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3 Tips to Increasing your Credit Score

credit-cardsIf your credit score is below or around 660, there are 3 easy things you can do to boost your credit score. It is very important to have the best credit score you can possibly get since it will determine what kind of interest rate you will receive on a loan. If your score is too low, you will receive a high interest rate which means you have to pay more.

Pay Every Bill on Time

A late payment will instantly drag down your score. A few months history of timely payments, however, can help boost it.

This is true. I always schedule my Online Bill Pay once I get my bills. That way, I know I will never forget about the bill. Just to be sure the payment goes through, I usually also setup an account with the company’s online website to see if the payment was received or not. That way, I am never late on my bills.

Pay Down the cards that are maxed out first.

You’ll get points deducted from your score any time you charge more than 50 percent of the limit on any kind of credit card.

Personally, I never really had any credit card debt, however, my personal opinion is usually to pay down the credit card that has the least dollar amount. At least that way, you get one of the cards out of the way and you can concentrate on your other credit cards. Of course, if you have a card that has 0% interest rate and you are confident that you can pay off the card before the 0% offer ends, you might want to pay other cards that have interest rates off first.

Do not cancel any credit cards.

Counterintuitive, yes. But not when you consider that one-third of your score is based on how much of the credit available to you you’re actually using. Cutting up credit cards will automatically decrease the amount of credit you have available. Better to stick the cards in a drawer until your score is back on track.

I agree with this article partially. You can just keep the cards active but cut them up so you won’t be able to use the cards. That way, the credit cards are still counted towards your credit score.

What are your opinions?…

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Financial Questions to Ask Before Getting Married

 Financial QuestionsI was reading this article today and thought it was very important so I decided to write about it. Since getting married is supposed to be a life-long thing, you should try to make sure you and your spouse are compatible financially. It would be pretty bad to find out after you say “ I Do” that your spouse is knee deep in debt. This is something you would like to know beforehand so you don’t have any financial surprises after getting married. Here are 10 questions that you should ask before saying I do and my thoughts on them as well.

Where would you like to be in five to ten years?

By knowing what your spouse is thinking, you will be able to plan your future goals without something unexpected happening. You might want to discuss questions such as starting your own business, when you would like to have kids, how many children do you plan to have? Etc. These are important answers to know so that you plan ahead and don’t have any surprises.

What are our assets and liabilities?

Both of you should fill out a net worth worksheet so that way, you can determine how to combine the accounts and which debt you should tackle first. I already have my net worth worksheet filled out and updated monthly so that should not be a problem for me. By having a net worth worksheet, you will also see how you are progressing every month which can create a mechanism for you to want to save more. Nowadays, with the high amount of divorce, having a prenup is also a good idea.

Should we keep our finances separate or combine them?

This will be dependent on you and your spouse. I, personally, like to have accounts combined but not everyone likes it that way.

Who will be responsible for paying the bills?

This is important as you don’t want to have your lights cut out because nobody was aware that they need to make payments to the electric company. As I have stated before, I think Online Bill Pay is a great tool. You can schedule the bill payment schedule online and as long as you have the money in the bank. It is a good idea to sit down with your spouse once in a month to discuss the bills paid and what came in so both parties know what’s happening with the money.

How does your credit report look?

I think this is a very important topic. If you decide to purchase a house together, you might have a surprise when you get a high interest rate if you do not know what your spouse’s credit score is. To avoid these unexpected shocks, you should know what the other person’s score is so you can plan ahead of time. You can order your reports for free once a year from AnnualCreditReport.com. I suggest you obtain your report yearly just to see if there are any errors on the report.…

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More People Late on Their Credit Card Payments

Credit Card PaymentsHere is an interesting article about the consumers paying late on their credit cards. American Express stated that customers are falling further behind on their debts, signaling the economy is worsening. Many of the countries Financial Services have fallen more than 30 percent in the past 12 months in New York trading as consumers absorb the housing slump, rising unemployment and higher food and fuel bills.

American Express states that defaults by cardholders worsened most in areas where US home prices dropped by more than 5 to 10 percent. This doesn’t bode well. One thing we all should start doing is spending less than what we earn. It looks like most people do not follow through on their promises to themselves that they will spend less and save more. This is seen from the stimulus checks and rebate checks people received back. Instead of using the money to pay off their, they went to Wal-Mart, Best Buy and other major retailers to buy more stuff. Most American mindsets are not in the right place and they need to change if they want to have a chance to have a good retirement.…

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