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Monthly Archives: January 2017

Tips to Help You Paying Off Your Holiday Credit Card Bills

# Step away from the credit cards

It’s much harder to get rid of that holiday debt when you keep adding to it. So take most (or all) of your credit cards out of your wallet or purse and put them in a drawer or other safe place. That way, you’ll be much less likely to make impulsive or unnecessary charges on them and run up your balances even more.

# Go above and beyond “just enough”

Many people have conditioned themselves to make the minimum payment on each credit card every time a bill comes due. But if you want to really pay off those holiday charges, then you have to get ahead of the curve. That means paying more than the minimum amount due – even two or three times more if you can.

# Find a way to reduce your APR

The higher the annual percentage rate on your credit cards, the more interest charges you will pay. So it makes sense to try to get that rate as low as possible. How do you do that? Try to negotiate with your credit card company for a lower rate. Or find a great deal on a new credit card (they’re all over the place) that gives you a low (or zero) introductory APR and then transfer your holiday balances to that card.

# Redistribute your finances

In order to eliminate that holiday debt, you’re going to have to alter your monthly disbursements. Obviously, that means cracking down on luxury or discretionary spending. But you should also consider foregoing stashing money in a savings account for awhile and channel those funds toward paying off your credit card debt. If you have more than one credit card, a good strategy would be to pay the minimum amounts each month on all but one card – and then pay off the balance on the chosen card as quickly as possible (and then repeat the process with your other cards if needed).

# Look for savings or other revenue

Stretching your dollar is easier said then done. But you can lower your fixed costs by cancelling services you don’t use (like gym memberships or premium TV channels). Limit your financial splurging to discounted events offered through Groupon, LivingSocial, or similar sites. You could even find a way to get a temporary income boost by being a snow shoveler, server at a Super Bowl party, or a flower delivery person for Valentine’s Day. And there’s no rule that says you can’t return unwanted gifts for store credit!

 

Credit and Marriage

The first thing you need to know is that your scores will not combine in anyway. In other words, whatever your score was before you got married, it’s the same after you got married. Your personal score will not go up or down by marrying someone with a perfect or bad credit score. So, for example, you have perfect excellent credit, but your fiance or spouse has a horrible score. Well, they will still have that terrible score, and yours will still look shiny and pretty to lenders.

So, what does this mean when it comes time to buy a house, car, or to take out a loan? There are a few ways you can go about doing this in order to help keep or raise you or your spouse’s credit. You can always co-sign for the loan or mortgage, but this has a few draw backs. When co-signing for a loan, your credit score may go down depending on how low the other’s score is. It also then makes you responsible for any debt that may occur, which of course would bring down anyone’s credit to a sad score. Instead, another option would be for whoever has the high score to apply for the loan on their own. If a lender approves the application, then the spouse with the low score can then work on fixing their credit so that in the future both of you can apply for a loan.

Perhaps all you want to do is put your spouse on your credit card. You can ask the bank to make them an authorized user for that account. This allows them to use the credit card but doesn’t make them responsible for any debt that may occur. Doing this can help raise their score, however, if there are any late payments then it would go onto your report and stay there for seven years, lowering your credit score. If that seems like too much of a risk, you can ask the bank to make them a joint holder for that card, which in turn, makes them as responsible for any debt as you are. Becoming a joint holder for a credit card will go onto that person’s report and will show in their score. If neither of those sounds like good options, you can simply keep your cards apart, like with a loan, and give them a chance to boost their score on their own.

Starting a new life with the person you love is always a fun and joyous occasion. Just remember that when you apply for a loan or credit card together, lenders will take into account both of your scores to determine whether or not you will be approved. If there is doubt about what to do when applying for a loan or credit card, you can talk to a credit counselor, or a trusted financial advisor to see what the best method may be to raise you or your spouse’s score, or to apply for a loan or card.

 

Why you Should Review Your Credit File?

To check for wrong or outdated personal information

It is simple and easy to understand. Each reporting bureaus lists information on the credit file by making use of their database, so one credit statement will differ from other. You might not have reported about the change of your address to an agency and this could be basis of wrong or outdated personal information. You should report the credit bureaus about the new updates and also credit check to ensure that there is no incorrect information on the statement.

To monitor file for incorrect or fake accounts

Details found as flaws on the history can be due to the mixing of account information with the one having something in common. So, you must ensure accuracy in the number of accounts that are reported in your history. You should check for this flaw as it can be great obstacle in having good credit scores. Your thorough checking of the file will also make you aware about the fake identity case (if there exists any). Several people are fall prey to identity thieves, who misuse one’s personal information by making unknown purchases and thus lower the grade of the victims. You should quickly report on the accounts that you are not aware or if you come across any suspicious activities. This way you can save your financial life from getting ruined.

To check credit statement for inaccurate account details

You should check for the small details of the accounts as this can be a reason for your poor grades. After assuring your accounts, you can proceed to credit check for inappropriateness, such as wrong detailing in the accounts will make the entire calculations to go wrong. Human or computer error can also be the reason for such errors. A careful check over it can correct the flaws.

After you have finished checking your file and there are no errors to it, you can be satisfied but if you come across any discrepancies in your file, report it to the credit agencies immediately. You can raise the dispute to get the errors corrected. Besides, you should also do regular checks to find out the flaws and remedy them as soon as possible.

 

Ways to Rise Up From Bad Credit

Firstly, check your credit report. Many people whose credit scores go down think that they have bad credit already. Bear in mind that low credit score does not essentially mean that you already have bad credit. This is where most people lose interest and don’t care anymore. To repair bad credit, you need to begin with your credit report. If you still haven’t, you can always request for a free copy of your credit report from your nearest credit bureau or request for it online. Be sure to you go through all the entries in your credit report and even cross reference it with receipts and statements that you have. There are instances that wrong entries may occur and be sure to have these reported and fixed immediately. Wrong entries may be late payments that are incorrectly listed and value or total of all your credit card debts.

One of the biggest factors that contribute to your credit score is your credit payments. Making payments on time or not making it on time creates a huge impact on your score. So if you don’t know where to start to repair your bad credit, make your payments on time. You can even set up reminders on your calendar, computer, or your cellphone to be sure that you won’t miss any payment. Some banks also allow you to enable them to automatically deduct payments from your account every payday. So makes certain that you won’t get tempted to spend your money on other things as it goes straight to paying your debts.

Lastly, don’t just pay the minimum due. Make an effort that each time you pay your debt, you partly pay the capital too as much as you can and not just the interest. Most people think they are able to get by on just paying the minimum due monthly. They don’t realize that in the long run, their creditors feed on just the interest from their debts. Long term, it only means that you pay more interest on your debts.

These may be just simple tips but they actually work. The problem with many is that they overcomplicate things and think that just because these usual tips are simple they don’t work. Try it and get to repair bad credit in no time.