Mention Swiss bank account and heads turn and people tend to get more attentive. First thing that comes to mind is filthy rich people. Swiss bank accounts are usually associated with drug and corruption money due to popular media and fictional movies. This lead me into a quest for truth among all the myths surrounding Swiss bank accounts. It was only a matter of understanding Swiss people and their legal and banking system. All myths evaporated as facts came forward to clear the mist. let me share what I found about Swiss bank accounts.

Only millionaires can have Swiss bank accounts

This is most popular of the myths. It is not true that Swiss Accounts are only for very rich people. In fact most of the people holding Swiss Bank accounts are not leading industrialists or movie stars. It is everyday people. businessmen, IT professionals, engineers, doctors and government employees etc. Gone are the days when Swiss bank accounts were only for rich.

Barrier to entry are considerably low. Minimum amount to open an account in Swiss Bank is just 5000 Swiss Franc. There are even Swiss accounts available where you don’t need to maintain a minimum balance.

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Those who applied for loans or mortgage recently knows that unless their credit history is as clean as glass, it is very hard to borrow any money. Even people with perfect credit scores are being turned down by banks and lending institutions. Banker has tightened lending standards due to two reasons, first being a large number of customer defaults and second because there is simply not enough money out there for banks to borrow.

These difficult times call for extreme caution and it is very important to check your credit score regularly and monitor all those transactions that go into your credit reports. we should also take good are that we do not engage in behaviors that that triggers a chain of events that eventually will throw us against higher interest rates, reduced credit limits and eventually non availability of credit. Lower credit scores on credit reports can do exactly that.

Preventive Measures

You should check your credit report and credit scores regularly. Three major credit rating agencies called credit bureaus are EquiFax, Experian and TransUnion. All of them track individual’s credit history and compile detailed credit reports that reflect great deal about your credit behavior. Each of them have a separate formulae (a very secret one) to calculate a three digit number called credit score. these credit scores and detailed credit report help lending institutions and banks to decide the level of credit risk they indulge there self in before they lend you any money.

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“The Money Myth Exploded” was one of the first articles of Louis Even, and to this date it remains one of the most popular illustrated story to explain in layman’s language how money was and still is created by private banks as a debt.

1. Shipwreck survivors

An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.

Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?

Suddenly a cry rang out: “Land! Look! Over there, in the direction the waves are carrying us!”

And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.

They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.

Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.

Next is Jim, an animal breeder; he’s the one in the striped pants, kneeling and gazing in the direction of land.

Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.

And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter’s shoulder.

2. A providential island

To our five men, setting foot on land was like returning to life from the grave.

When they had dried and warmed themselves their first impulse was to explore this little island on to which they had been cast, far from civilization.

A quick survey was sufficient to raise their spirit. The island was not a barren rock. True enough, they were the only men on it at the moment. But judging from the herds of semi-domesticated animals they encountered, there must have been men here at some time before them. Jim, the animal breeder, was sure he could completely domesticate them and put them to good service.

Paul found the island’s soil, for the most part, to be quite suitable for cultivation.

Harry discovered some fruit trees which, if properly tended, would give good harvests.

Most important were the large stands of timber embracing many types of wood. Frank, without too much difficulty, would be able to build houses for the little community.

As for Tom, the prospector, well, the rock formations of the island showed signs of rich mineral deposits. Lacking the tools, Tom still felt his ingenuity and initiative could produce metals from the ores.

So each could serve the common good with his special talent. All agreed to call the place Salvation Island. All gave thanks to Providence for the reasonably happy ending to what could have been stark tragedy.

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One of the most disturbing things I hear often is the statement being made by people:

My Credit Score Went Down, But Who Cares?

This cliche phrase sounds more like saying “Hey, we are all going to die some day” and “I am waiting for Govt.. to bail me out.”  Although there is some degree of truth in those sentences but at the end of day it amounts to denial of responsibility.

In this post I wish to discuss the parts of your life that get very much affected by your credit score. It is not a small part. It affects the whole you. It hits your home, the card you can drive, the things you can buy and even the jobs you can get into. All spares of your life get affected by credit score.

Impact of Credit Score on Your Home

If you ever want to move out of your parents home and get a decent accommodation of your own, you need a pretty good credit score. You will not be taken seriously by any landlord, mortgage broker, banker or a realtor(real estate professional) if you don not have a decent credit score. so next time when your citi bank credit card bill arrives.. pay it on time for the sake of good future home.

Impact of Credit Score on Your Car

If you don’t care about your credit score, don’t complain when you have the same car payment as your neighbours while he drives a new Lexus and you own that rusting old Chevy. This might be an extreme example but missing one or two payments can cost you 4 , 5 and some times 8 percent on your next car loan. so be careful and pay on time.

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An old Native American wanted a loan for $500. He approached his local banker. The banker pulled out the loan application and asked:

“What are you going to do with the money?”

“Take jewelry to city and sell it,” said the old man.

“What have you got for collateral?”  queried the banker, going strictly by the book.

“Don’t know of collateral.”

“Well that’s something of value that would cover the cost of the loan. Have you got any vehicles?”

“Yes, I have a 1949 Chevy pickup.” Read the full story