Are You Unknowingly Sabotaging Your Credit Score? Here Are 7 Things That May Be Lowering It Without Your Even Knowing

The credit score that follows your spendings habits follows you for a long time. As BusinessInsider says, “It is used as an indication of trustworthiness by lenders, who use the number as a way to help predict how you’ll treat their credit line based on your financial history.”

That credit score can influence lenders when you apply for a car loan, a home mortgage, a favorable interest rate, and more. You must be making mistakes that affect your score, so are you unknowingly sabotaging your credit score?

Here are 7 things that may be lowering it without your even knowing:

  1. No credit balance. You’d think that having no outstanding balance would be a favorable thing. But, without credit cards, you have no credit background.

If you worry about running up credit card debt that would affect your credit score, you can apply for secured credit card. You must put down some money as collateral for a secured credit card, but it will be convenient for shopping and build a credit record.

  1. Charge-Offs. If you owe money on a credit card and have not made payments for some time, the credit card will decide on a “charge-off” because they have given up on your making your payments.

Your credit score will drop with a charge-off, and the balance after the charge-off remains part of your credit score data.

  1. Co-Signing Loans. When you co-sign a loan for a friend or family member, your credit history is at the mercy of their good payment habits. You would do better to urge them to consider a “bad credit” loan.

Lenders offer “bad credit” loans without the fuss, process, and delays at banks. These type of loans should be taken out only for emergencies. When considering high-interest loans, you must make sure if you can pay back the loan on time.

  1. Nuisance Bills. There are those bills you just don’t think about as debts. For instance, libraries are using credit collection agencies to close in on people who have ignored their late fees.

This is also true of unpaid medical bills and traffic tickets. Any evidence that you do not honor your obligations may affect your credit history.

  1. Credit Card Usage. It’s no surprise that your credit card debt affects the credit record. But, how you use the credit cards and don’t use credit cards can change your score, too.

It might surprise you that trying to rent a car without a credit card will prompt a credit check. And, each credit check affects your score negatively.

Are you unknowingly sabotaging your credit score?

Writing for Forbes, Lauren Gensler says, “You know your credit score is important, but are you clued in on what you might inadvertently be doing to sabotage it?”

Now, everyone has occasionally missed a payment, and most people have been late on payments from time to time. Some people are careless about their obligations, but some simply fall into a credit bind because of unforeseen circumstances and things beyond their control.

Having a low credit score does not mean the end of your world. You can improve it with focus and discipline. But, you should understand what can happen without your even knowing it.

 

Tired of Being Broke in Vegas? Avoid These 7 Bad Money Habits

7 Bad Money Habits

Making ends meet and struggling to provide for necessities can be a challenging task; especially when you have bad money habits. If you are tired of living day to day, here are seven bad habits to avoid that will save you from being broke.

1. Spending More Than You Earn

Don’t act like a country; they are the only ones allowed to spend more than what they have. Get to know your deficit. According to the National Financial Capability study, 1 in 5 Americans spend more than they make and at least 38% can’t break even. Spending less than what you earn is critical for you to save something for another day.

2. Thinking Credit Cards Are Free Money

Credit cards are great when used in a bad financial situation. However, this particular plastic in your pocketbook is the greatest promoter of lousy money habits as it allows you to spend on impulse abandoning your budget plans. So sticking to your budget and keeping your credit in your wallet is one of the best money habits you can have.

3. Ignoring Your Bills

More than one-third of your FICO credit score is determined by your ability to pay bills on time. When your credit card bill, car insurance or utility bill arrives, pay it before the due date. Devise a payment method and plan with your creditor before it goes to collections. Your financial future depends on it.

4. Hanging with Other Broke People

When you consider your friends, are they financially successful? If the answer is no, then you need to start spending time with people who are successful. Good money habits will rub off on you, and any advice you get about finances comes from people who practice what they preach.

5. Dreading Your Paycheck

Stop wasting your energy complaining about your measly paycheck. Use that energy to get where you want your earnings to be and improve your salary. Do you think you should make more money? You need to negotiate for a raise. Talk to your boss so that you understand what’s required to get that bump in your pay.

In case you’re of significant value to the organization, the supervisor will be able to notice the implicit threat if you leave for a better-paying job. Remember, the best time to look for more lucrative opportunities is while you still have a job.

6. Making Excuses for Not Saving Money

Start saving now. You can put money in a savings account where you can’t access it unless during emergencies. It’s easier and less stressful to make financial decisions when you know you have some extra cash in your account that will cover emergencies. Second, focus on how to save money on things that you do. Never purchase something on a whim or without researching the price from a few different stores.

7. Request for Loans

Sometimes personal loans in Las Vegas can be a boost to your financial strength when borrowed and used in the right manner. Personal loans can be used to start money generating projects that will contribute to your overall financial stability. This will, therefore, enable you to take care of some bills hence increasing the saving power.

Conclusion

Breaking your financial routines may take significant effort and time. Engaging habits that will enable you to build your bottom line by paying bills on time, making use of technology and increasing your savings and income will be worth your effort and time in the long run.

The Ultimate Guide To Life Insurance

When you pass away do you want your family to be protected? Do you want the security of knowing your partner and your children are financially secure? Surely this is what everyone wants and the only way to achieve it is through investing in a life insurance policy.

Surprisingly there are still so many people who fail to do this in the modern day. A lot of the time the reason why people do not have life insurance is because of a lack of knowledge. Well, that is exactly what this blog post is here to put right. Read on to find out all you need to know regarding what this type of insurance is and why you need it.

What is life insurance?

First and foremost, it is important to determine what life insurance actually is. This is a contract between you and the insurer in question. The main point is that the insurer will agree to pay out a cash sum if you die during the length of the policy. You will have various policy options and therefore it is essentially up to you when it comes to determining how long you will need the policy for and how much cover you think you will require.

Why do you need life insurance?

It is a must-have for everybody as at ensures your family are protected from any financial worries once you are gone. There are many costs they could endure that you may not think about. This relates to everything from household bills, to funeral costs, to unforeseen medical bills, to mortgage payments, university fees, to childcare costs. When you take all of this into account it is not hard to see why you need life insurance.

What should you consider when looking for life insurance in Hong Kong?

  • Can you afford the payments? A lot of people get so sucked in with the cash sum that may be paid out. Because of this, they do not take the time and effort to really assess whether they can afford the payments. You don’t only need to consider the payments today but you need to think about the future as well. There are a lot of policies whereby the payments rise as time goes on.
  • How much coverage do you need? This is something that requires a lot of assessment. Obviously the more coverage the better, but it is not as simple as that. The more coverage you seek the more expensive the policy will be. Consider how much income you contribute to the family and how much others depend on you. Don’t just think of dependency in terms of the money you provide. If you look after the children for example, when you die your family would need to fund childcare and therefore this would have to be seen to in the insurance policy.
  • Do you want term or whole life insurance? Last but not least, you need to determine whether term or whole life insurance is going to be the best option for you. With GUL companies, they offer policies that feature premiums that will never rise. On the other hand, a term policy is one that has fixed premiums for a set period of time and then they will rise as you get older. These are typically a lot cheaper.

The benefits of buying life insurance sooner rather than later

A lot of people put off buying life insurance for as long as possible. However, there are actually many benefits to be gained by getting this from a young age. Let’s take a look at some of these in a bit more detail…

  • Lower insurance costs – If you are young and in good health then you are much more likely to better from favourable terms. In most instances; the younger you are, the lower the cost will be to insure you. If you leave purchasing life insurance until much later in life then there is a higher chance you are going to have health issues and this will compromise the quality of your insurance policy. Lock in your premium now and you don’t have to worry about it increasing in the future – no matter what happens.
  • Investment potential – A lot of young investors opt to buy life insurance in order to expand their financial portfolio by incorporating a tax-free investment fund. This is because whole life insurance includes a cash account. A lot of people use this as an investment fund or a savings account. Every policy is obviously different however there are those that present you with the opportunity to earn tax-free interest, bonuses and alike from the cash value of your policy. Furthermore, this value will grow based on the amount of time you hold the policy.
  • Be prepared – You never know what is around the corner. You may not have children now, but who is to say you won’t become a young parent? We all like to have our lives planned but it doesn’t always happen the way we expected. By purchasing a life insurance policy early you can be safe in the knowledge that your family will be able to cope financially if anything was to happen to you.

Hopefully, you now have a better understanding regarding life insurance, why it is important, and what to consider. One important thing to remember in all of this is that you are taking out this policy for your loved ones. Nobody likes to think about death and leaving their family and close friends. However, it would be a million times worse to completely ignore this eventuality and leave those you love in potential financial ruin.