Avoid These Common Financial Mistakes

Avoid common mistakes that could harm your credit.

Avoid common mistakes that could harm your credit.

Everyone makes financial mistakes, and it is harder to avoid them than one might think. However, most mistakes people fall into are the same that others have made or make on a daily basis. You probably know what they are and hear about them all the time, but like most things, solutions are easier to talk about than actually implement into practice.

Not all financial mistakes can harm your credit. For instance, while spending too much for a cup of coffee every day is not in the best interest of your bank account, it probably won’t keep you from making your credit card payments on time. If it does, then it is time to stop. But, there are some mistakes that will affect your credit score and you might not even realize how often you are doing it.

Consider the following list of mistakes to avoid to protect your credit:

Late payments

“Not all spending mistakes harm your credit, but it’s important to be mindful of those that will.”

See, you knew this was coming! However, that doesn’t make it any less important. If you have a credit card balance, or a monthly bill is due, pay it off every month. Continue reading…

How To: Get a Car Loan After Bankruptcy

Get approved today regardless of your bankruptcy history.

Get approved today regardless of your bankruptcy history.

Bankruptcy is not the end of the road, though public stigma affiliated with the matter might lead you to believe so. The reality is that bankruptcy is a process that helps you move out of debt and onward with your life. Additionally, it is common – more common than people might think. In 2014 alone there were 936,795 total filings for bankruptcy, according to the United States Courts. This is a significant number and one that can’t be ignored by borrowers or lenders. When you think about it, if banks or other lending institutions didn’t consider an individual who had gone through the bankruptcy process, they would run out of people to do business with.

The fact of the matter is that while bankruptcy can feel like a burdening process, there is a light at the end of the tunnel. Getting approved for an auto loan after, or even during, bankruptcy is possible, you just have to make sure you are ready.

Know your options 

When considering applying for a car loan while the bankruptcy process is hanging over your head, just make sure you have thought through all of your options. There is no doubt you have learned to budget better and manage your accounts more efficiently as a result of the bankruptcy process, but do you feel confident in your ability to take out another loan? Continue reading…

Better Your Credit Score For Better Auto Loan Interest Rates

Credit Cards: The Right Ones if You Have Bad Credit

Credit Card - Scrabble

Which one is right for you?

While the idea of using a credit card when you have a history of bad credit can be frightening, it is hugely important to do so. The realization is that using credit cards, or more specifically, paying off your credit cards, is a way to build your credit. But the only way you can pay off a credit card is if you use it every month and eliminate the month’s balance without fail.

Certainly this is not an overnight process. It will take time and commitment to keep your spending at a responsible level that you are sure you can pay down each month. Also, applying for a new credit card with features that will work in your favor is a wise move. You may not be aware of it, but there are credit cards that are designed for those with bad credit.

Applying for a new credit card while you have bad credit does not come with guaranteed approval. You need to make sure you are doing what you can to get your credit on track when you apply. However, applying with bad credit also doesn’t mean an automatic rejection. But it is important you know what type of card to apply for. Continue reading…

New FICO Score – What You Need to Know

FICO_LG_COLOR1The credit score is in the process of receiving an overhaul. While that sounds a bit odd, The Wall Street Journal reported on the announcement last week, made by the Fair Isaac Corp., which is the creator of the most widely used consumer credit scores, such as FICO. The new and improved FICO score is changing the approach slightly. But what does this mean? And more importantly, does it change your credit?

Well, in fact, the new FICO score will change your credit history, but for most people it’ll be in a positive way. While the plan hasn’t been fully adapted and is still only in a pilot phase, financial professionals are expecting a big change in who is eligible for financing based on their credit. Essentially, the goal is to extend credit offerings to those borrowers who may not have been approved previously.

Many don’t have FICO scores

When it comes to a credit report, FICO is the biggest name in the game. If consumers want to seek out financing, lenders will check their credit history, which in most cases will include a FICO report. Continue reading…

Rebuilding Your Credit After Bankruptcy

bankruptcy_monopoly

It’s okay – start from the ground up!

Bankruptcy can be a scary word, especially for those going through the process. But it doesn’t have to be, and it absolutely shouldn’t make you afraid to spend after you emerge from the process. While it is impossible to rebuild credit overnight, it can absolutely be a liberating experience because you will be doing it debt free. Sure, you will be starting from the ground up, but you won’t be carrying the load you were before.

So what are some of the ways you can rebuild your financial standing after bankruptcy? Check them out here:

Stop feeling down

The first step to rebuilding credit is to stop feeling guilty about previous mistakes. Guess what, everybody makes them. In fact, so many people have made financial missteps that the bankruptcy process had to be created in the first place. But this is not a bad thing. It demonstrates that A) you are human, and B) that you live in a society that is willing to help you out. Both of which are important. Continue reading…