It seems that getting a credit card is easier today than ever before. Banks seem to hand them out arbitrarily. For many people, a credit card is permission to go on a shopping spree.
Before they know it, they’ve reached their credit limit, and the money they’ve borrowed needs to be repaid.Continue reading
Credit scores seldom stay the same, fluctuating all the time is normal. If you notice a drop in your credit score, there are a number of explanations as to why it has dropped. It is not something to be concerned about.
Many factors can affect your score like defaulting on loan repayment or even being approved for a new loan or new credit card.
It is a very difficult position to be in when you don’t qualify for new credit because you don’t have a credit score and you can’t get your credit score because you have no credit history. It’s a typical catch-22.
All is not lost, however, since banks know the struggle it can be to get a credit card for the first time. To get a credit score, you will need to have an active account for at least six months on your credit report. Some banks are now offering special credit cards to people with no credit.
Your credit score can affect a variety of things in your life from applying for a home or personal loan, buying a car on finance, any insurance and even applying for a new job. That is why it’s important to ensure that your credit report is correct and reflects your finances accurately.
Check your credit score and credit report at least once a year to ensure everything is correct. You can find free credit reports online to keep up to date with your credit information.
Your credit report works in a similar way to a report card you would get back in school. It demonstrates your ability to repay debts and show how capable you are at making good on your financial obligations. Statistics show that 25% of consumers have a credit score of below 600 which is classified as a “bad” credit score.Continue reading
- People who incur unnecessary debt find themselves in a position where they are no longer able to service those debts. Failure to pay debts has long-term consequences. Your name will be registered with the credit bureaus. The next time you apply for debt, your name will be flagged. This means you’ve been blacklisted and won’t qualify for a loan.
- Failing to pay off furniture you bought on credit could mean that when you’re ready to settle down, you won’t qualify for a bond. Being blacklisted by the credit bureaus can derail your future plans.
- The good news is that it is possible to clear your name with the credit bureaus. It might not be an easy road ahead. However, it’s worth it for your financial future if you can get yourself on the right side of the credit bureaus.
- We all dream of a debt-free life, but most of us are not that fortunate.
- Maybe we enjoy our shopping sprees a little too much, and we’ve racked up quite a debt. If that’s the case, it’s time to get your finances into shape.
- Let’s face it: we all want to live a life free of debt, but the reality is that most of us are in some sort of debt.
- And for many of us, it’s a lifetime condition because of long-term loans such as home loans.
- The trouble is, very few of us have the cash for bigger items such as properties, cars, and other big expenses.
- Start a simple budget for your home, look no further than the envelope system
- What is the envelope budgeting system?
- How does it work?
- Credit scores are not only used by lenders to assess your creditworthiness but also by employers as part of their screening process.
- This practice is becoming more common and is particularly found when the position involves handling cash or confidential information.
- In certain industries, credit checks are a standard procedure.