Trying to Boost Your Credit Score
Having a good credit score doesn’t seem like a big deal when you are in college and have nothing to buy, but as soon as you go to buy your first car or house, you suddenly realize it is more important than you thought. Here are some ways you can build your credit, so you are prepare for when the big expenses come and it really matters.
Get credit cards
Credit cards aren’t evil, as many would have you believe. In fact, having an open credit card account shows the top 3 credit agencies that you are responsible enough to use one and can really increase your score. The best thing to do is to spend about 10% or less of what you are given and to pay the card off each month. For those who already have a lot of outstanding credit card debt that needs to be paid, you can roll it all into one loan with debt consolidation, and then you’ll be free to start working to pay your balance every month and stay within the 10% to get big boosts to your score.
Avoid too many hard inquiries
According to the Las Vegas Review-Journal, inquiries into your credit are always recorded, but it is only considered a hard inquiry when another company, such as a bank, is checking your score to see if you qualify for lending. A word of caution: be very careful when you are shopping for a car. Many times, the dealership will have your credit score pulled by many different lenders to see which one will offer you the best deal, but the problem is that it can result in 5 or 6 hard inquiries, which can really hurt your score.
Be careful when co-signing
Friends and family may ask you to co-sign on stuff because they don’t qualify on their own. Sometimes this is because they don’t make enough money for what they are trying to buy, but often it is just that they don’t have their own credit built up. This is an especially big problem for young adults just joining the workforce. They want to buy cars and get homes, but they haven’t ever even owned a credit card, so they aren’t sure what to do. It is fine to co-sign with someone you trust, but it will impact your credit score, especially if the person you signed with defaults on their loan. Just remember that you are just as financially responsible for anything you co-sign.
Source: http://www.reviewjournal.com/business/money/24-things-you-need-know-build-good-credit
Credit Repair: Essential to a Better Score
When your credit score is indicative of your ability to manage debt, it is important that you are able to find ways to increase it. This can be especially difficult if you are dealing with past mistakes or bills that you simply can’t pay right now. Here are a few tips on getting rid of those problems on your credit report and getting on your way to a better score.
Financial Tips For Every Age
Everyone struggles with their personal finances, no matter how much money they make or what their lifestyle is like. Those with a lot of money often hire expert planners to take care of their spending habits for them, but even in those cases, we’ve seen plenty of stars struggle and go bankrupt within a few years of making it big. Fortunately, it doesn’t have to be that way, and you can find ways to manage your personal income without any help. Here are a few tips, thanks to Forbes, to help with your financial future and staying debt free.
