. The investment fund cannot be shared amongst the team members.

Sharing Settlement Criteria 

After the three years approved on the visas of the business team, you cannot share the same settlement criteria. For example, if the settlement criteria for the idea is to sell 1000 units of their product, then for a team of 5 you must have sold 5000 units for the whole team to be eligible to have their permanent residency secured.

Taking Up Other Jobs 

As an applicant, you are not allowed to take up other jobs in the UK while on an Innovator Visa. Entrepreneurs are expected to work for their business only. This makes the maintenance fee very important as applicants, especially those who came with their family and or loved ones, will need it to maintain themselves.

 

Assessment of Innovator Visa Application

Decision makers will take into consideration all endorsement of the applicant stated under Appendix W, as well as consider the following factors:

  • The evidence you have submitted and its credibility
  • Your previous educational, work and immigration history
  • Other relevant information as required by the board

Benefits of UK Innovator Visa

  • Successful Innovators are granted leave for 3 years at a time and can also bring their family members (spouses/partners and children under 18) to the UK
  • After 3 years, you can apply to extend their stay for a further 3 years or to settle permanently in the UK. Each of these 3 stages (initial application, extension, and settlement) requires endorsement from an endorsing body

Applying for an Innovator Visa

At Reiss Edwards, we have solicitors who are highly trained when dealing with Innovator Visa applications. We would be delighted to help create your application and help put together necessary documents required.

We also go the extra mile to submit your application on your behalf. If the worst happens (like being rejected) we are more than able to take it to appeal.

Bill.com Could Work For Your Small Business

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bill.com

Managing the financial aspects of running a small business can be a challenge. You often need reliable mechanisms for paying bills, contractors, and vendors. Plus, you need an option for creating and sending invoices, as well as receiving payments. Finding all of those features in one solution isn’t always easy, especially for an affordable price. Luckily, there is one option that could work for many small businesses; Bill.com.

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