How to evaluate a credit rating

Knowing where your credit is on the credit score scale is important. Depending on your rating and ranking, you will receive lower interest rates and are more likely to be approved for loans and credit cards. There are three credit reporting agencies – Experian, Equifax, and TransUnion. Each one has its own way of calculating the rating, but overall, the results are similar. Generally, a company will check the credit report as a whole but will pay specific attention to the credit rating. This makes understanding your credit rating all the more important.

Credit ratings and what they mean

Lenders generally use the ratings below to determine where we stand in terms of credit score and what rates they will offer us.

  • Excellent (Scores 780+) – People with a rate of 780 or more will enjoy the best interest rates. In addition, they are typically always approved for a loan.
  • Very good (Scores 720-779) – A rating in this range is considered almost perfect and people who are there will also enjoy better rates than the average.
  • Medium (Scores 680 to 719) – Although a score in this range is still considered good, individuals with this score will receive slightly higher interest rates than those with higher scores. According to Equifax, at the end of 2012, the national average credit score was 696.
  • Poor (Scores 580 to 679) – A score in this range indicates that the individual is a high-risk borrower. It can be difficult to get loans and if approved, the interest rate will be much higher.
  • Very poor (Scores 579 or less) – With a score in this range, we are rarely approved for a loan of any kind, but the credit is still repairable.

Factors Influencing a Credit Rating

Typically, there are five factors that determine the calculation of a credit score, but three of them account for 81% of the total. These factors are:

Recent credit (30%) – indicates when the credit report has been verified and shows that the customer is still asking for more credit. This shows a risk for those who already have a large amount of debt.

Payment History (28%) – Determined by repayments made to lenders or creditors. This reflects whether the customer pays his loans regularly on time.

Use (23%) – Demonstrate how much debt exists.

Credit repair

The most important aspect of credit is that it can get better or worse. This makes loan payments on time more and more important for someone planning to apply for new loans or a mortgage in the future. In addition, lowering its overall debt will also increase a credit rating systematically.

COMMUNIQUE: The Sequa Corporation announces the completion of a full recapitalization

The Sequa corporation (“Sequa” or “the company”) today announced the completion of a full recapitalization that includes the issuance of new loans in the medium or long term. with the first and second right of retention, as well as a new and considerable participation in the capital by the companies associated with the Carlyle Group (“Carlyle”) among other holders. The income generated by both the new medium and long-term loans and the participation in the capital will serve, on the one hand, to repay the medium and long-term loans that Sequa had contracted and, on the other, to obtain capital to serve support for the company’s growth plan.

In addition, Sequa has announced the initiation of a swap offer (the “exchange offer”) of its unsecured priority debt notes that mature in December 2017 (the “promissory notes”) pursuant to which certain holders, including companies associated with Carlyle, exchanged their promissory notes for the recent convertible preference shares for payment in kind. The medium and long-term loans together with the exchange offer and the equity participation will greatly reduce Sequa’s financial leverage and replace its upcoming maturity debt with a new long-term capital structure- personal loans for good and bad credit.

“We are pleased that the refinancing is being successful and that the company has recently received significant investments,” said Tom Mepham, executive director of Sequa. “The combination of these transactions will improve our capital structure, reduce the company’s leverage and improve its future positioning. We wish that the relationship with Carlyle and the rest of the holders of any participation in the capital continues to be as intense in the future in order to work together to raise Sequa to the next level of growth. “

After this transaction, Carlyle holds the majority of Sequa’s voting securities.

After this transaction, Carlyle holds the majority of Sequa

Adam Palmer, managing director of Carlyle and international head of government services, defense, and aerospace, said: “The success of this recapitalization is a crucial step in ensuring Sequa’s long-term success.” Tom Mepham and his team achieved an impressive improvement in Sequa’s operations and performance last year, we are convinced that the company has a promising future and we look forward to continuing to support Sequa in the coming years. “

About the Sequa Corporation, The Sequa Corporation is an industrial company

About the Sequa Corporation The Sequa Corporation is an industrial company

that operates, through its Chromalloy and Precoat Metals business units, in areas as diverse as aerospace and the energy and metal coating industries. Chromalloy offers the airline industry a wide range of replacement services and is one of the most important independent suppliers in the field of advanced repair of jet engines. Chromalloy works around the world 24 hours a day to provide airlines with the fastest and most reliable spare parts for crucial parts of the engine, such as turbine fins.

This type of repairs increases the life of the parts and reduces the maintenance costs of the airlines. Chromalloy also operates in the sector of industrial and marine gas turbines as well as in the military field. Precoat Metals, the largest independent company dedicated to the installation of metal pre-coating in North America, offers reliable and fast services of superior quality to a wide range of industrial customers. It is a leader in the application of decorative coatings and protectors of steel continuous coils in both commercial and residential construction projects. In addition, Precoat is the provider of an increasingly broad list of end users in the industry.

About the Carlyle Group, The Carlyle Group is a global and alternative asset manager that as of December 31, 2016, managed more than 158 billion dollars of assets in 281 investment vehicles. Carlyle’s objective is to invest with expertise and generate value on behalf of its investors, many of the public pensions. Carlyle’s investments address four segments -participation in the private and corporate capital, real assets, global market strategies and investment solutions- in Africa, Asia, Australia, Europe, the Middle East, North America and South America.

Carlyle has extensive experience in industries such as aerospace

, defense and other government services, retail consumption, energy, financial services, healthcare, industry, real estate, technology and business services, telecommunications and media, and transportation. The Carlyle group has more than 1,600 employees and 35 locations on six continents. 

With the tax debt interest shake billions at the federal government

Tax arrears If the tax debt interest falls, the federal government lacks billions

Image result for tax arrears

  • For the first time, the Federal Finance Court doubts that six percent interest on back taxes is constitutional.
  • It’s about a lot of money: The tax offices so take in more than two billion euros a year.
  • Now the Federal Constitutional Court has to decide – and probably even this year.

If the tax office demands taxes, often a hefty premium is payable: half a percent for each month, a total of six percent a year, is the so-called supplementary interest. So it has been unchanged for decades in the law. But now the Federal Finance Court (BFH), Germany’s highest tax court, the amount of this mark for the first time in question.

In a decision published on Monday, the court criticized the current practice with clear words: There were “serious constitutional doubts”, whether the interest in its present form and amount does not violate the principle of equality enshrined in the Basic Law and the excess ban, it says in the statement of the Ninth Senate chaired by BFH President Rudolf Mellinghoff (Az. IX B 21/18) .

Supreme Tax Court: interest on tax liabilities are too high

Image result for interestSo far, six percent of tax offices have been taxed by defaulting taxpayers. The Federal Finance Court questions this practice for the first time. 

Although the basis of the decision is only a so-called summary examination, a kind of urgent procedure. The criticism contained therein is very basic. For example, the judges complain that the interest rate has been “out of date” for the period since 2015. Six percent, given the “structural and sustainable consolidation of the low level of market interest rates, significantly exceeds the appropriate scope of economic reality”. For example, the key rate of the European Central Bank (ECB) has been at zero percent for more than two years. In general, according to the judges, it lacks “a comprehensible justification” for the amount of the interest.

The decision brings political explosive: The state earns well on the demand interest, annually take the tax offices more than two billion euros in addition from the taxpayers. And that, even though late disbursed balances with the treasury with six percent interest. Exactly for this reason, the Federal Ministry of Finance holds the interest rate in its current form for constitutional compliance, said a spokesman. On the other hand, the BFH sees a need for action: “It can be assumed that the legislature is aware of the need to adjust the amount of interest”.

Most of the revenue comes not from private individuals, but from companies that have to pay taxes after a tax audit. That’s the way it was in the current case. An entrepreneurial couple had received a tax rebate of almost two million euros – and should additionally pay a good 240 000 euros interest. The taxes were transferred to the couple, against the surcharge it objected – with success. The case must now be finally decided in a main proceedings.

Taxpayers still have to become active themselves

Image result for tax payersThe impact that the decision will have on all taxpayers now lies above all with the Federal Constitutional Court. There are already several proceedings pending for the additional interest. And it is becoming apparent that the constitutional judges will also look at the size of the serve. You could judge this later this year.

For the time being, taxpayers have to become active themselves and, if necessary, object to a decision on interest. They can refer to the current decision of the chief financial judge. If that is not enough, they themselves have to go to court to have the decision suspended.

Another explosive factor in the decision of the BFH is that the Ninth Senate, with its new resolution, is throwing a recently passed judgment from its own house over the pile. At the end of February, the BFH’s Third Senate had issued its verdict on a similar case in 2013, according to which the premium of six percent was indeed admissible . The presiding judge Stefan Schneider indicated that the decision, in his view, can also be applied to cases from later years, although interest rates have fallen further during this time. “An annoyance” is not enough, so that the interest would be unconstitutional, he said then.

BFH President Mellinghoff and the other judges of the Ninth Senate see this in a fundamentally different way – and also take a look at the arguments of their colleagues at the time. They had based their decision on a wide range of interest rates on various deposits and loans – from the savings account to the Dispo – and thereby determined a range of 0.15 to 14.7 percent. Thus, the six percent surcharge of the treasury did not leave the “range of realistic reference values”, so the third senate. This argument is rejected by the Ninth Senate. The high credit card and MRP interest are “special factors” and not suitable as a reference.

That the same, uniform interest rate simplifies the work of the administration, the BFH also no longer applies. Thanks to digital data processing in the tax offices, it is no longer a problem to align the amount of the premium with a current market interest rate or the current base interest rate. The Bavarian municipalities, for example, have done something similar since 2014.

These are the most common mistakes in tax returns

On average, anyone who submits a tax return gets back several hundred euros at the end of the year. An entry in the wrong line or a forgotten expenditure can reduce this sum however fast. The most common mistakes.

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