How Closing Accounts Can Kill Your Credit Score

One of the major factors of how your credit score is calculated is your capacity. This is the ratio of credit used to the amount of credit that is available. This accounts for 30 percent (almost a third!) of your credit score. For example if you have 5 credit cards with a $1000 limit and you have 3 of them maxed out and 2 of them inactive your capacity would be at 60 percent, $3000 of your $5000 total credit limit. This is not good in the eyes of the lenders and your credit score would suffer because its ideal to be at 10 percent of your capacity.

Remember a credit score is a formula measuring your ability to pay back your debts and obligations. If you have a high capacity and little room left for your maximum then your ability to pay back your obligations is viewed as more limited.

So in the example above, lets say you decide to close the 2 inactive cards for whatever reason. Nowadays, the credit card companies will charge a fee to inactive cards so a lot of people are now closing their inactive accounts. Well unfortunately, they are killing their credit score. If you are maxed out on three cards and you close the other 2, guess what, you are now at 100 percent capacity because your total credit limit is now $3000 instead of $5000. I know from personal experience this will cause your credit score to plummet.

My advice? Don’t close your inactive cards. Use them once a month, maybe for gas, or treat yourself to a latte from Starbucks. Then pay them off immediately so you don’t incur any interest. Do what you can to pay off the cards that are maxed out, or at least get them down to where your balance is under 10 percent of the limit. If you can, try to transfer the balance to a lower interest card, so it can save you a few bucks on the interest. This strategy is sure to improve your credit score because capacity is a major factor, and if your capacity improves, your score improves.

Asking your bank for a credit limit increase on some of your cards isn’t suggested nowadays, this is a strategy that old credit repair people recommended but in today’s economy with the credit crunch, it prompts an account review, which for some quirky reason, may cause the banks to LOWER your credit limit. This would damage your capacity as well.

You are already disciplined enough to not spend on two cards. You are unique in today’s credit crunch world, use your discipline to your advantage, don’t close your accounts. You will be doing more harm to your credit score than good.

An Overview Of The Benefits Of Transcutaneous Electrical Nerve Stimulation

The acronym for Transcutaneous Electrical Nerve Stimulation is TENS. This is a pain relief method that involves a device that transmits electrical impulses via electrodes on the skin to a specific area of ​​the body that is painful. It is useful for the relief of acute and chronic pain. Electric stimulation for pain management goes back to the Ancient Greeks and, more recently, Benjamin Franklin was a great proponent of the concept. However, the first patented modern machine made its debut during 1974 in the USA.

TENS has proved to be effective for many types of pain. It is commonly used during childbirth, after surgery, for bursitis, tension headaches, tendonitis, cancer, chronic wounds, arthritis, migraine headaches, injuries, and other painful conditions. Medical practitioners believe that the technique stimulates the body to produce endorphins which are natural painkillers. However, they do not claim that this therapy addresses the root cause of pain. Its primary use is to offer short-term relief while healing is occurring.

A TENS device enterprises of an electric unit that is connected to electrodes. These are attached to the skin near the targeted area. When the device is switched on, a low-voltage current is delivered into the body. During therapy, the patient will feel a warm, tingling sensation.

A session usually lasts between 5 and 15 minutes. Treatment may take place as often as necessary according to the severity of the pain. TENS can best be described as an electrical massage. It is widely used by physiotherapists, massage therapists, and chiropractors. Portable systems are available so that patients can apply the therapy at home.

In the USA, there are over 100 different types of portable TENS machines which have received approval from the Food and Drug Administration. However, the public may not use them unless authorized by a medical practitioner. Some units deliver the electrical impulses via acupuncture needles. This method has to be performed by a qualified health care practitioner.

Research indicates that TENS therapy has shown some efficiencies with cancer patients, especially those who have neuropathic pain which is related to nerve or tissue damage. In such cases, TENS works best when combined with medication. It has shown to be particularly helpful to relieve painful bones and muscles after major surgical procedures.

Patients who are allergic to adhesives may react adversely to the electrode pads. This therapy is not suitable for patients who have heart problems. Also, it should not be administrated to people with implanted defibrillators, pacemakers, infusion pumps, or any other internal device that may malfunction due to the electrical current. If a woman suspects she may be pregnant, she should advise the practitioner because the effects on an unborn fetus are not yet known.

Transcutaneous Electrical Nerve Stimulation is otherwise considered to be safe. Anyone applying the treatment at home should take care that the current is not too intense because it may irritate or burn the skin. Never place the electrodes near the throat, brain, heart, or over the eyes. Always ensure that you know how to operate the device correctly and that you have received instruction from a professional practitioner.

Baby Clothes Overstock and Clearance Items – Why Donating Makes Sense

Retail clothing storeowners inevitably face the same situation year after year – a surplus of last season's styles in some form or another. This is good news for the consumer, as prices on these items are typically slashed well below retail in order to make room for new products. But what to do with the clearance items that remain on the shelves well into the next season? Or what if there simply is not enough room to hang on to these items any longer once new products arrive? Storeowners who find them facing these questions may want to consider donating overstock and / or clearance items to a worthy charitable organization.

In many cases, making a sizeable donation will not only benefit the many people touched by the organization receiving your donation, it may make a positive impact on your bottom line by allowing your business a tax write-off at the end of the year. If you are considering making a sizeable donation, you may first want to contact your tax advisor to discuss how the donation would affect your tax scenario.

It is advisable to spend some time researching potential organizations prior to donating. There are seemlessly countless organizations out there that are willing to take donations of clothing and accessory items. When choosing an organization, make sure first and foremost that the organization is not-for-profit, as this ensures the potential tax-benefit of donating. It may be easier to locate large national organizations, but it is worth to research smaller local organizations as well. These local organizations often do not receive the level of exposure necessary to meet their demands at the same level as larger organizations. As is the case in so many situations, the internet is generally the best source of information for researching charitable organizations. In addition, consult your local phone book, and ask around. Chances are you already know someone who has some sort of connection to a local charity – use those connections!

Once you have selected a non-profit organization to receive your donation, it is important to obtain a single point-of-contact within the organization. This person can organize the receipt of your donation, which in many cases can be arranged to take place at your business or warehouse. It is a good idea to provide an itemized list of the donation, including wholesale value, to your point-of-contact at the time of the donation. This list will not only help to document inventory in your records, it will also be a helpful tool for the charity to reference while incorporating the donation items into their existing product supply. In turn, ask that they provide you with a "letter of receipt", acknowledging and referencing the value of the donation. This letter will provide documentation that will be needed to validate the tax write-off. Be sure to discuss the significance of this letter with your point-of-contact prior to making the donation, and follow-up soon as the donation is made to be sure the letter is generated in a timely manner.

The Benefits of Non-Profit Branding

To the uninitiated, branding is synonymous to the image of a logo. Yet, branding is much more than a logo. What then, is branding? “Branding is endowing products and services with the power of a brand” (Kotler & Keller, 2015). One can clearly tell from this definition that branding is much more than a logo, a website or a brochure.

In times past, non-profits adopted the concept of branding mainly for fundraising purposes. Today, branding has evolved beyond fundraising purposes and offers the following benefits:

1). Builds Trust

An effective branding strategy that communicates the impact of a non-profits work engenders trust. By sharing its’ activities and progress, people become aware of the role the non-profit plays in its’ community. With the trust earned, a non-profit can easily garner support for its’ causes.

2). Advocacy / Expanded Support Base

Once people become aware of a non-profits’ work, it becomes easier for them to connect with its’ brand. Consequently, they not only become loyal adherents of the non-profit but they also become its’ advocates. This can serve the non-profit in many ways. For instance, success stories shared on a non-profit’s social media page can be re-posted by loyal adherents and shared with their friends. Such activities have the power of expanding a non-profit’s support base since a wider audience is reached through the act of sharing.

3). Increased Funding Opportunities

A strong brand improves the rate of success of a non-profits’ funding endeavors. By creating a positive brand image, it becomes easier to engage favorably with funders and stakeholders alike.

4). Facilitates Partnership Formation

A strong brand makes it easier for a non-profit to forge meaningful partnerships. The ability to collaborate with other organizations enhances a non-profits ability to implement projects that have a wider reach/scope. This in turn creates a favorable perception for the non-profit and influences its’ fund-raising potential.

5). Reflects a Non-Profit’s Identity

According to Nathalie Kylander & Christopher Stone (Spring 2012 Blogpost), a ” brand embodies the identity of the organization, encapsulating its mission, values, and distinctive activities”. In essence, a thoughtfully planned and executed brand image will convey the ideals of a non-profit to its’ constituents and the general public in an effective manner. It will aid in reflecting the unique value proposition of a non-profit while differentiating it from other entities.

Thus, its’ constituents and the general public will be in a position to familiarize themselves with the vision of the non-profit while keeping track of its’ achievements. As a result, the process of nurturing relationships with supporters(such as volunteers) and sympathizers to its’ cause while entrenching its’ position will be greatly improved.

It is essential for a non-profit to develop a compelling and consistent brand since it engenders trust among its’ audience, expands its’ support base, increases its’ funding opportunities, facilitates its’ ability to forge partnerships and reflects its identity.

References:

Kotler & Keller: Marketing Management (2015), American Marketing Association (AMA)

Nathalie Kylander & Christopher Stone (Spring 2012). The Role of Brand in the Non – Profit Sector[Blogpost]. Retrieved from https://ssir.org/articles/entry/the_role_of_brand_in_the_nonprofit_sector#bio-footer