Margin test

Do you already have a plan for your holiday shopping game this year? A recent study commissioned by Experian Consumer Services shows that spending confidence continues to recover, with 11 percent of those surveyed saying they anticipate spending more than they did last year on holiday gifts. Respondents plan to spend an average of $757.57 this year, up from $721.96 in 2013. People may be planning to spend more this season, but their means of payment won’t come as a surprise. A dramatic majority (82 percent) planned to purchase either with their credit cards or via a layaway plan this year. Still others (59 percent) plan to pay for their holiday gifts in cash this year, while only 17 percent plan to open a store credit card as a part of their holiday payment plan. While there will certainly be lots of sweaters, games, toys and ties under the tree, just under half of respondents plan to give either an experiential or DIY gift this year (45 percent). A quarter of those surveyed are planning to align a major purchase with their holiday gifting strategy, to truly make this a holiday to remember, while more than a third plan to make merry and gift themselves with a treat (37 percent). Is your spending plan ready for winter? “Oftentimes, people happily overspend in December, only to feel overwhelmed in January when their credit card statements arrive,” said Becky Frost, senior manager of consumer education at Experian Consumer Services. Don’t throw away the good spending behaviors you may have challenged yourself with simply because it’s the end of the year. Be realistic and specific with your budgeting to help avoid overspending, and to keep your priorities in check. For tips on holiday spending this year, see our helpful infographic below. You can also view the complete survey results and methodology here: This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions. Published by permission from ConsumerInfo.com, Inc., an Experian company. © 2014 ConsumerInfo.com, Inc. All rights reserved.

Experian Marketing Services’ senior vice president of global marketing, Ashley Johnston, was named the winner of a Gold Stevie® Award for Woman of the Year in Advertising, Marketing and Public Relations at the 11th annual Stevie Awards for Women in Business on Friday, Nov. 14, in New York City. Johnston was also recognized with a Silver Stevie Award for Female Executive of the Year for Business Services Companies with more than 2,500 employees. The Stevie Awards for Women in Business are the world’s top honors for female entrepreneurs, executives, employees and the organizations they run. All individuals and organizations worldwide are eligible to submit nominations – public and private, for-profit and non-profit, large and small. The 2014 awards received entries from 22 nations and territories. More than 1,200 nominations from organizations of all sizes and in virtually every industry were submitted this year for consideration in more than 90 categories, including Entrepreneur of the Year, Executive of the Year, Company of the Year, Mentor of the Year, Women Helping Women, and Communications Campaign of the Year, among others. “This is a well-deserved honor for Ashley and a testament to her ability to inspire and empower our organization to have a positive impact each and every day,” said Matt Seeley, president, North America, Experian Marketing Services. “Throughout the 12 years she’s been with Experian, Ashley’s initiatives have accelerated Experian Marketing Services’ go-to-market strategy globally and evangelized our employees around our brand while also placing our clients directly in the center of our business and growth.” Over the past year, Johnston successfully led a global initiative to bring Experian Marketing Services’ portfolio, go-to-market strategy, culture and client base under a single, consistent global brand, for the first time. As a key part of this initiative Johnston introduced progressive and differentiated programs focused on driving lead generation, client engagement, awareness and sales-enablement support. Most notably, Johnston led the recent launch of the Experian Marketing Suite, a comprehensive, end-to-end marketing solution that enables brands to create and deliver authentic customer experiences every time, in any channel and via any device. The Marketing Suite showcases the power of Experian Marketing Services’ portfolio, which previously had been siloed into four business units, dozens of products, distinct client sets and cultures. Expressing her gratitude, Johnston added, “It’s an honor to be recognized alongside such an impressive roster of accomplished and exceptional women from countries around the world. This award is evidence of the success story of the Experian Marketing Services business and the talent of my team that continues to inspire me each and every day.” Experian Marketing Services was recognized with four Stevie Awards during the 2014 American Business Awards, all for work that Johnston and her team spearheaded, including the Client Summit, The 2014 Digital Marketer: Benchmark and Trend Report, a global internal communications campaign and the cross-channel marketing platform. Nicknamed the Stevies for the Greek word for “crowned,” the awards were presented to winners Friday night during a dinner event attended by more than 400 people at the Marriott Marquis Hotel in New York City. The presentations were broadcast live across the U.S.A., and simulcast around the world, by Biz Talk Radio, and will be featured in a television special on Biz TV in January. Stevie Award winners were selected by more than 160 executives worldwide who participated in the judging process this year.

It’s no secret that businesses are what drive the U.S. economy. The exchange of goods and services for business large and small is what our society is built on. But, did you know that big data is actually a driving force in commerce? How, you ask? Businesses rely on data — just as we as consumers do — to form the basis for everyday decisions. Experian has always been at the forefront of using big data, and over the years we have streamlined its uses to help drive commerce for the business community. Our commercial database contains unbiased information on more than 25 million active businesses in the U.S. However, data just scratches the surface of what we do. Our technology, analytical and consultative services help financial institutions and businesses (large and small) derive insights, which enable them to make more sound lending decisions, better manage their credit portfolios and acquire the right customers. In fact, in 2012, we used these insights to develop the Small Business Credit Index with Moody’s Analytics, to provide a unique perspective on the health of small businesses in the United States. For example, our most recent report revealed that small-business credit conditions have improved due to an increase in the total dollars being borrowed, and an improvement in overall payment performance. Payment performance is critical to small businesses because they have a much smaller customer base. As a result, the impact of one customer delaying payment will have a much greater effect on the business than it may on a larger company. It’s this insight that helps both financial institutions and small businesses take appropriate action. Lenders and suppliers can use the information to help mitigate risk and have more confidence when making future lending decisions, and, for small businesses, it enables them to uncover growth opportunities and increase profitability. While the importance of business in the economy isn’t a big secret, the power of big data to help drive high-impact actions for organizations is a relatively unheard of concept, despite it being around for years. Finding ways to use our data for good to help move businesses, as well as consumers, our society and the economy forward, is a primary driver for Experian. After all, the more that business succeeds, the better our economy will be.

This guest post is from Donna Freedman (@DLFreedman). Donna is a former newspaper journalist and staff writer for MSN Money and Get Rich Slowly. Currently she writes for Money Talks News and for her own website, donnafreedman.com. Bankcard lending is trending upward, according to the 2014 Experian “State of Credit” report. One in 17 consumers obtained at least one bankcard this year, compared with one in 21 people back in 2013. Consumers now carry an average of 2.18 bankcards apiece (an increase of 4.2 percent), and an average of 1.54 retail cards (a jump of 6.7 percent). In other words, credit availability is on the rise. Can we do it smarter this time? The recession left a lot of folks financially bruised. Some had their interest rates raised or their credit limits lowered. Those who couldn’t make even minimum payments were hounded by card issuers; some ultimately walked away, which sent their credit scores south. Apparently our kids were watching. The number of under-30s without credit cards rose from 9.3 percent in 2005 to 16.1 percent in 2012, as reported by The New York Times. Choosing debit over credit can keep consumers from running amok: You can’t spend what you don’t have, as opposed to the “free money!” vibe some folks get from credit cards. But debit doesn’t have the same protections as credit and, more to the point, debit doesn’t help your credit history. There’s good news on that front, too: The national VantageScore® credit score rose two points from 664 to a spooky 666. Yes, that number just begs for snarky commentary. But unlike some personal finance wonks, I happen to believe that credit is not from the devil. ‘Enormous repercussions’ Quite the contrary: I’m concerned that at least 16 percent of millennials are avoiding credit altogether. Having some plastic in your purse can make a giant difference in your life in ways that have nothing to do with shopping malls. “Your life is going to be harder and more expensive if you refuse to use credit cards,” says Liz Weston, author of “Your Credit Score, Your Money & What’s at Stake.” Responsible and sustained use of bank or retail cards has a major impact on your credit score – and a healthy credit score has “enormous repercussions for your wallet, your future and your peace of mind,” she notes. How enormous? An average of $159,464 in extra interest paid over your lifetime, according to Credit.com’s Lifetime Cost of Debt Calculator. Lenders use your credit score to determine rates for auto or mortgage loans. As noted above, a less-than-optimal score means you’ll pay more in interest – and it might keep you from borrowing at all. Potential insurers, bosses and landlords may also be looking at that three-digit number. Plenty of people think the current system is unfair because it penalizes those who choose to pay cash. But like it or not, it’s what we have to work with now. Avoiding bankcards because you resent the credit scoring system is like avoiding medical care because you think doctors make too much money. The only person you are potentially harming is yourself. “Unless you plan on writing checks for your cars, houses and tuition, you need the credit system,” says John Ulzheimer, credit expert for CreditSesame.com. ‘Credit’ doesn’t automatically mean ‘debt’ Using cash, debit cards and prepaid debit cards do nothing for your credit history. Debit cards may expose users to fraud and/or theft, especially if they shop online, notes Beverly Harzog, author of “Confessions of a Credit Junkie: Everything You Need to Know to Avoid the Mistakes I Made.” If your debit card gets hacked the thief could siphon money from your account. “This could cause a cash-flow crisis” until the bank investigates, Harzog says. Credit cards, on the other hand, “offer excellent consumer protections against fraud.” Incidentally, credit doesn’t automatically equal debt. Just as you wouldn’t overdraft with your debit, don’t overspend with a bankcard. Don’t trust yourself not to overbuy? Get a secured card – again, you can’t spend what you don’t have. Or ask to become an authorized user on a parent’s account; if you mess up, Mom or Dad can just drop you from the account. Use the card for utility bills and for everyday purchases like groceries and gasoline. Pay it off in full each month and your score will grow. (Tip: A blogger I know makes a payment every Friday, just to be on the safe side.) “The idea that credit cards are synonymous with debt needs to be smashed. People can and do use credit cards for convenience only, paying their balances in full every month,” Weston says. According to the Federal Reserve’s Survey of Consumer Finances, about 40 percent of households don’t carry balances, edging out the 35 percent that do. (One-fourth of U.S. households don’t have credit cards.) The best available tool The time to get credit and use it wisely is now, not 10 years from today when you decide you want to buy a house. “Part of a strong credit score is having well-established accounts, and you can’t get those overnight,” says Gerri Detweiler, director of consumer education for Credit.com. Wait too long and you’ll overpay, maybe wildly, for things you want or need. A low-score/no-score situation could also wind up affecting where you live or work. If nothing else, think of the opportunity cost of that $159,464 in extra interest. What could that money do for you in terms of investing, retirement planning, homeownership or helping your kids through college? Full disclosure: I am rabidly anti-debt. But I’m also rabidly against shooting yourself in the financial foot. It just makes sense to make wise use of the best tool available to strengthen your credit score. Put another way: You can use a hammer to bash your thumb, or to build something lasting. Ditto credit. It’s in the way that you use it.

Experian unveiled its fifth annual State of Credit report today, which provides a snapshot of consumers’ credit scores broken out nationally and by local market. This year’s findings show that the nation’s average VantageScore has improved by two points since last year, coming in at 666. In the city listings, Mankato, MN takes the top spot with a VantageScore of 706 and Greenwood, MS residents have the lowest score of 609 in the study. While the report gives residents of certain cities reason to celebrate their higher scores, the study isn’t meant make the lower cities sing the blues. These types of data-driven insights are meant to help consumers — to give them a reason to be interested in credit, to want to understand and improve their financial well-being, and to become a more savvy credit user and manager. The study this year not only provides the nation’s credit scores, but also touches on some trends that show lenders and borrowers may both be feeling more confident as the economy is picking up. According to the research, people are carrying more credit cards than last year — both bankcards and retail cards. The average number of bankcards per person is 2.18 and the average number of retail cards per person is 1.54. The nation’s average debt is also on the rise, coming in at $28,496 per person, which is an increase of 2.3 percent. While more cards and more debt may sound like a dangerous combination, if bills are being paid on time and the credit is being managed well, there’s nothing to be scared of … even with that national credit score of 666. To find out more about this year’s study, see the news release and visit www.livecreditsmart.com.