Posts Tagged ‘credit score’

How to Take Advantage of Low Interest Rates

Part 1 – Check Your Credit42-25396911

It’s time for some good news, isn’t it?

Don’t look now, but interest rates are at record lows. Whether you own a home, car, or have a credit card, it’s a wonderful time to begin exploring ways to lower your interest rate. Here’s the really, really good news: a lower interest rate will probably mean lower payments. This can give you financial breathing room to focus on your craft or pay down debt more quickly.

Today, I’d like to make sure you can participate in the interest rate game. Once we’ve solved that problem, we’ll talk later about how to refinance your debt. Sound good? Great!

Let’s move on these steps to check your credit report:

(more…)

Posted in Debt, interest rates | 4 Comments »
Posted by Miata | February 8th, 2012

Daily ProsperiTIP

dailyprosperitip2According to Fair Isaac, the company that builds the FICO score, the single biggest contributor to a good credit score is your payment history.

Missing a payment or paying late are two of the biggest detractors from a good score. Here are some tricks to make sure payments are made on time each month:

  • Sign up for automatic payments. If you allow the company to withdraw the minimum amount due from your account each month, you’ll still have the option of paying more to reduce the loan size.
  • Schedule set times to pay bills each week. By keeping a “budget meeting” each week, you’re less likely to get distracted by other tasks. If for some reason you must miss your budget work, make sure and reschedule the time in your calendar.
  • Drop unnecessary credit cards. I’ve witnessed people getting in trouble with a card they use infrequently, then forget to pay later. Use a single credit card for all of your purchases or pay cash.

Posted in ProsperiTIP | No Comments »
Posted by Miata | January 31st, 2012

The Most Important Score in Your Financial Life

womanwithcreditcards225I pulled my car into a garage to have the oil changed this week. I realized during this process how closely some of these financial topics mirror auto repair jargon. Sometimes it takes all of my acting experience to pretend I know what a mechanic means when he’s explaining the difference between types of oil. I’m terrified he’ll recognize me as the not-sure-where-the-oil-goes person I am, and suddenly the cost of my car repair magically skyrockets.

As I’m smart enough to realize that there are auto-related facts I must know to keep my costs down, it’s similar with some financial concepts. One number may save you more money than any other in your financial life. It’s called a FICO score. This number tells lenders how reliable you are with payments to debt. People with high credit scores are offered lower interest rates to borrow. They’re also often given better repayment terms.

Knowing your score became more important than ever a couple months ago when Bank of America changed their fee structure. (more…)

Posted in Credit Cards | No Comments »
Posted by Miata | May 5th, 2011