With debt and finances becoming
major issues in the public eye
in the last few years, we're becoming more and more educated
in general about solid financial tips, though we haven't
necessarily mastered the use of them yet. Even if you're a
regular reader of financial articles or blogs related to credit
though, the following tips and information may be new to you,
and should be important to many Americans.
1 Most of us have a pretty good understanding of how
credit scores work and what areas they affect, such as our
ability to get loans, and the rates which we'll pay for those
loans should we get one. What you may not have known is that
your insurance rates for things like health care, automobiles
and even life insurance may also be affected by your score.
Insurance companies request copies of your score before
determining your rates, believing that your score may have an
effect on the claims you'll make in the future. So even if you
plan on avoiding credit for the rest of your life (and that's
certainly a commendable aim), a bad credit score may continue to
affect you regardless.
2 One of the early selling points for credit and debit
cards was not just their convenience, but their safety as well.
Not flashing large wads of cash supposedly made you less of a
target for thieves, and while this may have some merit, and
credit cards come with built-in fraud protection in most cases,
the same is not true of debit cards. You're carrying more than
just small amounts of cash with you, you're carrying your
entire bank account, which could be instantly wiped out if
someone got a hold of your card and password, or forced you to
use it for them. Having a strict withdrawal limit enforced on
your account is a great step to take to minimize this risk.
3 One way to help rebuild your credit rating when your
options are limited is to look into sub-prime merchandise cards.
These often require a deposit and force you into using them at a
specific store only (not necessarily a bad thing if it means you
have less spending options), but do report to credit bureaus,
allowing you to repair your score with a minimum of hassle.
4 ATM's will give you money that you don't actually
have. Now before you start jumping for joy and rush off to hit
up the ATM's, this isn't a good thing. Many people aren't
aware that they can actually withdraw more money from an ATM
than what is available in their bank account, up to a certain
point. This comes with a hefty overdraft fee usually in the
$20-$35 range each time though. Quite a price to pay for a
measly $20 withdrawal. Make sure you know how much money is in
your account at all times so you avoid trying to take out too
much, and perhaps consider getting overdraft protection on your
account to prevent this if you're prone to err in this way.
5 Joint credit accounts only supply credit history to the
main account holder, usually the male in a marriage. When
divorces occur this often leaves women scrambling for credit,
with no history to back them up. Instead of multiple joint
accounts, married couples should consider keeping at least one
sole account for each partner.
Hopefully these tips will help you in the future. The quest for
good credit and financial stability is an arduous one, and we
can really use all the help we can get.
By Caden Flynn has much more to say on the the subject of low apr
balance transfers. Uncover more at http://www.debtjerk.com
it's visited by 1,000's each day because of quality content in
the world of credit and debt.
