In your 20s, you may be juggling jobs, education, and relationships, but it’s wise to make sure your financial health is also being cared for. By starting with smart choices now, you can boost your comfort and success in your 30s and beyond.
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Credit scores are an important part of life and can greatly influence the livelihood of people.
Credit scores are established through payment history, credit utilization, length of credit history, types of credit in use, and new credit.
Due to loans taken out or having debt on credit cards, credit scores can often be low. Low credit scores make it hard to be able to apply for credit cards or get loans when money is needed.
One of the ways people can improve their credit scores is by making sure to pay their payments on time. Payment history makes up a good chunk of the credit score itself.
One way to make sure payments are made on time is by writing down on a calendar when the bill is due. Also, a reminder can be put on the phone to make sure to pay a bill.
Also, some companies allow customers to opt into a text service, which will provide a text as a reminder to pay the bill. It is just as important to pay credit card bills as well as normal utility bills on time.
Credit scores can be improved by opening up a new credit card and keeping it open.
As long as there is no annual fee involved when it comes to the credit card, there is no reason to cancel the card. This will help with the length of the payment history component of the credit score.
It is just as important to make sure to be using the credit card once in a while because it might be closed due to non-usage.
Along with usage, it is just as important to make sure to be able to pay off the credit card purchases in a timely manner. It is very important to make sure not to open up too many credit cards because that is not helpful to improving the credit score.
Credit scores are greatly influenced by any debt that is accrued over time.
Everyone knows there are interest rates on loans and credit cards. These interest rates become steeper and make it hard to pay back the longer the balance goes unpaid.
When there is debt involved, people tend to try to pay off the debt by opening other credit cards or taking out more loans. This might seem like a great idea at the time, but often times the new loans end up being even harder to pay off later on.
The best thing to do is put aside certain money each month as part of the budget to pay off the debt. By doing this, the debt will slowly be paid off without adding on any more debt or loans, which will have to be repaid later.
It is important to plan out a budget of all the expenses and to make sure to include a portion of the money toward debts or loans involved. Also, people should pay off any loans or debt in small amounts without letting the balance continue to stay open.
Although credit scores are circulated every day, there can be errors in the calculation itself. It is important to double check to make sure no error were made when calculating the credit score.
There are many online sites, which could give the credit score and if any errors are present, they can be disputed. Sometimes due to these errors, credit scores can be affected without actually having any actual debts.
Credit card companies often put credit limits on credit cards based off the credit score. By continuing to make payments on time and leaving the credit card open, credit card companies will be willing to create a higher limit.
It is important to make sure customer’s spending habits don’t change as well even though the credit limits change.
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It only takes a little while to ruin your credit — but it can take years to repair it. With the rough economy of the past few years, more and more people are learning what it’s like to have to rebuild their credit. People who once had stellar credit now find themselves struggling to raise their scores past the 600 mark. Whether the cause was a delinquent credit card, or even a foreclosure, the result is still the same — low credit scores and few options for rebuilding. One way you can start to rebuild your credit is through the use of personal checks.
Opening and maintaining a checking account is a great first step towards establishing yourself as creditworthy again. When you maintain a checking account in good standing for months and even years, you are demonstrating to creditors that you know how to manage your money. Some of the ways to maintain your account include:
The direct deposit of your paychecks is something that a possible creditor, such as an automobile loan lender, can look at. They can see at a glance that you have a steady, reliable income each week. This is also an easy way for them to see how much you earn each week and how long you have been earning your income — factors they will consider when deciding whether or not to offer you a loan.
The use of written checks and keeping your account balanced will also help you to learn important money-management skills. These are important to know, especially if your credit score plummeted due to mismanagement. Maintaining your register provides you with a clear record of where and when you spend money, making it easy for you to see where you can cut expenses. It is much easier to keep track of your money through written checks than by swiping your debit card.
Finally, keeping your balance above zero is another way in which you can show potential creditors that you know how to manage money. It also demonstrates that you always have at least some money on hand, making it easier for you to meet monthly payment obligations. Visit www.checkworks.com to order your new checks for your checking account and start rebuilding your credit one check at a time.
