How do you repair bad credit?

Control over personal finance is a big step towards a happy life. There is little need to be a millionaire to live comfortably and contentedly, but with good handling of financial responsibilities comes a greater flexibility in purchasing wants. There is one major factor in making large purchases, the credit score.

Most lenders use the FICO score which is calculated by Fair Isaac Co. using your credit history. The best way to raise your credit score is to understand how it is calculated. Fair Isaac Co. doesn't disclose exactly how it calculates each score, but it has announced what goes into the calculation and how it is weighted. The good people at CreditCards.com have published an excellent article on the credit score calculation. There are five major things factored into your credit score.

1) Payment History

2) Debt Amounts

3) Length of Credit History

4) Credit Mix

5) New Credit

The CreditCards.com article details all of the points. Once bad marks make it onto your credit history, your score will be damaged for sometime. Depending on what the negative mark is, it will last on your credit history form 1 year to up to 10 years. The best way to digging out from under a bad credit score is by managing all the 5 points responsibly moving forward. It will take time to build good credit, but the fastest way is to start responsibly managing finances moving forward.

Paying all the minimums on time each month, reducing credit balances, and achieving a diverse credit mix isn't always possible after falling behind on debt payments. If the debt levels are not unmanageable, setting budgets and following them is the best possible way to get a handle on personal finance. Working on reducing outstanding debt, on credit cards or home equity lines of credit, is a great goal but almost impossible without a budget.

The best advice I can give is, look at your financial statements! Many people avoid the credit card bills, simply throw them out and pay the 20 bucks they want. This is the easiest way to lose control. You need to confront the situation before it becomes so overbearing that bankruptcy is the only viable option. Without looking at your statements you can never set a budget and attain your goals.

So read over the 5 things that make up a credit score, look over your expenses, and set a budget to responsibly manage your finances.

FICO score makeup by CreditCards.com

Google attacks Microsoft (again).

Google announced today that it has made some major improvements to its web office applications, called Google Docs. This seems aimed right across Microsoft's bow. Google has been making announcements about different municipalities and companies that have "Gone Google" effectively switching productivity suites, from Microsoft's Office to Google's Docs.

This should scare Microsoft out of its boots right? Well up until now Google's productivity suite wasn't very robust and didn't threaten Microsoft's large(read extremely profitable) corporate customer base. But Google hasn't been resting on its laurels, it has been moving to make a full feature productivity suite hosted in the cloud. Take a look at the video below to see how the features improve the Google suite.



With these improvements, Google is moving in the right direction to make Microsoft's business model obsolete. Only one problem, for all the great new features I'm not sure many companies will be comfortable with the advertising and offsite hosting required by Google. There comes a line between cost cutting and giving up control. I'm sure some balance will be struck, with companies handling highly sensitive data not converting to cloud computing. That said, I believe many companies, especially start ups, will begin to flock to Google's offerings.

Google's blog showing off the new Docs.

Microsoft has the right idea.

So keeping in the vein of tablet computing, Microsoft released a demo video showing off some new user interfaces called; Manual Deskterity: An Exploration of Simultaneous Pen + Touch Direct Input. Take a look at the video below.



This is what tablet interfaces should evolve around. Apple has made it very clear that it detests stylus input, but I've long believed there could be elegantly written software for the stylus input method. Microsoft's demo shows what a robust software UI can do for tablet or "surface"(essentially computers built into tables) PCs.

The one sticking point, the thing holding tablets back, has always been the operating system. The two main tablet OS solutions have revolved around shrinking a full feature OS, like Microsoft's Windows, down or blowing up a smartphone OS, like Apple is doing with the iPad. When a standalone, purpose built, operating system is what is truly needed. Hopefully Microsoft is taking this demo seriously and will be moving to create a distinct tablet OS.

Sports Apps

I love the idea of tablet computers. I have since the announcement from Microsoft back in 2002 about Windows XP Tablet Edition. I've wanted a great full feature tablet computer ever since. Back then computer hardware wasn't up to speed with the form factor. A full feature tablet PC would still weigh several pounds and be rather thick.

Well one of my less favorite companies has released a tablet that makes me green with envy. Apple's iPad is a great "first" gen tablet computer. (quotes denote that this isn't the first computer of its type. But its the first computer that gets the form factor correct, and that form factor will be pushed in the right direction.) Hopefully other hardware and software developers can build on the idea that Apple has set forth for tablet computers. And while I don't agree with the closed system Apple has built, I can't deny the beauty of its system's simplicity. The software and hardware integrate seamlessly into one unified, easy to use package. Apple's competitors have one hell of a hill to climb.

But what can these tablet computers do? What are they good for? I would estimate that 90% of my computer use is dependent on being connected to the internet. I love living in the cloud, and the tablet computer is a great form factor for web surfing and productivity. Hopefully Telecoms will be able to create more robust wireless networks, which will have download speeds as fast as landline based boradband. This would allow for the tablet form factor to replace most laptop computing needs (well mine at least). They are also great for consuming media. Want an update on the baseball game? Take a look at this app for the iPad, it is amazing.



Cool, huh? You could be anywhere while watching the game, getting live stat updates, streaming video, etc. I hope the iPad sells like crazy and this new form factor is solidly rooted in consumer's minds.

ET

Photo Credit: R. Danovaro et al., BMC Biology

So does life exist off of Earth? Can it?

I suppose it depends on your definition, but I believe it entirely possible. But here is the first evidence of multi-celled organisms that live without oxygen. So this very foreign life form is found on Earth, what kind of life would extra terrestrial environments inspire?

Check out the full article here:

http://news.sciencemag.org/sciencenow/2010/04/scienceshot-animals-that-live-wi.html?rss=1

Personal Finance.

How do people let their personal finances get out of hand? In a world that allows online banking, text alerts for low balances, same-day bill payments, retirement planners, and flexible financing options, people still find themselves deep in debt. Underwater on most assets, maxed out on credit cards and HELOCs, overdrawn in checking accounts, no savings to speak of... this is a very sad and real position many people get stuck in.

This is a personal rant of sorts. I understand that many people fall on hard times because of unavoidable circumstances, such as medical bills, but many also willing turn a blind eye to their financial heath. I'm 21 and have a FICO score of 805. This was accomplished by starting my credit history when I was 16. And the true secret? I had help and guidance from my parents. Everyone needs guidance, without it we would go nowhere.

So today I want to offer some guidance. This is by no means perfect fact, or for that matter an example of what you should do, but I will share what has worked for me:

+ First you must understand that a simple banking relationship with any financial institute is the basis for personal financial health. You must understand how your bank handles deposited funds, what fees are associated with your accounts and what interest you earn. All this information can be found in your disclosure brochures that are handed to you when you open an account. LOOK THEM OVER! This will help you avoid fees. In my 7 years as a bank customer, I have never once paid an overdraft fee. Can they always be avoided? Maybe not... which brings us to point two.

+ Second you must protect yourself from mistakes and shortages in cashflows. See if your bank has options for overdraft protection such as a line of credit, or balance sweep from your savings account. This can greatly reduce the cost of your banking relationship. Along with avoiding cash shortages comes budgeting. SET UP A BUDGET. Even if you can't follow it to a T you need a budget. This will force you to consider your purchase decisions.

+ Third you must consider how you pay for things. I almost exclusively use my credit card to pay for every purchase. Thats right, I almost never use cash. This is because I earn rewards for each dollar I spend on the card. The trick credit card companies play works against them. They entice me to use my card with points, but as long as I stick to my budget, I wont carry a balance because I pay in full each month. I also use online banking to pay for all of my bills, the credit card included. This saves on check printing charges and late payment fees because the electronic payments are scheduled ahead of time. Take advantage of payment options that offer the most reward.

+ Fourth you must understand how you save. Personal goals determine how much you should save, but you can always consider how you save. Maximize your interest earned. Plain and simple. Understand how your interest is compounded. Take advantage of retirement perks from your employer. Meet with multiple financial consultants, and cross reference their recommendations.

+ Fifth Look at your credit report! Make sure nothing is out of place. Pay bills on time. Pretty basic, but this is a step most people skip.

Five simple steps. This is how I've managed to live a financially responsible life. These points are rather distiled and simplified but they serve as a jumping off point. The links below are recommended for further study.

Bank Rate has great information on loan and savings rates at hundreds of banks.

Mint allows you to track personal spending and income, set up budgets and alerts for when accounts near the negative.

annualcreditreport.com allows you to request a free credit report from each of the three major credit bureaus annually.

creditcards.com gives great advice on personal finance and credit cards. Showing rewards and interest rates.

Fool.com has information on investing, but they try to sell their "premium" services rather hard. So I've linked you to their personal finance page, which has some good information.