How to Build Your Credit History from Scratch

Written by adminJuly 2, 2019
Credit & Debt , Student Loan Consolidation

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.

Read More

Here’s the Problem with Having a Low Credit Score

Written by adminJuly 2, 2019
Credit & Debt , Student Loan Consolidation

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.

Read More

Here’s the Problem with Having a Low Credit Score

Written by adminJune 20, 2019
Credit & Debt

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.

Read More

6 Reasons Why You Should Actively Work to Repair Your Credit

Written by adminMay 2, 2019
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.

Read More

5 Strategies for Using Your Credit Card to Improve Your Credit Score

Written by adminAugust 8, 2018
Life Style

Here at Financial Helpers, we write a lot of articles that might seem to demonize credit card use. From our experience, a lot of people find themselves heaped in credit card debt they can’t seem to overcome, so they come to us for help.

But that doesn’t mean we’re anti-credit card. A credit card can be a very good thing for someone who is looking for ways to improve their credit. Having smart usage for a certain amount of time can make life a lot simpler down the line.

The better your credit score, the easier it will be to get approved for a car loan, mortgage, and so much more. Not only will it be easier to get approved, you’ll have lower payments than people who have bad credit, as you’ll be seen as more trustworthy.

Having a good credit score is a great thing and being smart with your credit card is the best way to get there. Let’s look at 6 strategies you can use to improve your credit score.

1) Don’t Miss Any Payments

If you struggle to pay your bills on time, then getting a credit card isn’t for you. A necessary tactic in remaining in good standing with any company that offers you a credit card is to pay your FULL balance. One important ingredient to a good credit score is having a decent record make on-time payments.

This one factor makes up 35% of your FICO score, so by missing payments, it can take a huge chunk out of your overall score. That’s why it’s better not to get a card at this time if you’re not financially stable enough to pay regularly. Also, paying in full will cancel out interest on those payments!

2) Use it Like a Debit Card

The safest way to use a credit card is to manage it like a debit card. One of the dangers of swiping credit is you can’t just look at your bank balance to see how much you have left. The money doesn’t actually come out of your account until later when you pay your bill.

Also: http://financialhelpers.com/3-beneficial-times-to-refinance-your-home-mortgage/

Don’t lose track of what you’ve spent and definitely only use what you can afford to pay back in full. A lot of people get into trouble going overboard and when they can’t pay it all back, try to skate by paying the minimums. Then, by the next month, they have an even higher balance to pay and it can get out of control quickly.

3) Keep a Low Balance

30% of your credit score is determined by how much you owe. If you spend way more than you can afford, that high balance will transfer into the next month and will reflect negatively towards your overall score.

The best way to use a credit card to build credit is to NOT use it every single day. Use your debit card as much as you can, but make occasional, smaller purchases with your credit so it’s easier to pay back. With a low balance and good record of repayment, your score will go up.

4) Look at Your Options

There are a variety of different credit cards for you to choose from. If you already have good credit, then it should be no problem getting hooked up with the best cards. If you’re credit is bad and you’re looking for a way to improve it, there are other types available.

Some cards are pre-paid, meaning you’ll have to make a down payment first. If for whatever reason you don’t pay your bill, they will just take what you prepaid. If you stay on top of your bills and do well, that money is often refunded to you. They may also have high interest, but it’s a great way to get started. Find the right card that best fits what you need.

5) Be Smart!

Once again, we only advocate smart credit card use. If you know you have a bed record of repayment, having a credit card can only cause a lot of problems for you in the future and make things worse. But, with smart use, life will become easier. Don’t get yourself caught up buying things you can’t afford and racking up tons of debt.

Read More

How You Can Prevent Student Loans from Destroying Your Credit

Written by adminJuly 12, 2018
Student Loan Consolidation

We’ve covered the ongoing student debt crisis extensively here at Financial Helpers, and we’ve made it our mission to help graduating students know how they can solve their debt problem as quickly and efficiently as possible.

Part of that is having the knowledge to understand how your student debt works and how to tackle it in the future so it doesn’t come back to haunt you. Life can be difficult with this debt, as one small mistake can destroy your credit for years to come.

The best thing to do is know how to handle your debt going in and have a working understand of the credit system. There are three outcomes that can result from your handling of student debt.

1) It can lower your score. (15% of students)
2) Your score can remain the same. (63% of students)
3) You can improve your score. (22% of students)

It almost seems miraculous that you could walk away from student debt with a better credit score than when you went in, but it’s definitely possible if you know what you’re doing.

When you have a higher credit score, you can refinance your loans. To learn how that works, you can give us a quick call today to see if you qualify and to inquire about existing government programs that can reduce your overall debt. It’s worth a quick call if it means saving thousands of dollars over the life of your loan. You can reach us at:

Call Now 1-844-332-2079

It all comes down to personal behavior towards money. Those who increased their credit score were more proactive about taking care of the debt. They kept their credit card balances down, was never late on a payment, and acted to lower their overall payments.

Those who hurt their credit score ended up borrowing more money and added as much as 78% to their overall balance. Missed payments STILL add interest to your loan, so if you’re not regularly paying down the balance, you could be increasing it.

There are 5 specific criteria that are used to determine your score. Make sure you line up with all 5 and you’ll do well.

1) Your payment history. When you apply to borrow money, you give your word that you’ll pay it back. If you keep your word and make on-time payments, that will reflect well on your overall record. It’s a sign of trust and totals about 35% of your score.

2) The amount you owe. One consideration that will be made is how much debt you currently have. If you have a lot of debt, are maxed out on your credit cards, and keep trying to borrow, that will reflect negatively on you. This is about 30% of your score.

3) Your total credit history. Making a couple on-time payments won’t reflect much on your score, but if you show your reliability over time, it can help nudge your score a few points higher. This is about 15% of your score.

4) Are you new to the game? About 10% of your score is made up simply by how often you apply for credit. If you have a lot of attempts, it can reflect as bad behavior versus someone who isn’t constantly applying.

5) Do you have a variety of debt? If you’re able to successfully manage debt across different spectrums, then you’ll increase your score. For example, if you have a mortgage, credit cards, and student loans and you’re paying on them, you will be more trustworthy. This makes up the final 10% of your score calculation.

Again, it’s all about behavior. If you have an active loan, it’s the best way to build your credit and show you can be trusted with other types of debt. Sadly, studies show as much as 43% of students with student debt will default in the next 5 years.

Ethan Dornhelm, Vice President of FICO, had this to say about improving your credit score after college:

“If (students) can find a way to pay that back in an on-time fashion consistently over a period of months and years, they will be in a position when they reach those life cycle events like wanting to buy a house, a car, or a home. Their FICO score will be in good shape as long as they’re managing their revolving debts and keeping them relatively low, not spending more than what they have, and paying their bills as agreed.”

Read More

Her Ex Ruined Her Credit. Look How Fast She Turned It Around

Written by adminFebruary 23, 2017
Credit & Debt Settlement

*This is an advertorial*

Most of us think that love will conquer all… we might not say it out loud, but inside we do things that we know are not in our best interest for the sake of love and happily-ever-after… In other words, we put ourselves at risk and go all in for love.

That’s exactly what Britney did when she and her ex got an apartment together and he asked her to put all the bills in her name.

“I was crushed. I never thought he’d leave me for someone new, especially not with all HIS bills and bad credit… I thought he loved me, and that we were in this together… for the long haul.”

“I have a great job that I love, and I work really hard. My credit has always been excellent, and when I got with John, I never even thought about his credit.

Our relationship was fun and he was so sweet… After a year, we decided to get a small apartment together, so we could start saving money to get married.

Of course when he said the bills should go in my name because my credit is better than his, I thought nothing of it.

We shared the bills and were supposed to share in the wedding savings too, but he had to pay some other things off before he could start putting money toward the wedding fund – he said this would give us a clean, debt free slate to start off with.

I worked and saved, and worked and saved, and things just kept coming up… His car broke down, and he even had a couple really old bills that creditors began hounding him about.

One day he asked me if I’d open a new credit card to pay them off, and then he could just pay me. It seemed perfect… until he lost his job.

Not only was I paying for all of our living expenses, but now I had racked up more credit card bills too. Eventually I had to start making arrangements with creditors so that I could keep the lights on and make sure we had food…


That’s when the fighting began…

I guess we were both just really stressed. Late payments started getting marked on my credit: 30, 60 and 90 days late and one even went to collections.

I got a second job, and got caught up… Things seemed to be getting better, and he finally got a great job. The only problem was, I now had all these late payments and collections on my credit report so my score had dropped to 457!

Then one day I came home from work and he was gone. He sent me a text that said he thinks it’s best for him to stay with a friend so that he doesn’t cost me any more money and that we “clearly needed space”.

Well, I’m sure you know, my best friend found out that his “friend” was more than a friend, and that he’d been seeing her for a few months. I was devastated.

…And furious, but I was stuck.

Because of my crappy credit, I could no longer qualify for an apartment on my own, so I ended up moving back home with my parents. They were remodeling my room, so I had to sleep on the couch.

I was so embarrassed. While my ex-fiancé was livin’ it up with his new girlfriend, I was sleeping on a couch at my parents, with horrible credit. Who in their right mind would even want to date me?

I knew I had to do something about my credit, so I did what I always do, and started googling for advice. That was a can of worms! I found so many ads and tips and “instructions”… it was overwhelming, but I was determined to get my credit back so I tried whatever I could find.

As you can probably guess, my credit score still wasn’t budging. One day when I wasn’t expecting it, this quiz showed up on my Facebook newsfeed (of all places). It said I should find out what my #2 credit killer was and why my score won’t raise. I didn’t even know I had a #2 credit killer! So I checked it out.

It talked about how this lady named Ali made this quiz to help her clients…. I was skeptical at first, but nothing else had worked, and it was a FREE quiz, so I basically had nothing to lose, and took it.

That’s when everything changed…

It was the best decision ever. I seriously thought I had tried everything, but it turns out that I was doing the wrong things to raise my score all along. Some weird thing I had never even considered was what was actually keeping it low!

The quiz gave me some pretty simple steps to follow, and sure enough, my score skyrocketed! It’s been 5 ½ months now, and my score has already risen by 237 points. I wish that I found the quiz sooner; it would have saved me months of doing the wrong things and tons of stress.

And, guess what? I just signed for my own apartment. I feel like I’m on top of the world again!

Looking back, there are a lot of things that made this experience horrible, and the salt in my wound was being left with no options because of my bad credit score.

After all these months of struggle, trying to get back on feet, I’m on a mission to help keep others from experiencing this nightmare and spread the word.

I looked it up, and according to research over 68% of Americans are stuck with bad credit. Most of them struggle for years trying to figure out how to fix it while it costs them thousands in dollars and missed opportunities!

Don’t let yourself be a victim to this.

Take this quick quiz and find out what your #2 Credit Killer is. You’ll be surprised at what’s really affecting your score and at how quickly you can raise it.

We all need and deserve good credit. So, don’t miss your opportunity to get this info for FREE! You owe it to yourself to take the quiz and see what’s really causing your score to be lower than it should be.

P.S. My best friend Sarah, the one I told you about above, took the quiz too. She raised her score by 181 and bought herself a BMW lol! Click here to discover what is your #2 credit killer.

Read More