Monday, February 20, 2012

Easy Methods Of Boosting Your Personal Financing IQ | Article ...

How To Fix Your Credit

Check your credit report. There are a lot of ways to see your credit report at no cost. Do this twice per year so that no unauthorized charges appear and to prevent I.D. theft.

Work hard to obtain a high credit score. Your interest on loans or credit cards are directly related to your credit score. If your credit score checks out to be low, you could be at risk for being denied housing or cell phone plans. If you are smart with your credit, you can keep your FICO score high. Having a savings plan is important, so always plan for a rainy day. You should strive to have enough money in the bank to cover your essential bills for six months. Should you lose your job, or run into an emergency situation, the extra money will get you through. If you are like most people, you never received instruction on personal finance in school, and your parents probably did not discuss money with you either. After you moved out, you had to muddle along on your own, figuring out on your own how to best manage your personal finances. This article will discuss a few important concepts that you need to know, and will offer a few tips on getting the most out of your money. Keep an envelope with you on your person. That way, you have a safe place you can store business cards and receipts. It?s a great way to capture these items in a safe place to record them later on. It?s useful to have your receipts if you ever see double charges for a purchase on your credit card statement. If you are traveling overseas, be sure to contact your bank and credit card companies to let them know. Many banks are alerted if there are charges overseas. They may think the activity is fraudulent and freeze your accounts. Avoid the hassle by simple calling your financial institutions to let them know. Whenever possible, look into buying things in bulk. Foods that don?t go bad quickly like canned goods, drinks, etc., can often be purchased in bulk for great prices. Lexington Law Nonfood items like plates, napkins, paper towels, or toilet paper can also be bought in bulk for great prices. Since you?ll always need these, buying them in bulk can save you money in the long run. A credit repair company may guarantee they can improve your credit report, don?t believe them. Many companies put out marketing materials that make broad claims about what they can do for you. Everyone has a different credit report and needs a different solution to fix it. The only credit repair agencies that guarantee success are fraudulent ones. Compound interest can be a powerful force for improving finances, especially for those who take advantage of it early in life. Make an account just for savings, and automatically put a certain percentage of your earnings into it. Put aside money from every paycheck as soon as you get it. Planning to save whatever is left after the month is over is not a good idea. If you know the money is unavailable, it lessens the chance you will spend it. Don?t invest in a long-term bond mutual funds. How To Fix Your Credit If you need the steady income from bonds, it?s better to buy the actual bond or find a substitute like bank CD?s. Mutual funds can be an excellent way to invest in stocks, but because all mutual funds are priced daily, funds that invest mostly in longer-term bonds can lose money quickly if interest rates rise.

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