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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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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All About Payday Loans

Aug 8, 2013 by

All About Payday Loans

In today’s uncertain economy, good credit is more important than it has ever been before. However, with the uncertain economy and job layoffs more people are having their credit ruined than ever before as well. The result is not being able to get a traditional loan when you really need it. This is where payday loans started to become extremely popular and they are growing in popularity every day. If you are in a bind and looking for Fast Cash now, then a payday loan may be just the ticket for you, and help you get on your feet until your next paycheck comes rolling in.

What is a Payday Loan?fast-cash

A payday loan is a chance for you to borrow money and not have to jump through hoops to get it. Many people today don’t have good enough credit or even the time to go through the stringent process of getting a bank loan. Getting unsecured loans can be like pulling teeth, and whatever emergency you are having just has to wait until the process is complete. Then if you are approved for the loan, you have monthly payments that whittle away at paychecks a little at the time.

There are payday loans online that can get you money quickly in case of an emergency and you don’t even have to have good credit to get the payday loans that you so desperately need to make it from one paycheck to the next.

What you should know about Payday Loans

There are some things that you will need to know before you head out to get any type of bad credit loans; Most payday loan institutions require you to either give them a post- dated check or give them access to your bank account so that they can get the money you owe them for the money that you have borrowed. Another good thing to know is that the full amount that you borrowed is due on that day.

There are payday loan stores that set up payment plans but they do charge expensive interest rates and fees to do so. The choice is yours, but it is just best not to borrow any more than you have to have, and that you can comfortably pay back with your next paycheck. Don’t fall into the trap of having to have payday loans, in order to pay off your payday loan. That is not a win-win situation and you will never get anywhere that way.

If you have an emergency such as your car breaking down and need some help with finances, a payday loan service is a great way to get the repairs done, but only borrow what you need, not over the amount just because you can.

SmallGroupofUnderbankedWho can get Payday Loans?

Anyone who has a job and a proof of income is eligible for payday loans. There are two ways to go about getting the money that you need. You can go online and apply through an online website or you can find a payday loan store in your area and go in to apply for the loan there. You do need to know that there is a fee for getting a payday loan that comes off of the top of the money that you are borrowing. For example, if you borrow $300 after the fee you may get $250 out of it. The fees vary per store or website.

The first thing you need to do however, is make sure that payday loan stores are legal in your state, as soon states forbid them. Once you have all of your documentation and know that indeed they are legal in the area in which you live, take the paperwork to the payday store and an agent will be happy to help you.

How do you Pay off a Payday Loan?

Finally, you have the money you need and you are good to go; then it’s time for the payment and you are wondering how to get this paid off. Here are some tips on that as well. First off, make sure that you note exactly what day your payment is due on, you do not want to miss this and pay interest fees.

If you have gone to a payday loan location that lets you make payments, make them on time, and never be late. You must pay this loan when it is due, every time it is due, and on time, every time.

It is possible to pay more than you agreed on in your arrangements. It’s okay to pay early, it is never okay to pay late. If for some reason you are not going to have the money in the bank for your scheduled payment, borrow it from your savings account or do an overdraft (if you have overdraft protection,) you don’t want to ruin your chance of getting another payday loan if you need it in the future.

It is a good thing, and possibly a bad thing, that many payday loan places will let you renew your loan if you get into money troubles. This will help in the short-term but rarely helps in the long-term. Payday advances or payday loans as they are also called, are great for emergencies, as everyone has those weeks where the money just doesn’t stretch far enough; however, you have to borrow responsibly and pay back on time, just like with any other type of loan.

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