How to Build Your Credit History from Scratch

Less and less Americans are becoming financially savvy. Most of the reports we’ve covered here at Financial Helpers talk about most people being big spenders, taking out loans and debt they can’t afford, and refusing to save any type of money. As a result, it’s taking a massive toll on us financially. We’re in more debt today than we’ve ever been in before.

A lot of us were never taught about the benefits of being financially responsible. As soon as we had the chance to do so, we probably ruined our credit or got caught up with a lot of debt. But for the high school and college students with no credit history at all, you get an amazing chance of starting out just right.

The easiest point to start out is the beginning, but it will take some time. A large portion of your credit score is determined by several years’ worth of on time payments. You have to be diligent and on your game. Over time, you’ll see your numbers climb higher. It’s super important to have a good credit score for many reasons.

For one, some employers look at credit scores. Showing good decision-making skills with your money and finances is important to a lot of future employers. It can also save you a ton of money down the road by cutting down the amount of interest you’ll have to pay. And when it’s time to buy a home or a car, the better score will bring down your monthly payments.

Here are a few other things you can do to build your credit score from scratch:

1) Don’t Apply Blindly for Credit Cards

When trying to get credit cards for building credit, a lot of people make the mistake of just applying for anything they can get. This is a wrong move to make. Every application you fill out that requires a credit check hits your credit as an inquiry. 10% of your credit score is determined simply by how often you apply for credit.

The thing is, you might be declined for these cards because they are above your level. Don’t go for the extremely popular American Express and Discover cards. You must have good credit and a steady income to find your way towards those. Instead, find starter credit cards. They will give you less credit to play around with and may even require a deposit to get started.

Rather than getting an inquiry hit and risking being declined, go for the smaller cards and those you have a better chance at being approved for. Yes, these cards will probably suck and have horrible interest rates, but as long as you know how to use a credit card, that won’t matter. Let’s look at what that means in the next point.

2) Don’t Go Crazy with Credit Cards

The best way to build your credit isn’t to go crazy and max out your cards every month. In that case, you risk something happening and defaulting on your payments. If you can’t make 100% on-time payments, it’s going to work against you by hurting your credit. Instead, use your credit cards sparingly. Use what you can pay off each month and you’ll avoid having to waste any money on accumulated interest and still get a 100% on-time payment reputation.

3) Learn What All the Terminology Means

When dealing with credit, there are a lot of things you need to know. What’s your interest rate and how is that calculated? What’s APR? Do you know what annual fees and minimum payments mean? There’s a lot of stuff that can really swamp you if you’re not prepared and knowledge about how the whole system works.

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Here’s the Problem with Having a Low Credit Score

Your credit score can impact a lot more than you realize it does. We’re talking about its ability to keep you from making major life decisions, taking care of yourself during an emergency, or even the ability to save money. Low credit scores can also be blamed for causing issues in relationships and putting a person in turnoff territory.

Low credit scores can cause higher interest rates, expensive insurance, and so much more. Sometimes, a bad score isn’t the person’s fault. Perhaps they had a medical emergency and are now trying to pay back a lot of debt. A divorce and big spending by a spouse can lead to it as well. Either way, low credit scores make life difficult.

The new middle class is essentially a person who is making a decent amount, but are unable to save. A lot of them don’t have health insurance, which costs them big time in the end. There’s new information coming by Elevate, a company that looks at data from non prime Americans. To be considered non prime, you must have a credit score below 700.

Those with a low credit score are finding out they have a harder time financially than those with a good credit score. This might seem obvious, but it happens in ways you might not expect. Their incomes are less steady. They’re paying a lot more for things that someone with good credit is paying less for.

Credit Scores and Dating

42% of people who were surveyed said the person’s credit score played some role in their interest in another person. This is an interesting statistic found by Bankrate and Princeton Survey Research Associates International. A good credit score says someone is responsible with their finances and money issues cause problems in relationships.

Women are rightfully more judgmental about credit scores than men. The survey looked at 1,000 adults and found about half of the women said they wouldn’t date someone with a bad credit score. Men care less about it, with only 35% saying the same. Older millennials are the group that seems to care the most about the subject.

There are very good reasons for this. Low credit scores can make it nearly impossible to buy a house, get an auto loan, get any type of loan if one is needed, and so much more. Even if they’re able to find that one company out there willing to give them, let’s say, a mortgage, they’d pay nearly $50,000 more than people with good credit.

This is ultimately what makes life more difficult for people with a lower credit score. They’re shelling out a lot more money and it’s catching up to them. They make higher monthly payments and can’t seem to get ahead in their finances. This is why it’s essential to focus on improving your credit score and saving money any way you can.

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6 Reasons Why You Should Actively Work to Repair Your Credit

Credit & Debt , Credit & Debt Settlement

Your credit score is incredibly important. Having a good score can help you in a lot of ways. It can even save you during an emergency. If you needed to take out a loan, for any reason, having good credit is helpful. It can save you thousands of dollars when making large purchases with credit and on interest.

Sadly, a lot of people take their credit for granted. They don’t protect it. It’s there as a plaything. If you want to buy something you can’t afford, they’ll just pull out the plastic. They’ll keep doing that until suddenly they can’t even afford minimum monthly payments. That’s when the real trouble begins.

From a young age people should be taking care of their credit. And if it’s in bad shape right now, be more active! You can repair your credit. It will take some time, but don’t just sit on your hands and let it deteriorate. By putting the ball in your court, you can actually save yourself grief in the future. Here are 6 reasons why you should actively repair your credit.

1) Your Credit Report Might Have an Error

Here’s a statistic that might hit close to home: 1-in-4 reports have an error. That’s no joke! The Federal Trade Commission did a study and found that 1-in-4 credit reports have an error on them. That can directly harm your credit score! One-in-twenty reports had a major enough of an error that it dragged their score down 20 or more points.

You also have a 1-in-4 chance of being defrauded by a credit card scammer. These are real numbers. If you’re not careful, it can certainly happen to you. Millions of Americans each year become victims to credit card fraud. By keeping up with your credit and repairing when necessary, you can catch these problems early.

2) You Can Refinance Your Loans

There may be a time when your debt overwhelms you. Rather than just sitting back and letting it pile up with more interest, act! If you have a good credit score, you can combine all your debts into one, smaller monthly payment. Having a better score means better rates and less interest paid overall.

Your credit score will determine the rates when money is lent. As the economy dips or improves, this can change over time. The Feds change the overall interest rate. But if you have a great score, the lower your rate will be overall. Having lower payments can surely improve the quality of your life and make your debt more manageable.

3) It’s Easier to Get Approved for Financing

If you have a major need for financing, it can be a stressful process. Mostly you don’t know if you’d get approved. If you don’t have a strong credit score or a good record of spending, this will cost you. To wait around to find out if you got approved, only to be denied, is even more frustrating.

That’s where having a good credit score makes life easier. There’s much less of a chance of being denied. There are to major factors in getting financing approved. The first is your credit score. The second is the amount if income-to-debt you have. By repairing and maintaining your credit, it’ll be much easier to get approved.

4) You’ll Be Mortgage-Ready

One constant in life is that things are always changing. You might find yourself in a good spot right now, but what if you or your partner become pregnant? What circumstances would you need to upgrade your living situation and do it quickly? Renting isn’t always a good option these days. The price of rent continues to shoot for the moon.

Even if you’re not expanding your family, but just think it’s time to buy a home, you need to be ready. Your credit score is going to be a huge factor in determining whether you get approved. It can even save you down the line with a lower interest rate on that mortgage. Even a half percentage point can mean thousands of extra dollars if you’re not careful.

5) You Can Buy Things as Advertised

Don’t you hate car commercials that go on and on about discounts and low monthly payments? Well, you’ll be frustrated if you go into a dealer and ask for those prices. Those prices aren’t for you, my friend. They’re for the person who has spotless, perfect credit. They’ll advertise all the incentives in the world to get you in the door, only to shut you down.

No interest for several years, the no-money-down deal, yep, hands off! That doesn’t mean you’ll be completely denied an auto loan, but your credit makes an impact. If you spent time repairing your credit before buying a vehicle, those incentives can save you A LOT. We’re talking thousands of dollars over the life of your loan.

6) Discounted Car Insurance

A good credit score isn’t just good for lower auto loan rates. It can also save you with insurance, too. Most companies choose the rates based on your score. What your credit score has to do with driving, no one knows. It’s just an excuse for them to jack up your rates if you don’t have your affairs in order.

Overall, taking the time to repair your credit score is completely worth it. There are many discounts and incentives you will receive. Life will be much easier when you can get better rates, lower payments, and quick approvals. On the flip side, bad scores can really hurt you massively. Repair your credit while you can.

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Loan Strategies I Used to Pay Off My Car

Student Loan Consolidation

Your car or truck is your pride and joy. You love driving it and you consider it the pearl of the road. Maybe you’ve even named it and treat it well, like a member of the family. You get regular oil changes, take it in for a tune-up, and keep it clean. If you got a loan for your vehicle, you might be locked into a long-term relationship.

This is only part of your responsibility as a car owner. I do the same for my truck to keep it running as long as it can. But something I didn’t like doing was paying for my truck every month. As my budget tightens and I have other bills I need to pay for, I decided to look for ways I can pay off my loan sooner.

Another reason why this is important is to avoid paying more than the vehicle is worth. If you’re paying off a loan, then you’re most likely paying thousands of dollars of extra interest as well. By paying it early, you can save yourself the extra cash and own your vehicle outright.

Also: http://financialhelpers.com/americans-are-now-paying-a-lot-more-in-credit-card-fees/

Here are the 5 strategies I used to pay off my truck loan sooner.

1) Instead of Making One Payment Every Month, I Made Two

This is sort of a brilliant trick. Most loaners will allow you to make as many payments as you want. Instead of paying only once per month, pay half in the middle of the month. By doing this, you’ll make 26 half-payments instead of 12 regular payments, which means you’ll end up paying 13 full payments overall. That’s squeezing in an entire extra month of payments.

To look at it another way, rather than paying off the loan during the 60 months you planned, you can be finished with it in 54 months just by making two half-payments per month.

2) I Rounded Up When Making Payments

When you pay your monthly bill (or bi-monthly if you use the step above), a large portion of it goes towards interest. Anything above that threshold is payment towards your vehicle. If you decide to round up to the nearest $50 increment, you can cut a 60-month loan down to 47 months and save over $500 in interest.

For example, if your monthly bill is $208, but you decide to pay $250, that extra $42 goes directly towards your vehicle, not the interest, meaning you can pay off the loan faster and save on the interest you would’ve had to pay if you just paid the minimum. It would add up to an extra $512 paid towards the loan in a year.

3) I Made Several Larger Payments

This is an obvious point, but it certainly helps to make an additional larger payment or two if you can afford it. You might want to spend that money on something else, but the more you can put into it during the year, the faster you’ll pay off the loan and the less you’ll thrown down in interest.

4) I Never Missed a Payment

This is a big one. Since getting a truck loan, my credit score has gone up significantly. One of the major reasons for that is I have 100% on-time payments. If you do miss a payment, it can reflect negatively on your credit score.

While some lenders do allow for a missed payment a couple times a year (hey, stuff happens), missing that payment will just add more interest and take you longer to pay it off. Do your diligence. If you have to cut back on other bills, do it. Once you’re clear and free of the loan, you’ll have a lot more money in your pocket.

5) I Was Able to Refinance

I mentioned in the point above that making on-time payments significantly improved my credit score. When you get a loan, the interest rate is based on that score, as it offers a picture to the lender about your ability to pay it back. If your score goes up after a decent amount of time of regular payments, you’re more trustworthy.

You might be able to get lower monthly payments, less interest, and a shorter term by refinancing. If you can’t get all three, then it might not be worth it. Even if you can get lower payments, still paying the amount you were before will only help you pay it off that much quicker.

For me, these steps were part of a greater strategy. I had a poor credit score with little history. By showing some fiscal responsibility, I was able to improve my score and pay off my vehicle in a lot shorter of a time. It’s small steps like this that can get you closer to true financial freedom.

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4 Strategic Steps to Help You Get Out of Debt Forever

Credit & Debt Settlement

The Federal Reserve Bank in New York estimates that the total amount of household debt in the United States has reached $13.21 trillion.

Debt is something we’re all ashamed of. We want to live the perfect American dream, but circumstances haven’t always been present in the last decade to make that happen. So, we’ve had to beg, borrow, and (hopefully not) steal to get by.

From credit card debt, mortgages, and auto loans to student debt, we’ve piled it on and can find ourselves drowning in it before even hit 30.

People who find themselves under mountains of debt struggle even more because they don’t know how to get out from it, especially if there’s a change in income.

What you need is a proven strategy designed to get you out of debt once and for all. Here are four steps you can take:

1) Start by Building Your Savings

One of the most important things Americans need to have is savings stashed away for a rainy day. Yet, according to a survey, the vast majority of us don’t even have access to $400 if we needed it. That’s a scary statistic!

You can’t gain financial freedom without having some money put away in case you need it. Believe, that day will come. That day could be today and you’d be out of luck. Talk to your bank and create a savings account where a certain percentage of paycheck is automatically deposited.

You’ll also want to start an account that’s designed for spending. You’ll probably have to live as lean as possible to get through your debt crisis while saving money for an emergency, but if you have a few extra bucks, toss them into the spending account and they’ll add up. You can use that money for whatever you want.

2) Consolidate/Restructure Loans

There are options out there designed to help you take care of your debts. Most people don’t even take the opportunity to check if they qualify for these options. Restructuring your loan can save you hundreds of dollars per month. Consolidating can combine several loans into one single payment.

One good way to determine if you’re ready for a restructure is by your credit score. If you got a loan when you were younger and your score wasn’t that good, you probably were slapped with high interest. As your score improves, you can be trusted and have your interest lowered.

If you wonder about qualifying for lower interest payments and whether you can consolidate, gives us a call here at Financial Helpers. We’ve helped thousands of people by negotiating better deals with their debtors and lowering their rates, saving them thousands. Call us at the number below today to see how we can help.

Call Now 1-844-332-2079

3) Attack Your Loans

If you have multiple loans and can’t consolidate them, then there’s a method available to help you decide which loan to tackle first. Garrett Gunderson, chief wealth architect at Wealth Factory, says the best way to do this is by using the “Cash Flow Index”.

Take the balance of a loan and divide it by the minimum monthly payment. The answer should determine which loan is eating most of your cash flow and should be paid off first. If it’s below 50, then that’s a high cash flow loan. If it’s over 100, then you have a more efficient loan.

The idea is to show you’re improving your debt to income ratio. Paying off the lowest cashflow loans first will help you do just that.

4) Be Wary of Investing in Assets

You might think having an investment is a great way to secure future wealth, but at the current moment, it’s dangerous to do, especially if you have high debt. The debt is seriously risking your family’s livelihood and needs to be dealt with. If you can, the best course of action is to cash out and put the money towards your debt instead.

“Money is so accessible and available. People have created a massive amount of debt because we’ve become a society that’s not about the cost of the purchase, but the payment behind the purchase. People look at what they might be able to afford based on the payment not considering any mishaps, emergencies or other issues that may happen along the way,” said Gunderson.

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5 Reasons Why You Should Never Default on Your Student Loans

Student Loan Consolidation

Student debt is a major crisis in this country.

As we’ve previously covered, student debt has risen to a new record of $1.5 trillion. As that number continues to rise, it becomes increasingly difficult to figure out how to pay it back!

This crisis has been around, but it accelerated towards the end of the Great Recession. A lot of students were graduating college, only to find the job landscape barren. There were plenty of people with bachelor’s degrees working at fast food and living back home with their parents.

It’s been estimated by the Brookings Institute that nearly 40% of all student loans borrowers will most likely default on their loans. That’s a scary number!

The problem with default on your loans is it can wreck your life at a time when you’re trying to learn how to stand on your two feet. It sets you back significantly in ways you may not realize at the time.

Jeremy Wine, the supervisor of student loan counseling at Take Charge America, says, “People from all walks of life are defaulting on their student loans, affecting them for years to come. Paying student debt must take top priority.”

Here’s a list of 5 things that can happen if you default on your student loans.

1) They can demand payment in full.

Once you graduate, you’ll have options for paying back your loan. It’s typically set to be a monthly payment, but what happens if you miss one? Your account will be considered delinquent. Interest is typically added. It takes about nine months of non-payment to be considered in default.

At that time, your creditor can then decide they want the payment in full. No payments will do…you had your chance! It will be their discretion on if they’re willing to work with you further. Your loan will remain in default until the whole thing is paid off.

The best way to avoid this is to stay in constant communication with your creditor. Let them know if you need to skip a payment, but it’s best to make the loan your biggest priority, as it will hurt you down the line if you don’t.

If you feel lost and need to know what your options are, call Financial Helpers today. Our team of student loan experts are standing by to help you through the process, show you what you can do, and even help you apply for existing government programs before they get closed for good. You can reach us at:

Call Now 1-844-332-2079

2) Major collection costs added.

If there’s one thing banks are good at, it’s collecting extra fees. If your loan defaults, they’re going to go out of their way to find you and it won’t be pretty. Fees ranging as high as 20-40% can be added to your loan. Making the loan bigger is the last thing you need!

3) Wreck your credit score.

One of the worst things that will happen to you if you go into default is the impact on your credit score. As soon as you are 9 months delinquent, your credit score will reflect that you’re in default, and the score will drop significantly. Payment history is a huge factor in determining your score, so it will remain until the loan is paid off.

4) They’ll come after your paycheck/refund.

A lot of people think they can just graduate college and not pay their loans. It’ll disappear on their credit after 7 years anyway! But what they don’t realize is, the bank is going to come for your money and they’re tied to the government.

If you don’t make regular payments and go into default, say goodbye to your tax refunds. The government will take most of it. If you’re married and you file jointly, they’ll take your spouse’s refund too. They’ll even garnish your paycheck.

The good news is, this is mostly their way to get your attention. The wage garnishment will continue until you call them and set up a real repayment plan.

5) Default will prevent you from being trusted.

Your credit isn’t the only thing that will be harmed by not paying your student loans. Your credit history is pulled for a lot of things you want to do in life. Need to get a new car? Rent an apartment? Get that big job? You might get a big, fat NO if they see you’re in default.

Other professional employers looking to hire you, like doctors, teachers, lawyers, and other service workers can have their license taken away if they’re in default, so trying to find a job in any of those sectors would be extremely tough.

“It’s best to deal with it immediately. I know it’s really challenging because student loan debt is so high and it’s unmanageable for some borrowers, especially when they are placed in a standard repayment plan. But ignoring it and not doing anything about it is one of the worst things to do,” said Wine

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4 Ways to Improve Your Credit Report

Credit & Debt Settlement

We previously wrote an article about how much Americans are taught about their finances, either in school or from their parents. As it turns out, most of us don’t get good advice, as there’s no real standard in how we’re taught.

This lack of education is what has led to the debt epidemic we have right now. As we go about life, we have a need to figure things out for ourselves, and that includes overcoming mistakes we’ve made that may hurt us down the road if we don’t get them under control.

One of those is the almighty credit report. Yes, the thing that gets pulled every time you want to buy something. Need a loan? Want to buy a car? Is it time for a mortgage? Well, your credit report is probably the single-greatest factor debtors use in determining if you’re eligible to receive help.

The ‘problem’ with credit reports is, if you made a financial mistake when you were younger, it’s going to follow you around for a very long time. If you have several bad hits on your report, you will either be offered loans with extremely high interest or be denied altogether.

If you find yourself struggling and want to know how to fix your credit report, there are four ways to do it.

1) Get Your Credit Repaired

Sometimes, the mistakes on the credit report aren’t yours! Go through the items listed and make sure everything can be verified. If it’s not, you can dispute the charge and the credit bureau has 30 days to verify or it will be removed. This is because law requires all information on your credit report be verified.

Other mistakes can include your report stating you made a late payment, when it was on time. Everyone makes mistakes, so this is something you can clear up. The process is called ‘credit repair’. Once they can’t verify you missed that payment, it will be removed from your report.

Even if you know you owe the debt, you can still find a way to get it cleared from your report. A lot of times, these debts are bought and resold, going from one debt buyer to another. In this case, one of your debt buyers may not have complete information. If this is the case, you can have that debt removed because they can’t verify.

2) Re-age Your Account

A lot of your credit score is determined by active accounts. If you’re not paying a debt and it becomes delinquent, that’s a huge black mark on your record. But, you have the power to change how the debt gets reported to the bureaus.

By contacting the creditor and working out a deal, you can tell them as part of the negotiation process that you’re willing to make payments if they report that your account is current. If you’re faithfully making payments on time, that debt won’t be as bad as a mark and can raise your score higher.

3) Get It Deleted

Debt companies love to negotiate. Each attempt will be different, but you can talk a company into agreeing to remove your debt from collections if you pay a certain amount. As long as they get their money, they’re happy and willing to work with you.

It’s not guaranteed they’ll go through with it though, so this is a risky move. It’s just another weapon in your arsenal that can help you at the negotiating table.

4) Wait

This isn’t the quickest option in getting your debts paid off, but in the credit world, nothing lasts forever. In most cases, your debts will be wiped out within 7 years. If you’re not in a rush and you plan on working on your score, you have the option to wait it out. If you’ve filed for Chapter 7 bankruptcy, that will stay on your record for 10 years.

Of course, the best option is always to stay on top of your debts and pay the off. That will ensure you have a good credit score when you need it. If you don’t, then obtaining credit will be extremely difficult without a cosigner.

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Having Student Loans Can Make Buying a Home Impossible

Saving

Owning a home is part of the big American dream. It’s why we care about going to college and getting the best education money can buy. When it’s time to settle down and start a family, part of the process involves securing a mortgage.

Right now, millennials fall within this age group. They’re graduating college, but find that life outside the campus isn’t as easy as they first thought, forcing them to live at home.

The first issue is the current housing economy. Millennials are starting their families, yet they find that housing isn’t so easy to find anymore. When they do find something, the prices are through the roof. That’s because the high demand coupled with low inventory sends cost nearly to unattainable levels on its own.

The cost of rent is much higher. 23% of millennials say they felt forced to buy a home because rent was way too high. Rent has gone up in 85 of the top 100 cities, according to a survey from the Department of Housing and Urban Development.

This isn’t the only thing stopping millennials from buying a home. The other issue is their debt.

Currently, 62% of millennials have student loan debt, which exacerbates the cost of home ownership. 45 million Americans owe $1.5 trillion in student debt, as it was recently reported. It’s a new record that doesn’t seem to be going away anytime soon.

Almost 1/5 of those with student debt owe $100,000 or more. That’s a lot of money and it works against them when it’s time to buy a home.

A large amount of student will not only take a large portion of your income (if you’re paying back regularly), but also put a huge dent in your credit. If you’re credit isn’t in tip-top shape and you already have a large amount of debt, banks will be less likely to give you a loan.

Even if they do feel confident enough to do so, you can bet the interest rate will be enormous.

That’s why 80% of millennials blame their lack of home ownership on their student debt. Regardless of their need to escape high rent costs and/or they’ve started a family and need a bigger place, their student loans made their dream impossible.

Debt-to-Income Ratio

According to the National Association of Realtors, nearly 1/5 of those who can’t get mortgage approval are denied because of student loans. That’s because their debt-to-income ratio is way too high. Banks look it as unsecured debt, which is applied negatively towards the borrower.

If a large chunk of your income is going towards student loans, that means you probably don’t have much of an opportunity save money. If you can’t save, then you can’t afford a down payment.

85% of those with student loans say they delayed buying a home because they didn’t have the money for a down payment. Most former students pay between $350-$500 each month for their loans. That makes it extremely challenging to be able to throw down $40,000 for a down payment.

For this very reason, a lot of millennials turn toward their parents as a co-signer or for the loan.

The best thing for anyone to do after graduating college is to focus on their career and paying off debts. If your debt is getting the best of you and preventing you from having milestone moments, then you should get help in taking care of your loans.

The federal government has created several programs designed to help people pay off their debts faster.

For more information about these programs and to see if you qualify, call us today at: (855) 221-9282. Getting your student debt under control should always been your first goal, or else it will keep you from living the life you deserve.

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5 Tips for Improving Your Credit Score in 2018

Uncategorized

One of the biggest financial goals most Americans make revolve around improving their credit scores. Whether we get ourselves into trouble during our early years as an adult, or we’re determined to one day buy that dream home in the suburbs, there may come a time when we decide to buckle down and figure this out.

If you want to do anything in your adult life, one of the key factors of success is having a decent score. Need a loan? To get that apartment? To finance a vehicle? Even a lot of employers will pull your credit score to determine your worthiness for hire. So, here are 5 ways you can help improve your credit score in 2018.

1) Use Cash More Often

We all know that the best way to improve your credit score is to lower your debt balance. The problem is, every time you use your credit card, it changes your credit utilization. In layman’s terms, the more credit you use, the more it impacts your credit score. The goal should be to keep your balance as low as possible.

To keep your balance low, try to pay for items with cash. It always pays in the long run if you can use cash instead of credit. You save money in the long run and it helps stabilize your balance. Of course, if you don’t have to make the purchase itself, use that money to pay more of your balance down. That’s a great way to improve your score.

2) Don’t Be Afraid of Talking to Your Creditors

If you find yourself in a bit of trouble, don’t be afraid to talk to the people who can help you! You might be quite surprised to find out that most of these companies have programs designed to help with those who find themselves dealing with a hardship. You won’t know unless you call them and try to work something out.

3) Pay Off Your Debt

Of course, you knew this was coming! You won’t get anywhere unless you start paying down some of the debt you’ve incurred. Current debt accounts for about 30% of your credit score, so if you have a lot of it, you’re going to struggle to maintain your numbers. Credit reports love it when you actively pay off your debts. That’s much better than defaulting!

4) Be Patient and Follow the Process

Improving your score is going to take a lot of planning and months (even years) or following that plan to reach your goals. The amount of time it takes really depends on your debt and what you owe to your creditors. Since you can’t pay it all off immediately, take your time. Every little bit helps and will nudge that score up little by little.

5) Dispute Errors

Don’t always take your credit score as 100% accurate. There are a lot of people who end up with hits against their score that were wrongfully applied to them. If your credit report doesn’t look accurate, you have every right to dispute it. It can be something as simple as an inaccurate late payment claim that can drop your score as much as 110 points!

 

It’s quite possible to improve your credit score this year. By taking these five steps, you’re well on your way to improving life for you and your family and easing the anxiety and frustration that comes with being in debt to your creditors.

 

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Worst Credit Card Options for Debt

Credit & Debt Settlement

The invention of credit has been both a blessing and a curse for millions of people throughout its existence. Without credit, most average people couldn’t afford the things in life we often take for granted, like cars, college, and even your home.

The problem is, sometimes the temptation is too much. We all enjoy buying things and making purchases that make us feel good, but the use of credit often has numerous drawbacks. The biggest drawback to having a credit card is its cost.

According to the National Foundation for Credit Counseling, seven out of 10 adults used their credit cards for everyday purchases. This is a major issue with a lot of people who can’t even afford to buy the things they’re using credit to buy.

The banks don’t make it easy…or cheap. Fees, interest, charges, overdraft, and so much more can suck the dollars and sense out of your bank account and your peace of mind. This is where the Catch-22 comes into play.

We NEED credit. Without it, most of us are just out of luck. But if you’re one of many Americans who are currently searching for ways to get out of debt while improving their credit, here are several credit cards you should stay away from:

1) The Visa Black Card

One of the more popular cards on the market, the Visa Black Card will cost you $500 per year just to use it. That’s not bad enough, you be sucked dry with 14.99% APR. While it’s quite an expensive card to own, it also doesn’t really come with any benefits either. If you have debt, the last thing you want to do is pay this kind of money use a card with little benefit.

2) Wells Fargo Business Platinum Credit Card

Here’s another card was very little reward. You must pay an extra annual fee is to receive any benefit at all. Not to mention, this card has zero protection on it comes to arbitrary interest rates being increased. If you’re in debt, you shouldn’t be willing to subject yourself to higher and higher levels of interest.

3) First Premier Bank Platinum MasterCard

This card is another dozy. No wonder people are in a lot of debt! But if you don’t mind paying a $223 annual fee PLUS 36% APR, I’m sure you will be in line to get this one.

4) Centennial Classic Credit Card

This is another card issues by the same bank as #3. Just to open an account, you’ll need to dish out nearly $100. Fees will total around $120 per year with the same wonderful 35% APR.

5) Best Buy Reward Zone Credit Card

Sometimes people like to ‘invest’ in credit cards that offer a lot of rewards. For example, if you’re a fan of technology, games, and entertainment, then it would only be natural to have a credit card that offers you those rewards.

The problem is, the card is exceptionally expensive to own. Not only are you paying nearly 30% APR, but any interest fees you didn’t manage to pay will roll over into the next year, adding to your debt. Is that really worth the rewards you can only use at their store? This is why most themed reward cards are never good investments.

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