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Business credit score – How to boost it all by yourself

business-credit score

Are you aware of your credit score? Have you checked your credit report recently? Your credit history has an enormous effect on your financial future, yet most people are shamefully ignorant about how credit history and fico scores play a significant role in your life and how to improve them.

Ignoring business credit score is one of the most dangerous mistakes you’d ever make. It’s an important connection in the chain of achievement and success. If you’re aware of your company’s goodwill and reviews of your customer base, you must make your mindset like a lender or potential partners. You need to understand about how essential people see your business credit. You must think of how your personal life can be affected by personal credit. Bad credit poses many difficulties for an individual and the business entity too. You must also know that your business credit report and score is open to any concerned person who is interested in your business.

It is very difficult to monitor the everyday tasks and responsibilities, which come with small business ownership. But you must know that your company is depending on it. There are good resources out there which will help you to manage your business credit. Experian is one of the best companies which plays an important role in helping businesses to grow their credit by offering business credit reports. This credit report includes detailed payment trends, monitoring alerts, credit risk scores, industry benchmark data, etc.

Now, the economy is recovering, and it is the time to focus on your business credit score. Here you can find some helpful tips:

1. Check – You must be aware of your business credit report and get an idea about your business credit score. Your business credit report is normally used to take crucial financial decisions about your company, theses are like – determining the loan amount, which lender may approve, how much credit suppliers will extend, and what will be the chargeable rate of interests, etc. Keep an eye on your credit. Check out for small errors and rectify them before any damage happen to your credit score. You just need to check your credit report regularly.

2. Correct – Be active and make sure your business information is up-to-date and accurate. Incorrect or outdated information can make a wrong impression about your business. This can be very harmful as it’ll affect major financial decisions. New accounts have a noticeable effect on your business credit score. Try to play the game with a limited number of accounts, if you’re planning to go for a big debt burden, like buying a property.

3. Protect – Regularly monitor your report and sign up for alerts. It’ll warn you any changes regarding frauds. Protect your business credit information from non-paying customers, partners, and suppliers. For that, you need to check their business credit report. Always pay on time, late payment can harm your score badly. Don’t open too many new accounts but don’t close existing old accounts, close newer accounts before old ones.

4. Separate – Many small business owners don’t separate personal identity from the business entity. So, often they use personal resources while paying business expenses and therefore don’t build a separate business credit. At the initial stage while starting a business, you might need to use personal credit and guarantees. However, the weakness of relying solely on personal credit is clear. If your business ever goes down, your personal credit score may also have a risk. Failing to separate business from personal credit also can limit your business growth potentials.

5. Grow – Managing the factors that drive your score can make a positive impact and lead to more opportunities to grow your business, ranging from gaining capital to gaining customers. Therefore, take good care of your small business name and reputation. Choose to work with lenders, suppliers and creditors that report your payment history to the credit bureaus. And of course, pay your bills on time. The most powerful thing you can do to improve your credit score is to reduce your credit utilization. The less you use of your credit limit, the better your score.

By carol on November 18th, 2015

Joint credit card account – What are the benefits you’ll get from it?


A joint credit card account is an account where two main account holders have the similar status. That means both joint account holders have access to the line of credit, and major credit card facilities like balance transferring, disputing charges, raise a service request for lost or stolen card, making a request for # credit limit increase or even closing the account. Joint account holders can redeem rewards points and get the benefits equally.

In addition, joint credit card account holders have similar duty to pay off any outstanding bills charged to their cards. In a joint credit card account, both the account holders can take any decision related to the account, and the account’s transaction history is added on both the account holder’s credit reports. Both account holders are liable for making the payments and in the case of any delinquency, both the users will be liable for penalty charges.

Joint account holder vs. authorized user

A joint account holder is totally different from an authorized user on an account. An authorized user will receive a credit card in his name and he can use it only. He isn’t bound to pay any bill charged to that card. Also, his credit score will not be affected by any means (as per the FICO 08 scoring). This scoring is used by the credit reporting agencies in 2008.

On the other hand, the joint account holders don’t have that facility. They’re equally responsible for paying off all the bills charged to that particular credit card account.

Advantages of a joint credit card

1. Bill sharing – If both account holders want to share 1 rent bill, 1 electricity bill, 1 phone bill etc, they can pay those bills through that joint credit card. Having one credit card bill is easy, and it can be shared easily. When you’re going to pay off your debts, you’ll have an easy option while selecting the card to pay back first.

2. Helping to build good credit If one of your family members, let’s just say your spouse has bad credit score and because of that she can’t get a credit card, you can help her by adding her as a joint cardholder. By this way, you can actually help her to build a better credit. But, it’ll only work if you and your spouse can manage the credit card wisely and perfectly. Pay the bills on time, pay before time, and pay extra.

3. Helping your partner to get a low-interest credit card – If your partner is lacking of any qualifying factors while getting a low-interest credit card, having a joint credit card is the only way. If you’ve got good credit and become eligible for a low-interest card, you can get the account with your spouse jointly. Being added as a joint user may also increase the value of his/her credit score.

Canceling procedure of a joint credit card

As long as there are no outstanding balance on the joint credit card account, any one of the joint account holders can cancel the card. If there are any outstanding balances, credit card issuers will normally restrict the canceling process due to the contract with them. Account holders need to pay the balance in full before making any changes in the account. After the account is paid off, either of the account holders can close the account.

Before signing the documents

Before signing a joint credit card account, you must understand the pros and cons of this credit card account. It’s wise to have separate credit card accounts to avoid critical credit problems. Be sure to read the terms of service and conditions (credit card fine prints) of the credit card issuer carefully. Directly call the credit card company if you’ve any specific queries regarding joint credit card account.

By carol on November 12th, 2015

Money saving in December – Best ways to gain more


October declares the beginning of fall season and also starts the final phase of holiday season. But December gives people the time to take preparation for the coming Christmas, plan their family tour in the fall or even think of how they’re going to celebrate this Christmas eve.

December normally comes with less workload and stress. The breeze of cold wind compels you to feel good while enjoying most of your time indoor. Spending habits during this season will change from merely fun to serious winter business. It has an enormous effect on our spending and savings. So, we need to chalk out how much we can save in November.

Let’s find out some options to handle spending habits in December:

1. Work long – Daylight saving has ended in 1st November. Since you’ve turned your clocks back one hour just now, you’ll loose few days extra to rest. So, why don’t you join at work one hour early to balance your time, why don’t you go for some extra cash? Work few hours extra to earn more in December.

2. Earn from growing houseplants – If you like indoor plants and you want to grow them inside your home, you can avail seeds and other things at good discounts. The garden centers were open till the October as it’s the last month before they close due to fall. Sales after this month will be at their peak value, so you can get your chances to earn more.

3. Store heating oil – The price of heating oil will increase in the winter season. So, you need to fill your tank and store as much as possible. Get it done before the price goes higher.

4. Winter clothing deals – New winter clothing lines will become available to you in nearly July-August due to the back-to-school shopping rush. After it’s done, prices will drop for winter clothes and can even go on sale in October-November.

5. Offers on fruits and veggies – Local farmers and markets have some particular fruits and veggies which have their limited growing season, like – corn, bell peppers and a variety of berries. Buy those from local sellers when they’re available at good offers and keep as canned or frozen.

6. Repair your car – Make your car repaired as soon as possible. Before November, in summer you might have used your car a lot, so now it’s the time to repair it when the prices are low. In winter, repairing costs will be very high.

7. Shop online for decorations – Always prefer online stores rather than your local stores, if you’re gonna host the Christmas party at your place or in any other joint. For Christmas décor, get all the required material from online stores and have some great discounts/deals. Many stores have offers on bulk purchasing. Look for coupons and vivid online offers to save your money.

8. DIY Christmas costumes – You can get discounts on new costumes sale during November. You just need to search good sale prices at the end of the month. To save money, prepare your Christmas costumes all by yourself. You can use the waste items that we no more use or cheap to buy. You’ll find many guides and tutorials which help you to make unique costumes for Christmas. After the event, you can keep those clothes carefully, those costumes may use in coming year, for the same reason.

9. DIY winter decoration – Like those Christmas costumes, you can make winter decorations at your home. If you didn’t keep the stock of last year, there are many DIY decorations that can be made at very low cost. Buy your Christmas gifts in bulk, it’ll give you enough discount and save your dollars. It also reduces the hassle of visiting stores multiple times to make a stock of gift items.

Start saving before the holidays

December is your last month of the year when you can save before the holidays end. Look for transitional and seasonal offers. Keep eyes on seasonal food item discounts.

By carol on November 3rd, 2015

Credit card fine prints – Do you really need to read them?


Credit card holders often get shocked when they receive some unexpected charges, late fees, or find out that the interest rate showing in their account statement isn’t what they expected. A wise man who’s using credit cards will definitely advise you to check your credit card’s fine print. But actually no one cares about this matter. Practically, you should read the credit card’s fine print with caution.

Out of 10 people, every 6 adults (nearly 58%) confirmed that they would rather follow their utility/credit card bills than reading online terms and fine prints. Also, 43% of the above-mentioned people say that they find those terms and conditions hard to understand. But, by not reading those fine prints on credit cards, they might fall into the dark about their rights. Several survey reports reveal that at least 21% of people are suffering from the trouble they’ve caused by signing the terms and conditions documents without checking them properly. 1 out of 10 people are having longer contract as they didn’t read the fine prints at all, and 1 in 20 people lost their advance amount being unaware of the exact terms and conditions regarding hotel or holiday bookings.

There are certain rules and conditions, which are totally different from one card to another. These rules and conditions can cost you way more than you can imagine. Credit card fine prints may contain such information, which may cost you several charges and fees. So, let us know about those things in details.

1. Fine print is much formalized now

Nowadays, the actual cardholder agreement has very little fine print on it. Everything is fixed as per your agreement, whether it’s the interest rate or your late payment fee. Every aspect is right there in front of your eyes, there’s hardly any exception in every card.

However, credit card agreement can be classified in 4 types:

1. the cardholder agreement
2.the privacy policy
3.the rewards program agreement
4.the benefits agreement
There are 4 types; first one and latter are usually written when there are 2 options.

2. Look for the arbitration clause

First you need to know what an arbitration clause is. An arbitration clause is an agreement for which the parties need to resolve any conflict between them through an arbitration procedure. If you’re facing any problem with the credit card company or find any dispute with your account. You can’t sue them without submitting to arbitration form. But you’ll be unable to file a class action lawsuit. You know for sure that a credit card company rarely loses in arbitration.

3. Avoid late payments

You may understand the English language very well, but you might still need to understand the terminology of credit card accounts. It’ll help you to know the credit card agreement well.
One mistake to understand the terms and conditions may cost you thousands. In case of late payment, you’ll be charged the late fee and also need to pay the interest retroactively. You normally have to pay interest for 30 days, which is similar to the 60 days worth of charges. Your credit card company may not charge you the late fee if you’re late for the first time, or if you’re 1-2 days late. But, if you’re late for more than 2 days, or you’re neglecting your responsibilities for many times, I am afraid, you’re in trouble.

4. Your Rewards Program

The rewards program and the agreement lure the consumers to select one card over another. They’ll find new unique features like price protection and extended warranties. The fine prints can be very beneficial in this situation. Insurers don’t normally entertain these features, but they can end up being very valuable to customers.

Many rewards cards have limits on the number of points. This is helpful for you in two ways – first, at the end of the year, you can get to your limit and increase the limit as per your requirement. Second, you can stop using any rewards cards if you hit your limit.

So, it is quite necessary to read all the terms and conditions written in credit card fine prints. Make sure you read them and confirm with the bank if there is any confusion. Last of all, wisely use your credit card and pay the bills on time.

By carol on October 27th, 2015

Strategies to protect your kids and teens from possible ID theft


We all know identity theft is one of the biggest problems that can harm everyone. But do you have any idea that it’s spreading among kids, teenagers and college students also these days? Right now, it’s essential for you to know how much is it important to protect your child’s personal information from the hands of bad people!

Identity theft is when some people utilize your personal data for committing crimes and also to steal your money. These thieves may use your personal details, like – your social security number, bank account number, and password to prepare a fake credit card. Those fraudsters may use that credit card to buy expensive goods, opt for loans, and even cash out all your savings.

Why are kids an easy prey for those thieves? Since kids have neat and clean blank credit reports, identity snatchers prefer to target them initially. In 2008’s Carnegie Mellon study, nearly 40,000 children were victims of identity theft, aged below 18. The most surprising fact is that the number of child victims is twice than adults. According to the reports of, between 500,000 and 750,000 children become victims of identity theft every year, half of which are under six.

So what should be your strategies to protect your teenager’s identity? Practically, you should talk to your kids first. Getting to know their opinion about this matter is essential. The GenY can initiate active steps regarding this matter.

So as a dutiful parent, what should you tell your kids about being alert? Here are a few steps teens and kids need to take:

1. Keep control over your sharing habits – Kids are now familiar with the world of social media – Facebook, Twitter, Whatsapp, and many more sharing platforms. If your kids are following the big mass, it’s likely that they’re also sharing every detail of their life in front of the open world through social media.

It is OK for kids to share their vivid moments through various social platforms, but you must teach them to maintain their boundaries while sharing their content online with anybody.

Let them know that it’s highly risky to reveal their full identity including address or contact details online. This information is like a trump card for identity thieves, and they’ll not hesitate to use it in future to make a hole in your kids finances.

2. Always keep your banking information a secret – Once your kids open a new bank account, ask them to keep their account number and password secret from their friends. We know it may be very tempting to share that information with friends, but it can be risky too. If anyhow your kid shares his banking details with an unknown person, that guy can use that information and steal all the money your son have now. Your son may be innocent, but that guy can be a fake. Of course, all of his friends aren’t thieves, but someone can, and that’s quite possible. So, be sure your teenager son changes his passwords on a regular basis and try to keep that information private.

3. Tackle credit card offers – Your kids will get many credit card offers as soon as they sign up for a student loan or a secured credit card at younger ages. Your kid must not remove those credit card offers while sorting several emails. There’s a chance of getting spam emails with a pre-approved loan or credit card offer. Ask them for not giving any replies to those emails. Those offers could include some information seeking questions that would make easier for the spammers to fetch total information of your kids. By using that information, they can create a fake profile of your child and operate it.

So make sure your kids avoid those offers. If any offer is too much lucrative to refuse, check it properly and communicate with the credit card company to know more details. Ask your teenager to read every mail properly before replying.

4. Regularly check credit reports – If you have any doubt about your child’s identity, you can surely collect the credit report once in awhile and take a closer look. But, it’ll be great if you can discuss the matter with your teenage kid and do the checking together. By this way, your kid will also learn how to keep an eye on his finances and also know what warning signs to look for.

If both of you can see a problem on his credit report, contact the appropriate person as soon as possible. If you find a new account in his name which you didn’t open, ask your bank to look into the matter. You can call the cops also if you can find any wrong monetary transaction.

Above mentioned strategies won’t help your kids always to avoid identity fraud. They’ll need to begin good financial habits also to protect themselves from being conned. So, start guiding your kids about these good fraud protection habits now. Your kids will become self-sufficient and they can handle any problem in future.

By carol on October 13th, 2015

How to help your kids to build great credit


Many of you encountered several problems to manage your credit in the past. So, you won’t let this happen to your children today. You must help your kids to avoid the same problems. But preparing your kids to become credit-worthy is harder than it might seem. Most parents became uncertain of how to build good credit for their sons and daughters.

Don’t worry parents, have a look at these tips below for putting your kids on the right track of building good credit:

1. Educate your kids about responsibility towards good credit – You don’t expect that the school is going to teach your kids about personal finance management along with conventional education. This is why it’s important to guide your children to build and maintain a good credit by giving the fundamental lessons on using credit responsibly.

Specifically, you’ll need to give importance to the aspect of “on-time bill payment” and “avoiding credit debts”. To maintain a good credit score, these are the two main factors which you need to inform your kids. It’s never too soon to start learning about these lessons, so as soon as your children put their first step into the school, it’s better to tell them the basics of money and credit management.

2. Co-sign a credit card with your kids – As an outcome of the CARD Act of 2009, people under the age of 21 are having much trouble while getting a credit card on their own. To solve this issue, you may decide to co-sign a credit card for your kid. This is a very sensitive issue, as many parents think being a co-signer for their kids to get a credit card account is nothing but an accident waiting to happen. Yes, there’s a chance of a big danger, as your kid will receive the credit card bills only, being the only primary account-holder. If he or she didn’t pay bills on time or didn’t pay at all, as a co-signer, you may have to face the consequences. If the matter gets truly serious and the debt becomes seriously delinquent, both you and your kid will get a major blow in your credit scores.

Your child can raise his or her credit limits without informing you, the cosigner. So when it comes to paying the tab, only you’ve to pay off the card to protect your credit score, that would be much higher than you’ve expected. After considering those issues, being a co-signer is a safe option only when your kids are more than trustworthy to you.

You can also reduce your risk by providing your support to your kid while he is still living with you. His bills would come to your address and you can easily monitor his transaction. Make sure your kid will pay off his bills on time, and if possible pay more. It’ll help him a lot to get extra benefit for growing their credit score. By this way, you can make yourself safe and also teach money skills to your kid.

3. Allow your kids to become an authorized user – Another good way is to add your kids in your existing account. That means your kids will be treated as another authorized user of your credit card account. It’s very easy to add them. You just need to call your credit card company and ask them to add your kids. They’ll issue separate credit cards to your kids, yes, for each one of them. Your kids gonna use those cards just like your original cards to pay their bills or purchase anything. The biggest difference between co-signing and authorized card is the total bill will be in your name only.

There are few downsides of this system also. You are legally bound to pay the whole charges on behalf of your children. As you have to sign a legal agreement, you’re liable to pay every single penny you owe to the credit card company. If your kids refuse to pay the credit card company or you, you’ll have nothing to do with it.

But on the other hand, without your consent, your kids can’t raise the credit card limit. So, they’ll have to spend the money according to your decision. You can easily monitor your account and your kid’s activity. If the child becomes rogue, you’ve the authority to rescind his or her authorized user status. Even, you can ask your credit card company to remove your kid’s name from your account anytime.

The “authorized user” approach has some benefits. The authorized user normally receives credit benefits for the total payment history on a credit card. So, if you had this card for a long time and paid off all your bills before time, your kids will also get the benefit being part of your account and the credit history.

4. Get them a low-limit bank card – Several banks will agree to give a low-limit credit card to your kids while opening a checking account. These cards don’t have the “secured” character by default, rather they usually come with high rates. But practically, this card will be the perfect option for your kids who’re willing to pay off their total credit card balances each month.

It is a good option for your kids as almost all banks will provide a debit card with each checking account for students. But you need to remember that, debit cards don’t help your kids to build a proper credit history. A debit card will only work when your kid has enough money in his/her account. As soon as the balance gets finished, the card will be useless and you need to deposit more money to use it again. So, if you consider guiding your child to establish a perfect credit score, you’ve to apply for a credit card loan.

5. Apply for secured cards for your kids – If you feel that your kids aren’t that much responsible towards money management, then the best option for them will be availing a secured card. These cards have low credit limits along with a corresponding deposit, which secures the account holder from being a defaulter. For an example, if your kids deposit $1000 into that credit card account, they’ll get a credit card with the spending limit of $1000 or less.

However, there are some annual fees in most secured credit cards. Theses cards have late penalties and also overdraft charges. The rate of interest you’ll pay on the revolving balance is quite higher than what you might earn on your deposit. In the end, we can say that secured credit cards aren’t for everyone because of their high penalty charges and expensive nature.

So, at least we can say there are few, tough and easy ways you can actually guide your kids. Make them understand the value of money, so that in future they’ll save more than you’re right now.

By carol on October 8th, 2015

Some common myths and facts of zero percent financing


There are lots of 0% offers in the market, but that doesn’t mean they are good options. However, sometimes they really help but they’re not-so-lucrative as we all think.

Here are a few myths and facts of 0% deals that need to be known by all debtors who are opting for this to pay off their credit card debt.

Myth 1: Balance transfer cards don’t charge interest rates for the transfers

Fact: This is the first myth that is often believed by those who are financially unaware. The balance transfer cards don’t charge an interest on transfers only during the introductory period. All balance transfer cards come with an introductory period during which the interest rate remains 0%. However, after the introductory period is over, the interest rates go through a sudden hike. The introductory period typically lasts from 12 months to 18 months. Beyond the introductory period, the balance transfer card would charge the same interest rate as charged by other cards, or sometimes even more than that.

Myth 2: You can transfer any amount of balance into your new card

Fact: This is perhaps the biggest myth that most people believe about a balance transfer method. People think that no matter whatever amount of credit card debt they’ve incurred, they’ll be able to transfer the balance into a balance transfer card and get rid of interest rates temporarily. However, you must know that most credit card companies allow transfers that don’t surpass 80% of the credit limit of the new card that you’re going for. Thus, you must no longer believe in the myth that any amount of debt can be transferred to a balance transfer card.

Myth 3: The best balance transfer cards are those that have a 0% APR

Fact: Though it is true that the best balance transfer credit cards should come with a 0 % APR, yet there are a number of other factors that must be taken into consideration by the debtors while choosing the best cards. For those who’re new with the balance transfer method, you need to know a lot more factors about the entire process to strike the best deal.

Myth 4: Balance transfers are the key to getting out of credit card debt

Fact: While balance transfers can assist you in getting out of debt, this method shouldn’t be considered as the primary way of eliminating debt. Instead, you must see that the balance transfer method is just another road to financial freedom. You must initially try to manage your personal finances and eliminate your debt burden. If you don’t get desirable results, you may go for a balance transfer method.

Most people mistakenly believe that it’s difficult to get a balance transfer card in the market. However, if you want to choose a balance transfer method as to pay off your credit card debts, then you must shop around in order to get the best and the most affordable cards in the market. Avoid believing in the above-mentioned myths so that you can lead a safe financial life.

By carol on September 29th, 2015

College Grads: Are you ready to magnify your credit?


The college life is the best time to build a good credit score. This’ll help you to settle in the real world after you move out of your college. Are you a college novice? Are you struggling to make your credit score better? Look below for a solution to your problem.

What is a credit score?

A credit score is a number which shows a person’s creditworthiness. The cards you’ll qualify for are determined by your credit score. The FICO model is the most common formula, which determines your credit score. There are 5 main components of a FICO model, which calculate your credit score:

  • Payment history – 35%
  • Total outstanding debt – 30%
  • Length of credit history – 15%
  • Types of credit used – 10%
  • Recent credit inquiries – 10%

Why do you need a better credit score?

6 reasons for having a good credit score are:

  • To buy a house
  • To buy a car
  • To start a business
  • To get a job
  • To get low-interest rates
  • To get better utility services

How will you build a good credit score?

College life is just the starting point of your financial journey. Since you’re a college newcomer, it’s quite clear that you don’t have much credit history. Due to lack of credit history, your credit score is comparatively low. This is high time to put your effort and give a boost to your credit score. Practice the below-given suggestions to upgrade your credit.

1. A line of credit is a must – You’re a beginner, so you’ve to create your credit history first. For that, you need to open a credit card or a savings account. Just be attentive towards your line of credit. Don’t overdo it, otherwise your credit score will drop.

2. Maintain a low utilization rate – Credit utilization rate is the amount of your credit limit up to which you can spend per month. For instance, if you’ve got a credit limit of $500 and spend $50 in a month, your credit utilization rate will be 10%, which is a part of what determines your credit score. If you want to keep your credit score happy, then always keep your credit utilization ratio below 30%.

3. Make payments systematically – Timely bill payments and a good credit score go hand-in-hand. So, pay your bills on time and also pay the full amount if you want to build your credit. You must avoid your credit card to buy something you can’t pay off on time. Remember, late payments affect your credit negatively.

Can’t remember the due dates? Are you falling behind your payments? Follow these two simple tips to pay your bills on time:
* You can set up an automatic bill payment system through your bank’s website,
* You can also automate your payments by making arrangements with each creditor.

4. Don’t use a card when you’re in debt – If you are already in debt, then don’t use your cards for further purchase. Otherwise, this would increase your debt load. Your first priority is to pay off the remaining balance. Once you pay off your balances, don’t close your cards. This would lower your score as well as clear your credit history. The score in the “length of credit history” category of the FICO model also drops down, if you close your credit card account.

5. Blend the use of credit – Credit mix is yet another factor which determines your credit score. There are two kinds of credit:
* Open-end or revolving lines of credit – Credit cards are the revolving lines of credit.
* Closed-end or installment loans – Auto loans and mortgages fall under installment loans. These have fixed payment amounts and a fixed payoff date.
Using a mix of credit types shows your ability to handle both cards and loans. This again acts as a “credit booster.”

6. Check your credit report – Mistakes are common. Credit bureaus can also make mistakes. So, don’t let these mistakes ruin your score. Review your credit report at regular intervals and keep it error free. Visit to get your credit report for free.

Final suggestion

Maintaining and building a good credit score is not so easy. It requires some time and personal attention. College life is just the beginning of your financial career. If you follow the above suggestions, then you’ll definitely have a good credit score. So, start early and make your financial life successful.

By carol on September 24th, 2015

Creditworthiness: 4 Things you should never ignore

Mistakes on the credit report can cost you big in the future. Financial mistakes are dangerous, but that doesn’t mean there’s no way to get back stability in your financial life. There are some ways to repair your credit score to become creditworthy. With the help of little efforts and determination, you can build good credit in the future. So, start working on this field because it won’t happen overnight.

1. Get a free credit report

You should order the free copy of your credit report from the 3 major credit reporting agencies Equifax, Experian and TransUnion. Generally, their reports can be different from each other. Thus, you need to review what each credit bureau thinks about your personal financial state. This step is very important if you want to take further steps.

2. Review the report carefully

It has been seen that almost everyone gets errors in credit reports taken out from the three credit reporting agencies. Errors are normal as the credit bureaus update the report based on the information received from the creditors. It’s your responsibility to identify the errors and make the report error free.

3. Consider the double-D strategy- dispute and document

Having a bad credit score will create a problem for getting new lines of credit. So, you’ve to take some steps to make an error-free credit report. You must complete the dispute form that is provided with the credit report. Write a dispute letter to the credit bureaus. Make sure you keep the copies and documents of the letters, forms that you have sent to the three credit bureaus. Thus, you’ll be able to reduce future hassles (if arise). Don’t forget to collect the rectified copy from the credit bureau within a week.

4. Craft a budget to start afresh

Formulate a new budget, according to your income and spending plan. Make sure you cut off all kinds of unnecessary expenses this time. Thus, you’ll be able to reduce your debt burden.

5. Take a new card; add stability to your life

You can opt for a new credit card to get back stability in your personal financial life. Thus, you’ll be able to create an impression that you’re keen on repairing your credit. Make sure you’re making timely payments on your credit cards this time so that you don’t fall back on the payments again.

Final words

You may need to contact your creditors to remove mistakes from your report. Be sure you’ve done this in a right way. At the same time, take the above-mentioned steps to improve your credit score and stay creditworthy.

By carol on September 15th, 2015

Credit counseling agency: 7 Questions to ask while selecting

Credit counseling is a process by which the counselor educates and guides a debtor, to get back a debt free life and how to avoid debt in future. A credit counselor assesses your financial condition and recommends you a suitable plan. The credit counseling services are a great help for those who don’t know how to pay off their debts.

How to select a credit counseling agency

Before you contact any credit counseling agency, first analyze your own needs. When a customer has a problem in managing his/her finances, he/she takes the help from the credit counseling agency. You should check the legitimacy of the credit counseling agency. You should also be sure whether or not you’re satisfied with the answers the counselor provides you. Here are some of the questions which you should ask while selecting a credit counseling agency.

1. Is the agency associated with a national body?

Before contacting a credit counseling agency, you need to check whether or not the agency is affiliated with a national body.

2. What types of services are available?

Credit counseling agencies provide different services like planning a budget for those people who are in debt, counseling services for those who need help from them, etc.

3. Has the agency been accredited by an independent third party?

A third party checking signifies whether or not proper balances are provided to the customer by the credit counseling agencies to protect the customer.

4. How long may your counseling session last?

A counselor cannot assess your income, expenditure and debt in a very short time. Thus, a complete counseling session may last for at least an hour.

5. How can you protect your deposit money?

The agency should show written evidence that it is a good agency so that the customers don’t fall into any financial problem. So, it is essential to choose the right credit counseling agency.

6. What fees you have to pay for the services?

The credit counseling agencies do take some fees in return for the services they provide to the customer. But that fee is a very nominal amount against the services they provide.

7. How can you opt for a credit counseling session?

There are various credit counseling options available for you. Credit counseling can be done through phone or the Internet. Some agencies even provide face-to-face counseling to the customers so that they find it more convenient.

By carol on September 10th, 2015