Cooking on a Budget

Mark Lim - My woman doesn't let me cook anymore because I cut off a chunk of my pinky slicing cucumbers.

I also start fires.

In order to prove to her that I've learned from my mistakes I've filmed my own cooking show.

Now she no longer lets me in the kitchen.

Enjoy!

WTF is a FICO Score?

Mark Lim - Your FICO score is basically the Report Card your Teacher shows your mom when she's called into a Parent-Teacher Conference (Loan Application)

Your mother will finally find out all the nasty things you've done including that time you tried to feed Dinky, the class rabbit, to Mortimer, the class snake.

FICO stands for Fair Isaac Company, the company that came up with the credit system that shows your parents how stupid you are and if you should be held back a grade so kids don't make fun of you.

This Report Card is calculated by:

1) How many days you've ditched class, (Missed Payments 35%)
2) Your test scores, (Amount Owed 30%)
3) How long you've been going to school, (Length of Credit History 15%)
4) How many classes you have (Number of Credit Cards you own 10%)
5) New subjects you have taken. (New Credit 10%)

Let me explain them in detail:

1) Missed Payments (35%) - This is a record of your payment history including Bankruptcies, Judgments, Suits, Liens, and Delinquencies. It also shows the time since these bad bad things.
2) Amount Owed (30%) - How much money you owe on all accounts and the number of accounts you have with balances.
3) Length of Credit History (15%) - How long you've had your accounts and the last time you used them.
4) Number of Credit Cards (10%) - This is how many credit cards, retail accounts, installment loans, mortgages, and consumer finance accounts you have.
5) New Credit (10%) - Number of recently opened accounts and recent credit inquiries and how long since they were last checked.

So basically when you go in for a loan for a car or a home the Bank will find your FICO score and base their decision on the 5 factors above. Here's how they are rated:

1) Excellent Score - Over 750
2) Very Good - 720 or more
3) Acceptable - 660 - 720
4) Uncertain - 620 - 660
5) Laughable - Below 600

How do you improve your FICO score?

1) Make your payments on time
2) Reduce the number of credit cards you own to 2 or 3
3) Keep your borrowing below your credit limit
4) Don't apply for a bunch of credit cards at the same time.
5) Owning a home increases your FICO score
6) Moving frequently lowers it.

Hope that helps. Be Cheap! Be Happy!