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to improve your credit

7 Things you can do this year to improve your credit

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Whether you want to purchase a house or a new car, you need a good credit score to get approved and get a decent interest rate.

There are things you can do to improve your credit score. However, the process takes time because your score shows your money management habits over a several-year span. Here’s what you can do today to improve your score.

things you can do to improve your credit

Pay bills on time

Late or missed payments are a credit score killer. One way to make sure you pay on time is to set up a monthly payment with your bank. Don’t make the mistake to schedule the payment for the day it’s due. Instead, schedule it for a day after you get paid. Otherwise, you risk running short of money when the due date comes.

Alternatively, create a calendar event on your phone. There are plenty of scheduling apps that will remind you of payment due dates. It will only take a minute or two to set it up.

Lower your credit card balances

A major factor in calculating your credit score is the ratio of how much credit you have available versus how much you are actually using. Lenders recommend you to keep a credit utilization rate of 30% or less. Pay down the balance and try to maintain the balances at 30% or less, if possible.

Pay off small balance credit cards

How many cards you have with a balance is also a part of your credit score calculation. If you happen to have quite a few cards, try to pay the ones with a small balance off. It is better to have one or two cards and use them for the major purchases. Furthermore, getting rid of small debts will give you a psychological boost to pay off bigger sums in the future.

Keep old debt on your report

As already mentioned, a report shows how you handle your debt and how financially responsible you are. There is no need to remove a debt from your report (like a car loan you paid off). Leave it on your report to show future creditors that they can trust you with your next loan. Besides, the old debt will be gone from your report in seven years.

Pay attention to your credit score

Get used to checking your credit score regularly. There you can see exactly what needs improvement. Download Credit Sesame to get payment reminders, organize your debt and even get a sample credit score (an estimate, not your exact FICO score).

Negative credit report

Understanding negative reporting is important because negative information not only stays in your report for seven years (ten for bankruptcy), but it also lowers your score. The causes are usually late payments, debt collections, judgments, charge-offs, repossession, foreclosure, tax liens, or even bankruptcy. If you want to settle a debt you cannot pay in full, make sure you understand the full terms of the “re-negotiation”. It is better to pay in a settlement than to declare bankruptcy so make sure you carefully consider all your options.

Bonus tips

There are not many ways in which one can improve their credit score. It is pretty straightforward – do not be late with your payments and the overall score will increase.

Do not take risks

One of the best things to do while trying to better a credit score is to play it safe. Two of the biggest risks for your credit score are missing payments (for which, as mentioned above, an app can help) and suddenly paying less than normally.

Don’t focus on your credit too much

If you just pay everything on time, your score will slowly but surely improve. There are no shortcuts and there is no need to stress out. Be patient and watch your credit score get better month by month.

Know the types of debt

Credit cards are probably the first thing we think of when debt is mentioned. Credit card debt is one of the most common debts, along with student loans, and medical debt. But there are many more consumer debts, like mortgage, car loan, utilities, phone bills, installment plans, services, etc. What all consumer debts share in common is the fact that they are all covered by Fair Debt Collection Practices Act. As the name implies, the act sets some limits for debt collectors and protects certain rights of consumers.

Improving your credit score takes time and persistence, but it is not impossible. The earlier you start taking action, the sooner you will be able to meet your financial goals: getting a mortgage for your dream home, purchasing the dream car or even pursuing educational growth.

10 Budgeting hacks that help you save more

10 Budgeting hacks that help you save more

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If you have tried saving up money, you might have noticed that it is tougher than it sounds. Being part of a modern consumer society, we often find ourselves spending far more than we had planned. But with a bit of self-discipline, good organization, and our useful budgeting hacks below, you could save more.

10 Budgeting hacks that help you save more

Envision your success

Make your wish as specific as possible. Then surround yourself with it. If you want to save up for a car, the first step is to choose the specific type you want. Then print pictures of it and put them on your fridge, bathroom mirror, and on your workspace. Take a step further and set them as your phone and computer wallpaper. Make sure you are constantly reminded of what your goal is. That will help you to stay motivated and keep saving up money.

Cook at home

A lot of money is spent on food. Instead of having home cooked meals, we sometimes order food or go out to eat, which is much more expensive. In the dynamics of today’s world, few of us have the time to prepare meals at home. A solution we can offer is to cook only one day a week. Eating the same dish more than twice can be boring but you can prepare various meals and freeze them for later that week. This way you will be able to save up money and even take the food to work.

Think of the real price

When going for shopping, no matter what product or service you are about to spend your money on, first think of the real price. What we mean by that is to simply calculate how much time you have to work for the item of interest. For example, if you are looking at a dress that costs $70 and you get paid $8 per hour that would mean you have to work about 9 hours for it – an entire day and some more. Once you know how much it will cost you in terms of time, simply decide for yourself whether it is really worth it.

Grocery Shopping

Many times, we come out of the store having bought way too many things. By the time we get to use them all, we might even have to throw some away. This is mainly because we have the bad habit of grocery shopping when hungry. Besides going to the store on a full stomach, other things that can help us not waste time and money are to chew gum and wear headphones. The mint is used to counter the persuasive scents in stores. Likewise, listening to our own music blocks the one in the store usually carefully selected in order to make the customers spend more time shopping.

Use Cash

The next tip is to use cash instead of credit or debit cards. Cards are convenient because it is easier and safer to carry and use them instead of cash. The downside, however, is that one can very easily spend a larger amount of money on things that are not particularly necessary. This leads to falling off track and not reaching your financial goals. By setting a budget and carrying only necessary cash, you can stick to your budget much easier.

Sales

An important part of saving money is to figure out what your priorities are. Just because you are saving up for something doesn’t mean you have to cut all things that bring you joy. You can still go shopping and go eat out, it would just be on a budget. Sales are great because you end up buying something you want but at a lower price, of course, at the additional cost of the time, you would have waited for the item to be on sale.

Start slow

Like with everything else that requires a change in lifestyle, it is better to start slow. Take small steps by putting aside a small amount of money and then gradually increase with time.

Saving can be fun

If you get motivated by challenges, then try the 52-week money challenge.  The money you deposit each week is equivalent to the week number. So, in the first week, you will put aside just $1, during week 2 – $2, week 30 -$30 and so on. At the end of the year, you should have $1378 in savings. Another fun way to save money, besides challenges would be to use tools such as SaveUp, which reward you with cash and prizes for saving money.

Avoid

“Quick” visits to the shopping center and going out with friends are usually the types of activities where we get tempted to spend money most easily. Restrict yourself from giving into these temptations too often. At the end of the day, homemade coffee is as good – if not even better – as the one you are going to spend $9 for.

Treat yourself

Just because you are saving money doesn’t mean you have to stop doing/eating/shopping for what you like. Definitely treat yourself, whenever you reach a milestone. For example, when you have saved up the first $500 for your dream car, in order to treat yourself on reaching the mile stones, you should set a “fun” fund beforehand.

Saving money is not for everyone and we know for a fact that in some cases it isn’t even an option. For the times when you need money urgently, call us at Fast Money Loan. You will have cash with no credit check in as little as 30 minutes.

fall behind on bills

What to do when you fall behind on bills

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Nowadays, many Americans live paycheck to paycheck and it is not very difficult to fall behind on bills. This might be just a temporary situation because of accumulated medical bills or a more long-term misfortune if you have lost your job or you are experiencing some other issues.

fall behind on bills

If you find yourself in this situation – don’t despair, – there are several things that you can do to catch up on bills. Here are some of the best tips to follow.

Make a list of your unpaid debts

If you are falling behind on your bills, take some time to make a list of them. Write down who you owe and how much you owe. You can also add a breakdown of how much the monthly installment is and how many months/weeks you are currently behind. Then put down how much money you have on hand to cover any of the bills.

The next step is to prioritize the payments. Usually, your mortgage or rent should be the first unpaid bill to settle, followed by your utility bills. The next in line come the bills with higher interest rates or those that are most behind.

Make sure to first cover those payments that are important for your everyday life – such as having a place to live in, water, electricity, etc. Delaying your credit card payments may result in bad credit score but is not as dangerous as losing your home.

Try to renegotiate your payments

Most of the lenders are willing to renegotiate the terms of your payment plan once you start struggling with it. Try to explore all possible options available. Quite often, the lender is more willing to receive less per month than be faced with your default have to deal with you should you decide to declare bankruptcy as a result of failure to repay your debts.

Create a budget

Creating a budget is important for everyone, especially for someone who is having trouble paying the bills. When you can’t pay your mortgage, utility bills or you have accumulated unexpected medical bills, for example, it is time to cut down on some things in order to make ends meet.

The first things that you need to give up are entertainment expenses – dining out, going to the movies, or paying for subscriptions. Then you can consider eating ordinary produce and not organic. Try to make your shopping list as short as possible and avoid the usual junk food and treats.

Something very important when creating your budget is to be realistic about your goals. Do not expect to suddenly get back on track after one or two months of restrictions. Aim to do it gradually. If you are behind 4 bills this month, try to catch up on one, then on another next month until it is all done. Setting small goals and achieving them will give you the necessary boost to keep going.

It is also good to track your daily spending. Make sure that you spend as much money as you have allocated to each item – groceries, fuel, coffee, etc. There are even some apps to help you in that endeavor, like Mint or Pocket guard.

Consider a second job

Falling behind on bills requires finding extra cash to pay them. While cutting your expenses is a way to save money, starting a second or even a third job is a way to make more. Working twice as much and during the weekends will give you the opportunities to repay those overdue bills much quicker. It also means that you will have less free time to spend money on restaurants or other entertainment.

Another positive side is that you will get a new experience and have a chance to meet new and interesting people. Besides, remember that this is a temporary solution, you will enjoy your free time twice as much when it’s all over with.

Borrow from family

If you are close with your family, consider borrowing some money to help you cover the bills. It may be difficult to ask, but your family is probably more than happy to help you out. You can even come up with a payment agreement and suggest that they charge you interest to make it fair. It is the most economical way to borrow as your family will likely charge you very low interest, if any.

Get car title loan with no credit check

Last but not least, you need to consider taking a loan in order to cover your outstanding payments. One of the fastest and easiest ways to do it is by applying for a car title loan online. The process is simple and straightforward and you get approval and cash in less than an hour.  The advantages of a car title loan are as follows:

  • Quick access to much-needed cash
  • Transparent terms and conditions
  • No credit check
  • Easy to get approval without much hassle and documentation to fill out

To get a title loan you need to be 18 years of age and have a lien-free vehicle title on your name. The best thing is that you keep and drive your car, even though it serves as a collateral for your loan. The other good thing is that you can contact several companies online, receive their offers and decide on the best one without any commitment to the others.

Quite often, title loans are taken for a shorter period of time, such as one or two months, and serve as a fixture not only for unpaid bills but to welcome unexpected happy events as well, like an engagement, a school trip, etc.

Falling behind on bills is not uncommon and you shouldn’t panic if it happens to you. Identify your weak points in terms of repaying your debts and take immediate action to resolve them. Use the tips above as a guide and believe in your ability to overcome difficulties.

Are you behind? Get caught up fast with a no credit check title loan from Fast Money Loan – a title loan company serving Long Beach and the rest of California. We have the lowest rates and super easy approval process.

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