Your credit score may soon lead to targeted Google ads

Jennifer McClelland | RSS | Mon, Jul 06 2009 | 1 Comment

From what I’ve always been told, when you check your credit score on more than an annual basis, your score takes a small hit. I suppose this isn’t true anymore (or at least I hope not) because it looks like Google is wanting to take its ad targeting to the next level.

Those who use Google for searching and who have a good FICO score of 720 or above will soon be targeted by ads for luxury services and products than users with a lower score.

According to Masha Korsunky, Google’s senior industry marketing manager for financial services, the new service was introduced and co-launched with Compete. Compete is a service that has a database of around 2 million users who agreed to let the company give out their credit score when they applied for a credit card.

Korsunky said, “Let’s say we have an advertiser who wants to reach consumers with a high FICO score who applied for mortgages in the first quarter. We can provide the advertiser with a list of Web sites on our Google content network that index against this segment.”

To begin with, the program is expected to attract credit card companies with credit score targeting instead of the luxury goods and services companies. These manufacturers have taken a pretty large hit by the current recession and are looking at the chance to reach those high-score buyers. By being able to reach that market, they hope to find consumers that are willing to make big ticket purchases and pay for them over a long period of time.

I find this to be a very shady way to target potential customers. I don’t think the average search engine user would know that they were being targeted based on their credit score unless they were aware that Google was taking part in this kind of business practice and advertising. When someone signs over their credit score for use, I’m sure that this isn’t exactly what they had in mind and I believe as more people become aware that Google is using this as a way to attract business, then there will likely be some kind of backlash, no matter how small it is.

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Tags: ticket purchases, industry marketing, good fico score

Remember Investing Is About Profiting / Tip: Invest Not Restrict

Chris McClelland | RSS | Thu, Oct 23 2008 | 0 Comments

People are always asking me which stock to buy, or which sector is hot right now for them to jump into. Questions like that usually make me laugh a little to myself, because even though investing is in part about what is “hot”(an investment must increase in value to benefit you), it is mainly value in relation to what people are paying for something now versus what they might pay for it later.

For the most part I put people on a safe path towards a desired yearly return with an acceptable risk level based on their comfort level and financial goals. However, I am constantly reminding people that investing is about profiting, so why are they limiting themselves to just one market. Everyone knows something: a hobby, a trade, a skill, a way of life. However, not many people have the confidence to pursue this type of investment. Alternative as it might be, sometimes the best investment for people is not the stock market, but in a carefully laid out investment in themselves.

It’s no secret that one of the most profitable investments is starting a business. There’s an old saying “Those with wealth invest, those with knowledge create.” People usually find themselves on either end of the spectrum, some even in the middle. The point is, why are you not investing in one of the best vehicles for your dollar?

The sad fact is that most people either do not have the drive to motivate themselves to start a business or lack the knowledge in the field of business they wish to enter. True, starting a business can be a daunting task, capable of sucking away most of your time. Estimates range that a new business owner’s weekly workload can average around 50-70hrs, leaving little time for social events or anything else that is not properly time managed correctly. This leads to the fact that 80% of new businesses fail within their first year of operation.

If 80% of new businesses fail in their first year, then why is it a good investment? Simple, one net worth can grow tax deferred (or tax free in some cases) a multiple of times within a very short period of time. It’s like picking a stock at $1, and having it go to $20, but you’re in control of how high it can go. Most businesses fail due to poor planning, time constraints, or even a business owner trying to tackle everything on their own and not having enough time to effectively handle even one part of their business correctly. Stress, financial strain, legal matters, taxes, employees, are among other things that can bog down a business in the beginning.

With most investments, more reward means more risk, but with a business, the risk is usually limited because you control it. You decide each move, each play, and as such control the outcome of your investment return; the trade off is that you must make each decision not someone else. With a business, you are trading the ability to make more by correctly leveraging off of yourself and other people (employees), versus making a limited or lesser amount by “correctly” selecting the best company to “invest” in. Too often people have gotten burned in the market because even though they did the correct due diligence on a company and found a sound investment, the market “reacted” differently than what made fundamental sense. The end result is a loss when you should have had a win. With a business, you decide, because the health (net worth) of your business is directly related to the fundamental factors affecting it, not by the rapid selling of trust funds, or liquidating board’s members with enormous option packages to cash in.

Just remember that if done correctly, starting a new business can become a well oil-machine. Providing a continual net worth increase and making your every dream become a reality, being only limited by our drive and imagination. The wealth that can be ascertained with a business is comparable by few other investments making it a worthwhile venture to consider.

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Tags: company, net worth, end result