The Importance of Having a Good Credit Score in 2016

An impressive credit history can benefit you in ways you have never imagined. Consider being able to access the following:

1. Higher credit card limits

Who wouldn’t want to have an increased borrowing capacity? Upon proving to creditors that you are a responsible holder of a credit card, your credit card limits will rise automatically. Even if the company doesn’t raise your credit limit, you have the option to make a request for the same. It is impossible for your credit company not to honor your application. It is, however, imperative to keep in mind that the ratio of your available credit to what you have used plays a significant role in the determination of your credit score. Besides, earning higher credit limits will add a few more points to your high score.

2. Landlords’ approvals

Nowadays, property owners use your credit score to determine if they will rent out their houses or apartments to you. The better your score, the more confidence they will have in letting you rent. This is mainly because; they tend to believe that you are more likely to pay on time. With good credit, getting the approval of landlords becomes much easier.

3. Reduced interest rates

Interest rates have witnessed a dramatic rise in recent years. This can largely be blamed on the harsh economic times being experienced by the whole world. However, with a high credit score, you have the opportunity to have your interest rates lowered whenever you take a car loan, a house loan or any other type of loan. With a history of timely payment of loans, lenders will consider you a safe bet to repay the loan. This is an excellent way of saving money. How? One may ask. Even a 1% decrease in interest for a 25-year mortgage can translate to tens of thousands of savings – over the lifetime of the loan.

4. Personal matters

Apparently, your luck for love goes up when you have an impressive credit score. It doesn’t come as a surprise that people are looking into FICO scores when vetting their potential love interests. The world population is becoming more independent and liberated. People aren’t jumping into relationships just for the sake of it. They are willing to stay single rather than invest in non-constructive relationships. They want to get married to partners with whom they can buy a home, cover travel expenses and even invest among many other things.

Poor credit scores are interpreted as a sign of irresponsibility and bad financial management skills. Working towards a high score puts you more at ease when discussing concrete future plans with your love interest. Nothing will make you feel more confident than knowing that you have a top-notch credit score.

I’m a credit specialist at Angel’s Credit Genie we assist in educating you on how your credit score effectives your life and the things you can do to achieve an excellent credit score. Visit [http://www.Angelscreditgenie.com] to get a FREE Credit Repair Guide.

Top 5 Bad Credit Fixes

There are 5 common ways to fix your bad credit. Although some people may not be aware of them, these methods are nothing new and have been around for quite some time. The following is a list of the top 5 ways to fix your bad credit:

Make Payments on Time
Increase Available Credit
Pick 1 credit card to focus on.
Pick 1 thing you can live without.
Stop using credit.

Why you should make credit card payments on time

There are many lenders (auto, mortgage and credit card companies) that access your credit history before making a financial decision on your behalf. One category that always gets a good looking over is your payment history, because it shows the lender how responsible you are with making your payments and making them on time. The good is if you have missed a payment here and there it is not a huge deal but if you miss payments a few cycles in a row that is not good. It is like when you are interviewing for a job and they call your last employer and they find out you were late quite a bit. On the other hand if you were late to work once every 2 months it won’t be mentioned. Same principal for making payments on time with your credit cards.

In addition, when you miss a payment you become subject to a few issues with credit card companies. First, your credit card will attach a late payment fee and in some cases they may give you a penalty interest rate. As if your life is not already hard enough, obviously there is a lot going on if you missed a payment. Then they add insult to injury with this punishment. Also you become subject to universal default where other credit cards can legally penalize you for missing a payment on a totally different card. This is not the make a bad choice and only the witnesses find out scenario, everybody finds out.

Why you need to increase your available credit

Your goal is to get out of debt and fix your credit score. You can begin working towards this by increasing your available credit. The amount of available credit is what makes so many people have bad credit scores. They have literally used up more than 70% of their available credit (for example your credit limit is $2,000 and you have $200 available). This hurts your score so much because it shows the lenders and/or credit card companies that you do not have enough cash and you need to rely on using your credit card. So, if you pay down your balance and increase your available credit, you send a different message to credit card companies. Eventually, your available credit increases in 2 ways: by you paying the balance down and the companies will usually extend your credit line while your paying down your balance and based on how long you have had the line of credit.

Why you need to pick 1 credit card to focus on

It happens all the time, people get motivated and do drastic things that are not helpful in the long run. For example you commit to losing weight and you exercise for 2 hours the first 2 days, but by day # 3 you are sore and exhausted so you stop working out. This happens with paying off credit cards. People get extra money and instead of paying off 1 card they make payments on 3 credit cards. Although they reduce the balance on all of them at the end of the day they still have 3 credit cards instead of the 2 they would have by focusing on 1 card at a time.

Why you need to pick 1 thing you can give live without

Getting out of debt is about sacrifices and not wasting money. Some people have to keep up with the latest trends and place themselves further in debt. I have done it too and then it hit me by iPhone 6s plus. I was buying new iPhone after new iPhone and then I realized I do not have 1 iPhone that is not in mint condition. They all can play the same games, display the same apps etc. so I am wasting money buying a new iPhone every release. I won’t buy the iPhone 7!

Another example is coffee, I learned that kcups are not economical they are just quick and convenient. I also learned that $2.50 for a venti at Starbucks every day is of $14.00 and a 32oz bag of Starbucks Dark Roast is 17.00 at BJs. Before I learned about BJs I was paying the 2.50 but I thought I was doing it right because I was using my cash back debit card! However, the Bjs bag is much more economical.

Why you should stop using credit cards

I increased my credit score (FICO score) tremendously a few years ago just by not using my credit cards for a few months. I recently wrote a blog about it because it was around this time a few years ago where I noticed the big bump in my credit score, I had finally joined the 700 club! Additionally, the interest on credit cards even if it is low is ridiculous. In my state we complain all the time about taxes on products, well credit card interests rates are a bit higher than taxes. Lastly, if you do not pay off entire balances by the end of promotional periods your balance nearly doubles.

Bonus #6 Hire a Credit Repair Agency

Here is a bonus the number 6 way to fix bad credit is to hire a credit repair agency. By law you are entitled to a free consultation from credit repair agencies. According to the Federal Trade Commission (FTC) the Credit Repair Organizations Act requires consumers of credit repair services to receive a copy of their legal rights and it protects customers from being charged prior to services being performed. The resources on this page will elaborate in more detail about this law.

In closing using the methods listed above will certainly help anyone’s credit score improve. Making Credit Card Payments on Time, Increasing Available Credit, Picking 1 credit card to focus on, Picking 1 thing you can live without and Not using credit cards are the most commonly used ways to fix bad credit. When in doubt contact a credit repair agency and make sure you understand the terms that you are agreeing to.

[http://www.bad-credit-fix.com/Fix-Bad-Credit/how-i-quickly-increased-my-credit-score/]

Federal Trade Commission. (1996). Credit Repair Organizations Act. (Pub. L. 90-321, title IV, §404, as added Pub. L. 104-208, div. A, title II, §2451, Sept. 30, 1996, 110 Stat. 3009-456.)Retrieved from: Protection for People from the Credit Repair Organizations ACT.

Can A Credit Union Help Build Or Rebuild Your Credit?

The most important way of upgrading or reconstructing your credit is establishing a new credit history. And, an excellent place to go for assistance is a Credit Union because they live by the philosophy of “People Helping People”. They are dedicated to their local communities and focus on improving the quality of life for their members.

They offer financial tools designed to reconstruct blemished credit scores. Credit Unions understand that having “less than perfect” credit makes it difficult to obtain a loan; so they want to help guide their members with “get back on track” loan programs. Here are some ways that some credit unions nurture your finances back to health:

Loyalty Loan Programs: These loans will help with immediate needs and also help rebuild your credit. These loans reward the members with on-time payments with a lower interest rate and loan payment over the life of the loan.

• Ability to borrow with an unhealthy credit score

• Flexible qualifying guidelines

• Incentives to lower your loan interest rate and monthly payment

• Improves your overall credit rating and credit score

Credit Builder Loans: These loans are usually made by Credit Unions to help members build or rebuild their scores. This type of loan is approved for a small amount, normally not much more than $1,000. Instead of the member getting the loan amount like they would with a conventional loan, the money is placed into an interest-bearing account. The member makes payments monthly, and after a year or two, the loan is paid off and the money, plus interest is given to the member.

• No qualifications necessary, except a reliable source of income.

• Usually a 12-month term

• Member’s repayment behaviors are reported to the credit bureau

Free Credit Counseling: Many Credit Unions offer free financial counseling. Members that take advantage of this program eventually see increases in their scores which helps create a more financially healthy member.

Repair your credit with a secured credit card: A secured credit card can be a creditworthy tool for people with less than perfect histories. Most of the time, a savings account is used as collateral for the secured card. Secured credit cards are the first step for members who can’t qualify for a regular unsecured credit card. Just be aware that most credit unions don’t promote their unsecured card options, so make sure you ask.

The quickest way to build up a satisfactory score is to borrow and pay back the loan on time. It isn’t difficult, it just takes some discipline. Locate a Credit Union near you and check out what options they have to offer. Rebuilding or establishing new credit is easier with a Credit Union so start constructing a healthier credit history today!