We believe that sustaining great credit begins with education. The following blog posts will teach you the fundamentals of credit, how to build better payment habits, and more!
By now, you may have heard about the data breach at Equifax, which compromised the personal information of roughly 143 million people. In order to filter out the noise from misinformation, we're going to outline everything you need to know to protect yourself going forward.
Adulting is hard. You just graduated college, moved your stuff out of your parents’ basement, and your to-do list is over capacity. Add financial literacy to the mix, and it might feel like you’re drowning. Up until now, FICO scores and APRs were nothing but extra text at the bottom of a bank statement. Credit is only something you have to deal with when you’re 35 and trying to buy a house for your family, right? Wrong.
If you have multiple federal student loans that you are paying off separately, you can consolidate all of them into one. Once you consolidate your loans, your previous loans are paid off by the government and replaced with one direct consolidation loan. The process is free and managed by the government.
Not many people know that when they apply for a loan, the inquiries on their credit that lenders pull up can harm their credit scores.
Money is tight and you’re only paying the minimum on your credit cards. It happens to the best of us. But if you continue to pay the smallest amount, it will take you a lot longer to pay off that debt with the interest piling up.
The world of credit cards is vast and complex. The right thing to do is to consider your credit score and financial needs in order to find the best card for you. Here are three categories of credit cards you might choose from and what to consider for each category.
When you check your credit card balance, you are given the statement balance and the current balance. What is the difference between these two balances? Which one should you pay in order to avoid paying interest?
Accounting for 35% of your credit score, your payment history is the single most important factor. Your history of making payments on time is the strongest indicator of whether you will pay future debts as agreed upon. Your payment history measures your financial responsibility from day one.
Accounting for 30% of your credit score, your credit utilization is the ratio of your credit card balance to your credit card limit. Your score will go down if you have high utilization because your hands are already full, thus making you less qualified for a new loan.
It’s written all over our blog that a good credit score will give you a lower interest rate for anything. But to really hit this point home, here’s an example on car loans: why you could be paying a lot less for your car if you had better credit.
Your credit score is the single most important number in your personal finance. Your score is what creditors use to determine whether you are approved for a loan or a credit card, and if so, what your interest rate will be. Insurance companies take it into factor to determine your rates.