Archive for Credit

Yes, You CAN Build Your Credit with No Credit Card

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You may have heard that it?s pretty much impossible to build your credit without a credit card.

This may seem like a hard one to break. You may not be able to get a credit card because you have damaged/no credit, and yet, you can?t build your credit without a credit card.

Fortunately, there are ways to build your credit without a credit card and live well while you?re doing it.

Here are a few strategies you might try.

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Report Your Rent Payments

In most cases, your rent payments aren?t reported to credit agencies. In fact, less than 1% of FICO reports contain rent information. This means you?re likely not being rewarded for paying your biggest expense online.

However, you can work with rent reporting services that will work with your landlords to get your rent payments reported to the major credit agencies. These services include Rock the Score, Rent Reporters, RentTrack, or Rental Kharma.

They?ll charge you some sort of up-front cost and a monthly charge after that. However, if you?re trying to build your credit, this may be money well spent.

Prepare a Financial Safety Net

One of the problems you face when you don?t have a credit card is not having a safety net when life?s expensive surprises pop up. You may have no way to pay for a $300 dental bill or a $500 car repair without missing a few bill payments now and trying to catch up next month.

It doesn?t have to be this way, as there other ways of creating a safety net with revolving credit. For example, you could get a line of credit. Like a credit card, it gives you access to revolving credit and you?re free to borrow and pay back as you see fit.

However, you may think you can?t get a line of credit because you have no credit or damaged credit. Correction: You may not be able to get a line of credit from a major bank. But there are some lenders like CreditFresh that borrows to people with subprime scores.

If you have low credit, you might consider applying online for something like a Credit Fresh Line of Credit by CBW Bank. Their lending criteria are not as heavily regulated as the major banks, so you may have a better chance of getting approved.

With a line of credit in place as a safety net in case of financial emergencies, you don?t have to miss bill payments to cope with sudden or unexpected expenses.

Pay Your Bills with a Secured Credit Card

You may not be able to get a traditional major credit card, but you can probably get a secure credit card from a major credit card company.

Secured cards work almost exactly like traditional credit cards, except you?re paying an amount of money upfront to secure the card, and those funds act as your credit limit.

Your activity on this secured card is reported to credit agencies. This means that making regular payments on this card and keeping a low balance are two good things that will be reported to credit agencies, which may help your credit score.

Some people have had success in building their credit by putting some monthly bills on their credit cards, then paying down the balance right away.

However, it is crucial to pay your balance down quickly. Missing payments and carrying a high balance month-to-month will end up hurting your credit score instead of helping it.

Anytime you?re trying to build your credit (with a credit card or without), always remember that your credit score is made up of a number of factors. You need to do the right things in all of these areas, at all times. You may be doing the right things 80% of the time, but that 20% can undo all of your good work elsewhere.

Develop a proven plan and stay dedicated to it!

Top Tips on How to Improve your Credit Rating

Credit score

In order to establish what your actual credit rating is, you may want to check your credit score online.  When you do this, you will also usually get information on what is affecting your score the most.  This will give you a better idea as to the changes you need to make to improve upon this.  Below we have highlighted some top tips on how to repair your credit rating.

Pay your Bills in a Timely Fashion

Credit score

It may seem obvious ? but to avoid the need for further credit repair ? you need to make sure you pay your bills on time.? This will be looked upon favourably, as it is an indicator that this is how you will make future payments.? Make sure you pay your bills by their due date.? This doesn?t include solely credit card bills ? but things like your mortgage, rent, utilities etc.? If need be, set up standing orders or direct debits to do this to make sure there is no room for human error.

Only Apply for New Credit Accounts When You Need them

Some people think that getting a credit mix and applying for new accounts will help their credit score ? however this is a myth, you are most likely better contacting a credit repair company like Go Clean Credit instead.? When you apply for unnecessary credit ? it sends off the wrong signals, and actually can make your debt worse if you are then tempted to overspend.? There is also the consideration that every time you apply for a new credit card, this will result in a ?hard inquiry?.? When there are too many of these ? it can negatively affect your score and will stay on your report for 2 years.

Check for Inaccuracies on your Report

There is always room for error.? As such, you should check your credit reports from more than one source to ensure that everything is as it should be.? If you do find inaccuracies ? this will end up pulling your credit score down through no fault of your own.? There are ways for you to get in touch with the bureaus and ask them to correct the error.? It always helps if you have supporting evidence.

Pay off Whatever Debt you Can

You should try to figure out what your credit utilization ratio is.? This is part of how your credit score calculations will be made.? If you go through all your credit card statements within the last year, total up the balances ? and then divide them by 12 ? this is your average credit use per month.? You should really be looking for something that is 30% or less. If you have a good credit rating, the likelihood is you will have a very low ratio.?

If you have a bad credit rating and are struggling to get out of it, hopefully these tips will help you on your way.  Allow for some time to get it sorted. 

4 Tips to Get Ahead of Credit Card Debt

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?Compound interest is the most powerful force in the universe?. Whether or not the world?s most famous scientist, Albert Einstein actually said this remains up for debate. However, the fact of the matter is; compound interest is indeed one of the strongest forces in the world. So strong in fact that it has the capability to make or break a person.

credit card

Credit card debt, in particular, has driven many people to bankruptcy or even worse. But fret not, as there is hope. With the right management skills and a little discipline, you?ll be able to quickly dispense of your credit card debt.

Here, we take a look at 4 of the easiest ways for managing credit card debt.

1. Start paying off your debt!

While many may argue that this is easier said than done, Laozi; a famous Academic once said that ?a journey of a thousand miles begins with a single step?. Get started on your way to a debt-free lifestyle by making above minimum payments on your existing credit card debt.

By paying above the minimum amount, you?ll be able to pay off existing interest charged while reducing the size of your debt at the same time. On the long-term, you?ll find that you?ll pay less in interest owed and this gets you into the habit of making payments on time.

Dragging out your credit card debt only means being in the red for a longer period of time, while giving banks the opportunity to make more off you.

2. Dial it all back

In today?s age of social media and instant gratification, one is constantly bombarded by images of acquaintances living the ?perfect lifestyle?. From exotic beach holidays in Bali to fast cars and fancy restaurants, it may be tempting to try and keep up with your ?jet setting? friends. After all, you only live once right?

Wrong. Saddling yourself with crippling credit card debt is a quick way to ruin your life and credit rating. All of this just to impress your Instagram followers?! We think not.

Instead, skip the dinners out and learn how to cook yourself a delicious meal. Looking to go on vacation? Sure, pay for it with cash. By forking out cold, hard cash on your purchases, you?ll be much less likely to splurge on extravagant expenses that you don?t need.

On the long-term, you?ll find yourself getting used to paying everything with cash while minimizing your debt exposure. With a little discipline, you?ll be able to enjoy financial freedom without becoming a slave to debt.

3. Consider taking on a balance transfer

One effective way to prevent your debt from ballooning any further is with a balance transfer. In a nutshell, balance transfers allow you to transfer existing credit card debt to a new card that charges little to no interest.

This allows you to pay off your debt without having to worry about exorbitant monthly interest charges while allowing you to pay off your debt without any pressure.

A word of caution though; 0% interest does not mean that you should spend to your heart’s content. Preferably, the balance transferred to the new card should remain as such with monthly repayments being made.

4. Take on a side-gig

Okay, so you?ve found yourself underwater with a sizeable credit card debt. So why spend time fretting over it when you could get a side-gig to help pay off your expenses. From writing articles to designing brochures and even getting a part-time job, searching for alternative sources of income is an excellent way to scrape together the funds to pay off your debt.

Lacking the required skills? No sweat, there are dozens of websites which pays you for completing surveys allowing you to make money with a PC and internet connection.

For the ambitious, you could even earn some extra money punting on horse racing. Follow the latest events in the horse racing schedule and try to cash in some money. Just remember to not gamble more than what you own, because it can increase your debt. Betting on sports should be done wisely and in small amounts, so even if you have less profit, you will also have less chances of losing money.

The Best 4 Credit Dos and Don’ts to Remember

Credit do and don't

It doesn?t matter if you have excellent, bad, or thin credit; it?s a constantly evolving score that improves or deteriorates over time. That?s good news for anyone who?s hoping to establish good credit. With deliberate actions, anyone can improve their score.

Not sure what those actions are? Here are some of the dos and don?ts of creating good credit.

Credit do and don't

? Do pay your bills on time

One of the best ways to build your credit score is by making sure you pay your bills on time every time. Your payment history has the biggest influence on your score, so it?s important you keep track of your due dates.

If you use a money management app, make sure to add regular bills to your digital budget. Most of these apps will send you a notification reminding you of upcoming payments, which can spur you to act before it?s too late.

For fixed expenses, or bills that cost the same every month, you should look into automating your payments. It?s easy to set up with your bank. All you have to do is authorize a payee and approve the payment schedule. Once in place, your bank will send the approved amount every month like clockwork.

? Don?t open new accounts frequently

If you make a habit of checking your spam folder, you may notice how many emails you receive from credit card companies saying you pre-qualify for an account. Even if you don?t take a deep dive into your junk mail, you?ll probably hear about the latest card promising 0% interest with amazing bonuses like rewards points and travel miles.

A low APR and cash back are certainly some of the biggest perks of getting a credit card, and you can take advantage of these to get the most out of a financial product you were planning on using anyway.

Just don?t get carried away ? no matter how good the deal is. Every new account you open leaves a trace behind on your credit history. If you open too many of them within a short period of time, they will lower your score.

Open new accounts sparingly, making sure to space them out to limit their effect on your credit. More importantly, only jump on deals when you can confirm the advertised APR isn?t an introductory rate that will skyrocket after the first year.

? Do look into bad credit lending alternatives

The above tip helps people who already have good or excellent credit. With a prime score, you have the greatest options for credit cards and other products. You?ll have to make sure you limit how many of these products you open to maintain your score.

If you have bad credit, you might have the opposite problem. You may struggle to find a financial company willing to lend you cash.

That doesn?t mean you?re out of luck when you need help paying an unexpected bill or necessary auto repair. Some alternative lenders use other criteria when reviewing applications, giving people with subprime credit a chance at getting a cash advance or installment loan when they need it.

Take some time to research your options, and be sure to read this to see how lending alternatives like installment loans and lines of credit work for people with bad credit.

? Don?t pay just the minimum balance

A credit card is an open-ended financing option that lets you ?revolve? debt from one month to the next. This is convenient when you run into a bit of bad luck that makes it hard to pay off your full balance. Your credit card company will calculate the minimum payment you have to make to avoid a late penalty.

Paying the minimum charge is ideal when the alternative is not paying it at all. However, you shouldn?t make it a habit when you have the cash to spare.

Each purchase you make with your credit card accrues interest at a higher APR than most personal loans. Accounting for the fact that it compounds every month you don?t pay off your balance, you?ll end up paying more for your purchase than its original price.

Paying off the full balance (or as close as you can) each month is one way to establish good credit. But like anything that?s important in life, it?s a little more complicated than that.

To improve your score or maintain good credit, you?ll have to commit to regular positive habits all year round. Make sure you follow every piece of advice on this list to earn a credit score you can be proud about.

5 Easiest Ways That Anyone Can Improve Their Credit Score

Credit Card
Credit Card

If your credit score seems like a disaster, then it can be very frustrating for you. Your options are limited regarding credit cards to which you can apply. You’ll find it tough to get accepted as a likely candidate for an apartment or a house that you?d like to rent. Buying a car could be a challenge as well. If you?re experiencing all of these things, though, it doesn?t mean your life is over. You can resurrect your credit, but it?s going to take some resilience and discipline on your part. Here are ways that you can get back on track.

Don?t Apply for New Cards

Every time that you apply for new credit cards, your credit takes a hit. If your credit score is bad, this is going to make it worse, and besides, if it is in such poor shape, there is no reason that you should be applying for new credit cards anyway. Be content with the cards you have until you can get your finances under control.

Pay Off Your Debts

This seems like the obvious solution for raising your credit score, and yet some people don?t think to do it. Whatever credit card debt you have, pay it off, as much of it at a time as you can, and do everything possible to avoid accruing any more.

Don?t Spend Frivolously

Instead of eating out at restaurants, cook at home using groceries you bought from the store. Buy store brand food instead of name brands. Shop for clothing at Goodwill and the Salvation Army. Once your debt is paid off, you will see a significant difference in your credit score.

Don?t Take Out Loans

This is also not the time to take out a loan. If you have a vacation planned, and you?re going to borrow money to pay for it, put it off. Instead, do a staycation, where you use your time off and hang around your house. You can go for walks, go to public parks, and do movie nights with your family. Avoid the excessive expenditures that go along with lavish vacations this way. It might not be quite as fun, but it is the responsible thing to do as you slowly raise your score.   

Don?t Buy New

If you?re going to get a vehicle during this period, don?t go for a brand-new one. Instead, get a used car that is not too flashy. If you already have a car, and it?s still in decent condition, put off getting a replacement if it is not essential. The thing to remember as you are trying to get out of debt is to curb your spending. Any big ticket item that you don?t need, put off making the purchase.

Learn more about this by going to websites that specialize in giving credit tips. More than anything else, though, during the time that you?re trying to raise your credit score, you have to think carefully about each financial decision that you make. Don?t spend as though money means nothing, because that sort of recklessness has real consequences. Concentrate on how good it’s going to feel when you?re finally out of debt, with a respectable credit score.?