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PMI is Private Mortgage Insurance and is tacked onto your loan payment if your Loan to Value (LTV) is over 80%. The reason why PMI is typically avoided is it is an additional expense that you will have to pay monthly and doesn't count as interest paid, therefore providing no extra tax benefit to you. The way to get around PMI is to split your loan into a 1st and a 2nd, having the 1st mortgage that is 80% LTV, and the second at whatever is remaining. However, the interest rates on second mortgages are so high now, it has become cheaper to pay your PMI.

If you are currently paying PMI and you can get an appraisal high enough to validate that you are below 80% LTV, your lender will remove the PMI payment. You will have to pay the appraisal out of pocket, so you should do your research before paying the appraisal fee.

Credit card utilization is a metric often used in credit scoring algorithms. It is a consumer's credit card balances divided by their credit card limits. The resulting range of 0%-100% (although it could be higher or lower if you are over limit or have a credit) is a component used by most of the credit scoring models. Generally speaking, the higher your credit card utilization, the lower your credit score.

In recent times, credit card utilization has become a popular discussion topic since it is a simple way to impact your credit score. For example, having a single credit card with 100% utilization ("maxxed out") could lower your credit score. Spreading out the balance across multiple cards is an easy change that could help improve your overall credit profile in the eyes of a lender.

Secured credit cards are a type of credit card that requires a deposit before it can be issued. Designed for consumers with poor credit, the deposit is collateral against a customer defaulting on their credit card payments. Most secured credit cards will provide a credit limit equal to the security deposit.

Historically, secured credit cards have high fees and interest rates even though there is a deposit against default. In addition, secured credit cards often have an application fee. We suggest consumers read all of the fine print on secured credit card agreements since there are often hidden fees.

For people with poor credit, secured credit cards are sometimes the only option.

With most credit scores, the higher the credit score, the better it is. However, a "good" credit score can be difficult to define since lenders have differing perspectives on what they think is a good credit score. Banks and financial institutions determine their best rates based on their own assessment of their customers. As such, definitions will change from lender to lender and industry to industry.

The recent economic turmoil provides a perfect illustration of a changing definition. Back in the housing boom, a credit score of 680 was often considered "good" enough for a mortgage at the best rate or near the best rate. Today, homeowners will often need a credit score of 720 up to 750 to qualify for some loans.

In general, good credit scores are based on how much risk a lender is willing to take in the form of loans. On an aggregate level here are some general views on credit score ranges and how they are perceived by most lenders. Keep in mind it always completely up to the lender.

I found the following somewhere and would use it as a guide:
Poor: 300-549 - Not considered credit worthy. Will not qualify for most loans unless it is co-signed or secured.
Fair: 550-639 - Considered sub-prime by many lenders. Will see limited credit card and auto loan approval. No home loans. High interest rates.
Good: 640-719 - Considered a good credit score in most industries. Will be approved for most credit cards, most auto loans, and some home loans. Will not be at the best interest rate.
Excellent: 720-850 - Considered the highest credit quality. Should qualify for the majority for loans. With credit crunch some lenders require 750+ now to receive best pricing.

An interchange fee is the percentage of the purchase that credit card companies charge merchants to accept their cards. The exact interchange percentage varies by the credit card issuer (Visa, MasterCard, American Express, and Discover) and the type of transaction (grocery, gas, on-line, in-store). The actual pricing of interchange fees is quite complex and varies according to each card issuer's historical performance experience with fraud and chargebacks for each type of transaction.

While the fees vary, on average, interchange fees are approximately 2% of the transaction value. For issuing banks, interchange fees can be a significant source of revenues. For banks with large portfolios of transactors, consumers who use their credit cards but pay in full every month, it is even more important.

In many ways, interchange fees are the reason that rewards programs and points work as a loyalty program. Banks rely on the interchange revenues to offset the cost of the reward programs. This is a primary reason that few reward loyalty programs offer more than 1%.

In 2003, the government passed legislation that provides consumers with access to their credit report from each of the three credit bureaus once per year free of charge. You can receive your government mandated credit report at AnnualCreditReport.com. This is the only site that provides the annual free credit report mandated by the government - be wary since many sites try to imitate the government mandated site.

To the consumer, there are no real differences. In the debit card situation, you are using your pin as authorization. In the credit card situation, you are using your signature. There is no impact on your credit score or report since those are not necessarily credit accounts.

In some instances, there is a difference to the retailer in the amount they are charged from the bank for the transaction. Most merchant credit card agreements will charge the retailer a fixed cost (say $.25) plus a percent of the amount (say 2.5%) for credit card transaction. Debit card transactions are sometimes fixed and therefore can save the retailer money. Retailers may prefer one over the other but the choice is up to you.

Credit cards in a foreign country can be a great convenience provided that you have a widely accepted card such as a MasterCard, Visa, or American Express. Most processors (Visa, MasterCard, and American Express) will charge a transaction fee and then the credit card issuer (Citibank, Bank of America, Chase, etc.) will then charge another fee on top of that. Most credit card foreign transaction fees will range from 1-3%.

Capital One is the only large credit card issuer without a foreign transaction fee. They go so far as to absorb the 1% transaction fee that Visa and MasterCard charge instead of passing it on the consumer. However, especially in this economic environment, most credit card companies are looking to cut cost so you should double check with their customer service before you apply for this card.

Additionally, Discover also has no foreign transaction fees but their card is not wide accepted abroad making it a poor option.

Being unemployed, in and of itself, will not affect your credit score, and losing your job will not show up on your credit report. However, being unemployed can indirectly hurt your credit score because you won't have a steady stream of income and may fall behind on your credit card payments, bills, loans, mortgage, and other financial responsibilities. The ripple effect of being unemployed, which leads to financial instability, increased debt, and finally defaulting on payments is what will ultimately impact your credit score.

In an economic crisis of record-high unemployment, the best way to prepare for such a situation is to have an emergency fund that can cover at least 6 months of your monthly expenses, which coincidentally is the current average length of unemployment today. Extra savings will be a lifesaver should you lose your job, helping you stay on top of all your payments and avoid debt so your credit score won't suffer as you search for employment.

Which credit card you apply for depends primarily on where you will be using your credit card. The crucial difference between the two credit cards is that the Target Visa card is accepted everywhere Visa is accepted, while the Target Credit Card can only be used at Target stores and on Target.com, which means you only utilize rewards and benefits when you shop at Target. While both cards offer the same rewards program, the Visa card has additional online bill pay services and Visa benefits unique to the Visa program. The Target website states that in the application process, applicants will first be considered for the Target Visa, and if they do not qualify, will be considered for the Target Credit Card.

Also, keep in mind that both cards have the kind of steep APR that retail cards are notorious for: 25.24% APR for the Target Credit Card and 23.24% APR for the Target Visa. Ultimately, you should consider whether either card will really benefit you. Do the rewards outweigh the potential interest rate charges? If you shop at Target enough to earn the 10% off shopping day and will take advantage of it, go for it. If you think you will carry a balance month to month or won't accumulate enough rewards points to get the discount, then you're better off going for a non-retail with better benefits and a more worthwhile rewards program.