oscarnominations2017.com Uncovers Three Important Credit Tips
SB Wire- Today, the personal finance editors at oscarnominations2017.com have revealed three peices of advice about credit scores, credit cards, and bad credit loans in order to help consumers better understand these financial subjects.
Strive for good credit scores and reports
Consumers’ credit scores and credit reports represent their financial responsibility and credibility. A credit report will include the consumer’s personal and contact information, current accounts open, balances, inquiries, and payment history. Meanwhile, a credit score is a number that the credit bureaus tally up, which is based on the consumer’s credit utilization rate, payment histories, length of credit, and the various types of credit the consumer uses.
Consumers should focus on building and maintaining upstanding credit reports and scores because oftentimes traditional lenders, credit card issuers, insurance companies, and even landlords will request to run a credit check before providing the consumer with a service. When consumers have good and healthy reports, lenders will be more inclined to offer lower interest rates and better benefits on the requested service.
Understand credit cards
Credit cards are a great way of building credit, but only if consumers know how to responsibly swipe their cards and pay off their off their bills.
If consumers use high credit utilization rates or max out credit cards, this is poor credit behavior that will lower their credit scores. Personal finance editors urge consumers to use less than 30% of their available credit, which will prevent them from maxing out their credit cards and from using a large amount of credit. Consumers should also understand that late credit card payments could also lead to damaged credit scores.
One great way to build credit without over swiping is to designate using a credit card for specific monthly purchases, such as gas or groceries. Doing so will keep the consumer using the card periodically, but it may take away that temptation to swipe for every purchase.
Know when to use a payday loan
Although consumers should always work toward a high credit score, it may take time. As previously mentioned, traditional lenders often request a copy of one’s credit score before issuing a loan, therefore consumers who have poor credit may not receive access to the traditional loan because of their bad credit. So this is where payday loans come into play.
These bad credit lenders usually do not run credit checks on applicants, so consumers with poor or no credit can take out these loans in emergency situations. However because these bad credit lenders are more lenient with their application process, they do charge higher fees and interest rates on these bad credit unsecured loans. Therefore, consumers who have poor credit will only want to use these bad credit loans if they are facing a financial emergency, in which they need fast cash before the following payday.
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