Maintaining a good credit score

Smartmoney.com
Keeping ScoreBy Stephanie AuWerter

BACK IN HIGH SCHOOL, I was a mediocre student, a kid whose report card often read "doesn't work up to her potential." But in college, something strange happened: I started to do remarkably well. As good marks replaced average ones, I became obsessed with grades, viewing anything less than an A as totally unacceptable.
In the real world, however, our actions — mercifully — are rarely graded. That is, with one very notable exception: the almighty credit score. If you aren't already familiar, the credit score is a single number used by credit-card companies, auto- and mortgage-lenders, and even many landlords, to assess a borrower's worthiness. I recently pulled mine, and once I got over the initial shock that I was — gasp! — in the middle of the class rather than the top, my old college competitiveness kicked in. Not since the first day of a new semester have I seen my goal so clearly defined.
Fact is, everyone should be zealous about establishing and maintaining a high credit score, since it can save thousands in interest payments. "Credit scores have become the No. 1 piece of data on which people are judged to determine whether or not they get approved for loans and how much they pay," says Chris Larsen, chief executive of E-loan1, an online lending company. Consider that someone with a top-notch credit score could pay 5.9% today for a 30-year fixed-rate mortgage, while someone with a poor score would pay 9.3%, according to Fair Isaac & Co., a California-based company that calculates the scores used by most banks and mortgage lenders. On a $200,000 30-year mortgage, that's a difference of nearly $167,879 in interest payments over the life of the loan, according to HSH Associates.
Given the importance of maintaining a good credit score, it's downright infuriating that so many credit reports (which is what your score is based on) contain errors. According to a 2004 study by the Public Interest Research Groups, or PIRG, as many as 79% of credit reports have errors — 25% of which are serious enough to potentially result in a credit denial. "If you have a very good credit score or a very bad credit score, you're probably being treated the way you deserve to be treated," says PIRG's Ed Mierzwinski, a consumer advocate. "But if you're in the middle, the odds are good that mistakes in your report will affect your score marginally enough to cause you to pay too much."
Financial planners suggest consumers check their credit report at least once a year. And if they're planning a major purchase, like a house, they should pull their report and score roughly six months ahead of time, so they can fix mistakes or take strategic steps to push their score higher, if needed. Since there are three credit bureaus — each with its own credit file — consumers should check all three reports before taking out a loan. Frustratingly, many mistakes will appear on just one of the reports. So just because one of the bureaus says a consumer is clean doesn't mean he or she is in the clear.
Here's what you need to know about credit scores, along with some point-boosting strategies.
Know the ScoreThe most widely used credit score by lenders is the FICO score, provided by Fair Isaac & Co., and available to consumers at Fair Isaac's consumer Web site, myFico,2 as well as Equifax3, one of the three credit bureaus. Similar scores can be obtained from the two other credit bureaus, TransUnion4 and Experian5, as well as some of the companies that compile the data of all three credit reports, like TrueLink, which operates the consumer-credit Web site TrueCredit6.
A FICO score can range from 300 to 850. The very best rates go to people with scores above 770, but a score of 700 is considered good (the average score is somewhere around 725), says Craig Watts, Fair Isaac's spokesperson. If your score is in the low 600s or below, it's time for concern. While lending rates won't vary all that dramatically for scores viewed as good vs. great, even a small difference in scores in the range of "poor" can have a punishing effect on your wallet. "As you start dipping below about 600, you see this dramatic increase [in lending rates]. So with every 20 points — going to 580, 560 — you're ramping up very aggressively," says E-loan's Larsen.
Obviously, the first step to increasing your score is to know where you currently stand. The good news is pulling your credit report and score is easy. TransUnion and Equifax charge $12.95, while Experian charges $14.95. Alternatively, you can pull all three reports at once using a service such as TrueCredit or ConsumerInfo.com7 (owned by Experian). Equifax also offers the service through a company called Intersections. While convenient, a 3-in-1 report is more expensive than a single report. You'll pay $29.95 or more.
If you've recently been denied credit, are unemployed and plan to apply for a job within 60 days, think you may be a victim of fraud or are on welfare, you're eligible for one free report per 12-month period from one of the credit bureaus. (Depending on where you order it from, it may not include a score.) Residents of Colorado, Massachusetts, Maryland, New Jersey and Vermont are also entitled to one free report per year. Lucky Georgia residents get two.
Adding PointsIt is indeed possible to increase your score by a significant amount — even over a period of four to six months, says Lydia Sermons-Ward, spokeswoman for the National Foundation for Credit Counseling8. She ought to know: In anticipation of purchasing a new home, she recently managed to increase her score by 50 points in half a year.
To see which factors affect FICO scores, look at the pie chart above. Unfortunately, there are no tricks or gimmicks that will give your score a quick lift: Mostly you just need to use common sense. Not surprisingly, the most important thing to do is simply pay your bills on time. Just one late payment could cause your score to drop by as much as 100 points, says Fair Isaac's Watts, although it will vary significantly based on an individual's credit history. The more recent the late payment, the more it will affect your score. Other tips:
Pay down your cards Shocker: Reaching the upper echelon of your card limit doesn't do you any good. Nor does having many accounts with balances, even if they're small. So pay down any balances you can. To see how long your repayment plan will take, click here9.
Talk to your lenderIt's usually impossible to remove accurate information from your credit report. But not always. Should you have a long and previously unblemished relationship with a lender, you might in fact be able to get an accurate item removed, says Gerri Detweiler, author of "The Ultimate Credit Handbook." So it could be worth a call or letter describing the circumstances around the late payment and asking that certain data be taken off the report. This certainly won't work, however, for repeat offenders, and consumers should never believe a credit-repair agency that promises to remove all accurate information.
Fix mistakes If you notify a credit bureau of a mistake on your report, it has 30 days to complete an investigation. This entails getting in touch with the lender to verify that the information is accurate. If the lender can't confirm (or doesn't respond), then the information is removed. If you have paperwork proving that information on your account is false (such as divorce papers proving you aren't responsible for new debts incurred by your ex-husband), send it to the credit bureaus. Just be sure to keep a copy of all correspondence.
Hang on to your old card Loyalty is rewarded, so you may want to hang on to old cards, even if you rarely use them. That's because 15% of your score is based on the length of your credit history, and that includes the age of your oldest account as well as the average age of your accounts. Translation? Lenders don't want a customer who's just going to move on once that nice introductory offer runs out.
Fortunately, a cottage industry in credit-score deciphering has popped up in recent years. At the myFICO Web site, for example, you can see which mortgage or home-equity-loan rate you should be eligible10 for based on your score, and how much you could save by increasing it. Purchasing a report from the site will also give you access to a score simulator, which offers guidance on how certain moves (such as paying down your debts) could increase your score. Also, most credit scores, regardless of where you pull them, now come with a personalized explanation of why your score is what it is, based on both your positive and negative factors.
You may have heard of other ways to boost your score — like spreading your debt onto more credit cards rather than keeping high balances on a few. But the truth is, that won't always work to your advantage. That's because your FICO score isn't the only score on which you're judged — it's simply the only one made available to you. There are many other scores out there, including behavioral scores, revenue scores and the highly controversial insurance scores11. Many lenders also have their own proprietary scores.
So you never know how trying to game the system may hurt you. Some industry experts think that in the future, more scores may become available to consumers. In the meantime, you're best off sticking to the basic credit-boosting tips outlines herein.
If It Sounds Too Good to Be True...No matter what, don't fall prey to a sleazy credit-repair scam. "It's tough to find a reputable company in the field," says Holly Cherico, spokeswoman for the Council of Better Business Bureaus. Many of these firms use illegal practices12, while others charge you exorbitant fees for things you can do on your own for free. And remember, you're providing a credit-repair agency with highly valuable information, such as your social-security number and account numbers. Poor judgment here could leave you significantly worse off than when you started.
Links in this article:1http://www.eloan.com2http://www.myfico.com3https://www.econsumer.equifax.com4
http://www.transunion.com5http://www.experian.com6http://www.truecredit.com7
http://www.consumerinfo.com8http://www.nfcc.org/9http://www.smartmoney.com/debt/advice/index.cfm?story=digoutofdebt10http://www.myfico.com/myfico/CreditCentral/LoanRates.asp11
http://www.smartmoney.com/consumer/index.cfm?story=2001082012http://www.smartmoney.com/debt/advice/index.cfm?story=creditfixes
URL for this article:http://www.smartmoney.com/nowwhat/index.cfm?story=20020826
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For People on Debt Management Plans: A Must-Do List

The FTC publishes a series of free publications on credit and financial issues, including Fiscal Fitness: Choosing a Credit Counselor and Knee Deep in Debt. They are available at ftc.gov/credit

Reputable credit counseling organizations employ counselors who are certified and trained in consumer credit, money and debt management, and budgeting. Those organizations that are nonprofit have a legal obligation to provide education and counseling. But not all credit counseling organizations provide these services. Some charge high fees, not all of which are disclosed, or urge you to make “voluntary” contributions that can cause you to fall deeper into debt. Many claim that a debt management plan is your only option before they spend time reviewing your financial situation, and offer little or no consumer education and counseling. Others misrepresent their nonprofit status or fraudulently obtained nonprofit status by misrepresenting their business practices to regulators. The Federal Trade Commission (FTC), the nation’s consumer protection agency, and some state Attorneys General have sued several companies that called themselves credit counseling organizations. The FTC and the states said these companies deceived consumers about the cost, nature, and benefits of the services they offered; some companies even lied about their nonprofit status. Several of these companies are now going out of business. Similar companies also may be shutting their doors, even though they haven’t been sued by the FTC or the states. That could be of special concern if you have a debt management plan with one of these companies.
Must-Dos for Anyone With A DMPOrganizations that advertise credit counseling often arrange for consumers to pay debts through a debt management plan (DMP). In a DMP, you deposit money each month with a credit counseling organization. The organization uses these deposits to pay your credit card bills, student loans, medical bills, or other unsecured debts according to a payment schedule they’ve worked out with you and your creditors. Creditors may agree to lower interest rates or waive certain fees if you are repaying through a DMP. The FTC has found that some organizations that offer DMPs have deceived and defrauded consumers, and recommends that consumers check their bills to make sure that the organization fulfills its promises. If you are paying through a DMP, contact your creditors and confirm that they have accepted the proposed plan before you send any payments to the organization handling your DMP. Once the creditors have accepted the DMP, it is important to:
make regular, timely payments.
always read your monthly statements promptly to make sure your creditors are getting paid according to your plan.
contact the organization responsible for your DMP if you will be unable to make a scheduled payment, or if you discover that creditors are not being paid.
You need to be aware that if payments to your DMP and creditors are not made on time, you could lose the progress you’ve made on paying down your debt, or the benefits of being in a DMP, including lower interest rates and fee waivers. Although creditors may have forgiven late payments that you made before you began the DMP, the creditors may be unwilling or unable to do so if payments are late after you have enrolled in a DMP. If you fall behind on your payments, you may not be able to have your accounts “re-aged” again (reported as current), even if you start a new DMP with a new counselor. That means your credit report will have “late” marks and you will rack up late fees, which, in turn, will lead to more debt that could take longer to pay off.
If Your Credit Counselor Has Gone Out of BusinessWhat happens to your DMP if the credit counseling company that managed your debts shuts down? A counseling agency that is going out of business may send you a notice telling you that your DMP is being transferred to another company. Or it may tell you that you need to take some action to keep your financial recovery on track. If a government agency has filed an action against your credit counseling company, you may get a notice from a third party. If you discover that the organization handling your DMP is going out of business you need to:
contact your bank to stop payment if you are making your DMP payments through automatic withdrawal.
start paying your bills directly to your creditors.
notify your creditors that the organization handling your DMP is going out of business. Consider working out a payment plan with your creditors yourself. Ask if they will give you a reduction on your interest rate without a DMP.
order a copy of your credit report. Check for late payments — or missed DMP payments — that may result from the company going out of business. If you see “late” notations you don’t expect, call the creditor immediately and ask that the notation be removed. Understand that they have no obligation to do it.
If payments are late because the organization handling your DMP has failed to make scheduled payments, the consequences can be just as devastating as if you failed to make payments to the DMP. If you do not act quickly to make arrangements with your creditors, you could incur late charges that increase your debt, lose the lower interest rates associated with the DMP, and have “late” marks on your credit report.
Important Questions to Ask When Choosing a Credit CounselorIf the organization you were working with shuts down, you may be able to work a payment plan on your own directly with your creditors. But if you decide that you need additional credit advice and assistance, or if you are considering working with a credit counselor for the first time, asking questions like these can help you find the best counselor for you.
What services do you offer?Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Avoid organizations that push a debt management plan as your only option before they spend a significant amount of time analyzing your financial situation. DMPs are not for everyone. You should sign up for a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.
If you were on a DMP with an organization that closed down, ask any credit counselor that you are considering what they can do to help you retain the benefits of your DMP.
Are you licensed to offer your services in my state?Many states require that an organization register or obtain a license before offering credit counseling, debt management plans, and similar services. Do not hire an organization that has not fulfilled the requirements for your state.
Do you offer free information? Avoid organizations that charge for information about the nature of their services.
Will I have a formal written agreement or contract with you? Don’t commit to participate in a DMP over the telephone. Get all verbal promises in writing. Read all documents carefully before you sign them. If you are told you need to act immediately, consider finding another organization.
What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained?Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.
Have other consumers been satisfied with the service that they received?Once you’ve identified credit counseling organizations that suit your needs, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau. These organizations can tell you if consumers have filed complaints about them. The absence of complaints doesn’t guarantee legitimacy, but complaints from other consumers may alert you to problems.
What are your fees? Are there set-up and/or monthly fees?Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote. If you’re concerned that you cannot afford to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your circumstances. If an organization won’t help you because you can’t afford to pay, look elsewhere for help.
How are your employees paid? Are the employees or the organization paid more if I sign up for certain services, pay a fee, or make a contribution to your organization?Employees who are counseling you to purchase certain services may receive a commission if you choose to sign up for those services. Many credit counseling organizations receive additional compensation from creditors if you enroll in a DMP. If the organization will not disclose what compensation it receives from creditors, or how employees are compensated, go elsewhere for help.
What do you do to keep personal information about your clients (for example, name, address, phone number, and financial information) confidential and secure?Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse.
For More InformationThe FTC publishes a series of free publications on credit and financial issues, including Fiscal Fitness: Choosing a Credit Counselor and Knee Deep in Debt. They are available at ftc.gov/credit, or by calling toll-free: 1-877-FTC-HELP.
The FTC works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit www.ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
December 2005

Your 3 worst debt consolidation moves

By MP Dunleavey, MSN MoneyCentral

If you're up to your eyeballs, the fantasy of debt consolidation can suck you right in. Watch out for the slippery side of consolidation loans, balance transfers and other 'easy fixes.' The phrase "debt consolidation" has always had a magical ring to me.As if somehow, someone would have the power to mush my debt into one neat little package, which by some incredible financial alchemy would also then shrink the debt itself -- and I'd only owe a hundred bucks or so.I know I'm not the only idiot who's had this fantasy, because an entire industry has sprung up to support it: The Debt Consolidation Industry and Covert Sting Operation. Every day, I get at least one piece of regular mail offering me low-interest balance-transfer deals for credit-card debt, or arm-twisting e-mail from unknown credit organizations that scream things like:
"DEBT RELIEF IS JUST A CLICK AWAY!"
"CUT YOUR MINIMUM MONTHLY PAYMENTS BY 50% OR MORE!"
"SLASH YOUR INTEREST RATES DOWN TO ZERO!"These promises are incredibly alluring to anyone who is caught in the quicksand of having too much consumer debt, and who will believe anything, do anything -- click her ruby slippers (bought on sale for just $400!) three times -- to make it go away. But before you start skipping down some financial yellow brick road to see the Wizard of Debt Consolidation, remember this: Watch out for those flying monkeys.Three bad debt-consolidation moves:1) The Hard-Money Loan"The biggest myth about debt-consolidation loans is that they're easy to get," says Scott Kays, president of Kays Financial Advisory Corp. and author of "Achieving Your Financial Potential." If you really need a loan, it's probably because you've already missed a few payments and your credit history has more dings in it than a '74 Ford Pinto.And that's the problem. Kays says that if you are a credit risk, the consolidator may entice you with promises of an easy-does-it loan, and end up charging you higher interest rates than you're paying now -- as high as 21% or 22%. "Your monthly payment may be lower" with one of these loans, "but you'll end up paying more," says Kays.2) Debt Consolidators Who Promise to Take Care of EverythingThis is the fairy godmother fantasy. This Nice Big Debt Consolidation company comes along and swears they'll make your life soooo much easier. They'll negotiate lower interest rates, reduce your monthly payments -- and all you have to do is make "one EZ payment."In reality, many debt consolidators build in a fee as part of the monthly payment you make to them. It's usually about 10% of the payment (i.e. about $40 on a $400 monthly payment). They pass along your payments to the creditor -- some debit directly from your checking account -- and get back a 10% to 15% slice that the relieved creditor is only too happy to rebate to the consolidator.Is it worth paying someone else to do what you can do on your own, i.e. negotiate lower interest rates and stretch out your repayment schedule and pay off the highest-interest debts first?To desperate ears, this might sound like an ideal solution, especially when you talk to these people and they scare the bejeezus out of you. I interviewed two, Cambridge Credit and Counseling Services and Integrated Credit Solutions. Each offered similar services, and I don't recommend either of them. The senior credit counselor I spoke to at Integrated told me, in grave tones, that it would take me 379 months -- or 32 years -- to pay off my debt. With their services, however, they would "save me 27 years," and I could pay off my debt in just 53 months, or about 4 1/2 years.That’s funny, because when I plugged my debt into the MSN Money Debt Consolidator -- a less biased source, since they ain't getting no fee from me -- they said I could pay off my debt in 41 months, providing I make slightly higher minimum payments to each card: a total of just $60 extra per card.Here's another risk with consolidators you should know about: they have been known, in some cases, to make late payments or even miss payments, thus worsening your plight (and your credit record).After I got off the phone with Integrated, I had to ask myself: Is it worth paying someone else to do what you can do on your own? That is, negotiate lower interest rates and stretch out your repayment schedule and pay off the highest-interest debts first? I don't think so.3) The Balance Transfer TrapLow-interest balance-transfer cards are a dime a dozen these days, but remember that those rates only last a few months -- and then you have to switch cards again. The danger is that at some point all this activity begins to show up on your credit report, and you start to look like a bad risk. Then if you get turned down, "you could be left holding the high-interest card you were hoping to dump," says Kays.If you think you can swing from the balance-transfer vines for a few months, just make sure you formally close all your accounts yourself, and then notify the credit-card company to mark the account "closed at customer's request." "Otherwise, on your credit report, it will look like the creditor closed your account," says David Mooney, PR director of Equifax, one of the biggest credit reporting agencies. Thus making you look like an even worse risk, even when you're doing your best not to be.Your best debt-consolidation movesIf you own a home and have some equity in it, you have a couple of options that are relatively low in cost. These are pretty straightforward:Take out a home equity loan. A home equity loan has the advantage of carrying a fairly low interest rate, currently in the high single digits, and what interest you do pay is tax-deductible, Kays points out. Most fixed-rate loans carry a 15-year term and require that borrowers pay an origination fee of $75 to several hundred dollars, plus the cost of an appraisal and title insurance.Do a "cash-out" refinancing. Another option for those with home equity is refinancing your property for greater than the amount you owe and using the extra cash to pay off debt. You get very low interest rates this way, but you're stretching payments out over 15 or 30 years. The total interest cost over three decades can wind up being pretty huge, so think of this as a one-time-only (if ever) option.Refinance your car. "Most people don't think of it, but it is a secured loan and you can borrow against it," Kays says. The danger there is that you may run out of car before you run out of debt. It's tough to buy a new car when you owe more than it's worth.Get a personal loan. If you have reasonably undamaged credit, you may qualify for an unsecured loan. Credit unions (see link to the left) typically offer lower rates than banks, but even there you can expect a rate of 11% or more. Still, that may be a whole lot less than the 20%-plus you're now paying to the credit-card company.Negotiate better terms. You can do this for yourself easily. Just call your credit-card company and ask them to do it (many customer service people are authorized to reduce rates right there on the phone).Another alternative. Or you can get help from an organization like National Foundation for Credit Counseling (see link to left). NFCC has branches throughout the country; they are a non-profit, community organization that provides free and confidential debt management advice to anyone who needs it. You can even consult with them over the phone, like I did (see below).Like other debt consolidators, NFCC gets paid by creditors, so it's in their best interest to work out a repayment plan rather than advise you to declare bankruptcy. Not that you want to be advised to declare bankruptcy, but in certain cases it may be your best option.NFCC makes no outlandish promises beyond the prospect of a saner financial life, and the possibility of qualifying for their low-rate mortgage program. They also offer low-cost financial planning -- a resource I'm definitely going to look into for a future column. Once I have some finances again, I will need someone to tell me what to do with them!So whatever happened to …Since writing about my struggles with debt, I’ve become religious about paying as much money as I could every month. (Thing was: I still carried my credit cards in my wallet. So my new get-out-of-debt tip would be: Take the cards out of the wallet. Otherwise, you will use them.)Then those big payments started to have an impact. But I was on a mission. I wanted my debt gone. I turned to debt calculators, talked with friends, and ultimately came up with a two-pronged plan of merciless debt destruction. Operation Enduring Freedom from Debt. First, I took on some extra freelance work that, eventually, would pay me a little bit more than my debt in four big chunks. While I was waiting and working, I decided to consolidate my debt and turned to NFCC as my resource.Here's the best part of NFCC: 1) They give you a one-hour consultation, by phone or in person, to help you decide if you need a Debt Management Plan. 2) In order to do the consultation, they make you fill out a form that details all your expenses.
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Sign up to be notified whenever MP publishes a new article.Your e-mail address: Learn more about newsletters Writing down my daily expenses is Personal Finance 101, and I've always found it mildly useful. NFCC advisor Nina Reiss, on the other hand, walked me through an entire year of expenditures. Now THAT was eye-opening. She asked me what I paid per month for things I'd forgotten even were expenses: subscriptions, holiday gifts, underwear, new socks, groceries, birthday gifts, movies (even rentals), my yoga classes, banking fees -- you'd be amazed what you pay just to live a semi-civilized life.Ultimately, Reiss felt that I was living about $100 a month beyond my means, but that I was paying as much as I could toward the debt on my own. We did the numbers and figured that even with their interest-rate reductions, I could still pay off my debt without their help -- as long as I cut back my expenses so that I was living within my means. So in the end, dear reader, getting out debt boils down to one thing and one thing only (which you and I already knew): elbow grease, peanut butter lunches and living like a more reasonable human being.

Climbing out of debt, step by step

By Mindy Fetterman, USA TODAY
You've heard the staggering numbers: Consumers had $2.1 trillion — with a T — in outstanding debt at the end of 2004. That's up 5% from the year before, up 9% from the year before that. As a nation, our consumer debt has doubled in the last 10 years. (Related: Whittle credit card debt down to zero)

BARRON'S INVESTMENT INSIGHT

For Investors, Vonage IPOMay Not Be a Bell-Ringer

By ERIC J. SAVITZFebruary 19, 2006

Enthusiasm is running high for the expected initial public offering by Vonage, the red-hot provider of Internet-based phone services. But could buyers be telephoning for trouble?

Pressuring Microsoft, PC Makers Team Up With Its Software Rivals

Dell Is in Talks With GoogleTo Use Search Services;Winning Loyalty at Set-Up
'A Magic Time for End Users'

By ROBERT A. GUTH and KEVIN J. DELANEY Staff Reporters of THE WALL STREET JOURNALFebruary 7, 2006

It takes only about five minutes to set up a new personal computer by clicking through a series of introductory screens. In that time, however, many consumers choose software and services they will often use for the life of their machine. Historically, Microsoft Corp. held great sway over this "first-boot sequence" as well as other software preinstalled in the factory.

GM Tests Dividend Funds' Faith

Yield Hunters Must DecideIf Stock's Halved Payout IsEnough to Stick Around
By SCOTT PATTERSONFebruary 10, 2006

When General Motors Corp. on Tuesday halved its annual dividend to $1 a share, the troubled auto maker put a crack in one of the few pillars still elevating its stock: the support of dividend funds.

Investors Return to Japanese Funds

Recovery Comes QuicklyAfter Livedoor Probe Scare;$471.3 Million Last Week

By ARDEN DALE DOW JONES NEWSWIRESFebruary 8, 2006

Japan is back in favor with mutual-fund investors.
Fund shareholders began pouring money back into Japan-focused stock funds last week following an earlier pullout linked to troubles at Internet firm Livedoor Co.

Japan's Disclosure-Rule Change Could Threaten Some Big Funds

By YUKA HAYASHIFebruary 20, 2006
TOKYO -- Japanese authorities aim to severely tighten portfolio-disclosure rules, a move that could hurt the performance of big mutual funds like Fidelity Investments and Nomura Asset Management as well as discourage foreign funds from investing in Japan.

26 Indicted In Mail Fraud From Staged Auto Accidents

TAMPA, FLA--Four indictments charging a total of 26 defendants with conspiracy to commit mail and insurance fraud have been unsealed. The indictments were returned by a federal grand jury in November and December 2005, and were unsealed Wednesday as agents began arresting those indicted. At least 19 of the 26 were in custody as of Thursday morning.

Housing, What's Behind the Boom

By JAMES R. HAGERTY Staff Reporter of THE WALL STREET JOURNALNovember 21, 2005
Conditions have been almost ideal for the housing industry in recent years.

When to call a personal-injury lawyer

An insurer is certain to make you a quick offer, and it won't be its best one. Sometimes you need an attorney to make sense of it all -- and many times, you don't.

The tricks and traps of debt consolidation

It's no easy fix. A debt consolidation loan can actually multiply your debts and problems. Watch out for sky-high rates, hidden fees, costly add-ons and damage to your credit rating.

Interest-only loan? Now's the time to refi

Rates for fixed and adjustable mortgages get closer and closer. Experts advise those in the riskiest loans to take advantage of a rare opportunity

More Insurers Go for the Green

Hybrid Owners' Latest PerkIs Discount on Car Policies;
Safe and Lower-Risk Drivers