Don’t Let These Mistakes Ruin Your Credit Score

Posted on by
Reply

When it comes to your finances, your credit score can be a big deal. A good credit score can mean big savings (or costs) if you take out a loan. Good credit can also mean lower costs when you get car insurance in some states.

If you have good credit, you’ve worked hard to manage your finances and your loans in a way that shows you are responsible. You are proving that you are a solid risk. But what happens if you slip up? How much could that ruin your score?

According to the major credit bureaus, the damage affects different people differently. One late payment will affect a person with a lower score, but it’ll have a much bigger impact on someone with a really high score. That’s right: if you have great credit now, a mistake could mean a bigger hit to your credit score. Someone with mediocre credit won’t see the same impact as the result of a mistake.

Do you have an excellent credit history and want to keep it that way? Here are some things to avoid if you want to keep that credit score in the good to excellent range:

Missed Payments

The biggest factor in your credit score is your payment history. One missed payment can tank your credit score, if you have excellent credit – by as much as 100 points, according to Equifax.

The longer you wait to pay your bill, the worse the impact. If you are just a couple days late, you might not see a huge change. However, once you reach that 30-day late mark, it’s a big problem.

Do your best to plan your finances so you make your payments on time and in full. Easier said than done, but it’s much easier to stay on track if you have a budget. If you don’t, get working on one. Check out our free budgeting guide.

High Credit Utilization

If you have excellent credit, there’s a good chance you carry small balances on your cards — if you carry them at all. Best results come when you use 30% or less of your available credit each month.

But when you start charging, and that credit utilization number starts to climb, you can see changes to your credit score without realizing it. The closer you are to your limit on the credit cards, the more it impacts your score.

If you end up over the limit on your cards, then your score will suffer. Try to continue keeping balances low. Better yet, pay off your cards each month if you can and avoid paying the interest.

Cosigning on a Loan

One day you may want to help your child or sibling by cosigning on a loan. It might seem like a good idea to cosign on a loan to give them a boost, but think twice before you commit.

Your credit is on the line as soon as you sign on the dotted line, because you accepted responsibility for all payments as a cosigner. Plus, it will look like you have that debt — even if you don’t, and that can affect how much you can borrow if you were to, say apply for a mortgage on a dream home. If the borrower misses a payment, that’s on you as well. You can see your credit score fall.

And if you do cosign, make sure the borrower keeps you up to speed. It may not be ideal to make their loan payments, but at least it can save your credit if you do.

Article Source: Miranda Marquit for Moneyning.com

What Not to Buy in December

Posted on by
Reply

December may be one of the best shopping months. No matter where you look, it is easy to find either a holiday or year-end deal or discount for almost anything you can imagine.

However, despite all of the December sales extravaganzas, not everything is a great deal. Here are few purchases Consumer Reports and NerdWallet say are worth postponing until the new year.

Jewelry: If you want to really get the best deal wait until late January to buy any diamonds or jewelry. That sweet spot between the end of the holidays and just before Valentine’s Day is generally when jewelers and department stores launch their deepest sales discounts.

Fitness equipment: The very best deals are in the warmer months – however, there are usually sales available in early January if your fitness goals simply can’t wait.

Bedding: Nothing beats 50-75% off deals during January white sales. If you can, hold off until then to buy blankets, sheet sets, and towels. Imagine how much better you’ll sleep knowing you got them at such a discount!

Winter clothing: The end of January through early February is the best time of year to get your winter gear for less.

Televisions: Black Friday deals are hard to beat. If you missed them, try shopping for your next high-end television in late January/early February (for upcoming SuperBowl deals).

Article Source: Myriam DiGiovanni for Financialfeed.com

 

5 Tips to Saving on Your Gym Membership Before the New Year

Posted on by
Reply

With all the excitement, festivities, and of course food around the holiday season, the last thing you’re probably thinking about is the gym. Most of us probably eat to our heart’s content over the holiday season and wait until January to deal with the aftermath. However, it might be worthwhile to start planning ahead now to get the best deals at the gym.

Once the new year arrives, people seem to turn to “get in shape” mode, which means hitting the gym hard. You definitely see the best deals at the end and beginning of the year, so be proactive now. Here are some tips to getting deals at the gym in the new year:

1. Sign Up for a Trial

It’s hard to commit to a gym membership without testing it out first. Almost all gyms offer free trials, some for a day and others for up to a week. Use your trial pass to get a feel for the gym, what equipment they have and whether or not it’s the right place for your workout. Also, be sure to visit during the times you would normally workout, to see what the crowd is like.

2. Pay Upfront

Most gyms will bill you month-to-month with charges based on the level of access you want to the gym. However, if you offer to pay upfront, you might be able to score a better deal. Many gyms will have promotions that may include anywhere from one to three months free if you pay for a year in advance. Yes, it’s a large sum of money initially – but doing so can save you money in the long run.

3. Be on the Lookout for Offers

Of course, the biggest way to save money on your gym membership is to take advantage of offers and promotions. And the best time to do so is during the new year. January is the busiest time of the year for most gyms and they’ll be offering many different deals and incentives to get more people to join. Look out for discounted monthly fees, waived enrollment and processing fees, and other perks.

4. Don’t Be Afraid to Negotiate

As with almost anything in life, don’t be afraid to negotiate. There are so many gyms to choose from and all of them are competing for your business. There is almost always wiggle room to negotiate your membership. You never know until you ask!

5. Create a Gym at Home

Don’t worry if you still can’t fit a gym membership into your budget, because you can create a gym at home. All you really need is a set of dumbbells and an imagination. Look to Youtube for free exercise videos and tips, or on warmer days go out for a run. You can definitely accomplish a lot without having expensive equipment.

The biggest key to getting in shape is willpower, and you don’t need to pay for that.

Article Source: Connie Mei for Moneyning.com

5 Time Consuming Things That Don’t Really Save You Money

Posted on by
Reply

Everybody loves to find new ways to save. After all, it’s quite thrilling to know you did something productive to save some money. And plus, every little bit counts when you’re trying to build your savings. But could your money saving habits actually be hurting you? Despite the best intentions, many people are actually doing things all wrong. Yes, certain habits might save you some money, but it can cost you quite a bit of time too. Spending your time to save a few dollars isn’t always worth it. Here are five instances when spending extra time doesn’t actually save you money:

Always Buying Used

There are many times when buying used might actually be a good idea. For instance, buying a used car can save you a lot of money. You can find plenty of used cars in like-new condition at a heavily discounted price. On the other hand, many other items should not be bought second hand. For example, you shouldn’t buy used car seats or tires for safety reasons. So how do you know which items to buy used? You need to research, and that can take a ton of time. It’s a balancing act, but sometimes waiting for a sale and buying new makes more sense.

Stalking the Sale Section

Who doesn’t love a good sale? Sometimes, you walk by and find the best things just sitting in a sale section waiting to be bought. But other times, it’s not so easy. Do you always gravitate to the sale aisle once you walk into a store, only to spend a considerable amount of time rummaging through a pile of things and not find anything useful? And worse, you end up leaving with one or more items you never really needed? Break the habit. Just because something is on sale doesn’t mean you need to buy it.

DIY Projects

It’s awesome if you have the gift of being handy and crafty, but not everyone is a DIYer. If you’re not comfortable making something on your own, you don’t have to make an attempt unless you find it enjoyable to give the job a try. It’s perfectly okay to buy something at the store already made. This is especially true for items you plan on using for a long time like furniture. In the long run, it might be worth it to spend a little more now. Not only will you save yourself some frustration and time, but your furniture will likely last longer and look better from the beginning.

Not Using a Credit Card

Having an “all cash” system is definitely beneficial for those who can’t control their credit card spending. However, using credit cards to pay can definitely be beneficial too. First, you don’t have to spend extra time counting change. Second, you can get reward points and cash back when using your card, which is like getting a discount on every purchase. Third, it’s actually easier to track your spending with a card, helping those who are disciplined and willing – improve long term spending habits.

Waiting in Line for a Deal

If you waited in line for Black Friday deals this year, you weren’t the only one. But is it really worth it? It’s up to you to weigh the pros and cons for yourself, but spending hours waiting in line is definitely not time well spent. Plus, most online retailers offer huge discounts and promotions this time of year too. If you shop online you can avoid the long lines and still earn great seasonal discounts without ever having to leave the house. You just have to do a little research and price comparison shopping first.

Article Source: Connie Mei for Moneyning.com

Important Holiday Shopping Tips Everyone Should Know

Posted on by
Reply

The gift-giving season is in full swing. Here are some tips to help you shop wisely and protect your personal and financial information at the same time.

  • Make a list and a budget. Remember incidentals, like cards and wrapping paper. Your local dollar store is a great place for these types of items too!
  • Check out websites that compare prices for things sold online, and at stores in your area. It can help you get the best deal.
  • Make sure the scanned price is right. Overcharges cost you money and time, especially if you don’t notice them right away.
  • Look for rebates. Some can be redeemed at checkout, but most require you to send documentation to the manufacturer to get your rebate. Either way, you’ll be getting money back on your purchases.
  • Read reviews and recommendations to see how the product performs — or people’s experience with an online seller. But remember to consider the source.
  • Be aware that shopping apps can collect a lot of personal information. Look for apps that tell you what they do with your data, and how they keep it secure.
  • Check the terms of the deal when buying online — including delivery dates and refund policies. Will it arrive in time? And, if it’s not what you thought, can you send it back?
  • Save receipts. When you’re shopping online – keep copies of your order number, the refund and return policies, shipping costs and warranties.
  • Giving bling? Take some time to learn the terms used in the jewelry industry so you can get the best quality and value.
  • Shipping to loved ones overseas? Check the US Postal Service’s calendar for holiday shipping deadlines.
  • Have packages delivered to a secure location. If you won’t be home, have them delivered to work, or see if a neighbor can be on the lookout for deliveries. Consider requiring a signature for delivery — or look for options to pick up your shipment at a local store or mailing center.

Happy Holiday Shopping!

Article Source: Colleen Tressler for the FTC

5 Ways to Curb Impulse Buying

Posted on by
Reply

It’s so hard to fight the urge to spend money. You’ve earned it, so why can’t you spend it – right? It’s certainly fine to give in once in a while, but impulse buying can really throw your budget, especially if you’re buying higher priced items.

Impulse shopping is far from uncommon in America. According to a survey from CreditCards.com, about 54% of Americans have spent $100 or more on an impulse purchase. The survey also points out that 84% of Americans have made impulse purchases, and 20% have even made purchases of at least $1,000 on impulse – wow!

If you’re looking for ways to finally kick this type of habit, here are five tips to help overcome impulse buying:

Make a Shopping List

The easiest way to fight impulsive shopping is by making a list. When you go shopping, know exactly what you’re there for and stick to the original mission. If an item is not on the list, you don’t buy it – it’s as simple as that. Sticking to the shopping list will take some self-discipline but with a little practice, it will become second nature.

Create a 30-Day Rule

Impulsive purchases happen essentially because you don’t give yourself the time to rationally think about the purchase. The next time you feel the urge to buy something, tell yourself to wait 30 days. After the 30 days, do you still want it? Are you still thinking about it? If so, go ahead and buy it – but you’ll find that most of the time, you’ve long forgotten about it already.

Budget in Impulsive Purchases

Some people just can’t help it. They’re going to buy random items regardless of how much planning they do. If you’re one of those people, that’s okay. Just put it into your budget. Create a category for “miscellaneous spending” or in other words, impulse purchases. Once you’ve reached the max for the category during a given month, you’ll have to wait until the next month to buy anything else. This way, you can satisfy your urge to shop while controlling it at the same time.

Bring Cash Only

Another way to stop yourself from impulsive buying is to leave all your credit cards at home. Just bring cash. Doing so will put a limit on how much you can buy. Of course, you’ll want to be prepared and know how much cash you’ll need to bring for at least essentials, but this could be a very effective method if you’re good with keeping track.

Think About Those Long-Term Goals

Thinking about the future is actually very difficult, as shopping can be fun and the thrill of making a purchase even more so. But think about your long-term goals and all the things you want to save up for. You’ll realize that there are probably more important things than what you’re about to buy. Is that pair of designer jeans really worth delaying your vacation? And what about another new tablet or other electronic device? Is that more important than saving for retirement?

The answer could very well be yes, but most of the time – opt to save up and spend it on something that truly matters.

Article Source: Miranda Marquit for Moneyning.com