Learn more about the benefits and the downside to credit cards. Some people can use them and some people cannot. Also be sure to check out our complete guide to utilizing credit cards.
Credit is a funny thing. Especially when you start talking to other people.
Some people have all the answers on how to improve your credit, but are they accurate?
Just because something seemed to work for someone else doesn’t mean it will work for you, but there are some standards that you (and anyone else) can meet to ensure your credit score will continue to rise.
Before you get into raising your credit score and cleaning your credit, you’ll want to look at these credit myths.
There’s no reason to waste time on things that won’t help you…
I’ve been there. Over $20,000 in consumer debt with interest rates higher than Cheech and Chong combined.
I remember seeing the offers pouring in to lower my interest rates. This one stuck out:
“0% interest rates on balance transfers for up to 15 months!”
It was a Chase Slate card. 15 months was the longest zero interest offer I could find for a balance transfer at the time. I calculated how much we needed to pay each month to pay it off in 15 months. We applied. We were approved.
It worked for us. We went from paying interest rates of 12%, 15% and even 17% to paying no interest whatsoever. But what would have happened if we would have went over the 15 month mark? Around 23% interest would have happened.
We had to ask ourselves if we were certain we could pay off the account in time, no matter how many unexpected costs popped up, but that’s not all we had to ask. Here are four questions to ask if you’re considering a balance transfer. Two to ask the company and two to ask yourself…
In the modern age, getting rid of debt has various implications. There’s the simple idea of lowering bills, living a debt-free lifestyle or simply putting yourself in a position to save money. But there is also the on-going concern of keeping your credit score intact.
We live in a loan-oriented society and, for most of us, borrowing is critical. We need a car or can do better financially if we buy a home instead of rent sometimes. We want to start a business or pay for tuition to live better lives. These are not frivolous moments. A credit score is critical at important junctions in our lives.
You need some basic understanding of money to understand loans, but in the modern era it also pays to know a few tricks to helping your credit score that go beyond simply, “don’t make late payments, ever.” That’s obvious. But here are some less obvious methods of keeping credit scores healthy…
Runaway debt and credit debt is the new normal. It doesn’t necessarily occur because you spend beyond your means, but can happen as a result of your FICO score dropping whenever you apply for a lease on an apartment, a credit card account, or a car loan. The company that reviews your application will pay a fee to check your credit and these checks are not harmless, but can actually create a dent in your credit score.
Without realizing it, you may end up paying higher interest for everything because of your lower FICO score. This may actually force you to run out of money. At this point, it’s easy to fall into some heavy debt as you scramble for survival.
So, it’s a negative cycle: inquiries on your credit card may lower your FICO scores; these then results in paying more for everything because of higher interest rates. This situation, in turn, may then lead to runaway debt.
In order to arrest this negative spiral, you first have to understand how the credit scoring system works…
There are many tools to help your find the perfect credit card.
Some of those tools cost money, this one is free, but there are other free tools like this.
So, what makes it so special?
It’s more than just a tool, it’s a goldmine of resources on finding credit cards, improving your credit, fixing mistakes on your credit report and ultimately helping your get the best credit score possible.
So let’s dive in…
What is Credit Sesame?
Sure, they are a credit monitoring service, like Credit Karma and many others, but that’s not all.
They offer more than the other credit monitoring services I’ve seen, while still keeping it free.
What do they offer, you ask? A free credit score, free credit monitoring and free identity theft protection.
Free identity theft protection? That’s right! And they actually offer even more than that.
Let me give you a quick breakdown, then I’ll let you go try it out. After all, it is free…
Your credit score can tremendously impact your day-to-day life.
For Example, your credit score can affect everything from obtaining a mortgage to getting a new job. This is something that most people know. But what everyone doesn’t know is how exactly your score is calculated.
The reason that this isn’t common knowledge is because the credit bureaus do not tell you exactly how they calculate your score.
Even though we do not know the exact equations used, we do know what factors can have a tremendous impact on your credit score. For example, settling your debt can impact your credit score.
Let’s see exactly how debt settlement affects your credit score…
Do you know the total credit card debt of the United States population?
793.1 billion dollars.
Now you know. And now you have a sick feeling in your stomach. At least, I do.
Does that mean credit cards are evil? Nope.
It just means people are
That’s the problem. Here’s how to fix it…