by Adam | Mar 8, 2017 | Credit Repair
Finding out that you’ll be receiving a significant tax refund can be exhilarating, especially if you’re living paycheck-to-paycheck or finances are tight. Coming into a good amount of money can get your wheels turning about finally being able to take a vacation, buy a new car, or buy something you’ve always wanted. But if your credit score could use some TLC and spending responsibly hasn’t been your best attribute, consider using your tax refund to set yourself up for future financial success rather than contribute to the cycle of spending and debt. Here’s how. 1. Pay off debt Your very first priority should be to pay down your debt, especially on revolving credit like credit cards or lines of credit. You want to get your debt utilization ratio down to 30 percent at the most, so check your balances against your total available and do some quick math. If you’re using more than 30 percent of the credit available to you, this has a negative effect on your credit score. Figure out how much you need to pay off to get below 30 percent. Better yet, pay off the whole balance if possible to give yourself a fresh start on responsible spending. 2. Settle Outstanding debts If you have any accounts that have been sent to collections or are overdue, settle these immediately. Just be aware of the statute of limitations that may restart for a partial payment, allowing borrowers to sue you or collectors to continue contacting you. If possible, make an arrangement for payments or pay of any debts sent to collections in full to rid yourself of...
by Adam | Feb 22, 2017 | Credit Repair
Much of the world’s business today is conducted online, and it’s likely that most of your daily life involves interacting on the internet in several ways. We’ve all been warned about the dangers of online hackers and identity theft. We’re told that our credit cards and financial information is at risk of cyber attack, but what about your email address? When you notice unusual behavior in your email account, is there really that much to worry about? Why would a hacker want access to your email address? You use your email address for communication and correspondence at the very least, and likely as a method of verification and identification for conducting business online. Consider the following communications and items that may be found in your email address, and what personal information could be contained therein: Rental application (likely with your social security number, addresses, full name, etc.) New password and password reminder requests Personal, family photos and messages (children are prime targets for identity theft) Work documents E-invites for social events Online purchase confirmations (usually with partial card info) Flight and travel information with location details and card info Starting to feel a little anxious? You should. Hackers often breach large institutions to steal mass amounts of email addresses to scour them for information to sell. Once they have it, it’s not hard to piece together vital data, act on your behalf to change info in order to get credit cards send to them (in your name), hold your info ransom, or take over all of your other accounts. When you think about it, how often do you give your...
by Adam | Feb 15, 2017 | Credit Repair, Money Tips
Most people don’t spend a lot of time budgeting. Online bank and financial services have made “checking in” on your accounts fast and easy, and all but eliminated the need to keep a record of what goes in and out. But with everything automated these days it’s easy to lose track of what bill gets withdrawn on what date, if the amount of your automatic deposited paycheck was accurate, or if your bank account has over-drafted for some reason. When it comes down to it, successful budgeting is essential to building and maintaining good credit. It doesn’t have to take a long time, but by doing these 6 budgeting tips you can help give your credit a boost and stay on top of your finances. 1. Track your expenses When it goes on the card it’s hard to realize how much you’re actually spending on fast food, gas, entertainment, and other daily expenses. When you use cash it’s much easier, but that’s not always realistic. So, at least a few times a year, sit down at your computer and go through a month’s worth of expenses, adding up how much you spend specifically on each category. Fast food and eating out, gas, clothing or other “fun” shopping, and then of course bills. Get an idea of what you spend each month – it might surprise you. 2. Don’t rely on credit If you’re in the habit of transferring money over to cover overdraft fees or to simply have enough for a bill that’s going to come out, you’ve got a problem. Credit card companies love you for it, but...
by Adam | Jan 24, 2017 | Credit Repair
When poor financial decisions catch up to you, it can be tempting to look for quick fixes. After all, a low credit score can cost you sometimes thousands of dollars over time in high-interest fees, application fees, and so on. And a recent report from the Federal Trade Commission revealed that 1 in 5 consumers had a mistake on their credit report, from no fault of their own. Many consumers turn to credit repair companies to resolve issues and improve their credit scores. The problem is that some of these companies operate unethically and illegally, asking for big sums of money upfront and promising outrageous results. So how can you tell the scams from the good guys? Credit Repair Scams Preying on the vulnerable is one of the most common forms of criminal behavior, and it’s the name of the game when it comes to fraudulent credit repair. It’s so common, in fact, that the federal government created the Credit Repair Organization Act (CROA), enforced by the Federal Trade Commission, to protect consumers from credit repair scams. So how can you tell if an offer is only a scam? Here are some red flags to watch out for: They charge an upfront fee. This is illegal, and you should never pay for a service until it has been performed according to your contract. They only accept cash. This means the “company” is trying to be untraceable, and is a huge warning sign. They offer you a “new identity.” Usually this means they give you a special “code” that you are instructed to use instead of your social security number. In...
by Adam | Jan 11, 2017 | Credit Repair
One of the top reasons to maintain a good credit score is because it can help you secure a low interest rate on a home mortgage. In fact, a poor credit score can even disqualify you from a mortgage. But if you somehow manage to do get a home loan with a poor credit score, you’ll likely pay thousands of dollars extra in interest payments than if you had a better score. Home ownership is still central to the American dream and a big goal for most people. It is also usually the largest loan an individual will have in their entire lifetime. Being approved for a mortgage and also securing a low interest rate all depends on your credit score and history at the time of application. If you are approved for a mortgage, it is generally agreed upon that you are considered a trustworthy borrower, otherwise why would the lending institution take a chance on you at all? But once you have been approved for a mortgage and moved into your new home, what happens to your credit after you’ve signed on the dotted line? Expect an Initial Drop The process for taking out a mortgage is similar to taking out a car loan or other form of financing and impacts your credit in similar ways. First, the lenders will take out a hard inquiry on your credit to get a thorough look at your history. This hard inquiry will ding your credit a few points, but not significantly. It’s important to note that if you shop around for mortgages, multiple inquiries will only appear as a single...
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