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How To Improve Credit Score Tips

What is the credit score scale, and how do you know whether you have a good or bad credit rating? Well, the credit score scale may seem dark and mysterious, but it really isn’t all that complicated. So here is what you need to know about your credit score and the credit score scale.

The credit score scale ranges from three hundred (300) to eight hundred and fifty (850). So that means that if you are alive and there are records of you, there is no way you can have a credit score less than 300.

On the other hand, if you have only a little bit of debt, you have had it for a long time (many years), and you have never missed a payment or been late with a payment, and you have an income, you might just have the perfect score of 850. But, of course, very few people have either the lowest or the highest possible score; just about everyone falls somewhere between the two extremes.

If you want to fall at the very top level of the credit score scale, you should shoot for a rating of at least 720. At one time in the not-too-distant past, you may have been considered at the top of the game if your score was above 680, but no more. Just about every lender gives the best terms and interest rates only to those whose credit score falls above 720 on the scale.

Suppose you know you have only some minor issues in your background that will negatively impact your credit history. In that case, you may fall somewhere between 680 and 720. If that is where you land on the credit score scale, you can probably find a bank or other lender who is willing to give you a decent loan that won’t cost you an arm and a leg in interest.

If your score is between 630 and 679, you may find that you have to settle for loans that are not as flattering as those offered to the folks at the top of the credit score scale. In fact, some lenders may not be willing to offer you a loan at all. Most likely, though, you will be able to secure a loan if you really need one, are diligent about finding a lender and are willing to pay a higher interest rate.

Suppose your ranking is below 630 on the credit score scale. In that case, you will probably have a very difficult time getting a home mortgage or loan for a new automobile.

Therefore, before you consider applying for these types of loans, you should definitely get a copy of your credit report and make sure that any mistakes are cleared up. In addition, you should definitely make as many improvements to your credit score scale rating as possible.

In addition, remember that these are only guidelines and that the policies of different lenders vary. What one bank considers “too risky” maybe within the acceptable limits of another lender. So it also pays to shop around for the best deal you can get, no matter where you fall on the credit score scale of life.

Free Credit Card Consolidation Does It Exist

When you see an ad for free credit card consolidation, does that mean that their service will help you consolidate your credit cards for absolutely nothing? How many businesses do you know of that provide their services without charging you? The free usually means that your consultation is free when you see an ad for free credit card consolidation.

This doesn’t mean that just because an ad uses the word free to get your attention, they’re doing something wrong. If they offer a free consultation, then it’s only natural for them to want to get that information in front of you.

Offering part of their service for free is a great way to get business. Suppose you’re in credit card debt, after all, and you see a credit card consolidation company that interests you. In that case, you’ll want to contact them. But if they charge you for a consultation, how likely are you to follow up?

Most companies don’t just advertise credit card consolidation. Instead, they’re usually full debt consolidation services that can help you combine your credit card debt, mortgage debt, and other debts and pay them off using a consolidation loan.

If you get the loan, you pay off your individual creditors and then simply pay back the loan. You’ll make one payment per month instead of several. This simplifies things and makes it easier for you to manage and understand your debt.

The interest on your one debt will be lower than the interest you were paying combined on your individual debts. Therefore, your one payment each month should be less than the total of the individual debts you had, too.

This kind of arrangement can cost you more in the long run, though. So you need to do the math and look at the terms very carefully. Free credit card consolidation is possible in this case because the company makes money from you on the interest associated with your loan.

You could end up paying less per month and having a lower interest rate but paying more in interest over the long run because the payments are stretched out so far. You may also have to pay fees to get the loan.

Some companies don’t offer a loan but instead negotiate with your creditors to lower payments and interests. Then you pay the credit counseling company that distributes the payments to your creditors. There’s generally a small monthly fee associated with that.

Is it possible to get free credit card consolidation? There is if you do it yourself. You can transfer your multiple credit card balances to one card. Choose one with a low-interest rate and look at the terms carefully. Then your payments will be consolidated on that one card.

The risk in any of these methods is that you’ll use the cards you just paid off (or transferred balances from) and run your debt back up. So to make free credit card consolidation really work, make your payments on time every time and stop using those zeroed-out cards.

High-Interest Saving Account Some Things You Need To Consider Beforehand

One of the main reasons why anyone thinks of opening a bank account is to save some money. This is a universal fact. Every saving account gives the account holders some amount on interest on the amount of money they have deposited into the account.

This amount depends on the rate of interest that the financial institution provides. This is why the concept of a high-interest saving account sets in. Some accounts provide a higher interest rate, which means better saving. It is but natural that people try to find the best high-interest saving account that they can.

However, there are some things that you need to consider when you are looking at any high-interest saving account with any lending institution. The following are some of the important things that you have to be wary about.

1. Think whether a high street bank or a direct bank will be the better option for you. High street banks are usually costlier because they have to employ staff and have physical premises that they will need to keep up. However, direct banks manage all their dealings online or through the phone, and therefore the costs are low. The result is that they can provide better interest rates. However, some people like the convenience of interacting with live people in a high street bank. So you have to decide where you want the ease of dealing with real persons at a lower rate of interest, or will you be able to automatically handle all your bank transactions at a higher rate of interest?

2. The next thing you have to consider while contemplating a high-interest saving account is the type of account you must go for. There are two basic types of accounts here, the deposit saving account and the regular saving account. A deposit saving account gives you better freedom in terms of the amount of money you can deposit in the account. It can be as little or as much as you can afford to put in. But this freedom does come at a price because they will offer a lower interest rate. On the other hand, a regular saving account provides a much better interest rate. Still, there is a minimum restriction on the amount that you can deposit each month. If your amount is less than this amount on a particular month, you won’t get any interest for that month.

3. Some accounts do classify in the genre of a high-interest saving account. Still, then these accounts will need a notice period before you can withdraw any money from them. This could be cumbersome for you if you frequently need money promptly. In addition, some of these notices could stretch up to 3 months, which could be bad for a running business.

The thing you need to remember here is that a high-interest saving account is definitely possible. Still, see whether you can afford this perk. The compromises that you need to make are more than you bargained for.

High Yield Online Savings Account What Do They Actually Mean

Basically, a high yield online savings account means an account that gives a high growth rate for your savings. Since your savings account will accumulate interest each month, the concept of rate of interest is important here.

When an account has a high interest rate, it is bound to grow in savings significantly as well. So, essentially a high yield online savings account is an account that has a high rate of interest.

Now, it is very difficult to find high yielding savings account in the offline world. However best it tries, your physical bank cannot give you a considerably greater rate of interest compared to the other physical banks.

That is because these banks need to have physical premises, maintain them, equip them with staff, pay their salaries, etc. All these things attract a lot of overhead costs for the banks. Because of these reasons, high street banks cannot have high yield savings accounts even if they mean well to do so.

That implies that high yield accounts are available only in the online world, which is quite justified because they do not have all the costs mentioned above. Resultantly, they can pass on those benefits to their customers. So you should not be surprised even if you find that a high yield online savings account pays you an interest rate that’s ten times higher than your existing physical bank.

That is not to say that offline banks do not have high-yielding accounts at all. They do have, but they make these accounts available only to clients who prove their eligibility through certain criteria. Now, different physical banks have different criteria to select people for high yielding accounts; however, the following four are the most commonly considered:-

  • 1. The account holder should make an enormous amount of deposit when opening the account.
  • 2. The account holder must maintain a high balance in the account that rolls over from one month to another.
  • 3. The account holder must not withdraw a lot of money from the account and must not withdraw too frequently.
  • 4. The account holder must ideally use other bank services, such as their credit cards, home loans, or such.

Most physical, financial institutions will provide people with high-yielding accounts if they can meet these requirements. If you do not wish to involve yourself with online banking and still want to have a high-yielding savings account, this may be the route you can take.

However, the story with online savings banks is totally different. They rarely need these requirements because of the lower running costs they fact. Some of these will give a high yield online savings account even with a deposit that is as little as a dollar.

The only thing that you need to remember is that all your dealings will then be handled online. There won’t be a human face to interact with for all your bank transactions, you will need to log in to the banking website.

Highest Interest Savings Account Where To Get Them

Most banks are offering high-interest savings accounts nowadays. Still, if you are looking for the highest interest savings account you can get, you will need to do some research degree. So let us see some places you can hunt for and what strings are attached to them.

One of the best places to get the highest interest savings account is the Internet. There are many online banks and other kinds of financial organizations allowing you to keep accounts with them, and they give a very appreciable rate of interest. But, you need to stop and think why do these institutions give a better rate of interest than the high street banks? Is there a catch?

There is no catch but there are certain compromises to be made. The first thing you need to remember when you are contemplating an online savings account, even if it carries the promise of being the highest interest savings account you have been looking for, is that you will have to handle all your dealings online. There won’t be any way for you to interact with a live person in most cases.

All your deposits and withdrawals will be made online. Online money transfer, wire transfer, eGold transactions, PayPal transactions, etc., are used. Some also make regular checks and other deposit methods.

Withdrawal of this money can be made in various ways, too; you could order a check, directly transfer the money to other services such as pay your bills online, get a money transfer done to someone else’s account, and so on.

So most of the transactions that are involved in these online savings accounts that can be classified as the highest interest savings account are done without human intervention. This could be either good or bad for you, depending on how you are inclined to think.

For many people handling all financial transactions online is the end of all banking woes, such as having to deal with surly cashiers and tellers, not having to stand in queues, and not having to make the physical effort of going to the bank before its closing time.

But then some people like the physical high street banks for these very reasons. They like the human intervention because it gives them a better sense of security.

But then, coming to the most important point of the discussion, are these accounts really the highest interest savings account you are looking for? The answer is definitely positive, and there is just enough for that. The main reason for that is that these accounts do not need to have those heavy overheads that conducting operations from physical premises contain.

They don’t have rents, electricity bills, maintenance costs, etc., to contend with. They also don’t need to hire as many employees. As a result, they can save a bundle on employee costs. These savings are quite significant, which these banks are quite happy to pass on to their patrons.

So, a highest interest savings account is indeed possible, and the place where you can get it is online. But think of all the pros and cons carefully before you make the decision to apply for them.

Money Market Savings Account Are They A Good Idea To Save Money

Suppose you have been thinking of using money market savings accounts for a while now. In that case, you must know what these accounts actually are and how they will benefit you. Money market savings accounts are indeed considered to be high-interest savings accounts.

Still, at the same time, certain points might make you see them in a different light. So let us see here whether these accounts are something that you need to consider to build up your funds.

First of all, we need to see what money market savings accounts are. These are deposit savings accounts with a higher rate of interest than usual bank accounts. One of the most important advantages of having such an account is that the notice period for withdrawal is very short if it is present.

Also, the money that is deposited in these accounts is protected by the regulations of the Federal Deposit Insurance Corporation, so even if the financial institution shuts down operations, the money deposited in it is not forfeited.

So, there are advantages, and it might seem quite worthwhile to have one of these money market savings accounts for your needs. The two major aspects of any savings account, high-interest rates and low withdrawal periods, apply to savings accounts, making them seem good options. But then, there should be some catch somewhere, right? There are certain things you have to know.

  • 1. One of the first things that you have to remember here is that there might be a maximum number of withdrawals that you can make from the account. There are money market savings accounts that will allow you to dip into the account as many times as you need to withdraw money. Still, then there are also accounts with a maximum limit on them. That could be a dampener for a running business if you depend solely on this account for your transactions.

  • 2. Though most of these accounts consider your deposit applicable for interest even if it is as low as $1, some accounts will need you to have some minimum balance in the account each month. This can again be a problem if you are strapped for cash, especially in the initial stages, for example. The accounts that require a minimum deposit per month will not give any interest for the month that the requirement is not met. So, even if there is a high rate of interest attached to the account, it might not work if there is this requirement to be met.

  • 3. Money market savings accounts are also subject to fees like any normal savings accounts are. But, of course, there are free accounts out there too, which do not impose any fees on the account apart from their normal account handling charges. Still, some accounts might charge more beyond a particular number of withdrawals or even penalize the account holder for not maintaining the minimum balance.

But you remember that these points do not apply to all money market savings accounts. So what you really need to do is read the fine print so that you clearly understand all the points that apply.

No Balance Transfer Fee Credit CardA Good Deal

If you can get a no-balance transfer fee credit card, should you? This card type allows you to transfer balances from other credit cards without paying a fee to do so. This can save you some money because some credit cards do charge a fee for balance transfers. Some charge $35 to $75 per transfer. So a no-balance transfer fee credit card might seem like a great idea.

If you have several balances to transfer, you could certainly save a lot of cash. Hundreds of dollars of savings in those transfers could make a huge difference in the amount of your debt. But don’t just assume that a no-balance transfer fee credit card is a good thing because of it.

Like you should before you sign any card agreement, read the no balance transfer fee credit card agreement carefully. Look for hidden costs, fees, and ongoing charges that might offset the savings of no transfer fees. Make sure you know exactly what you will be charged when you use this card.

Now, look at the agreement where it discusses your interest rate. Since you’re considering transferring your balances to this card, it must have a good interest rate. At least, the interest rate is better than on your other cards.

Some cards even offer no interest on balance transfers for a while. That can add up to huge savings. But make sure you know when that interest rate changes, and it will. The introductory low or no interest rate will be probably only last 3 to 6 months. Some cards will even offer a year at a low rate.

Note what the new rate will be. Will it be much lower than the interest you’ve already paid? If not, the savings you’ll get during the introductory period might not be worth it. Whether or not you realize it, opening a new card for balance transfers affects your credit.

If you have too many credit cards, your other rates can actually go up, or your credit lines could be cut. So make sure any savings is worth that risk when you opt to transfer balances to a new card.

Also, you should know what could happen if you’re late with a payment. Most credit cards that offer that low introductory rate has lots of clauses in their agreements. One states that if you miss a payment one time, the introductory rate is given up.

This means that if you pay late, the rate will jump to the regular rate automatically. And it may even jump higher than that. This is because most cards have one rate for steady payers and other rates for missed payments.

One late payment could end up costing you more in interest on this card than you would have been paying otherwise. So you have to be careful and schedule your payments so you can make them on time.

Also, read the agreement with your no-balance transfer fee credit card so you’ll know the interest rate on purchases and cash advances, which will be much higher.

Saving Account Interest Rates The Real Truth About Them

It is actually appalling how people consider banks to be virtually sacrosanct and do not spend any time thinking about them before applying for an account with one. The general notion is that banks are all guardians of your wealth, and they will work in your best interests.

But the fact of the matter differs from what people take it to be. One of the principal things you have to remember is the saving account interest rates, which can fluctuate widely from one bank to another.

Many people think that saving account interest rates are uniform across all banks in the country. Well, sorry to shatter your myth, but that’s not so. The fluctuation in these interest rates can be quite extreme, and that is basically the reason people shop around for the most suitable bank for their requirements. So, naturally, the thing that they are looking for is the best interest rate.

Does a good rate really matter? Of course, it does, considering that the difference in the saving account interest rates of some banks can be five to even ten times that of the other. You do not need to be a mathematical wizard to understand how a ten-time greater interest rate can really bloat up the savings that you make in the account.

So, when you are planning to open a savings account, look only at the saving account interest rates and select the highest one, right? It might seem at this point that this is the only thing you need to think about. But, hold on. The savings account interest rates are just one side of the story. There are several other things that you need to consider.

One of these things is the liberty you have with the withdrawals you can make. Some banks will restrict the number of times or the total amount you can withdraw from the bank in a particular month.

If that is the case, such an account could be difficult for you, especially if you are using it for running your business. Also, there might be a notice period for withdrawal, which sometimes can go up to 90 days. It needs no special understanding to realize that this can be a very difficult proposition indeed.

Another of the restrictions that high-interest rate savings account banks impose is a minimum deposit that you have to make per month. You are supposed to keep this amount in the bank balance, regardless of the withdrawals you make. If the amount goes below this level, you are liable to pay some additional charge, which also applies if you make withdrawals beyond the allowed limit.

There are high saving account interest rates, but you have to be wary of such things. These may actually put a limitation on the way you can operate the account. With such limitations, the high rates would not seem to matter much.

The way out is to read the fine print carefully before applying for any saving account, whether in an online bank or in a high street bank. Now that you know what you must look at, you will be better positioned to manage your account.

Savings Accounts For Children Teach Your Kids Important Lifes Skills

Most of us were intimidated by banks as children. These places always seemed to be abuzz with a lot of frenetic activity, with serious-faced people milling about all over the place. For many of us, it must have taken some amount of learning and training to get used to the concept of banking as adults.

Some of us may still be intimidated by banks and maybe use only the basic features that these financial institutions provide, completely ignoring the vast plethora of features in them. It certainly seems that if more of us had experiences with banks as children, we would have been better placed today to take these things in our stride.

In those times, we did not have much access to things like savings accounts for children and other child-oriented banking features, but now we do have them. So, apart from being much valuable way of training kids in an important aspect of life banking, this is also a way to make them better individuals later in life.

So it is actually no wonder when we see that all major banks across the world have savings accounts for children now, which are more or less a lesson from their parents to have better financial dealings in their later years as adults.

There are different savings accounts for children. The most common of these accounts, perhaps because of their simplicity, is the easy access account. Like other children’s accounts, you can make tiny deposits in these accounts, and there are no restrictions such as minimum monthly deposits.

The funds can also be withdrawn with short or even no notice. No charges are applied on the withdrawal. Since these are savings accounts, there is an applicable rate of interest on the deposits made in these accounts, which can be withdrawn according to the policies of the accounts.

Though most of these accounts do not have many restrictions, you know that there are some in which a notice period is required before you can make a withdrawal.

These will also typically require a minimum amount of monthly deposit. But if the accounts impose such restrictions, they will also compensate for them with a higher rate of interest on the deposits made, which means the child can save a larger sum of money.

Those are the formal rules that apply to savings accounts for children, but we need to look at the larger picture here. These accounts are really helpful because they teach kids the importance of money and teach them how to save it. Banks and even the governments are going all out to inculcate these values in children so that the future generations do not suffer from the high levels of indebtedness that the current generation suffers.

A small but significant step in that direction would be to train children in saving money when they are still young. Then, parents need to shop around and find out the best savings accounts for children. These could be some of the best gifts they can give to their children, which would last them a lifetime.

Unpaid Credit Card DebtGet Out From Under It

If you have unpaid credit card debt and you’re still using other credit cards, try to stop. While this isn’t always possible in today’s economy, if you can stop using credit, you will get out of debt faster. It’s important to do what you can to get out of debt because unpaid credit card debt can haunt you for years.

Try to consolidate your credit card debt onto one lower-interest card. If you have decent credit, you may get a good deal on a new card with a low-interest rate for balance transfers. But be careful using this approach to lower your unpaid credit card debt.

If you consolidate all your cards into one, you now have one payment per month instead of several. This is automatically more simple for you. But if you mess up and are late with a payment on that new card, you could end up in a deeper hole.

Most of these low-rate cards have a clause in the contract that tells you what happens if you’re late. One late payment can send the interest rate up dramatically. It might not be as high as your highest interest rate, but it could be close. And if you were paying less interest than that on some balances you just transferred, you’ll be losing money this way.

Worse, after a late payment, you can’t just then transfer those balances to a different low rate card because that late mark is on your credit report. Any low rates will probably be out of your reach now. This is a good way to get stuck with bigger problems and even more unpaid credit card debt.

So if you use this approach, be diligent. Make your payments early, so there’s no chance of them being late. And pay much more than the minimum balance whenever you can. Paying the minimum balance is a great way to ensure your debt lasts for years, even decades.

Also, consider taking your credit card with the lowest interest and best terms and keeping it handy in case of emergencies only. Then hide the rest from yourself. Finally, whether you want to shred them and get rid of them or put them in a tub of water in the back of your freezer, stop using them.

It’s a good idea to start saving money in an emergency fund so that you won’t have to rely on credit if problems arise. It’s all too easy to think that your cards that now have zero balances are free money. But if you start using them, you’ll regret it.

Now you’ll have this large balance credit card to pay each month and small ones, too. This is a trap many people get into when they realize they can’t stop using credit cards.

If you want to get out from under unpaid credit card debt, then you have to stop using credit and get that balance paid down.

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