How Bad Credit Affects Your Life
As you're maxing out your credit cards and ignoring your bills, you might not realize the effect it's going to have on your credit. Credit card payments and level of debt have the most impact on your credit score. Mess up in these areas and your credit score will plummet.
"What's the big deal with a low credit score," you might ask. Since so many businesses now judge you based on your credit score, having bad credit can make life extremely difficult from getting a job to getting a place to live. Here are some of the most common side-effects of bad credit.
1. High interest rates on your credit cards and loans
Creditors and lenders see bad credit applicants as riskier than their better credit counterparts. They make you pay for this risk by giving you a higher interest rate. Over time you’ll end up paying more in interest than you would if you have better credit.
2. Credit and loan applications may not be approved
Because creditors and lenders think you’re a risk, they might not want to lend to you at all. You may find that your applications are being denied because of bad credit.
3. Difficulty getting approved for an apartment
Who knew that landlords checked credit before allowing you to sign a lease? It’s true. Having bad credit can leave you homeless or close to it.
4. Security deposits on utilities
Utility companies – electricity, phone, and cable – check your credit as part of the application process. If you have a bad credit history, you may have to pay a security deposit to establish service in your name, even if you’ve always paid your utility bills on time.
5. You can't get a cell phone contract
Yep, cell phone companies check your credit too. They contend that they’re extending a month of service to you, so they need to know how reliable your payments will be. If your credit’s bad, you may have to get a prepaid cell phone or go without one at all.
6. You might get denied for employment
Certain jobs, especially those in the finance industry, require you to have a good credit history. You can actually be turned down for a job because of negative items on your credit report, especially high debt amounts, bankruptcy, or outstanding bills.
7. Higher insurance premiums
Insurance companies check credit too. They say that lower credit scores are linked to higher claims filed. Because of this theory, they check your credit and charge a higher premium to those with lower credit scores, regardless of the number of claims you’ve actually filed.
8. Calls from debt collectors
If you have past due bills, chances are debt collectors are calling you for them. It typically comes with the territory when you have bad credit.
9. Difficulty starting your own business
Many new businesses need banks loans to help fund their startup. A bad credit history can limit the amount you’re able to borrow to start a new business, even if you have the greatest idea and the data to prove it.
10. Difficulty purchasing a car
Banks check your credit before giving you a car loan. With bad credit you might get denied or you might get approved with a high interest rate. Most of those “no credit check” car lots charge extremely high interest rates that make it difficult to make your monthly car payments.
Resources : credit.about.com/od/creditrepair/tp/ bad-credit-side-effects. htm
10 Side Effects of Bad Credit
GM in Crisis—5 Reasons Why America's Largest Car Company Teeters on the Edge
Strapped for cash, GM is on the brink of bankruptcy. It's a dramatic shift for a car company that had begun to right itself after decades of trouble. So what happened? We turned to PM Advisory Board Member and Chairman of the Center for Automotive Research, David Cole, for his take. Ironically, GM's perfect storm of troubles hit just as the company seemed to be making progress on a number of fronts: The company is producing its most competitive cars and trucks in decades, and the upcoming 2011 Chevy Volt has generated more excitement for GM than any product in recent memory. On the cost side, the market slowdown has closed factories, which has removed most if not all of the industry's overcapacity of cars and trucks. And when a new labor agreement kicks in, GM's cost to produce a car will fall to a point where it can once again be profitable. That's the good news. The question is, will GM be around to benefit once the economy improves? The troubles at GM are vast and complex, but Cole summarized what he sees as the immediate and long-range factors that have brought the once dominant automaker to its knees.
www.popularmechanics.com/automotive/new_cars/4292379.html
1. Demand Shift and Uncertain Energy Policy
Cole says that "The first shot was the dramatic rise in energy prices this past summer. That caused a rapid mix shift in vehicles—and had a major impact on profitability." GM, Ford and Chrysler have relied on SUVs and trucks for the majority of their profits. Those vehicles commanded high sticker prices and by the late nineties made up 50 percent of the U.S. car market. When demand for the big vehicles dropped quickly and customers went for smaller, less expensive, less profitable cars, auto companies had two major issues to deal with: A loss of revenue and a backlog of unwanted trucks. Cole adds, "A big factor is our lack of an energy policy in this country. We just haven't had one. When we do things like corn-to-ethanol that don't have a foundation in economics or technology, you're really kind of teeing up to a situation where you're going to have a problem."
2. The Financial Meltdown
"The Big Kahuna in this is the financial meltdown," said Cole, "When you're down to 10 or 11 million light-vehicle sales a year, that is such a precipitous fall even from a recessionary standpoint. What has really caused the problem is lack of cash." Wall Street's problems have hit GM in two big ways: The company can't borrow money to ride out the storm, and the credit squeeze has dramatically hindered car sales. The auto industry lives on credit as do its customers, so when access to car loans or leases is limited, sales fall off a cliff. Yearly auto sales in the U.S. have hovered around the 15 to 16 million mark for the past few years and many analysts believe the total for 2008 could be as low as 10 million—the lowest in more than a decade.3. Legacy Costs
Every car GM makes carries "legacy costs"—the costs of providing healthcare and pensions to scores of retired workers. For every GM worker, there are about 10 dependants, which are defined as retired workers and their families. According to Cole, "When the international car companies came to the U.S., the move stuck the domestics with a very large disadvantage related to legacy costs. And that's $2000 a car." That two grand must be built into the sticker price of any new GM car and truck. And that's money on top of developing, producing and marketing a car—costs that Honda, Toyota and others don't have. It makes competing difficult for the domestic automakers, "like playing basketball with a bowling ball," according to Cole. GM's per-hour labor rate for car assembly is about $75 per hour, compared to $40 to $45 for other car companies. That particular disadvantage, says Cole, will be "gone by the end of next year," when a new labor agreement goes into effect.4. Sub-Par Quality and Lackluster Cars
Back in the early '80s, while GM president Roger Smith fell in love with the idea of automating workers out of car factories, Toyota and others focused on refining their production techniques and produced much higher quality cars. Customers left GM's brands en masse. The company's market share has fallen from a high of just over 50 percent in 1962 to around 23 percent in 2007. In recent times, the quality gap has narrowed considerably but "perception trails reality," commented Cole. Getting those customers back would require a herculean effort. Vehicle's like GM's very first attempt at a crossover—the sub-par 2001 Aztec—didn't help. Cars like that left customers will little incentive to return.5. Global Slowdown
GM operates in 41 countries, and if its U.S. operation has been in decades of decline, other markets have been growing, particularly in Asia. But the financial shock has spread across the globe and sales are down everywhere. In effect, GM is bleeding from several wounds. As the largest of the Big Three, GM has been the focus of the media spotlight. But Ford and Chrysler are facing similar problems. And of course, thanks to many of the same factors, even healthy car companies are feeling the pain. The domestic auto companies weren't the only ones that capitalized on our thirst for light trucks. Half of Toyota's offerings are trucks and minivans. The difference is, Toyota doesn't come into this tough period already weakened by past mistakes.www.popularmechanics.com/automotive/new_cars/4292379.html
GM in Crisis—5 Reasons Why America's Largest Car Company Teeters on the Edge
Strapped for cash, GM is on the brink of bankruptcy. It's a dramatic shift for a car company that had begun to right itself after decades of trouble. So what happened? We turned to PM Advisory Board Member and Chairman of the Center for Automotive Research, David Cole, for his take. Ironically, GM's perfect storm of troubles hit just as the company seemed to be making progress on a number of fronts: The company is producing its most competitive cars and trucks in decades, and the upcoming 2011 Chevy Volt has generated more excitement for GM than any product in recent memory. On the cost side, the market slowdown has closed factories, which has removed most if not all of the industry's overcapacity of cars and trucks. And when a new labor agreement kicks in, GM's cost to produce a car will fall to a point where it can once again be profitable. That's the good news. The question is, will GM be around to benefit once the economy improves? The troubles at GM are vast and complex, but Cole summarized what he sees as the immediate and long-range factors that have brought the once dominant automaker to its knees.
www.popularmechanics.com/automotive/new_cars/4292379.html
1. Demand Shift and Uncertain Energy Policy
Cole says that "The first shot was the dramatic rise in energy prices this past summer. That caused a rapid mix shift in vehicles—and had a major impact on profitability." GM, Ford and Chrysler have relied on SUVs and trucks for the majority of their profits. Those vehicles commanded high sticker prices and by the late nineties made up 50 percent of the U.S. car market. When demand for the big vehicles dropped quickly and customers went for smaller, less expensive, less profitable cars, auto companies had two major issues to deal with: A loss of revenue and a backlog of unwanted trucks. Cole adds, "A big factor is our lack of an energy policy in this country. We just haven't had one. When we do things like corn-to-ethanol that don't have a foundation in economics or technology, you're really kind of teeing up to a situation where you're going to have a problem."
2. The Financial Meltdown
"The Big Kahuna in this is the financial meltdown," said Cole, "When you're down to 10 or 11 million light-vehicle sales a year, that is such a precipitous fall even from a recessionary standpoint. What has really caused the problem is lack of cash." Wall Street's problems have hit GM in two big ways: The company can't borrow money to ride out the storm, and the credit squeeze has dramatically hindered car sales. The auto industry lives on credit as do its customers, so when access to car loans or leases is limited, sales fall off a cliff. Yearly auto sales in the U.S. have hovered around the 15 to 16 million mark for the past few years and many analysts believe the total for 2008 could be as low as 10 million—the lowest in more than a decade.3. Legacy Costs
Every car GM makes carries "legacy costs"—the costs of providing healthcare and pensions to scores of retired workers. For every GM worker, there are about 10 dependants, which are defined as retired workers and their families. According to Cole, "When the international car companies came to the U.S., the move stuck the domestics with a very large disadvantage related to legacy costs. And that's $2000 a car." That two grand must be built into the sticker price of any new GM car and truck. And that's money on top of developing, producing and marketing a car—costs that Honda, Toyota and others don't have. It makes competing difficult for the domestic automakers, "like playing basketball with a bowling ball," according to Cole. GM's per-hour labor rate for car assembly is about $75 per hour, compared to $40 to $45 for other car companies. That particular disadvantage, says Cole, will be "gone by the end of next year," when a new labor agreement goes into effect.4. Sub-Par Quality and Lackluster Cars
Back in the early '80s, while GM president Roger Smith fell in love with the idea of automating workers out of car factories, Toyota and others focused on refining their production techniques and produced much higher quality cars. Customers left GM's brands en masse. The company's market share has fallen from a high of just over 50 percent in 1962 to around 23 percent in 2007. In recent times, the quality gap has narrowed considerably but "perception trails reality," commented Cole. Getting those customers back would require a herculean effort. Vehicle's like GM's very first attempt at a crossover—the sub-par 2001 Aztec—didn't help. Cars like that left customers will little incentive to return.5. Global Slowdown
GM operates in 41 countries, and if its U.S. operation has been in decades of decline, other markets have been growing, particularly in Asia. But the financial shock has spread across the globe and sales are down everywhere. In effect, GM is bleeding from several wounds. As the largest of the Big Three, GM has been the focus of the media spotlight. But Ford and Chrysler are facing similar problems. And of course, thanks to many of the same factors, even healthy car companies are feeling the pain. The domestic auto companies weren't the only ones that capitalized on our thirst for light trucks. Half of Toyota's offerings are trucks and minivans. The difference is, Toyota doesn't come into this tough period already weakened by past mistakes.www.popularmechanics.com/automotive/new_cars/4292379.html
America's Crisis: Asian Perspectives
America's Crisis: Asian Perspectives is a multidisciplinary series of policy, business, cultural, and education programs at the Asia Society that explore recent world events from a variety of perspectives.
On September 11, 2001, the twin towers of the World Trade Center in New York were destroyed and the Pentagon in Washington, DC, partially damaged by suicide attackers aboard civilian aircraft. More than 3,000 people are estimated to have died as a result of the attacks.
American investigations immediately following the attacks led to Saudi dissident, Osama bin Laden, being identified as the mastermind behind this operation.
On October 7, the United States began air strikes against Afghanistan aimed at ousting the Taliban (who had long sheltered Mr bin Laden) , thereby creating the conditions for his capture, and the eventual dissolution of the Al-Qaida network.
The Taliban have since been overthrown and an interim government under Hamid Karzai has been established in Kabul. Mr bin Laden remains elusive.
The American military operation is continuing in Afghanistan and the search for Taliban and Al-Qaida members has been extended into Pakistan, where a number of them have apparently sought refuge.
This Special Report provides some background to the important issues, regions and players involved in this crisis.
Resources
Background
Access background information on the war in Afghanistan, Osama bin Laden, and the Taliban, as well as resources on Islam, reference maps, and suggested readings.
Humanitarian Issues
Keep track of the humanitarian relief effort in Afghanistan, which is continuing alongside the military operation. Also access information on women's issues, the drug trade in the region, and the economic challenges facing Afghanistan.
Interviews
Access interviews, video clips, and a listing of Central Asia experts.
Asian Perspectives
Read commissioned articles, news, and commentary from various Asian perspectives.
Sources : http://www.asiasource.org/americacrisis/