Connect with us

News

Increase your credit score during coronavirus by doing this

Published

on

If you’re looking to boost your credit score fast amid the crippling coronavirus pandemic, then you should be doing this.

If the coronavirus pandemic has had an effect on your personal finances — like if you were forced you to max out your credit limit and hurt your credit score — you are not alone. According to the Pew Research Center, the number of unemployed workers grew faster in just three months in 2020 than it did in two years during the Great Recession. 

As a result, many have valid concerns about how the crisis will impact credit card debt, credit history, and other aspects of their personal finances. Each situation is different, but there is one thing that could increase your credit score if coronavirus has had an impact on your credit.

The best way to increase your credit score fast

Using credit cards can be an excellent way to build credit because, despite their relatively high-interest rates, there’s a way you can use them without paying any interest at all.

If you’re looking to open up a new credit card, use Credible to shop around for different cards — from secured cards to balance transfer cards — and compare card companies instantly. From redeeming rewards to building credit, Credible can help in any situation.

Each month, your card issuer reports your statement balance to national credit reporting agencies. If you have a balance — even a small one — it shows that you’re using your available credit, which helps lenders see how you manage your debts. Pay your bill in full to avoid any interest fees. If you have a rewards credit card, you may be able to use your points and miles or cashback to cover some of your expenses.

By visiting Credible, users can quickly compare the best rewards credit cards available.

10 CREDIT CARD TERMS EVERYONE SHOULD KNOW

Other ways to increase your credit score

Here are four more ways you can use your credit cards to boost your credit score.

  1. Pay your bill on time
  2. Keep your balances low
  3. Keep unused accounts open
  4. Monitor your credit

1. Pay your bill on time

Your payment history is the most important factor in your credit score, so paying bills on time is crucial — or at least the minimum amount due every month. If you can, pay your bill in full to avoid interest and other late payment charges. If you miss a payment, you’ll generally have 30 days from the due date to get caught up before it’s reported to card companies.

2. Keep your balances low

Your credit utilization rate — the percentage of your credit limit you’re using at a given time — is an important factor in calculating your credit score. If you’re constantly bumping up against your credit limit, it may be a sign that you’re having a hard time managing your debts. As a result, the lower your credit utilization, the better. If your credit utilization rate is high, consider using a consolidation loan to pay off the debt — by transferring it to a personal loan, your credit utilization rate on the card will drop to zero. 

3. Keep unused accounts open

Don’t close your old credit cards. These cards are helping build your credit score, even if you never use them. That’s because your length of credit history — how long you’ve been using credit and the average age of your credit accounts — is another component of your credit score. Just keep in mind that some card issuers may cancel your account if it remains inactive for too long. Consider making a purchase every six months or so to keep the card active.

4. Monitor your credit

Your credit report will show you which areas of your credit history need your attention, and with your credit score, you’ll be able to see where you stand and track your progress. With Experian, you can check your credit score and credit history for free.

If you’re looking for a new credit card, use an online marketplace like Credible to get an idea of what’s available based on your credit score and preferences, and compare those options.

HOW FICO’S NEW CREDIT SCORE CHANGES WILL AFFECT YOU

You can also use Credible to compare personal loan rates and get prequalified. The online marketplace can be helpful if you’re thinking about consolidating your credit card debt to lower your credit utilization rate. Enter your loan amount and estimated credit score to find out what kind of rates you qualify for without hurting your credit.

Use Credible’s personal loan calculator to estimate your monthly payments to ensure you’re choosing the best repayment term for you.

How to manage your financial health during coronavirus

Using credit cards to build and maintain a good credit score is possible for many. However, credit repair isn’t the only way to improve your financial situation.

Here are three other moves to consider:

  1. Get on a budget
  2. Fund your emergency savings
  3. Be wise about debt

1. Get on a budget

If you’re not already using a budget, think about creating one for your household. Even the simple act of writing out where your money goes can help you understand if you can make better spending decisions. It can also help you see where you can reallocate spending to areas of your finances that can improve your situation.

2. Fund your emergency savings

Even if money is tight, you may be able to boost your personal finances by saving a little each month for a rainy day. Look for opportunities with your budget to set cash aside for financial emergencies like the one caused by the pandemic.

HOW TO MANAGE CREDIT CARD BILLS DURING CORONAVIRUS

4. Be wise about debt

In some situations, it can be challenging to avoid debt, especially if you’ve lost your job or had your hours cut. However, if you need to borrow money, use an online marketplace like Credible to shop around and ensure you’re getting the best deal. Also, avoid applying for credit unless you need it.

As you practice these and other smart financial habits, you may have a better chance of weathering the storm of the pandemic and coming out the other side on a more stable foundation. 

Source link

Continue Reading

News

Are Sallie Mae Student Loans Federal or Private?

Published

on

When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

Learn more:

Source link

Continue Reading

News

Tips to do some fall cleaning on your finances

Published

on

Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

Source link

Continue Reading

News

How to Get a Loan Even with Bad Credit

Published

on

Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.

 

 

Source link

Continue Reading

Trending