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How to Raise Your Credit Score
by Ellise Walsh
The value of diligently tracking your credit score is often underestimated. Failure to know what is on your credit rating can keep you from qualifying for loans and in far too many cases will cause you to pay higher interest rates.
The trick to raising your credit score is no secret, but it does take diligence and hard work.
First, check to see what is on your credit report. You can usually obtain a copy of your credit report for free on a trial basis from a number of agencies. Take caution, however, not to overuse these offers. Requesting too many credit reports can actually have the opposite effect on your credit score. When lenders see a large number of credit report inquiries they assume it is due to applying for loans and credit cards. This translates to money problems and lowers your credit score. At the most, you should only request your credit report one to two times per year. That should be sufficient for you to stay on top of your credit score.
Make sure you obtain a three-in-one report. There are several credit reporting bureaus and each one calculates your credit score in a slightly different manner. It is in your best interest to find out what is being reported by each agency.
If you do have a bad credit score, some of the items that contributed to your rating will take time to clean up, but the good news is that some can be cleaned up in just a matter of days.
Save yourself some money and time and steer away from offers from companies who claim they can fix your credit score for you. In most cases, these companies charge a small fortune and do very little. There is really no secret to fixing your credit. You can do it yourself and save yourself their expensive fees.
When you receive your credit report, be sure to review it carefully. While most of the information your report will probably be accurate, there may be some information that is completely in error. For example, you may notice that while you distinctly remember paying off a bill in the past, it is now showing up as delinquent on your credit report. In worst case scenarios, you may realize you have been the victim of identity theft and someone else is having a good time at the expense of your credit rating.
If you do see something on your credit report that looks suspicious or that you know is completely in error, write a letter. Keep it brief, but state in clear terms what the situation actually is. If you paid off that bill, include copies of backup documentation; such as cancelled checks or receipts. Mail the letter certified with a return receipt requested.
Be aware of what factors contribute to your credit score. Payment history, account balances, age of established credit, recent inquiries and opened accounts, credit mix are the five major factors that makeup your credit score.
Don't succumb to offers for a certain percentage off a purchase if you open a charge account. That 10 or 15% you might save on your purchase isn't worth the negative impact on your credit score.
If you have a lot of credit cards, don't feel you need to get the scissors and start cutting. Credit cards can work to your advantage if used properly and responsibly. For the most part, credit score formulas look at the balances on your credit cards; if you've maxed them out, etc. Closing out accounts won't necessarily improve your credit score. If you know you have a problem with charging everything simply because it's convenient, lock away all your credit cards except for an emergency card. Then begin a diligent effort to begin paying down the balances on your credit cards. Experts recommend that at any given time you should always have at least 25% of your remaining credit limit available and unused.
Additionally, don't think that consolidating your credit card balances on one card will help your credit score. Extensive moving around of money is a red flag to lenders and will usually hurt you more than help you.
If you do have an account that has a zero balance, don't think it will raise your credit score to close out the account. That zero balance account is actually helping your credit score.
Make sure you pay your bills on time, every time. Set up some kind of reminder system if it helps or even set up your bills to be deducted straight from your account.
It may take awhile to raise a low credit score, but the effort is well worth the reward.
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Easy Personal Budget: How to Make One in 5 Minutes
Author: Doug Smith
Do you find yourself with not enough money to do the things you'd like to? Do you wonder exactly how much you spend on everything every month? You don't need to be an accountant to figure it out. Follow this basic formula to find out how you spend, and how to help save by cutting unnecessary costs: First, think about the things you can't change. These are called "base cost". You don't need to turn your life upside down moving into a cheaper place, but at least get organized: 4 things to think about: Rent & Utilities Phone Bill Car Insurance Credit Card Minimum These won't change. If you're living in a place that's way beyond your means, that's one thing, otherwise, move on. Now come secondary costs. These things are necessary but can be rebudgeted: Food Gas Entertainment (including drinking) Clothing Compare this number to your total income. What can you change? Operating unde the assumption that you're not binge drinking 5 nights a week, or you're not buying a new wardrobe every day, FOOD is the number one thing wrecking your budget. Most people either entirely never cook, or cook rarely (putting a pizza in the oven doesn't count). You might be surprised to hear that a coffee drink at starbucks and a fast food meal can equal a half week of groceries. Here are some staples that can create a massive variety of dishes, and can cost around 50 cents per meal: Eggs (Scrambled, over-easy, ((either on toast)), poached, fried, etc) Beans (In sauce, or with veggies, you can easily make a vegetarian chili) Pasta (Unlimited possibilities to combine with various sauces, veggies, meats) Chicken (Fried, pan-sauteed, poached, baked, thousands of possibilities and marinades) Rice (As many, if not more possibilities than pasta. This is a staple across the whole world but an afterthought here. Obviously there are thousands of ways to prepare it) Bread (to be combined with the above, obviously you can go the spread route or pile on chicken or cold-cuts to be taken with you for lunch) Also, make sure you save odds and ends. For example, grocery bags can be used as trash liners and to pick up dog crap. Look around you, there are a lot of opportunities with a little imagination.
Article Source: http://www.articlesbase.com/finance-articles/easy-personal-budget-how-to-make-one-in-5-minutes-847826.html
About the Author:
For exactly how to trim down your budget, like gas saving secrets, a 20 dollar weekly meal plan, and how to get designer clothes for deep discounts, visit budget living .
New Year's Resolutions That Will Succeed
By Jeffrey Strain
There are plenty of reasons not to make New Year's resolutions for the coming year. Why? Most resolutions end in failure.
But if you insist, you can make success more likely. If you treat your New Year's resolution like a baby step instead of a huge leap, you are much more likely to achieve it. That way, your finances will be in better shape come 2010. Here are a few resolutions to consider.
Credit card payments: Make a New Year's resolution to pay more than the minimum amount on your credit card, even if that means only putting in an extra dollar. The best way to approach this is through the snowball method of debt reduction. That additional dollar means you have taken the initial step to achieve credit-card debt-reduction success.
Why you can keep this resolution: Twelve extra dollars a year is something anyone can afford. While the hope is you can pay much more, the $1 minimum will allow you to keep the resolution even during months when money is tight.
Read a personal-finance book: You don't even have to buy one; look at your library. If you are worried you will fail this resolution because you think all personal-finance books are dry and dull, try David Chilton's The Wealthy Barber, which is set up more like a story than a "how to" book.
Why this resolution will work: All you need to do is read a book. You don't have to make any changes. Without that pressure, you can simply read, digest the material and decide which, if any, of the book's recommendations make sense for your situation. Chances are that you'll find a number of points you should be doing but aren't.
Track expenses for a week: Choose a week where you keep track of all your expenses down to the penny. It doesn't need to be a fancy system. Keep a small notebook in your pocket or enter each expense into your personal organizer or phone.
Why this resolution will work: All you have to do is record your spending to succeed. You're not being asked to reduce spending. The hope is that you will realize you are spending a lot more than you thought in certain areas, and you won't need any prodding to make changes. The time period is short enough that it shouldn't be a burden.
Play a money-saving game: If saving money is on your list of goals, play a money-saving game instead of trying to slash spending. Many people already play money games without even realizing it. Keeping a coin jar is one example.
Why this resolution will work: By simply playing the game, you have succeeded, no matter how little or much you save. It's usually much easier to save money if you make a game out of it and turn it into a challenge rather than a chore. You know what motivates you the most, so you can tailor the game with that in mind.
Find a new income stream: The part of personal finance that often gets ignored when it comes to improving your finances is earning more money. Just as you want to be diversified in investments, diversifying your income is a positive step. There are many hobbies that can be turned into income streams with a bit of thought and effort. And there are plenty of part-time businesses you can begin that cost little to no money.
Why this resolution will work: If you learn to make $1 in some new way, you have succeeded. You aren't forcing yourself to find something you can do to replace your current income. In most cases, it's the process of starting that is the hardest, but expanding your earnings from this new source should be quite easy if you want to.
Remember to break down major goals into simple steps to get yourself going. By doing so, you will start off in the right direction and build on your resolution with more goals.
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