credit Archives - 3 Kids and Us

The Best Ways to Increase your Credit

January 16, 2021 by admin

Credit is one of the trickiest facets of the modern world. It is the cause of much pain, anxiety, and stress. If you have been struggling with debt and have a bad credit score, you aren’t out of luck. There are many ways to raise your credit and work towards financial health. It is important to keep this goal in mind if you currently have a bad score. Some of the methods to raise your credit may seem counterintuitive. Credit is the process of showing you are good to borrow money. When you prove you are trustworthy with funds, you’ll have the opportunity to raise your score and improve your overall financial standing.

Join a Credit Union

If you have an in at a credit union, you should most definitely utilize this ability. While it may scare you to apply for a credit card, if you have the chance to get a credit union credit card, it can really help you improve your score. Not only do credit unions have better interest rates, they do not punish you for paying what you owe back early. Credit unions are much more manageable when it comes to borrowing. If you have the opportunity to raise your credit score using a credit union, you should take advantage of it. Just make sure to pay everything off immediately and your score will go up in time.

Consolidate your Debt

Another way to increase your score and get rid of money you owe is to consolidate debt. When you owe multiple creditors money, putting these into one place will give you a monthly payment you can handle. This is vital because you want to get a hold on what you owe and stick to the payments, but it is crucial to pay more than the minimum. Working with a debt consolidator will help you understand what you should pay before you consolidate what you owe and how much you need to pay every month to get this off your back. There are many debt consolidation options. If you owe multiple entities money, take the next step by consolidating it and giving yourself a chance to pay debt back.

Lease a Car

If your credit isn’t great but you can be approved for a car lease, it might be a good way to increase your score and kill two birds with one stone. When you need a car but can’t afford to buy a new one, leasing is an option if you get approved. This applies to people who have a good score but want to increase it. When you have the ability to lease a car, you should make payments on time and never pay the minimum if you can avoid it. Always pay off what you can and you’ll watch your credit score go up. When you are able to get approved for loans, you will have the chance to use it to your advantage.

Save Save Save

When you are trying to bring up your credit score, it is important to have money in the bank. You won’t be able to pay off debts if you don’t have a solid foundation to pull from. It’s so crucial to keep up with payments and always avoid the minimum. However, this is very difficult if you don’t have some money to use. Living paycheck to paycheck makes it nearly impossible to get rid of debt. That’s why it is so important to save money. Don’t give in to the impulse to make yourself feel better in the moment. It won’t help anything. Every time you want to spend money on something you don’t need, just think that it will help you get out from under your debt and raise your credit score that much faster.

Getting rid of debt and raising your credit score is not often easy. It can sometimes feel impossible. The most important thing is that you have money saved up and more coming in. Then you will be able to look towards the future and utilize your money to pay off debts and increase your credit score by taking on new ones as you can. It’s a complicated modern world when it comes to credit, but you can do this. You can get out of the hole that is a low credit score.

Your Ultimate Guide to No Credit Check Loans

May 2, 2018 by admin

Do you need a personal loan, but your credit is bad? Check out this ultimate guide to no credit check loans and how to get one for yourself.

Do you have a bad credit history?

Are you worried that no one will give you a loan? Are you wondering if you are eligible for no credit check loans?

If you were nodding your head in agreement or saying yes to any of these questions, then you are reading the right post.

Getting a loan when you have a bad credit history can be tricky, but it’s not impossible.

Here are some tips that will help you to secure a loan as quickly as possible.

1. What Types Of No Credit Check Loans Can I Get?

In order to increase your chances of getting a loan when you have bad credit, you must know exactly what types of loans are available to you.

Knowing your options will help you to make an informed decision.

Here is a rundown of three of your best options, how they work and what they can offer you.

Payday Loans

These loans can be taken out online. They are also referred to as a cash advance or pay advance loan. Although they started out as loans that people would take out and pay off once they got paid, they have evolved.

Payday loans are no longer just associated with a borrower’s payday, since they can now be requested and paid off on days other than a payday.

The key features of these loans are:

Short term payback
Requires no security
Pays out small amounts

Lenders will usually not do much digging into your credit history for these loans. They usually just want proof that you have a job.

Payday loans are a great choice if you find yourself needing small amounts of cash for urgent needs.

Installment Loans

Installment loans are no credit check loans that offer larger amounts than a payday loan. These loans will give you a longer period to pay off what is owed.

This type of loan will suit you, if you have a large bill for home maintenance, medical bills, tuition fees or any sizable emergency expense.

The key features of this loan are:

longer payback times
Higher interest rates
large amounts to borrow

You will need to present proof that you have a steady income and you will also need to show that you have a valid checking account.

Line Of Credit Loans

Even if you have bad credit many lenders will give you a line of credit. A line of credit involves getting a set amount from which you can borrow at different times.

These are great no credit check loans because no payments will be due until you actually make a withdrawal from the line of credit.

Here are the key advantages of this type of loan:

Flexibility to use as you choose
Available whenever you need it
Ability to gauge interest rates based on how much you borrow

If you prove to your lender that you are responsible, it might even be possible to extend your line of credit, if the need arises.

2. How Can You Be Sure You Will Qualify For A Loan?

Now that you know the different types of loans that are available, you may be wondering if you can actually qualify for a loan.

Every lender is different but there are certain basic requirements that are necessary. Here is a look at the most common ones:

Age

You must be at least eighteen years of age in order to get a loan. It doesn’t matter which state you live in, you cannot get a loan if you are under eighteen years of age.

Employed

You must be employed. The minimum for some lenders is one month of employment.

However, don’t be surprised if there are lenders who refuse to give you a loan unless you have been working for six months or more. Every lender is different.

Checking Account

A checking account is necessary if you want your lenders to feel more secure about giving you one of their no credit check loans. They will need to know you can pay off your debts.

Citizenship

If you are not a citizen or at least a permanent resident of the United States, then it will be impossible to get the loan. This is one requirement that is legally binding and no legitimate lender can get around it.

Now that you know the basic requirements, the next best thing you can do in your quest for a no credit check loan is to shop around.

Look into the various options offered by each lender and create a list of your needs. Compare and contrast each offer with your most urgent needs.

This will help you to make the right choice.

3. What Fees Will I Have To Pay?

Now that you know about the types of no credit check loans and the requirements for each, you are probably wondering about fees.

These are the major fees that you should know about:

Establishment Fees

These fees are unavoidable and they usually take about twenty percent of the actual loan.

When you decide to borrow you should take this into consideration especially if you need a certain amount. Always factor in the removal of the establishment fees.

Accounting Fees

These fees may vary but you can look to pay at least four percent per month.

Government fees

This is a fixed amount that is paid. However, if you get lucky you might find a lender who pays this fee for you.

Default Fees

If you fail to repay the loan you will incur a penalty which usually means additional amounts will be added to what you owe.

Final Thoughts

Having a bad credit history can make it seem impossible to get a loan. If you desperately need the money, you may find yourself feeling extremely worried.

Fortunately, the options discussed here are easy to access. However, the most important thing you can do, if you have the time, is to compare the pros and the cons of taking the loan from each lender.

Make sure that you are doing what is best for you in the long run, no matter how pressing the need is. If you would like more advice on financial matters, check out our blog where we give you practical advice on how to make your money work for you.

Starting Out on the Right Road: Teaching your Kids to Be Savvy with Money

April 26, 2017 by admin

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Is your teenager already showing signs of money irresponsibility? Maybe you should have taught them about finances when they were little kids. Don’t worry, though. Money experts say it’s not too late to teach your kids how to build a budget. In the interest of happy families and easier money management, we’re pleased to present the following advice about how and when to teach youngsters ways to be savvy with their cash.

Age-appropriate money lessons

There are perfect ages to teach your kids certain concepts about cash. Between the ages of two and three is a great time to begin giving toddlers a rudimentary explanation about money. A senior research scientist at Yale, Dorothy Singer, says that very young kids are not quite ready to grasp the value of money but can learn the names of coins. Start with a fun identification game. Supervise kids as they trace around coins of different denominations. Color in the shapes and talk about the name of each coin. Explain how a dime, although smaller than a nickel, is worth more. They won’t get the idea of “worth” until they’re somewhat older, but it’s a good place to start. Set up a “store” in the game room and let kids exchange play money for empty cereal boxes and other grocery items, says Parents magazine.

Youngsters aged four and five are ready to handle a bit more money information. Let them use child-safe scissors to clip coupons before grocery shopping day. Six- and seven-year-olds may be old enough to receive a small weekly allowance. Open a bank savings account in their name, and teach your child the joy of tucking away some money every week. Spend some, share some, and save a little extra for a special future purchase.

Save for a reasonable goal

When your child wants a new toy, let them save money toward the purchase and offer to meet them halfway. Choosing a goal that can be attained within a few weeks sets your kid up for success. Say your child has a $10 toy in mind. If they save half of a $2 weekly allowance, they can amass their half of the price in five weeks. Match their five, buy the toy and let your child feel proud that they made a financial goal and reached it. This small act may improve your kid’s money management skills for the rest of their life, say money pros at Forbes magazine.

Set a good example

If your own money skills have been lax, don’t hesitate to consult with a credit counselor who may help you get back on the right track. Check here to learn more about credit card consolidation and other savvy ways to put your money life back together.

Kids who learn how to handle money at a young age tend to be smarter consumers as adults. Show your little ones how to spend, save, and share.

The Building Blocks of Financial Success: Teaching your Kids How to Handle Credit

April 25, 2017 by admin

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Choosing the right ways to prepare your teen for the financial responsibilities of adulthood can be daunting. Yet studies show that children who are taught strong financial habits while they’re still young are more likely to grow up to be savvy with their money.

A crucial part of learning financial independence is building good credit. Your teen’s credit score could be what helps them qualify for loans, better interest rates, auto insurance, rental applications, and even some types of employment.

There are plenty of tricks and tactics you can try, but in reality building up your teen’s credit is all about teaching them to be responsible with their money. When they learn financial responsibility, the result is that they’ll start building good credit.

Here are some tips for teaching your kids to handle credit wisely.

Add Your Teen as an Authorized User

Add your young adult as an authorized user on your credit card. Teach them about spending and payment responsibilities. Explain the charges on your credit card statement and add up the amounts they’ve accrued on your credit card account.

It’s normal for some teens to go crazy with spending the first time they get a credit card, but they need to understand the importance of repaying what they spend. Help them find positive ways to pay off the amounts they spend.

Choose the Right Card

If your teen has been responsible with spending and repaying the debts incurred as an authorized user on your credit card, encourage them to apply for a card of their own. Compare the different types of credit cards available and choose the right one to suit your young adult’s needs.

Check things like fees, interest charges, rewards programs, and other options. In some cases, a student credit card can be ideal. In other cases, it may be wise to choose a credit card with a low annual fee that offers interest-free days on purchases.

Avoid Temptation

Even teens can be inundated with credit card offers from banks, so it’s important to explain the importance of choosing the right card. Your teen also needs to realize that it’s not wise to accept all of those offers that come in from the banks.

Too many inquiries showing on a credit report can cause your teen’s credit score to suffer. No matter how many offers arrive from the bank, encourage your teen to avoid the temptation to sign up for all of them.

If your young adult has already succumbed to the bank’s offers and accumulated some debts, you could check here for ways to help them get their finances back under control.

Teach Responsible Card Management

Let your teen know it’s okay to use the credit card for small purchases, as this can help build up their credit. Small recurring expenses are also okay to put onto the credit card, such as Netflix subscriptions or groceries. However, you also need to explain the importance of repaying the amounts spent in full each month.

When it’s time for your teen to apply for student loans or other forms of credit, having a credit card statement showing no late payments goes a long way to establishing their level of financial responsibility.