Dictionary.com defines independence as “freedom from control, influence, support, aid, or the like, of others.” As we celebrate our country’s independence, it’s a good time to think about being independent from debt.
Jumpstart is a national coalition to teach financial literacy to children; according to a 2006 study they conducted, nearly 52% of high school students use credit cards. Let's make sure they use them wisely.
The other day we talked about college students protecting their identity at school. As a parent, there are things you can do as well to protect your good credit and possibly protecting your identity at the same time.
While new credit only accounts for 10% of your FICO score, it really can't be ignored. If you're young and don't have a lengthy history, opening up a new account can hurt your score as too much credit is generally considered risky. If you have what might be construed as too many accounts, then the thought is that it's too much to keep up with, especially all those different payment dates.
More than ever, with new banking regulations, banks want to pitch their products to college students. It seems that a college student's account has a major impact on the bank's earnings.
Although the length of your credit history only weighs in at 15% of your score, it is still vitally important. Don't confuse this with your payment history; your payment history is the quality part, while your payment length is the quantity part.
As we mentioned in a previous post, the Federal Reserve prohibited banks from automatically enrolling customers in overdraft protection which took effect in August, 2010. Despite this, for those who do opt-in to the program, there's no limit to the amount of the fee and number of fees PER DAY can vary from bank to bank. According to the Consumer Federation of America, some banks have tacked on additional fees.
Yeah, I know, ANYTHING quick and easy can't be all that good. No matter how good or bad your credit score, you need to be following these simple strategies.
Identity theft is life-changing; you are no longer yourself when it comes to your credit because someone has taken over your "credit life." That doesn't mean they start paying your bills; oh no, they start charging food, clothes and gasoline to a credit card in YOUR NAME. The good credit you've built up over the years is destroyed and it could be years before you totally eradicate the ramifications.
Can you imagine how paralyzing it would be to open your credit card statement and find charges that you didn't make?
Although there's still a lot of uncertainty in the housing market, the drop in home prices has made home ownership very alluring. However, you may think you don't qualify for a mortgage. It might not be as bad as you think.
There are several provisions of the 2009 Credit Card Act that are intended to help consumers. Whether these provisions are changing consumers behavior is another matter.
Last week we discussed how your credit history accounts for 35% of your FICO score. The next biggest component comprising your score is the amount of debt you have which comprises 30% of your score. That means nearly two-thirds of your credit score is made up of your history and your amount of debt.
Your FICO score ranges between 300 and 850; the higher your score the more likely you'll get charged lower interest rates on loans, you'll have lower insurance premiums and you'll get a job. The best way to improve your FICO score is to focus on your history.
Much to your horror, you may be surprised to find that your doctor bill can continue to cost you long after you've paid it.
So you received a speeding ticket and you're thinking: "I'll just pay the fine." Think again. Not only will you pay the fine, but you'll pay in another way: increased insurance premiums.
If you've declared bankrupcty, you now have a second chance to have a clean life... credit-wise, that is; don't blow it! You have to strategize so you can make the most of this "second chance." Here are five important steps to take:
We live our lives around what we're taught growing up. Sometimes we will start to believe differently when we experience the real world and realize some of what we've been taught really doesn't make sense. Many beliefs around money are learned early in life and sometimes we just can't shake them.
Many people ask if it helps to pay off old debt. It will help if you want to fulfill your moral obligations.
Nothing.
