Small Mistakes That Cause Big Problems for Your Credit

Feb 2, 2014 by

Small Mistakes That Cause Big Problems for Your Credit

There is probably not one person who wants poor credit. Not many people go around saying they do not care about their credit. There are some small mistakes that anyone can make that can cause big problems for your credit, you need to watch for them and avoid them.

The first mistake is to open too many accounts at one time. Every credit card that you apply for can and will show up on your credit report. This does not look good, the more you have on there the worse that it looks. Each application for a credit card does cost you three to five points on your credit score. They can even show up on your credit score for up to two years, although it only has a negative impact for about half the time that it shows up.

Missing even one payment is another mistake that can cost you big. Missing a payment can cause you to have a larger amount owed. The company that you owe can add late fees to your balance, and not only that the interest will still be adding up. It also looks bad on your credit score, causing it to fall up to one hundred points. Make sure that you are making your payments on time.

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Photo: Wikipedia

Before closing an old credit card account that you have had for years. If you are looking for a new line of credit then closing an old account is not a good idea. It can negatively impact your credit score. So make sure that you think long and hard before closing an old account. Try to look into your future to see if you can see yourself trying to acquire a new line of credit any time in the near future.

It is obvious for anyone who knows anything knows that it is not a good idea to max out a credit card. Maxing out a single credit card can really hurt your credit score. If you have to make a big purchase you will be better off splitting the cost between two different credit cards. Maxing out one will not only show up on your credit score but can impact your ability to get new lines of credit.

You need to make sure that you are checking your credit score at least once a year. The three major credit reporting companies will give you a copy of your credit report for free once a year. You need to make sure that you are checking your credit card for errors. Any errors that are on your credit report will affect you getting a new line of credit. If you find any errors make sure to report them to the company immediately.

If you have a bill that is unpaid and gets sent to a collections agency and do not pay it, it will seriously hurt your credit. There is no reason to ignore these bills, if you have to contact the collections company and set up a payment plan that you can afford. Most of these companies are going to be willing to work with you in order to get the money that is owed to the original company. So just call and see what they can do to work for you.

There are many small mistakes that can really hurt your credit. Your credit needs to be very important to you. You need to make sure that you are doing what is necessary to keep your credit in a good place. Having good credit can help your financial future, and having poor credit can truly hurt your financial future.

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Unusual Money Saving Tips

Jan 22, 2014 by

Unusual Money Saving Tips

Most likely you have heard various financial tips. Some of them you may have followed and some of them you may not have felt the need to do. No matter how you feel about financial tips, there are some that are unusual but really do work.

When you go out to eat you can see on the menu that some meals are larger than others. Most of the time the meal that are larger are not really much more expensive than the smaller meals are. Order the larger meal. You can take home the left overs and have another meal that did not cost any money because it had been paid for already.

Get your friends to cut your hair. Make a party of it. Getting your friends to cut your hair can save a lot of money over the course of a year. Think about how much you pay per haircut, is it worth it? Depending on what you want done to your hair and your friend’s skill level there is no reason they cannot do it for you.

Use dryer sheet two or three times. Dryer sheets are still good after their first use, do not throw them away. They can be used two to three times and still be effective. Reusing dryer sheets will help you to save money by not needing to buy more than necessary.

Saving Money

Saving Money (Photo credit: 401(K) 2013)

The day after Christmas there are so many sales and deals. You can find great gift baskets for next to nothing. There is nothing wrong with buying a lot of them and saving them for next year. You may even find that you can give them as gifts for other things throughout the year such as birthdays. This saves a lot of money, because the day after Christmas they are trying to get rid of all the items they have in stock for that year.

Do not buy rags at the store. When a towel or piece of clothing is worn out and no longer of use cut it up. You can use the scraps of clothing or towels instead of buying rags. This saves money and can give you many more rags than you would actually buy at the store and if one gets ruined you will not mind as much because it was not a new rag, it was an old piece of clothing.

There are many ways to save money. Some are more unusual than others. It does not matter if it is a way that most people use to save money or if it is a big more unusual. The point is to save where you can. You may surprise yourself by finding more ways to save than anyone you know, or a new way to save that no one else is doing.

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Achievable Financial Goals

Jan 10, 2014 by

Achievable Financial Goals

Most everyone has financial goals. Some are very reasonable and realistic, others, not so much. Setting financial goals that are achievable is just as important as the steps you take to get to those goals.

One of the first things you need to do is decide what you want those financial goals to be. You need to make priorities out of them. What do you want first? Second? You must keep in mind that they have to be realistic. You cannot say I want to save a million dollars this year? Well, okay, do you make enough money that you can realistically save a million? If you do fine, if not then obviously this is not a realistic goal. Making goals you want to achieve is just as important as setting realistic goals. You are more likely to achieve your goals if you want them.

Your goals should be able to be measured. It is easier to measure financial goals than many other goals. So give your goal a number. Being specific about timelines and measurements is very important to you actually achieving your goals.

Try for only one goal at a time. Do not try to split your focus right away. By setting only one goal to start with you can put most of your focus toward that. Once you reach that goal you will be able to set another one, and so on. By having one goal at a time you are more likely to actually get to that goal. If you set so many you cannot focus on them, then they will never be achievable.

Millenium goals Toon

Photo: Wikipedia

You do not need to only set one goal a year. If you set a goal for yourself and you achieve it go ahead and set another one, you do not need to wait until next year. Continue your goal setting and achieving all year long.

There may be many goals you want to achieve and are unsure of which one you want to achieve first. You always have the option to talk with a financial advisor. They will be able to help you prioritize your goals, talk to you about how best to achieve them, and then help you get started. They can we a wealth of information, so if you do go to see one, take a list of question you have so that you do not forget to ask anything.

Prioritize your goals; make your goals measurable; work on one goal at a time. These are the basic steps to get you on your path to achieving your financial goals. It may seem simple to some, and difficult to others. By only having one goal at a time you should not feel so overwhelmed and it should help make it easier to achieve all of your goals.

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You Cannot Plan For The Unexpected

Dec 31, 2013 by

You Cannot Plan For The Unexpected

Here’s the main thing you have to understand about life: as much as you think that you can plan for things, the unexpected is just around the corner. This is especially true when it comes to your fnances. While you may find that a few months of good fortune allows you to save money and have Financial Relief, you soon find that Unexpected emergencies occur that can lead you back to a situation where you don’t have the money to pay for your monthly bills. It doesn’t matter how financially responsible you may be, these unexpected issues can throw you for a loop. Even if you have put money away, these issues can quickly lead you looking for a loan to make sure that you don’t fall behind on your regular monthly bills. While you may be looking for Payday Loans that you can get either from those who offer Text Loans or Bad Credit Cash Loans for surprisingly little risk, you are also looking for peace of mind that you don’t have to worry about taking a credit hit, and further financial issues, due to events that have occurred.

A Wide Variety Of Events Can Effect One

Risk

There are certain events that are apt to lead you to financial issues. While there are a wide variety of things that can through you for a loop, there are some that tend to occur more than others. For example, if you have a car, you are going to have repairs and services needed here and there. Sometimes, though costs will eat into your savings, and affect your ability to pay monthly bills. Same goes for health issues that either lead a family member into the emergency room or, worse, spending the night in the hospital.

Be Smart About The Loan That You Pick

While there is no such thing as a “no risk” loan, there are some loans that are less risky than others. Payday loans tend to be on the lower side of the risk because they should be paid back the next month, and they are based upon the money that is coming in a paycheck.

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It’s Okay To Start Small

Dec 10, 2013 by

It’s Okay To Start Small

When friends and family members tend to give you Financial Tips here and there, most of them tend to go in one ear and out the other, so to say.

Finance

Finance (Photo credit: Tax Credits)

While it is nice to know that people care about you enough to give you tips to help you with your finances, you tend not to go ahead with their advice until you recognize that you have to. The thing about finances is that most people do not take action until they need to. If they are comfortable with their current financial situations, they aren’t usually willing to “rock the boat”, so to say, and try something new. The thing is, when financial issues do start to occur, it is the time to start taking some of that advice that you get from people who care about you.

Starting Small Is Okay

The last thing that you want to do when it comes to finances is to get overwhelmed. While there are a lot of things that you can do to try and help your finances off, you should not jump into something that you simply are not comfortable with. Starting small is okay when it comes to making chances in your financial situations; jumping into something you don’t understand will not end up helping you like you would want it to. If you are confused about what you should be doing, take the time to talk to a financial professional who can show you what you should be doing step by step.

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Why Setting Up A Budget Makes Sense

Nov 27, 2013 by

Why Setting Up A Budget Makes Sense

One of the smartest things that you can do for your finances is to set up a monthly budget. While you may have a general idea of how much you have to spend and where you have to spend it, by setting up a budget you can get a better idea of what your finances are. Of all of the Financial Tips that are out there, putting together a budget is one of the easiest that you can do. Here are three ways putting together a budget can help you out:

See How Much You Have To Spend

budget

budget (Photo credit: 401(K) 2013)

While you may have a general idea of how much money you have to spend with each paycheck, seeing it in a budget will change the way that you think about it. By knowing how much you can spend, you will be closer to your money, and understand just how important each purchase you make is.

Know Where Your Money Goes

In addition to knowing how much money you have to spend, it is also important to know where your money is going. It isn’t just about the amount that you spend on bills, it is about knowing where you money is going on your daily purchases such as gas, food and purchases that involve your entertainment.

See Where You Can Save Money

When you know where you are spending your money, you can see where you can save money. If you realize that you are spending an exorbitant amount of money on lunches each week, you can see how much you can save by just packing your own lunch a couple of times a week.

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