It’s a number calculated by a formula based on data in your credit report. It gives lenders an idea of how risky it is to lend you money. Scores generally range from 300 to 850. (the higher the number the better). Median score in the United States is 723
Why should I care? The higher the score, the better interest rate you will get.
What determines my score? The score is based on information credit bureaus keep on file. That is why it is important to make sure this information is accurate. Most consumers have heard of a “FICO” score – which is the formula that Fair Isaac, a California company, developed. But not everyone uses FICO. Your lender may use a different formula, however, here is what a FICO score looks at:
- 35 percent of your score is based on your payment history, which shoes if you pay your bills on time
- 30 percent on the amounts you owe each account
- 15 percent on how long you have had credit
- 10 percent on the types of credit (auto loans, credit cards, mortgages)
- 12 percent on any new credit you taken on recently
Where can I get my score? You can buy it online from a variety of sources, including the three major credit reporting agencies, This is different from getting a free credit report. You are now entitled to one free report per year.
For more info:
Federal Trade Commission: www.ftc.gov
To learn more about credit reports, scores and your rights.
www.annualcreditreport.com (877-322-8228).
This site was set up by the Big 3 credit reporting agencies and you can request a free copy of your report.
www.myfico.com
Good information about credit.
3 Major Credit Reporting agencies
www.experian.com 888-397-3742
www.transunion.com 877-322-8228
www.equifax.com 800-685-1111
The Internal Revenue Code Section 179 allows a business to fully expense tangible property in the year it is purchased as opposed to depreciating it over several years.And tax-law changes over the past few years have made this option more appealing by dramatically increasing the amount that can be written off.These changes mean that in 2006, a business can expense $108,000 in capital expenditures up to an overall investment limit of $430,000. These dollar amounts are indexed for inflation and are good through 2009.Eligible property
Property that may be written off in the tax year of purchase, rather than depreciated over the asset’s useful life, includes:
Machinery and equipment
Furniture and fixtures
Most storage facilities
Single-purpose agricultural or horticultural structures
Off the shelf software
Limitation on annual amount of property purchased
There is a limit on the annual total of deductible property. For 2006, every dollar above $430,000 (the inflation-adjusted limitation) that a business owner spends on eligible property, he loses a dollar in deductions.
For example, a manufacturer completely re-equips his facility this year at a cost of $450,000. This is $20,000 more than allowed, so he must reduce his eligible deductible limit to $88,000: the current $108,000 expensing limit minus $20,000
Deduction limited to taxable income.
Your deduction is limited to your aggregate taxable income from the active conduct of any trade or business. Active trade or business includes employee and spouse’s wages, sole proprietorships, partnerships and S corporations. Basically, this means that unless you have other sources of business income, your Section 179 deduction can’t create a taxable loss for your business.
Section 179 is an excellent method to fully expense certain business expenses immediately instead of depreciating them across a period of several years. There are also less obvious advantages of the Section 179 deduction:
Lowers adjusted gross income, which could help you qualify for various deductions which are limited by AGI.
Lowers earned income, which can increase your earned income credit.
Is allowed in full even if the eligible property is placed in service on the last day of the year.
See our Excel calculator to figure how the Section 179 tax deduction can benefit your business. Or, contact Baycap today at 877-992-2922 for a comprehensive review.
Documentation fees continue to rise for home loans, auto financing, bank lending, and equipment leasing too. A large measure of the increase is lenders striving to maintain or reach higher yields in competitive markets, but there are direct expenses associated with each transaction and a vast amount of information available these days…at a cost.
“Doc Fees” can range from fifty dollars to several thousands dollars depending on the amount being financed and amount of information gathered. Here are some average prices we pay for reports, collateral verification and filing fees. We pull credit bureau reports for each guarantor at $3.00/each; Westlaw searches for adverse filings (liens/judgments/bankruptcies) at $5.00; Dunn & Bradstreet reports (profile of business) at $20; PayNet Reports (lease/loan pay history) at $30; Uniform Commercial Code filings (lien on secured asset) for $30; and site inspection fees at $195. Sometimes we incur other costs for appraisals (sale-leasebacks or used equipment), UCC searches (verify equipment is free-and-clear of liens), and trusts of deeds (additional collateral for lease).
These additional reports & cost help lenders assess risk and adjust pricing to the appropriate point for each credit profile.