5 Smart Ways to Boost your Credit Score

Credit score

It’s a myth that you have a single credit score.

You probably know that your three-digit credit scores based on the information of your credit reports are a major factor in deciding whether you get a loan or not.

Your credit score can influence everything; from interest rates to your rentals, premiums, and even job eligibility too. Also, the interest rate you are going to pay for loans, mortgages, and credit cards is determined by this score.

When you have a good credit score; the lenders easily lend you the money that too at lower rates than others.

Your credit scores are not static and improving it can take time; from a year to two years- depending on the kinds of changes needed to be made. With the interest rates going high every day; it is essential to get started for improving your credit score if it is not high as it should be. Here are the five smart ways, which you can use to boost your credit score quickly and in an efficient manner.

Check Your Credit Reports

With so much running in your previous credit history; now, it’s a good time to get your credit report from the best credit bureaus, which will make sure that your report is correct and is reflecting your proper borrowing activities.

If you find an error in any of the reports, you have to go through all the necessary steps of removing it.  Start by calling the credit bureaus to report them the wrong information and by asking them to update it in your account.

Your credit score will considerably improve just be getting the negative information corrected.

Pay your Bills on Time

Well, your payment history reflects 35% of your score.

Not paying the bills on time is the biggest influence on your credit card score. Lenders report a late payment to the credit bureaus once the thirty days have passed from the bill’s due date. Also, one late payment stays on your credit report for seven years.

To avoid, keep an eye on all your credit card bills and set your important payments to auto-pay so that your mandatory bills are always paid. You need to pay you all the dues on time to improve your credit score in a matter of months.

Read also: Credit Card Fraud & The Holiday Season: Things To Consider For Next Year

Eliminate Credit Card Balances

Credit card balances come under the category of bad debt. Make a proper and step by step plan to waive off your credit card debt and overall utilization. One way is to make use of the 0% balance transfer offer. Another way is to use a personal loan to pay off your accumulated credit card debt. Loans and transfers work as a great option if you use the promotional period to pay the debt.

At last, you can gather all the credit cards and pay all the small balances off. Paying all your credit card will also reduce the amount of interest you are paying every month.

Don’t Apply for a New Credit

Whenever you apply for a new loan or credit, it generates a new entry on your credit report. Credit report entries are only the way how lenders come to know that you have been applying for the credits.

So, if you’ve applied for new credit; there is nothing you can do rather than waiting for them to disappear as these inquiries stay on your report for two years. It is recommended that you should not apply for new credits when trying to improve your credit score.

Even a small change can mean big improvements.

Keep your Old Accounts Open

Keeping your old accounts work will help you keep long credit history on your report. If you had debt on your old accounts and you have handled and paid it well makes good for your credit report.

It is very important to get the highest credit score possible as it has a huge effect on your financial life. Also, everyone’s score is unique, so there is no hard set of rules to improve your credit score.


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Types of Insurance

Four Different Types of Insurance Everyone Needs

Do you find yourself overwhelmed by the number of options for insurance on the market, all telling you that you must get a policy? Insurance is the best preventative measure you can take to help protect yourself against unexpected emergencies that could be very costly if you are not insured. Although insurance might seem like a nuisance when you do not need it, should you need it, you will be thankful that you are covered. Below are four different types of insurance policies you should have. Four Different Types of Insurance Everyone Needs: 1. Auto InsuranceNot only is having auto insurance required by law, but it can also be very costly if you get into an accident. The types of auto insurance you can choose from include:Liability insurance covers the costs of property damage and injuries if you are responsible for the accident. Some states require that you purchase a minimum amount of coverage, so you should check with your state. Collision covers the cost of damage to your vehicle no matter who is at fault. Comprehensive insurance covers losses and costs that are not caused by an accident such as fire, vandalism, or theft.Insurance companies base their coverage quotes on your risk level and how likely you are to be subjected to theft. In general, the more coverage you want, the higher the cost. Did you know that a car tracker can possibly reduce auto insurance premiums? A car tracker uses technology to message you if there is any movement of your vehicle. Some systems can also send an alert directly to the police in real-time, making it easier for them to find your stolen car. Using a tracking system tells insurance carriers that you take security seriously by reducing the risk of theft. It also increases the chances of finding it quickly should it get stolen, incurring lower costs for the insurance company and potentially offering you lower premiums for coverage. 2. Life InsuranceThe best way to help protect your family’s financial security is to carry life insurance. Which type of insurance you choose will depend upon many factors, including your age, your unique needs, and how many family members are financially dependent on you. If you have a spouse, parents, or children who will face financial difficulty if you die, you should make taking out a life insurance policy a priority.Life insurance policies cover the costs associated with dying, such as mortuary and burial fees. It can also cover debts such as loans and mortgages and offset lost income. Purchasing life insurance can be difficult and confusing to figure out how much and what type of coverage you need. You should think about speaking with a professional who can explain the available options and help you choose a life insurance policy that best meets your needs. 3. Health InsuranceThe high cost of healthcare today makes getting health insurance necessary. Coverage ranges from doctors’ appointments to hospital visits. Even though health insurance can be expensive, not having it could potentially become an overbearing financial burden. Serious illnesses or injuries that result in a lengthy hospital stay can easily cost five-figures.  Every adult should have some form of health insurance, whether they get it from their employer or purchase their own. Most children are covered under one of their parent’s insurance plans. 4. Homeowners InsuranceHomeowners insurance protects your possessions and home against theft or damage. Also, most mortgage companies require you to have this coverage to be eligible for a loan. Although homeowners insurance policies vary according to where you live, most typically cover repair damage caused by risks, including:Fire and smoke Theft Frozen plumbing Severe weather Water damage from heating or cooling systems, plumbing, and water heaterDepending upon where you live, other types of insurance might be necessary. For example, if your home is in an area prone to flooding, it is highly recommended that you purchase flood insurance. There is a large variety of insurance policies with different coverage options, features, and prices. When shopping for insurance, do so carefully and make sure you understand the cost and coverage.Read Also:How to Get Low Cost Life Insurance for Seniors How To Choose The Best Auto Insurance Company? Self-employed Health Insurance: Best Types for Every Freelancer


How to Protect Your Property as a First Time Landlord?

No matter what route you take to the rental market, you’re making an exciting step in life. Many people believe that becoming a landlord is fail-proof. However, although the process can be both financially and mentally rewarding, there are downsides and potential pitfalls. Renting out a second property is ideally an investment and, as such, several risks come with it. As a result, you need to protect your investment and mitigate against risk. Here’s how you can do just that to make sure that you are getting returns for your investment. 1. Take Out Insurance Being The Landlord: Traditional insurance doesn’t usually cover rental properties. As a result, you should take out specialist landlord insurance. As well as protecting your home in the same way traditional home insurance would, landlord insurance can protect you against other problems, such as unpaid rent or a tenant injuring themselves at your property. Get a company that offers the best insurance deals to landlords and insure your property with them. 2. Draw Up the Correct Contract: The correct tenancy agreement can help you in case you need to evict a tenant or take action against them. The vast majority of rental agreements come to an amicable end, but there may be times when you need to evict your tenant. A correct tenancy agreement will provide you with the framework to issue either a Section 21 notice (giving them two months’ notice) or a Section 8 notice, which allows the person to seek possession under particular grounds such as rent regions and anti-social behaviour (more information on both of these notices can be found here). Make sure that the tenancy agreement that you craft will protect you under all circumstances. 3. Take A Security Deposit: Taking a security deposit or a damage deposit (usually a month’s rent) allows you to protect you and your property against any breakages or damages. It is important to put these measures in place if you want to be sure that you are on the safe side.You must place the deposit in a concern that is regulated by a government deposit scheme, such as the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme. The deposit is then returned to the tenant at the end of the tenancy unless they fail to meet the terms of a tenancy agreement, cause damage to the property or fail to pay rent and bills. 4. Ensure There’s an Inventory: Before your tenant moves in, you should complete an inventory of everything currently in the property. As well as listing everything currently in the property, you should also list its current state, including any dents, scratches or stains.Once this is complete, you should have a walk around the property with the tenant. Then you can both confirm everything listed is present and the condition described is accurate. When this process has been completed, you should both sign and date the inventory. 5. Have a Financial Buffer: Finally, you should ensure you have a financial buffer, in case you have to pay for running repairs. The costs for running a rental property can quickly stack up. Although you could take out an installment loan to finance any major payments, it’s advisable to have a pot of savings before you begin, in case you need to finance any running repairs.Read Also:Is Property Investment Still A Good Way To Make Money? 6 Expert Tips For Finding The Right Home To Buy

Tax Debt

6 Tips on How to Pay Off Your Tax Debt

For the tax year 2015, the IRS reported that taxpayers filed 150.5 million individual income tax returns, which is an increase of 1.3 percent compared to the previous year. This yielded $10.4 trillion income for the said tax year and also a 4.5 percent increase from 2014.Here’s the thing: not everyone is able to file and pay taxes for the income earned. If you happen to be one of them, then you need to read this post to find out how you can pay off your tax debt and prevent penalties, possible jail time, and garnishment of your assets: 1. Know how much you owe :  You can’t just pay any amount just to “lower” your tax debt. Paying the amount stated on the letter from IRS doesn’t automatically mean it reflects the actual tax debt since you could be eligible for a tax credit (or IRS could be wrong too).Therefore, find out first how much you actually owe for each tax year. This will give you a summary of your tax situation, thereby making it easier for you and your tax debt lawyers to come up with strategies that lower your debt. You can also use a tax calculator online to give you an idea of your total tax debt. 2. Consolidate the tax debt with your credit card :  First things first, it is not advisable to pay off one debt using another debt. If you owe something especially taxes, then you might want to break this rule.IRS accepts all major credit cards like MasterCard or Visa to pay off your tax debt. Simply go to the payment page of the IRS to make a payment. Keep in mind that IRS doesn’t charge a fee for doing such transaction, although processing companies who process the payment charge up to as much as 2.35 percent. Nevertheless, make sure to pay your credit card in time. 3. Try refinancing your home :  Why not? Believe it or not, the IRS could recommend re-financing depending on the situation. If you happen to have equity such as a house and you can afford it, then you can use your assets to pay off your existing tax debt.The good thing about this movie is that mortgage rates are typically lower compared to the rate charged by credit card companies. Also, you can take away home mortgage interest on your income tax return – and how can you say no to that? 4. Apply for Short-Term Extension to Pay :  This is only applicable if you can pay your tax debt in 120 days or less. The good thing about this arrangement is that there is no set-up fee and you can apply either online by filling out the Online Payment Agreement application or by phone. Penalties and interest fees are likewise lower, so make sure you pay within the given period granted to you. 5. Enter into an installment agreement : Ideally, you would be able to pay off your tax debt at once. On the other hand, there are instances when you need a little more time to pay it off. In that case, consider entering into an installment agreement with the IRS.The good thing about installment agreement is that you can apply either online or by mail. You don’t have to worry about reminders and missed payments, especially if you sign up for the monthly payment plan.You can apply for the installment agreement if you owe $50,000 or less, which already includes combined individual income tax, interest, and penalties. When you apply for this, make sure that you filed all of your returns in order to qualify for this agreement.How does installment agreement work? A direct debit payment plan is highly recommended because of the lower cost, hassle-free payment, and the cost for a set-up fee is more affordable compared to other payment plans.What if you have more than $50,000 tax debt? In that case, the next tip would be your most feasible option. 6. Consider an Officer in Compromise :  Also known as OIC, this strategy could also be helpful if you want to pay off your tax debt. Unlike the Installment Agreement, Officer in Compromise is more applicable for a larger amount of tax debt.How does this work? OIC will allow you to settle your tax debt for less than the full amount you actually owe. Filing of an income tax return and payment requirements must also be updated. Nonetheless, there are several factors IRS looks into before they agree to this kind of arrangement. This includes, but not limited to:Income Expenses Asset equity Ability to payAside from this, it is IRS who will determine whether you are qualified for OIC or not. If they see that they won’t be able to collect the entire amount within a reasonable time, then you could be qualified. Check out their website to determine whether you can be qualified for this or not.At the end of the day, it is important that you file and pay on time to avoid hassle come due date. In case there was a delay, take note of these tips and prevent the government from taking what was yours.Read Also :Eight Essential Tips For Getting Out Of Debt Are Debt Consolidation Loans Recommended For Credit Card Consolidation Dealing With A Debt Relief Officer For A Better Assistance