#credit score tips

[destkelamedia]

Smart Tips to Improve Your Credit Score

[kids-worldfun]

Credit Repair Simplified: Practical Steps to Elevate Your Credit Score

Understanding and improving your credit score may seem intimidating, but it doesn’t have to be. Setting a clear plan and taking pragmatic steps can boost your score and enhance your financial well-being. Here is a straightforward guide that can assist in the credit repair process. Understanding Your Credit Report Acquire Your Credit Report Begin by obtaining free copies of your credit reports…

[personal-finance123]

Top Tips for Young Adults to Build Credit from Scratch

Building a solid credit history is essential for young adults who want to secure their financial future. Whether you’re planning to take out a loan, rent an apartment, or simply enjoy the benefits of a good credit score, starting early can make a big difference. Here are some practical tips to help you build credit from scratch and set yourself up for long-term financial success.

1. Start with a Secured Credit Card

If you’re new to credit, a secured credit card is one of the best ways to get started. Unlike a regular credit card, a secured card requires you to make a security deposit, which acts as your credit limit. This deposit minimizes the risk for the bank, making it easier for you to get approved even if you don’t have any credit history. Use the card responsibly by making small purchases and paying off the balance in full each month. This will help you establish a positive credit history and improve your chances of getting a regular credit card in the future.

2. Become an Authorized User

Another way to build credit is by becoming an authorized user on someone else’s credit card account. This could be a parent, sibling, or trusted friend who has a good credit history. As an authorized user, you’ll have access to the card and its credit limit, but the primary cardholder is ultimately responsible for making payments. The key benefit here is that the account’s payment history will be reported on your credit report, helping you build credit without taking on the full responsibility of managing the card yourself.

3. Pay Your Bills on Time

Your payment history is one of the most important factors that affect your credit score. Even if you’re just starting out, it’s crucial to pay all your bills on time, whether they’re for a credit card, utility service, or any other recurring payment. Late or missed payments can have a negative impact on your credit score, making it harder to build good credit. Setting up automatic payments or reminders can help you stay on top of your bills and maintain a clean payment record.

4. Keep Your Credit Utilization Low

Credit utilization refers to the amount of your available credit that you’re using at any given time. It’s a major factor in determining your credit score, so it’s important to keep it low. Aim to use less than 30% of your credit limit to show lenders that you’re responsible with your credit. For example, if you have a credit card with a ₹50,000 limit, try to keep your balance below ₹15,000. This demonstrates good financial management and can positively impact your credit score over time.

5. Apply for a Credit Card Wisely

Once you’ve built some credit with a secured card or as an authorized user, you might consider applying for a credit card on your own. When you’re ready to apply for a credit card, do your research to find one that suits your needs and offers favorable terms. Look for a card with no annual fee, low interest rates, and rewards that align with your spending habits. However, be cautious not to apply for multiple cards at once, as each application results in a hard inquiry on your credit report, which can temporarily lower your credit score.

6. Monitor Your Credit Report

As you work to build your credit, it’s important to keep an eye on your credit report. Regularly checking your report can help you spot any errors or fraudulent activity that could harm your credit score. In India, you’re entitled to a free credit report from each of the major credit bureaus once a year. Take advantage of this to ensure that your credit-building efforts are paying off and that your information is accurate. Monitoring your report is also a key strategy for those who want to learn how to improve credit score over time.

7. Use Credit Responsibly

Building credit is a long-term process, and it’s important to use credit responsibly throughout. Avoid the temptation to max out your cards or take on more credit than you can handle. Instead, focus on making smart financial decisions, like budgeting, saving, and spending within your means. By doing so, you’ll not only build a strong credit history but also develop healthy financial habits that will serve you well in the future.

Final Thoughts Building credit from scratch might seem daunting, but with the right approach, young adults can lay a strong foundation for their financial future. By starting with a secured card, making timely payments, and keeping your credit utilization low, you’ll be on your way to establishing good credit. As you progress, you can apply for a credit card and continue to learn how to improve credit score over time. With patience and responsibility, you’ll set yourself up for financial success and open doors to future opportunities.

[paradisehomepros]

Nothing is written in stone, not even your credit score. If you think your credit score needs a boost before applying for a mortgage, these tips can help.

[bitchesgetriches]

{ MASTERPOST } Everything You Need to Know about Credit and Credit Cards

Understanding credit

Dafuq Is Credit and How Do You Bend It to Your Will? 

Dafuq Is a Down Payment? And Why Do You Need One to Buy Stuff?

Ask the Bitches: Should I Get a Loan Even Though I Can Afford To Pay Cash?

Season 2, Episode 10: “Which Is Smarter: Getting a Loan? or Saving up to Pay Cash?”

Ask the Bitches: What’s the Difference Between Credit Checks and Credit Monitoring? 

When (And How) To Try Refinancing or Consolidating Student Loans

Season 3, Episode 7: “I’m Finished With the Basic Shit. What Are the Advanced Financial Steps That Only Rich People Know?”

Buy Now Pay Later Apps: That Old Predatory Lending by a Crappy New Name 

Using credit

How to Instantly Increase Your Credit Score…For Free 

How to Build Good Credit Without Going Into Debt 

Case Study: Held Back by Past Financial Mistakes, Fighting Bad Credit and $90K in Debt 

Season 1, Episode 3: “My Parents Have Bad Credit. Should I Help by Co-signing Their Mortgage?” 

Season 3, Episode 2: “I Inherited Money. Should I Pay Off Debt, Invest It, or Blow It All on a Car?”

Season 2, Episode 2: “I’m Not Ready to Buy a House—But How Do I *Get Ready* to Get Ready?”

Credit cards

A Hand-holding Guide To Getting Your First Credit Card 

63% of Millennials Are Making a Big Mistake With Credit Cards

Let’s End This Damaging Misconception About Credit Cards

The Best Way To Pay off Credit Card Debt: From the Snowball To the Avalanche

Credit Card Companies HATE Her! Stay Out of Credit Card Debt With This One Weird Trick 

Season 4, Episode 3: “My credit card debt is slowly crushing me. Is there any escape from this horrible cycle?” 

Here’s What to Do With Those Credit Card Pre-approval Offers You Get in the Mail

We’ll periodically update this masterpost as we continue to write tutorials and answer questions on credit. So if there’s anything you’re confused about, keep the questions coming!

And if we’ve helped you increase your credit score or pay off your credit card debt, consider tossing a coin to your Bitches through our PayPal. It ensures we can pay our lovely assistant and keep bringing you free articles and episodes like those above.

Toss a coin to your Bitches on PayPal

[nezumasa]

Paid for my comm 🥳

[luthwhore]

i am buying a house, and (maybe) you can too!

so... you want to buy a house, but you don't make a lot of money and you have no way to save up the recommended 10% recommended downpayment on a mortgage, which means you're basically going to be stuck renting forever, right?

well... actually, maybe not!

this post is going to be very US-centric, so i cannot speak to the homebuying experience in other countries, but if you live in the united states... you might be able to buy a house for much less up front than you might think!

this is gonna get long, but the main things you'll need are:

a credit score in the low- to mid-600s. this can vary by program, but most down payment assistance programs require somewhere between a 620 and 660. (i might make a second post at some point about credit scores bc fixing my credit score was a long and arduous process.)

enough in savings to cover a few up-front expenses. there are a couple of things that the down payment assistance programs won't cover. for me, we ended up having to pay ~$1500 up front total, which - to put it in perspective - is less than the deposit and move-in fees were going to be at most apartments in our area.

that's basically it! if you can do those two things, you might be able to buy a house!

let's talk about the details.

programs vary by state, but most states have down payment assistance programs of one kind or another. there's also a federal USDA loan program which is $0 down as well, but is only available in rural areas.

these programs WILL usually require you to have a certain credit score, usually somewhere in the 600s. (the particular program my housemates and i are using requires a minimum 640, but some require a higher or lower credit score than that.)

usually your first step is speak to a mortgage lender. the mortgage lender i'm working with is only available in the state of tennessee and not all mortgage companies accept all down payment assistance options, so i would research options in your state and then check to see if the programs have a list of preferred lenders and/or loan officers.

this sounds scary, but my loan officer has been a life-saver during this process. generally your loan officer wants to help you succeed, particularly when they know you're a first time home owner. tell your loan officer that you're going to be a first time home owner and you're interested in a $0 down payment program. they can run the numbers and see if you qualify, and if so, how much you can qualify for.

you can have multiple people on the mortgage with you, but everyone on the mortgage has to meet the credit score requirement.

if you do qualify, also talk to your loan officer about how much you can pay per month for a mortgage, too, since this might also impact what price range you're shopping in.

you'll also want a real estate agent. (trust me on this. you want a real estate agent.) my loan officer recommended a real estate agent to me and we quite literally could not have done this without him. your real estate agent does a lot more than just help you find houses to look at. they will also point out things that you might not know to look for and will also help negotiate with the seller for you.

when you talk to your real estate agent, tell them you are using a down payment assistance program and that you will need the seller to cover your closing costs. closing costs, for reference, are a bunch of small expenses that are paid when you officially sign the mortgage. typically both the buyer and the seller have separate closing costs, but it's fairly normal for buyers to ask the seller to pay for their closing costs for them in the current market. your real estate agent can then negotiate for this for you.

if the seller covers your closing costs and you can get approved for down payment assistance, there are only three things you will probably have to pay for out of pocket:

"earnest money." this is a small sum of money you pay to hold the house after the seller accepts your bid. (in our case, we paid $500 for our earnest money.)

the home inspection. our home inspection was also about $500, though the price of this could vary based on where you live.

the home appraisal. for us this was also about $500, though again, this could vary based on where you live.

and that's basically it! obviously talk with your loan officer and real estate agent about the cost of these things bc they might not be the same cost for you as they were for me, but for us, this ended up actually being cheaper than moving into a new apartment!

[ratatatastic]

entering to panthers pulse does go pretty hard luosty yeah

Luosty Cup Day | 8.5.24 (x)

[fastlane-freedom]

10 Money Rules to Learn by the Age of 25 – Fastlane Freedom

Financial literacy is a crucial life skill that often doesn’t receive the attention it deserves in traditional education. Age 25 is a big deal because it’s when many people finish school, start working, and have to make important choices about their jobs, money, and relationships. It’s a time when taking care of your money becomes really important, and you should start saving and planning for the…

[we-re-always-alright]

okay the misinformation on the original reddit post AND in the reblogs is driving me bonkers I have to correct some things. (thank you @froginakettle for inspiring me to bring this out of the tags.)

I work in this industry. I’ve worked in this industry for almost a decade in a variety of departments. this whole post is bunk. (obligatory disclaimer: these comments are my own and not representative of my employer whom I also will not name)

to start: credit karma is not a credit bureau. it’s basically an advertising site masquerading as a credit website. sure some of its tips and tricks are identical to the big 3 bureaus but with a sole goal of a: collecting your data (not private data) and b: sending you offers. it’s how credit karma makes money. what is an offer? it’s an ad (or email or pop up or WHATEVER) that is dependent on your credit score offering you a great rate on whatever (or credit monitoring or identity protection, it’s truly dependent on your score and the goal of the offer). the ads you see on the sidebar and as part of marketing emails from credit karma are there because you’re using the site and authorizing the data to be shown. they eat the cost of providing you a free score so they can advertise and/or sell marketing data. (not necessarily bad, just want to offer perspective).

which brings me to the next point: there are thousands of credit scores. probably tens of thousands. what do I mean? each bureau has their own set of scores (ex. TransUnion and Equifax have VantageScore 3.0) then there’s FICO scores (FICO 5-9 iirc), and then each of those scores has flavors. are you getting a car loan? check your credit karma Vantage Score and it says one thing. maybe Toyota will pull your FICO 8 Auto score. is your loan being serviced by the bank instead? then Bank of America will probably use their FICO 7 Auto score, or Experian’s FICO 7 Auto score. decide to go to your local First Community Bank for a loan instead? they give you their Equifax Auto Vantage Score. each of these scores has variations on it. different applied factors, alternative data, trending etc. think of it as different levers that amplify and nullify certain factors. (I’m not here to debate if this is good or bad. there’s arguments to be made for both, especially around underserved populations. I’m just explaining how it works.). this is also how the bureaus make their money. by offering different best fit scores for the dozens of different credit scenarios, they sell their ability to score and model more consumers, more accurately, as well as verify identities for critical transactions and prevent fraud based on previous patterns.

next: not every job requires a ‘hard pull’ on your credit (hard pulls/hard inquiries can sometimes affect your credit score (sometimes) because it’s what you do when you’re actively gaining credit. soft pulls do not affect. the bureaus have more info on this). typically, though not the same in every state and/or country, a hard inquiry generally is for government jobs OR highly regulated jobs. why? well. who caught the mob??? the IRS and the Postal Service. a good way to do a sniff test on someone who might be handling money in large quantities, handling PII (personally identifiable information), handling HPII (health PII), or be responsible for acting ethically might be to see if they have huge amounts of debt from gambling, mysterious payday loans, dozens of credit cards, etc. if you have a lot of debts, mysterious payments, funky stuff, you might not be the safest choice. (again, not saying it’s good or bad. just presenting the industry logic.)

next: some of the info about disputes IS correct. the bureaus are required to respond within 30 days. HOWEVER, they are only required to correct something if it is FACTUALLY incorrect.

example of a bad dispute: I don’t like that I have a high interest credit card. I missed some payments but generally pay on time. I file a dispute because that reddit post said I should. conclusion: they don’t drop it off. what the bank is reporting matches the credit report. there is nothing to correct.

example of a good dispute: it says my car loan is for 40,000 but it’s actually for 38,500. this post inspires me to review my full credit report (free annually for each bureau at annualcreditreport.com) and check for inaccuracies so I file a dispute. conclusion: they correct the information in the report, provide notice of the correction, and make sure any time your report is pulled (and the debt is on your report) the correction is mentioned.

additionally, you’re also required to be involved in this process. you’ll need to provide documentation, follow up calls, emails, etc. that the bureau needs from you to investigate your dispute. then multiply that by 3 if the item is on all 3 reports. a dispute is not a magic wand. also if there’s an error with the banks data, (ex. your balance is wrong) disputing it at the bureau will not do anything since the data in the report and the data at the bank matches. you’ll have to get the bank to fix it before you can dispute it with the bureaus.

next: volume. oh my god this one gave me a laugh. do you know how much data these companies ingest and spit out??? we’re talking a few petabytes for each bureau, every year. it’s not just you make a payment and they add it to their list. it’s everything, it’s addresses and name changes and driver’s licenses and payments across thousands of sources for everyone in the country (hundreds of millions, not to mention if they’re international). times 3. I’ve been in the NOC (network operations center) for one of the big three and it looks like fucking nasa. dozens of people on 12 hour, rotating shifts making sure the data flows at 99.99% uptime. they don’t have a ‘slow’ period. even if everyone on this post sent in a dispute, which would also be extremely hard considering the amount of thin files, they wouldn’t bat an eye. this is their every day. their sole purpose is a: making sure the data is safe and correct. and b: making sure if they get a dispute they resolve it quickly. plus, the more you use their services, the better they look, because they’re doing what they’re supposed to.

side bar: thin files. a lot of people are thin files, more than you think. basically it means the bureaus have info on who you are but next to no info for which they can score you with accuracy/best fit score. basically you don’t use credit, you don’t have debt, but you also don’t have a high score because there’s nothing TO score. weirdly, the ultra wealthy have this problem, since they pay in full vs on loan. it’s good and bad. bad if the company doesn’t use alternative data and you really need credit to survive (alternative data like renting history, cellphone payments, soon to be added BNPL, etc can turn a thin file into a better score) and good because you want to stick it to the industry and don’t use credit at all.

secondary sidebar: your small local credit union gets all their stuff from the big three. it’s expensive, data intensive and time consuming to do what they do (update, aggregate, collate, verify, etc etc). way easier to just supply small local credit union’s data to the big three and get specialized info back.

addendum: this is US focused. other countries have similar but NOT identical systems. think cousins but not twins. they have their own systems, bureaus, regulations, the whole nine yards.

second addendum: you can work with debt collectors to get them to forgive/drop debt. doing it at a busy time might help, I have never worked with collections. but it won’t affect your credit score necessarily. debt collectors are not legally required to report a collection to the bureaus. however, the bureaus are legally required to report accurate information supplied to them from debtors (banks, dealerships, etc including debt collectors). debt collectors choose to do so so you are incentivized to pay back the debt. paying it back does not mean your credit score will change, and definitely not immediately. (Experian has a great article explaining this. again, not making a good/bad statement on this. it’s how it is. if you want it to change, talk to your congressperson.)

last: some general tips:

freeze your credit if you’re not using it (actively applying for credit, loan, job, rental, etc). this prevents people (manipulative family, strangers, criminals) from being able to use your credit. a freeze can last for up to 10 years and you can temporarily lift (and re-freeze) for specific dates. if you have kids, this is great for fighting synthetic fraud or in response to data breachs

do you actually NEED credit monitoring? it’s truly up to you. in my experience, freezing is usually good enough for most people. if you’ve had your identity stolen OR you have malicious family members, it’s probably worth it to be proactive rather than reactive.

just go look at the bureau’s websites. they tell you how to improve your score. they explain the stuff I said but with more stock photos. I will warn you: it’s not as fun or sexy as trying to ‘pull one over on the establishment.’ it’s mostly low debt to income ratio and low revolving debt and making payments on time

don’t want to use an evil bureau’s website? go look at the CFPB (Consumer Financial Protection Bureau) website. it’s the same info but with a .gov and different stock photos.

Queuing this for January too.

[destkelamedia]

Understanding Your Credit Report: How to Review and Dispute Errors

[champstorymedia]

Navigate Tax Season Like a Pro: Essential Saving Strategies You Need to Know

As tax season approaches, many individuals find themselves feeling stressed and overwhelmed by the thought of filing their taxes. However, with the right strategies and knowledge, you can navigate tax season like a pro and maximize your savings. In this comprehensive guide, we will outline essential saving strategies that you need to know to make the most of tax season. From deductions to credits…

[financeboomerservicespage]

Credit Score 101: How to Improve Your Score and Build Better Credit

In today's financial landscape, maintaining a good credit score is crucial. Your credit score determines your eligibility for loans, mortgages, and even rental agreements. A solid credit score can make it easier to get approved for financing with favorable terms, while a poor score can limit your financial options. In this blog, we’ll explore the basics of credit scores, effective ways to improve your score, and essential tips to build long-term credit health.

Understanding Credit Scores

A credit score is a numerical representation of your creditworthiness. Lenders use this score to assess the risk of lending money to you. Scores typically range from 300 to 850, with higher scores indicating lower risk. The three main credit bureaus—Equifax, Experian, and TransUnion—compile your credit reports, which are used to calculate your score.

Your credit score is influenced by various factors such as payment history, the amount of debt you owe, the length of your credit history, and the types of credit accounts you hold. By understanding these components, you can make informed decisions that positively affect your score.

Steps for Credit Score Improvement

Improving your credit score takes time and consistency, but it's entirely possible. Start by reviewing your credit reports for errors. Mistakes like outdated personal information or incorrect account balances can negatively impact your score. Dispute any errors with the credit bureaus to have them corrected.

Paying off outstanding debts, especially credit card balances, is another effective way to boost your credit score. Aim to keep your credit utilization below 30%, meaning you’re only using a small portion of your available credit. Additionally, always pay your bills on time, as late payments can significantly lower your score.

Another strategy for credit score improvement is to limit the number of credit inquiries you make. Each time you apply for a loan or credit card, it results in a hard inquiry, which can temporarily lower your score. Be selective about applying for credit and only do so when necessary.

Budgeting for Long-Term Credit Health

Establishing a budget is an essential step for maintaining a healthy credit score and managing your finances. By setting up a budget, you can ensure that your bills are paid on time, your debt is reduced, and your financial goals are met. Some key budgeting tips for beginners include tracking your spending, setting realistic financial goals, and regularly reviewing your budget to make adjustments as needed.

By sticking to a budget, you can avoid unnecessary debt and late payments, which in turn contributes to a stronger credit score.

A Solid Financial Foundation

Building better credit goes beyond just paying off debt. It’s important to understand key financial concepts such as saving, investing, and risk management. Stock market basics are particularly helpful in growing your wealth while managing risk. By gaining insight into how the stock market works, you can create an investment strategy that complements your credit improvement efforts. Improving your credit score requires patience and smart financial choices. By adopting effective strategies like reviewing credit reports, managing debt, and budgeting, you can take control of your financial future. For more resources and financial insights, explore the tools available at Finance Boomer, a trusted name in credit score improvement and financial guidance.

[bitchesgetriches]

Credit Scoring Is a Racist, Classist System that Has Us All Trapped

[junonreactor]

"hint: your credit score may go up if you open an installment loan" kill yourself

[luthwhore]

good news on the house hunting front is that we found a house that is in our budget and meets all of our needs, and while it’s a little bit out in the boonies it’s not any further away from town that one of the other places we were looking, and it’s within walking distance of a park and what i can only assume is the world’s tiniest library.

the house is under construction still so even if we get it, it’ll still be somewhere between 2-4 months before we can move in, but our real estate agent and mortgage broker are going to try to let us sign the mortgage as late as we reasonably can to minimize the amount of time we might have to double up on the mortgage and our rent at our current place, but we get the rest of the current month + the whole next month before payment is due, so if we sign on august 2nd we wouldn’t have a payment due til october 1st.

the process has been a little stressful, but honestly it’s been far less stressful than trying to find a new place to rent that meets our needs, and with the downpayment assistance we’re actually paying less up front than we would for a rental, and our monthly payment is going to be about the same as it would for renting.

once this is all over and we’ve officially gotten the keys to the house, i actually want to write up a short guide for people on tumblr who might be interested bc honestly the biggest obstacle has been that we only have two people with high enough credit to be on the mortgage, which limited how much money we were able to get approved for.