Your credit score is a crucial part of your financial health. The three little numbers measure the capacity of your credit, the proficiency of your money management and your fiscal responsibility. An excellent credit score can open the door to large loans with better interest rates, as well as employment opportunities and more. On the flip side, a poor credit score can be a strong impediment toward building wealth, funding large purchases and finding gainful employment.
Let’s explore the best ways to build and maintain an excellent credit score. Have several active credit cards Many consumers mistakenly believe the path toward great credit is through swearing off all credit cards. However, building and preserving a healthy credit score requires owning a card or two and keeping them active. If you’re just starting out, consider signing up for a beginner’s card, which generally features easy eligibility requirements and very little available credit. Otherwise, be sure you have a minimum of three open cards and that you use them on a regular basis. To keep your cards active without having an open balance, you can pay one fixed monthly bill, such as a subscription or monthly membership fee, with each of your credit cards. Set up an automatic monthly payment for the bill by linking your credit card, and then set up an automatic monthly payment for the credit card, too, by linking your checking account to the card. Choose to have the money transferred before the bill is actually due. This way, your cards will be open and active and you’ll never have a late payment, which would negatively impact your credit score. Several months of using your cards responsibly will generally help move your credit score upward. Work on paying down debt If you’ve landed deep in debt and can’t find a way out, now’s the time to work on kicking that debt for good. First, choose your debt-crushing method: The snowball method works by putting all available funds toward paying off the smallest amount of debt first, and then the next-smallest, until all debts are paid off. The avalanche method works the same way, but pays off the debt with the highest interest rate first, and then the next-highest, until all debts are paid off. With the snowball method, you’ll see results quicker, but may ultimately pay more in overall interest. Choose the method that works best with your personality, goals and lifestyle. Next, list your debts. If you’re going with the snowball method, list in order from lowest amount to largest. If you’ve chosen to use the avalanche method, list your debts in descending order of interest rate. You’re now ready to pay down those debts! Review your monthly budget to find a way you can trim your expenses, or look for a side hustle, and use the extra cash to maximize your payments toward the debt you’re working on first. Keep at it until you’re debt-free. It may take a while to crush a mountain of debt, but showing the credit bureaus that you’re on track to pay off that debt can do wonders for your score. Pay your bills on time Paying credit card bills when, or before, they’re due is a major factor in determining your score. Carrying an outstanding balance, and/or owing lots of interest, shows that you are not timely with your bills and can’t be counted on to repay loans responsibly. As mentioned, you can set up automatic monthly payments for your bills so you’re never late. Just make sure you keep the account you are paying from well funded to cover your payments as they come out. Bring down your credit utilization ratio Another crucial factor contributing to your score is your credit utilization ratio. This refers to the amount of available credit you have and use. It’s best to keep your utilization under 30%, or even 10% if you can. To that end, make sure you’re using just a bit of your available credit each month. In addition, consider accepting offers for increased credit – as long as you know you won’t rack up huge bills by having all that additional credit. Keeping an excellent credit score is a key factor in financial wellness. Use the tips outlined here to build and maintain a great score. Your Turn: Do you have an excellent credit score? Tell us how you do it in the comments.
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The holidays are inching closer, but that big shopping frenzy hasn’t quite started yet. There are no big shopping holidays this month either, but you can still pick up a scary-good deal in October.
Here’s what to buy, and what to skip this month. Buy: Jeans The September sales on jeans will get better in October. Retailers need to get rid of the last remnants of back-to-school sales, and autumn deals on denim will be too good to pass up. Shop your favorite retailers and check out some new ones you thought you couldn’t afford to find incredible savings on jeans this month. Skip: Winter apparel Clothing deals will stop at the denim this October, so don’t plan on filling out your winter wardrobe just yet. Warm-weather wear won’t start dropping in price until Thanksgiving at the earliest, and the best markdowns will only appear on shelves around the holidays. The weather is still mild in much of the country during mid-autumn, so there’s really no rush to purchase bulkier clothing now. Instead, wait it out a bit to save big bucks. Buy: Outdoor gear As the weather cools down and people head indoors, prices on all things outdoor will start dropping. This includes patio furniture, gardening tools, grills, camping gear and so much more. Check out online retailers, like Wayfair and Overstock, and look for markdowns at brick-and-mortar locations, like Lowe’s and Home Depot. Keep your new outdoor items wrapped well and safely stored away indoors so they’re good as new and ready for use at the first sign of spring next year. Skip: Cleaning supplies Are you in the market for a new vacuum cleaner? Looking to score a deal on a robot sweeper? You’re best off waiting a bit longer, until Black Friday. On the biggest shopping day of the year, big-ticket cleaning items will see steep discounts. Buy: Halloween costumes and décor As with any holiday, the closer the calendar gets to Halloween, the steeper discounts you’ll see on related paraphernalia. This includes party décor, costumes, yard decorations, candy and more. If you don’t mind a last-minute costume, you’ll save a ton by shopping for Halloween in October. You can also get a head-start on next year’s costume by shopping the Halloween clearance sales which start on Nov 1. Skip: Electronics If you’ve been patiently holding out on buying new electronics, wait just a bit longer to make your purchase. TVs, gaming consoles, laptops, tablets and more will start dropping in price next month at Black Friday sale events. You can expect to see these items discounted by as much as 30% at popular retailers around Thanksgiving. Buy: Autumn apparel You can pick up some in-between weather wear this October at super-hot prices. Retailers need to make space for the winter stock, and will be discounting all autumn wear. Take advantage of this by cashing in on fantastic sales. Skip: Appliances Don’t spring for a new oven, refrigerator or washing machine just yet! Being hot items at Black Friday sale events, you’re best off waiting a bit before dropping a load of money on new appliances. Start looking out for Black Friday sales as early as Nov. 1 to score the best deal. October’s got some great deals to offer the savvy shopper. Use this guide to find out what they are, and which items should be put on the wait-list this month. Your Turn: Have you picked up any great deals in October? Tell us about it in the comments. You’ve got mail! But beware, because this particular missive telling you that you’ve been preapproved for a large loan – maybe even a mortgage – may not be as it seems! The exciting news may be accompanied by a check that’s made out to you and even for the full loan amount! It’s a dream come true. Until, of course, it all turns into a living nightmare.
Here’s what you need to know about preapproval scams and how to stay safe. How the scams play out In a preapproval scam, a target receives a letter in the mail, an email or a text message informing them they’re preapproved, or “prescreened,” for a large loan. The letter is often accompanied by a live check, or an unsolicited check that can be cashed in by the named recipient – which is you. The letter may also be highly relevant to your life. For example, if you’re in the market for a new home, the offer may feature an alleged preapproved mortgage loan. If you’re looking for a new set of wheels, the letter will likely offer a bogus auto loan. More commonly, though, will be the offer of a personal, or unsecured loan, through a live check. When you go ahead and cash that check, you may be playing right into the hands of a scammer. The authentic-looking check cannot be cashed unless the recipient shares their personal information. Of course, this means providing a scammer, or a scam ring, with all the info they need to empty your accounts, commit identity theft or worse. In addition, the check may appear to clear but then bounce a few days later, leaving you to pick up the tab for any of the money you’ve spent. Finally, if you really do need to take out a large loan, the bogus offer can set you back significantly by hurting your credit score. Checklist for legitimate preapproval offers If you have a credit history, you’ve likely received these preapproval offers at least several times. Some of them are actually legitimate offers to cover a loan for a large amount. How, then, can you tell which of these offers are legitimate or scam? First, it’s important to know that, while some of these offers may be legit, that doesn’t mean they’re good for your financial health. If you cash that check and/or accept that loan offer, you’ll be bound by the loan terms, which you may not be truly aware of until the first repayment bill becomes due. Most of these preapproval offers will have exorbitant interest rates and may demand full repayment quicker than typical loans obtained from a bank or credit union. Now, let’s take a look at how you can determine whether one of these preapproval offers is legit. If you receive an offer as described, look for this information to verify the authenticity of the offer:
If you’ve been targeted If you’ve been targeted by a preapproval scam or a legitimate but shady offer, there are steps you can take to protect yourself from further harm and to stop the annoying letters from landing in your mailbox. First, let the Federal Trade Commission (FTC) know about the circulating scam. Next, it’s important to note that, under the Fair Credit Reporting Act, you have the right to opt-out of future loan offers for five years, or permanently. To opt-out for the next five years, call 1-888-5-OPTOUT (1-888-567-8688) or visit OptOutPrescreen. To opt-out forever, visit OptOutPreScreen to request a Permanent Opt-Out Election form. Return the signed form and you should be off the list of all preapproval offers. Finally, keep your online interactions safe from scams by using the strongest and most up-to-date security settings across your devices and being careful about the information you share online. Preapproval scams can be super-annoying and destructive, but you can outsmart them. Stay safe! Your Turn: Have you been targeted by a preapproval scam? Tell us about it in the comments. Looking for ways to up your productivity levels while at work? These innovative apps can help you stay on top of your game at the office, always.
Freedom Distractions can make it impossible to get any work done. With the Freedom app, though, your time is yours again. Block out all distractions, like promo emails, social media alerts you really don’t need to know about right now and more. You can choose to go offline completely, only block out social media or select which apps and/or websites you want to disable now. Choose your time block, too, and you’re ready to get to work! Sunrise This free calendar app makes your work schedule super smooth and simple. Input your tasks and meetings into the calendar, and it helps you get them done with innovative features, like automatically dialing into a conference call, importing photos of your contacts via their social media profiles and more. Todoist Get more done in less time with this super-convenient to-do list app. Share your lists with your co-workers, assign tasks to various team members and collaborate efficiently with the entire team on any project. No more waiting for updates on an assignment, fielding endless questions about your own progress on a task or wondering who can assist you with a project. Doodle Are you constantly getting caught up in long email chains when trying to find a date and time for a meeting that works with everyone? Save time and stress with the Doodle app, which allows you to suggest a date for a meeting within a single message, send it to participants through the app and then let them instantly vote on what works for them. Let the app do the rest of the work, confirming the date that works best for everyone. Slack Stop wasting half of your workdays on back-and-forth emails between yourself and your colleagues. Slack helps streamline your communications to be more effective and leave less room for misunderstandings. Set up different “channels” for select groups of team members, or even for specific projects so no relevant messages get lost in the shuffle. The app also allows for push notifications so you never miss an important update. Use these tech tools to stay on top of your game at work and bring your productivity to a new level. Your Turn: Which tech tools help you stay productive at work? Tell us about them in the comments. |
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