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6 Things That Won’t Affect Your Credit Score

January 24, 2020 by Mandy

A credit score is a numerical and statistic figure that depicts an individual’s creditworthiness. This is based on your credit history and an analysis of a person’s credit files and reports. A credit score ranges from 300 to 850 on average; the higher a credit score may be, the more trustworthy a person is considered in terms of his financing.

Credit scores are also based on how you deal with making payments on time, as well as the position of accounts that you may have in good standing. A decent credit score instantly elevates your chances of securing a loan at low-interest rates but if you have any unsecured business loans, the scenario can be changed.

Similarly, you can save tremendous amounts, such as bearing the high cost of interest rates. Apart from that, you also have an edge when it comes to getting employed as employers can view how responsible you are and can be impressed enough to land you a dream job.

You can also eliminate the possibility of having to put up with a security deposit when applying for a loan or paying on installments. Renting an apartment and paying lower premiums for insurances such as automobiles and premises is dependant and is made easier as per the liability of your credit score.

Several factors may impact your credit scores directly or indirectly. Some of which may be positive or negative. You must focus on being able to maintain a sound credit score while also not having to worry about some adjustments that may come about due to various reasons but will not affect the overall status of your credit score.

1. Income fluctuation

A common misconception is that your salary affects your credit score. That is actually not the case. Sure, your employer may be listed on your credit report, but that does not have an impact on your credit score. There is no connection between a credit score and your income, neither earning a high wage help in having a high credit score.

Your credit scores will remain unchanged, and whether or not it’s reasonable depends on other factors. It is also possible to have a good credit score while you are unemployed, receiving unemployment benefits by the government, surviving on pensions, or living hand to mouth. However, a factor to keep in mind is that it may indirectly cause an influence. Losing your job could hurt being able to pay your bills on time, which in turn could obviously then affect your credit score. Lenders and institutions that can provide you with financial assistance may have a look at your salary to assess whether or not you could afford the repayment and then decide a period for that accordingly.

2. Personal life and information

Credit reports consist of your necessary personal information. This includes your name, your address (and any changes to it), date of birth, social security number, and public information about your financial history. Credit files do not take into account irrelevant information such as your race, marital status, level of education, income, and political party.

Thus, it will not bring about any change in your credit score. Similarly, it is essential to note that your marital status will not affect your credit score, as in your credit history, and the score is never merged or combined with your spouse’s. Even if your partner has a poor credit score, it won’t affect yours, neither will it have an impact on your chances of securing a loan and enjoying other benefits. That is unless the two of you opt and apply for a joint mortgage or use a joint credit card, but in no way can it change the status of your personal credit score, good or bad.

Filing for divorce also does not affect your credit score directly, but any late payments to your bills could prove to be a problem which could then negatively impact your credit score. In case you and your spouse jointly own premises or property, you both will be held responsible for any debts you may incur and have to pay off.

3. Denied credit

In the unlikely event of you being denied credit or if your application for a loan may be disapproved of, you will not have to worry about it affecting your credit score. Fortunately enough, any acceptance or disapprovals of your investments and credit denial will not show up on your credit history.

The only consequence you may face as a result of credit denial is a ‘hard inquiry’ the next time you do apply for a loan or any financial assistance. However, it is temporary and is not a factor to worry about, apart from this, there is no other downside that you will have to face if your credit gets denied.

4. Payments to small scale businesses

Credit bureaus are the ones who look after and assess your credit scores. They tend to be quite strict when it comes to choosing who can deliver and report financial related consumer information to them. In most cases, small scale business is deprived of this ability.

Payments in the form of bills to small companies such as lawn care, pest control, personal services, and rent do not appear on your credit report. In case a company that is feasible enough to report to credit, bureaus do not report payment information on the time it could affect your financial history with that the company could affect your credit score.

5. Paying for someone else

Acts of kindness go a long way, but not long enough to change your credit scores. If you do intend to help out a family member or friend who may be suffering from a budget constraint, you must acknowledge that such a thing will not bring a change to your credit scores; therefore, it should be done purely for the contentment of your heart. A credit file will only have a report of anyone who owns the bill, without considering who actually might pay for the debt.

6. Your interest rate

While you are applying for a loan, you may be keen to shop around for the best and lowest interest rates out there. Don’t hesitate to do so as multiple inquiries are often considered as one if they typically occur in a span of a couple of weeks. Yes, scoring models are delicate and fragile enough to take notice when you are out shopping for the best interest rates but that won’t create an impact on your credit score.

These are some of the many factors that do not bring about any change to your credit score. A decent credit score can be attained mainly on your responsiveness to paying bills and making payments efficiently and at the right time. There may be indirect impacts on your credit score, but nothing that could directly affect it.

You must enlighten yourself with information about factors that impact your credit score and sort it out with misconceptions that do not. Make sure you are not stressing out on minor details such as the above that you may think is impacting your credit score but are actually not. Keep track of your credit files and history to stay updated with your financial accounts.

Smart ways to invest for your future

January 14, 2020 by Mandy

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As we are all entering in a new year and 2019 is almost finish, we all are in high spirits and making resolutions for the upcoming 2020. How about we make a resolution this year to make our future secure for ourselves and for our families. The best way to secure our future in terms of financial aspect is to invest our saving very carefully. Not all of us have a lot to invest but whatever we have if invested correctly can convert that little amount in a good number that can later be used for another investment or can be used to make an asset like a house, car, gold or any equipment. A lot of question arises in one’s mind when the idea of investment pops up, like what is the correct way to invest, what is the correct amount to invest, should all money be invested in one place and what is the correct time to convert the investment into assets. Answers to the following questions can be researched and analyzed by an individual, but the best answers will come up with the time and experience.

The best way to start investing is to start at a very young age when you do not have a lot of responsibilities, and it is easier to save money and invest. It will not just give you a good and easy start to a secure future; it will also develop a habit of saving in you. Nevertheless, if not start from a younger age, it is never too late to start saving and investing. Therefore, here are some smart ways to invest for your future:

Mutual Funds:

Mutual funds are one of the most classic and conventional ways of investment. It is a way in which our investment amount is a pool with some other investors and then used to buy some high profile stocks and bonds in a larger chunk than a smaller one. It is one of the easiest and safer ways to invest and start investing rather than starting with something else. This way, you only get to pay the fee of one trading commissioner, and that will be dividing into the no of people pooling the money.

Money Bonds:

One traditional way to save money and invest at the same time is to buy bonds for that money. Money bonds are a kind of currency. In some countries, when you buy those bonds, there is a lucky draw that happens. There is 3 position in that luck draw and a particular amount dedicated to each position. There is a particular number of bonds awarded 1^st position and same Is the case with 2^nd and 3^rd position. So if you are lucky enough you will be saving the as well as getting the reward. While in other countries you get a percentage of the money invested on the bonds like if you have purchased a bond worth 5$, you will get 5% of 5$ every week.

Property:

Buying a property is the best way to invest. You get an asset in the process of investment and can get an amount every month to save even to utilize. You can start by an apartment or a shop depending on the amount you have, and then you can easily rent out that shop or apartment. The value of that property will also increase with time so buy a property as soon as you can and secure your future in the best way possible.

Business:

The best way to invest is to start a business of your own. As starting a new business and investing in it is very risky, but if your business plan is stable and turns out to be successful, it can do wonders for you. Rather than starting a new business and giving it full time, start a side business with your job. It will be a little less risk and will definitely give you the advantage to have a job if the business does not work out for you.

College funds:

If you are a family person and have children, their college money of your children is surely the priority of your life. The most important help you can give to your children is to save money for their college. This is not just the money for their education, and this is the money that will help them to achieve their goals and dreams. Imagine your child being the best lawyer, painter, or an artist of the decade with the best educational background to support his or her creativity. Therefore, no matter how old is your little one start saving up and investing for college money.

Saving Account:

If you are the kind of a person who does not like to take the risk, saving account is your friendly way to save and invest money. In a saving account, you out your savings and get a small percentage of the amount in your account every month. The percentage is not that big though, but you get to save your money for an emergency and still get a return on it every month.

Cryptocurrency:

Another way of securing your future is to invest your money in the cryptocurrency. Cryptocurrency is one of the latest trends of today. According to research, around 8% of the American invested their money in the cryptocurrency this year. However, the downside of cryptocurrency is that it is still not legal in some Asian countries, so if you are living in Asia research before investing in the cryptocurrency.

Conclusion

For all the investment ways mentioned above, we all need some saving to start with. It does not matter how less you start saving, make a habit of saving for your future cause let’s be honest no one cares for you and your family more than you so if you want to spend a good life you yourself have to work for it. So start saving, investing and take charge of your life.

Learn more about debt consolidation loans

November 18, 2019 by Mandy

What is a debt consolidation loan? In this case, a lender issues a single personal loan to the borrower so that he could pay off other debts. The borrower then has to pay personal loan monthly payments for a fixed amount of time to the lender. Your credit profile is going to determine your interest rate.

Debt consolidation happens to be one of the many strategies you could opt to pay off debt. With too much debt on you or fixed spending issues, debt consolidation isn’t of any use to you. As far as the rates are concerned, they vary from lender to lender and base on your financial standing and credit history.

The Requirements of Debt Consolidation

All the reputable and best personal loan lenders require you to be 18 years or older as well as a legal U.S. resident to qualify for a loan with a verifiable bank account. Borrowers with low debt-to-income ratios and excellent credit can qualify for low-interest rates. Those with bad or fair credit score could get an unsecured personal loan based on a steady income.

Some of the best personal loan lenders state that they do not have minimum credit score requirements. This doesn’t imply that your credit score won’t be checked. It is important to know your credit profile. You can use online tools for credit report and credit score checking. Also, once you get that, use a personal loan calculator as well, so you know about your personal loan monthly payments.

Debt Consolidation vs. Balance Transfer Card

A balance transfer credit card is a sound alternative to a debt consolidation loan. They come with an introductory 0% interest rate that rises after a promotional period of no more than 21 months.

You can transfer up to $15,000 credit card debt. After the expiration of the introductory offer, the interest rate on the balance transfer card increases. It is higher than it is on a personal loan. Apart from paying off your balance before the increment in the interest rate, you would want to avoid making any more charges.

Personal loans allow you some benefit over balance transfer cards. The fixed personal loan monthly payments let you pay off your debt after a set period. The borrowing limits tend to be higher as well. Not only that, but personal loans also boost your credit score. If you use all or most of the available credit on the card, your credit score could take a hit.

The personal loan balance is titled as installment debt, which is treated differently in credit scoring formulas compared to revolving debt such as credit cards. And there are so many ways that personal loans can help you in meeting your expenses such as education, wedding, travel, and many more.

Extra measures to take for ensuring the sound financial health

If you have to pay off debt and that is the main reason for borrowing money, getting a personal loan is your best bet. Create a budget for yourself and start to save money. These baby steps could pave a path for your stronger financial future.

If you do not need cash for any immediate need, why not build a strong credit? It is the main factor that determines if you could qualify for a loan or not. You can qualify for more loan opportunities if you have a higher credit score and that, too, with lower interest rates and better loan terms in the long run when you need a loan in the future.

Important Note:

Here is something important that you should know about Annual Percentage Rates (APR). You must have strong knowledge about these things before getting a loan. The Annual Percentage Rates (APR), loan term, and personal loan monthly payments are calculated based on analyzing the information that you give, the information lenders provide, along with your publically available information.

Lenders give you loans with different ranges of APRs after analyzing borrower’s credit and other factors. You should know that only those borrowers having an excellent credit score can win the lowest interest rate. Your APR is determined on factors such as loan term, credit history, credit score, and requested loan amount you require for you needs.

3 Money Tips for Renting a Property

November 8, 2019 by Mandy

Renting a property is a great option for those who want to avoid the lengthy process and excess fees that come with buying a new home, not to mention the need to have a substantial deposit saved up if you’re looking to buy a home. Renting is an easy option for those who are looking for a quick agreement, a short-term home, or would simply prefer to avoid the long-term commitment which comes with property investment.

Despite the considerable saving on fees that accompany a mortgage, there are still areas you need to be aware of when it comes to money and renting.

1. Prepare Your Deposit and At Least One Month’s Rent

The exact amount you’re expected to pay in terms of deposit and upfront rent will be dependent on the terms of the property you choose. As a general rule, most rental property agreements expect one month’s rent in advance, as well as a deposit amount (which is usually the same figure as a month’s rent). It’s therefore essential, once you’ve worked out your budget, to have these figures saved so that you’re ready to pay a deposit on the property you find.

Deposits are completely returnable to you at the point of you vacating the property permanently. To make it more likely to receive your full deposit, you need to ensure that the property is in the same good condition it was when you first moved in; therefore, you may want to consider the services of end of tenancy cleaners Hammersmith.

2. Work Out a Comfortable Monthly Budget

When you visit a mortgage broker, your mortgage allowance and monthly amount are worked out based on your income. When it comes to renting, how much you can comfortably afford every month in terms of rent is up to you to decide.

This means you should take the time to work out how much rent you can confidently afford on a monthly basis in order to then narrow down your search for a new property by filtering out those properties which are out of your budget.

It’s a good idea to work out both a comfortable amount and an absolute maximum amount in case you see the perfect property and want to decide whether you can stretch to it.

Anything under the amount you decide will be a bonus and a saving.

3. Have an Emergency Fund

Although the bonus of a rental property means that you are not expected to pay to fix issues within the property, such as structural problems or leaks, it’s still a good idea to have an emergency fund in place for any accidents which may occur that you are culpable for.

For instance, your landlord will be expected to fix any issues which occur naturally or through no fault of your own, but if you cause any damage to the property such as a stain on the carpet, a hole in the wall or broken kitchen cabinets, you will be expected to pay to have these fixed from your own pocket, so it’s a good idea to have an emergency fund to fall back on.

Cleaning up Your Credit Report on Your Own

September 24, 2019 by Mandy

You’d never noticed them before you started having credit problems, but now it’s like ads for credit repair companies are everywhere you look. What’s more, some of them sound really good too; promising as they do to help you strengthen your credit history in no time at all.

Well, the fact of the matter is, those companies aren’t going to do anything you cannot do yourself — well, except charge you to do what you’re capable of doing on your own for free.

Of course, with that said, while cleaning up your credit report on your own is doable, it is a time-consuming process, so you’ll need to be ready to be patient.

Here’s what else you’ll need to do.

Get a Copy of Your Credit Report

You’re entitled to free copies of your credit reports from each of the big three credit monitoring agencies (Experian, Equifax and TransUnion) once each year. Go to AnnualCreditReport.com to request yours. It’s important to get all three, because they can sometimes have different information. Errors on one might not appear on the others, so you need to be thorough.

Look for Discrepancies and Unfamiliar Accounts

A percentage of American consumers have bad information on their credit reports. This drags down their credit scores, making it difficult to get loans at reasonable rates of interest. Low scores can also impact your ability to get apartments, utilities, insurance and even employment.

Review each of your three reports carefully. If you find bad information, such as debts you’ve cleared still listed as outstanding, accounts you didn’t open, or anything else, contact the reporting agency. Let them know they have an error on your report and ask to have it removed. You should also get in touch with the entity filing the entry and tell them you’d like it removed.

Be prepared to show proof to substantiate your assertions.

The best way to proceed is to make a list of all of the items in need of correction, do what you can to gather supporting documentation and include copies of that evidence with your requests for corrections.

Problems Owing to a Poor Credit History

Past-due accounts, high- and over-limit balances, unpaid judgments, loan defaults, bankruptcies, foreclosures, tax liens and judgments diminish your score as well.

Some of these items, like bankruptcies and judgments, will have to just time out. Bankruptcy falls off your record after about 10 years. Unpaid judgments will be sealed after seven years or after their statutes of limitation run out. Making agreements to pay all of the others will give your score a bump when you’ve followed through on those arrangements.

If you’re behind and struggling to come up with minimum payments on unsecured debts, availing yourself of the services of a company like Freedom Debt Relief may help you work toward settling your accounts. It’s important to note this won’t improve your credit score directly. However, you’ll be in a better position to rebuild your reputation with lenders in the future if you’re able to clear those debts.

Be careful to avoid letting debt take over again once you get these items corrected and under control. Too many people work so hard to improve their credit histories only to later dig the same holes for themselves.

Pay cash whenever possible, avoid charging things for which you’ll need more than 30 days to pay off. Pay close attention to your credit reports to head off errors and fraudulent behavior as early as possible. Sticking to these principles will all but eliminate the need for cleaning up your credit report on your own.

Instead, you’ll keep it clean before it gets soiled.