What is a Good Credit Score?

What is a Good Credit Score?

With there being a few different credit reporting systems it can be confusing understanding what each means and why they differ so much.

You should think of credit reporting this way – if two different teachers gave you the same exact assignment in school then graded them you would probably end up with similar yet different grades. Credit is the same way. Two systems will weigh different criteria more or less heavily than another. Most institutions checking a credit scores will use scores from bureaus commonly known. Some of the discrepancies may also be due to the fact that not all lenders report to all the different credit reporting agencies according to CreditKarma.

There are three major credit reporting bureaus – Equifax, TransUnion, and Experian. All three have different scales or models for scoring you.  You’re allowed one free credit score per year but there are tools like Credit Karma, which is free, and other paid tools that you can use to monitor your credit score.

Tips to Keeping or Gaining Good Credit

  1. Pay your bills: One of the easiest ways to maintain good credit is paying your bills on time. If bills are being turned into collection agencies it gets reported to the bureaus and this will lower your score. If you’re in a situation where you may not be able to pay a bill on time try calling your lender and working something out that way missed payment don’t put a ding in your credit.
  2. Get your free credit score: You’re allowed one free credit score per year. This also allows you to make any corrections if needed.
  3. Try making any purchases that require credit checks together: Believe it or not when many lenders check your credit at various times it may lower your credit score. If you’re planning on purchasing a car and applying for a new credit card try doing this in a close time frame.
  4. Learn about the things you didn’t know would affect your credit: Did you know closing out a major credit with a lot of history can affect your credit negatively?
  5. Pay down debt: Credit is all about proving you’re responsible enough to pay it back. When you pay back debt it improves your scores.

Good vs. Bad Scores

In short depending on the reporting agency or bureau your scores will range. What you should be concerned about more is high vs. low scores. Most of the scores range from 300 – 850. Any score on the lower end of the spectrum is considered poor with the higher end considered excellent.

Credit scores can affect meeting life goals so they’re important. If your score isn’t exactly where you want it to be you can get there by paying off debt and paying bills consistently. Overtime you’ll get where you want to be. Most credit bureaus also only look at history over seven year periods so a poorer scores will not last forever.   

How to be Financially Literate

How to be Financially Literate

There is so much information available on personal finance but where do you begin? Keeping yourself abreast of how interest rates, credit scores, and 401ks, among other things, work is vital to personal financial success. According to ACA  International, 42% of respondents in a survey didn’t know what their credit score was.

There are many financial books available to grow your knowledge. Forbes has a segmented list of books based on your age range – everything from information for teenagers to retirement ready individuals. Being financially literate is about having a handle on your finances and understanding your past, present, and future finances. Learning from your past spending and financial mistakes (we’ve all had them) will allow you to be a starter will your money.

The government also offers resources to citizens looking to make more financially sound decisions through the treasury department. MyMoney.gov also offers resources for all age ranges around borrowing, earning, and saving. With so many resources available it’s just a matter of you taking advantage of them. If you take the time to find the resources you can accomplish your goals with the knowledge you gain. Setting the right goals, seeking wisdom from others, and taking responsibility for your spending will help you be more financially literate.

Be Financially Literate

  • Make S.M.A.R.T Goals: S.M.A.R.T stands for specific, measurable, attainable, relevant, and timely. It’s a strategy commonly used in business and in personal goal setting. It’s used as a measurement of goal effectiveness. Think about your finances in terms of S.M.A.R.T goal creation.
  • Seeking advice from others you know are financially adept will encourage you to be the same. When you place yourself around people who are good at something chances are you can learn from them. Don’t be afraid to ask them questions about decisions they’ve made to get where they are.
  • Take personal responsibility for your spending habits. You have to be willing to take the liberty to learn about personal finance and start applying it your everyday spending habits.

Financial literacy doesn’t have to mean complicated words or books. It’s really about you taking on the responsibility for your personal finances. That means taking advantage of the resources you may have available to you.

Is Good Credit Really All that Important?

Is Good Credit Really All that Important?

Personal finances can be scary. Credit is one of the biggest assets in your financial portfolio. If you’ve ever thought about purchasing any big ticket items, such as a car or a home, then your credit score will be in question.

According to Experian, a credit reporting agency, “credit is borrowed money that you can use to purchase goods and services when you need them. You get credit from a credit grantor, whom you agree to pay back the amount you spent, plus applicable finance charges, at an agreed-upon time.” In the most simple of terms, credit is a measure of your ability to pay back borrowed money and the cost of that borrowed money.

The question of whether credit is really important is not as relevant as whether or not you should be worried about good or bad credit. Remember a credit score is a measure of how well you can pay back a debt.

Four Reasons Why Having GOOD Credit is Important

  • Bad credit and debt can delay major life events: If you’re thinking at some point of purchasing a home or a car it will be difficult without being able to meet certain financial requirements. Even landlords will look at credit before renting to tenants.
  • It may hold you back from opportunities: Some jobs may check credit before hiring you. For some employers it establishes responsibility.
  • One of the most important reasons for maintaining or achieving a good credit score involves interest rates. People are able to negotiate lower interest rates when they have leverage. That leverage comes in the form of having a good credit score. There’s less leverage when your credit score is on the lower end. In fact, you may be penalized with high-interest rates for having a less than ideal score.
  • Insurance is required for homes and cars. Credit scores do influence the ability to obtain required measures to own a home and car

If you have financial goals or you’re looking to make any big ticket purchases, then the best place to start is learning your credit score. To answer the question of whether or not credit is really important the answer is – yes. Good credit is essential to anyone who has major goals that will require financial competencies.   

Best Cash Back Credit Cards

Best Cash Back Credit Cards

Whenever you’re looking at the cash back credit score cards you are going to want to see what it is you’re going to receive in return for utilizing the credit score card. Therefore, if you need to spend wisely, obtaining a cash back card is the thing to do. You’ll want to ensure you take your time and appear at all the various offers which you will see together with the cash back credit cards. When you’re trying to find a credit score card that can pay you particularly in return for using their card you’ll discover the cash back credit score cards will be the best way to go.

Making a utility payment online by means of a card really has been a big benefit for a lot of people and this also allows someone to set a very good credit score by utilizing cards for an essential bill then making the credit score card payments punctually. There are several cash back credit cards available in the market nowadays. With a low APR in addition to the first 6 months set at zero percent interest, you’re going to discover this is one of the top cash back credit card provides attainable in the marketplace. To be able to receive a cash back credit card you would have to have a really good excellent rating in order to obtain the right benefits.

The 5-Minute Rule for Cash Back Credit Cards

Seeing as there are an excellent variety of cash back credit card offers, you’re going to possess the flexibility to select from plenty of alternatives. Both credit cards provide outstanding customer care should you have some questions. That way there you’re going to be well informed before you can make use of the credit score card thinking you’re going to get a huge cash back reward from the credit score card company. If you like to earn each time you purchase something, you could as well try obtaining a cash back credit card.

Bear in mind that in most cash rebate charge cards, your cash rebate percentage will be different based on the form of purchase that you earn. What most card businesses have found effective would be to offer rebate cards wherein the consumer will receive a percentage of funds back with each purchase made. With the finest cash back credit cards, you can really secure excellent value for the money, and that means you should choose well. In case you have a business, you might want to contemplate obtaining a cash back card, especially for business purchases.

The Hidden Secret of Cash Back Credit Cards

Additionally, you might also earn a 1% Cashback on the rest of the purchases utilizing this card. Anybody who is interested in receiving a discount (and who isn’t) has to adore the Cash Back credit cards.

These rewards were in the type of cash backs and rebates. They’re just like cash. Whenever you’re looking at cash back credit card you’re even going to need to check to observe how you’re going to get the cash rewards that you’ve earned. Make sure you get cash back on each purchase, irrespective of category.

Credit Cards for Fair Credit Scores

Credit Cards for Fair Credit Scores

The Dos of making use of a credit score card Sign the card once you receive it. When we discuss charge cards, we generally refer to unsecured charge cards. There are lots of classifications of charge cards like secured charge cards or prepaid charge cards, etc.. An alternative is to truly have a secured charge card.

It should be noted that these charge cards, are different from all significant limit cards for poor credit and substantial limit charge cards for poor credit score, as the poor and bad credit score implies the fact the credit score file, score and yet the credit score history are bad. This is only because credit inquiries of any type will hurt your existent credit score badly. The higher credit limit credit cards are elaborated in depth in these paragraphs. Secured credit cards to rebuild credit may be a great option for people that are thinking about improving their credit scores.

Getting the Best Credit Cards for Fair Credit

A fair credit score would end up being very advantageous in regards to making charge card applications. In reality, 35% of the FICO score is contingent on credit history.

Now you know how to raise the credit limit in your card, try and use it in order to enhance your credit rating. Should you be planning to apply for such charge cards, then it’s advisable that you endeavor to raise your credit rating and score even more. Besides, your own credit score will be impacted forever. A credit score between 500 to 620 is thought to be considered a poor credit score, and there’s almost no chance of procuring a financial loan or perhaps a credit score card sanctioned.

Secondly, following the card’s funds are exhausted you must reload or recharge the card by paying the credit score card company, which has a tendency to be a little inconvenient in certain situations. There are lots of credit cards which do not charge a large annual fee or don’t charge anything while providing equally great reward benefits. The perfect way to apply for all these cards would be to approach your own credit card company.

The Fundamentals of Credit Cards for Fair Credit Revealed

When the credit score card company had increased your credit score limit, don’t wind up splurging your complete balance. On the opposite hand, in case you are employed and get a steady stream of income, then the credit score card wouldn’t be secured. Credit cards have become an essential portion of daily everyday living.

Many charge card companies automatically review your credit score after six months for raising the credit score limit. After you get the credit score card, it is suggested to produce timely payments of the bill and utilize the credit score card wisely, as a way to keep up a fair credit score score. All you really have to do is apply for a different credit score card with similar business. This charge card is an unsecured personal credit card debt, meaning, that as a way to find the card, no collateral or another financial security needs to be pledged.

Credit Cards for Fair Credit Help!

Each year tens of thousands of people wind up in personal credit card debt. The issue is that it’s usually as lousy as having a poor credit history.

Therefore, for people without a credit history, getting a credit score card can be an issue. Ultimately, department store charge cards may be an effortless way out for people who find it impossible to establish a credit score history. The credit score report contains somebody’s credit score history, that presents the loans and variety of credit cards employed in the past. The person whose credit history is extremely good will obtain a card with a higher credit limit.

How to Check Your Credit Score

How to Check Your Credit Score

You can log into the site and request for a complimentary credit score. If you’re going to perform a yearly credit score check, you’ll get the essential information needed as a way to allow you to determine how well you’re managing your credit score. This info is also used to produce a credit score, which is explained in greater detail below.

The Upside to Checking Your Credit Score

Each one of these credit score agencies may also offer you a credit score but you are going to need to pay for them. It all hinges on your own credit SCORE.

The limit to credit is, in addition, dependent on credit records. By acquiring a totally free yearly credit score you are going to be able enough to see just what affects your credit rating and by exactly how much. Your absolutely free credit history doesn’t include a credit score score. Since your own credit score is this kind of significant factor in determining whether or not you’re issued a brand new charge card, loan, or provided employment it’s vital that you keep a close on your own credit score.

Hearsay, Deception and Your Credit Score

When you pick this method you may have your own credit score in an issue of minutes rather than an issue of weeks. Your credit score including your credit report are just two distinct things. They do offer your personal credit report at no cost once a year. What they’re advertising is really a totally free yearly credit report and perhaps a credit score together with a completely free trial of the credit score monitoring program.

The credit score bureaus then supply this information within the form of the credit score report to companies or persons that request it, like lenders from whom you’re seeking credit score. You can buy a score straight from the credit score reporting agencies and scoring companies. Each credit score reporting agency supplies a different sort of credit score to consumers. If it does happen you will then have the capacity to see on your own credit report most of the items which are negatively impacting your credit score.

Consumer Rights

The FCRA also offers you the right to understand who has had access to your own credit info. Clearly, if you don’t order your personal credit report, you could never know about them. So, determining your annual credit report check is crucial if you prefer to apply to get a financial loan. If you receive one of these notices, it is a wonderful idea to receive your absolutely free credit history and review the info in it at once.

Credit report is possibly the most vital piece of personal financial information you really need to know following your bank statement. It is vital that you review your own credit report from every bureau to make sure that the info is accurate and there isn’t any fraudulent activity attributed to you personally. To receive your totally free credit file, contact. Your so-called free yearly credit report’.

How to Choose the Right Check for Your Credit Score

Among the best strategies to guard yourself from identity theft will be to monitor your personal credit history. This pack of data is sometimes also known as a credit score file or even a credit score history. To confirm your identity, you might need to present some information on your personal credit report, including the amount of your own monthly mortgage payment. There are only three ways which you may obtain your totally free yearly credit report.

Should You Stop Paying Your Credit Cards And File For Bankruptcy?

Should You Stop Paying Your Credit Cards And File For Bankruptcy?

When you struggle with your debts and continue to default on payment with no means to pay back all your debts, bankruptcy may be the only option. Bankruptcy can appear to be the easy way out because you can stop paying your debts. However, credit card debts are not simply wiped out in all the cases. Depending on the type of credit card debt and the bankruptcy chapter you file, you may be required to pay off the debt.

A charge off doesn’t discharge you from debt

Credit card companies often write the uncollected debt off their books as ‘Charge-off’. This simply means that your debts are sold to a collection agency which will be responsible for collecting money from you. Just because your account is charged off, it doesn’t mean that you don’t have to pay the debt. It simply means that debt collector will be the one who you must be paying off.

Secured credit card debt will not vanish

When you purchase credit card from stores, you will most likely enter into a contract with the terms ‘purchase money security agreement’. This means that your credit card debt is secured against the items you purchased using the card. While filing for bankruptcy, you can either return the item to pay off the debt or continue to pay it while retaining the item.

Discharge unsecured credit card debt

With chapter 7 bankruptcy, all the remaining balance on your unsecured credit cards will be discharged. If you don’t pay your credit card bills, the creditor can file a lawsuit against you. The court may order you to pay back by deducting from your paycheck or by automatically withdraw money from your bank account. If you have filed for bankruptcy after the lawsuit, you still have to comply with the court orders. However, if you are quick to file for bankruptcy before the creditor has a chance to file a lawsuit, your credit card debt will be wiped out. In that case, you can stop paying your credit card debt so that you don’t waste any more money. You should not, however, make purchases within 90 days before filing for bankruptcy. Also, you can’t transfer non-dischargeable debt onto the credit card.

Secrets The Credit Card Companies Hide From You

Secrets The Credit Card Companies Hide From You

Getting a credit card is a good way to build a solid credit history which will help you in numerous ways. You can become a responsible creditor using credit cards wisely and paying bills on time. In fact, lenders prefer people with a good credit history to people without any credit history. You can save thousands of dollars every year in terms of credit interest if you have a good rating. However, credit card companies are not always transparent about their policies, which may mislead you.

Minimum payments are meant to keep you in debt

Credit cards are lifesaving for those with a budget crunch because you may be happy with a lower minimum payment. However, if you continue to make just the minimum payment every month, you will be more in debt. In fact, credit card companies like such people to charge a higher interest rate. All your late payments are reported and this can hurt your credit score badly.

APR increases dramatically after a single late payment

Credit card companies are notorious for changing APR at their will. You may buy a credit card just because of lower APR. However, if you make even a single late payment, credit card companies can increase your APR up to 30% or higher. This is called penalty APR and it will be mentioned in the fine print. If your payment is late by more than 60 days, the APR may apply to your existing balance as well.

No-limit credit card has limits that you don’t know about

No-limit credit cards that come without a preset limit immediately fascinate many people. This doesn’t mean that you can use the card without any limit at anytime you want. The limit is set based on your spending behavior and you may just not know about it. So, before spending more than the limit, consult with your provider regarding the actual limit.

Grace period is a joke

The credit card companies may offer a shorter grace period such as 20 days for a lower interest rate. Some credit cards come without a grace period, incurring interest for every purchase. Before getting your credit card, understand thoroughly about the interest-free grace period.

5 Little Known Factors Affecting Your Credit Score

5 Little Known Factors Affecting Your Credit Score

The credit monitoring companies TransUnion, Experian, and Equifax arrive at your credit score based on complex algorithms. There is no way to know how your credit score is calculated. It is, however, possible to understand the facts that hurt your credit score so that you don’t end up with a bad rating.

1. Consistent late payments

Everyone knows that missing credit payments will affect the credit score. You may not know that consistent late payments will also affect your credit score. It is better to set up reminders and use automatic payments to avoid late payments.

2. Closing old credit cards with balance

In an attempt to take control of your debt, you may want to close older credit cards and manage with just a couple of cards. This can be bad for your credit score, especially if you close older accounts. The average age of credit accounts is also considered to calculate your credit score. If you have been consistent in paying your credit card balance for a long time, it will have a positive effect on your credit score. Also, closing credit cards will reduce the available credit balance.

3. Requesting multiple new credit cards

The credit card companies continue to introduce points for various types of cards and you may be tempted to get everything. Multiple requests for multiple credit cards are an indication that you need more credit and you will end up with more debt. Always be picky when you apply for new credit cards.

4. Unemployment

Everyone will face unemployment at a certain point in life, but it will be recognized by the credit monitoring companies. While you can enjoy the unemployment benefits, you should always try to reduce your credit card debt so that you don’t end up with a massive debt during the unemployment period.

5. Utilization ratio

Even though you have a decent balance on your credit card, you should not be in a hurry to splurge, especially if you are hoping to purchase a loan in the near future. Always keep your spending below 25% of the available credit limit.

How and Why are Credit Card Fees Decided?

How and Why are Credit Card Fees Decided?

“Nothing in life is free; everything comes with 100% of the effort.” (Ruiz, 2012). This beautiful quote replies to every question asked regarding an object produced in this world. As economics says only free goods are the one which is unlimited in supply and has no price because, they are nature made goods for example air, sunlight and soil. 

No matter how much we consume it they won’t finish whereas, economic goods are the one made by human, which involves efforts in it and will be diminished one day. Every object made by human being needs to be paid off. A credit card is one of the examples.

Credit Card Terms

A credit card is designed by a bank or a financial company to facilitate people around in their financial transactions. In return, they desire for some fees for the services they provide. Calculation of credit card’s fees is a tough, complicated and extensive task. You need to pay them for their overwhelming efforts and, along with it, you need to make a check over the procedure of creating a fee for a credit card so you are not being cheated. 

To know about the whole procedure you need to know how many parties are involved in it. There are mainly four parties involved in the creation of a credit card, the first one is credit card association, the second is credit card issuing bank, third is credit card processors and last is merchant account provider. A credit card is processed by these parties before reaching in your hand.

Three Types of Fees

Furthermore, there are three types of fees which occur during any credit card transaction; transactional fees it occurs every time you run a transaction, it is the biggest the cost for operating a merchant account, flat fees they vary with name but will be available on the statement on monthly basis last is incidental fees they are not charged on monthly basis but on the chargeback fee. This fee occurs annually and one has to pay them especially on some special credit cards such as premium card and secured credit card. You should avail more benefit than the cost you pay for it.

There are some ways to escape from credit card’s fee by choosing a credit card with no fee. Use your credit card in a discipline which creates no cost. Furthermore, pay your credit on time and start paying your balance in full to be free of interest rates cost. By giving a regular check over four departments which create credit card fees you may get to know about the right amount to pay. Along with this, you’ll be well informed about your credit card’s status.