The 5 Biggest Factors That Affect Your Credit

All lending institutions like banks now use your credit score rating to know how much they will lend you. People or institutions with a low credit score show that they have a higher risk of defaulting than those with a higher rating. It is for this reason that every person with an aim of getting a good loan or credit advance will strive to improve their credit at all times. If yours is constantly low, there could be many factors affecting it. Here, you will learn these factors that affect your credit and the effect they have.

The 5 Biggest Factors That Affect Your Credit - loan application image

Amounts Owed

Although you might be paying your credit debt on time, you could still be suffering if your credit usage is too high every month. Reputable credit bureaus and regulators check your credit utilization ratio to determine your credit score. Therefore, it is better to owe your credit card service provider a little money than a lot. Also, do not be misled,going without a credit card is not a better option. It will also bring your credit score down. Get a credit card and use it only when necessary.

Your Payment History

Your habit of paying bills and loan installments counts a lot. In fact, it determines over 30 percent of your credit score. The lenders want to know if they will get their money on time. Therefore, this factor looks at how late you were in making the repayments of all accounts that you have. Most service providers usually submit the reports of servicing of loans, late submissions of payments, and defaulting habits. If you want to learn how you can avoid this, visit the Boostcredit101 website. It has more details.

New Credit

Another of the factors that affect your credit is applying for too many new accounts within a short time increases the chances of having lower scores. The credit bureaus and financial regulators tend to think that you are going too far. It is a sign that you may get overwhelmed in repaying the debts. Therefore, they will lower your credit to give lenders a red flag that you have too many credit accounts that have been applied for recently.Though having a couple of new accounts is good, do not open all of them at the same time.

Credit Mix

There are different types of credits that are also called trade lines, for instance a mortgage, credit card, salary advance, and many others. If you have these accounts and they are healthy, service providers will think of you as a responsible person who can handle debts well. Thus, your credit score will definitely go up. However, make sure that you can handle all of your credit accounts well to avoid straining in the future. Again, do not open all of them at the same time.

The Age of Accounts

Your credit will definitely be affected by the age of the credits accounts that you hold. People who already have old accounts enjoy better credit ratings than those with new ones. Time is the best proof that you can handle your debts and credit accounts responsibly.

The Loan You Deserve: 12 Interesting Tips for Securing the Best Personal Loan Contract You Can

If you’re in need of some quick money – you’re not alone. Many of us have been there already. You might need a lump sum for a particular expenditure, or just to help you get by. If that’s the case, you might have decided that you’re in need of a personal loan. Thankfully, you’re in the right place. We’re going to look at 12 tips that should help you get the best personal loan for you. So let’s have a look…

The Loan You Deserve: 12 Interesting Tips for Securing the Best Personal Loan Contract You Can - bank loan image
Photo by from Pexels

1. Make sure you really need a loan

Some people think they need a loan when they don’t really – so only got for one if you’re absolutely sure. It’s a big mistake to burden yourself with more debt when you don’t really need to – but loans are still a viable option for those that do. Make sure you really need the money you think you do. If it’s for a new car – is there anything wrong with the old one? If it’s for a vacation – do you really need it? Loans should be for necessities rather than luxuries.

2. See if there are any other ways you could raise the money

Loans are vital for many people – but they aren’t the only way to raise the money. Can you take on overtime at work or ask your boss for a forward on your paycheck? Can you sell something that you don’t need anymore? Do you have friends or family who might be able to lend you the money without any interest? Try a few of these options, and think outside the box.

3. Shop around for the best personal loan rates and introductory offers

Don’t simply sign up for the first good loan deal you see – shop around. Personal loans are a competitive market, so you should be able to find plenty of special rates and introductory offers. One important tip is to make sure you look beyond the headline rate and check exactly what you’re going to be paying for the duration of the loan.

4. Make sure you ask a lender if they have any special rates

If you don’t ask, you don’t get. While many lenders stick to rigid terms, some might be more flexible than you think. Try asking them if they have any special offers or flexible terms they can offer you.

5. Check all the small print and repayment terms carefully

One way many loan companies make their money is by charging massive fees on late payments and other transgressions. Make sure you know exactly what you’re signing up for and read ALL the small print. If you’re unsure of what something means – clarify it either with the lender or someone you know that has experience with personal finance.

6. Make sure you know you’re going to be able to pay the loan back

While you might be enticed by those massive amounts of money on offer – make sure you only borrow an amount that you can afford to pay back. Your lender should check your earnings and other assets, but you’ll want to be as open here about your finances as possible. Tricking a lender into lending you an amount you can’t really afford is a terrible idea and could have consequences for your finances further down the line.

Make sure you can afford the regular payments and that you’re happy risking the collateral that the loan is borrowed against. In other words, if you don’t want to risk losing your car, don’t use it as collateral and don’t borrow an amount large enough to cause this to happen.

7. Make sure you’ve got a good credit score

While it can take a while to fix a bad credit rating – it’s always a good idea to know exactly where you stand when you start applying for loans. Poor credit history could be the reason you keep getting rejected. If that’s the case, there are a few steps you can take to try and improve your credit rating so that you can start getting accepted.

If you want to improve your credit score, you need to start paying off your debt regularly and don’t miss any payments. Close unused accounts and get your overall finances in order – and try and pay more than the minimum on your debt. If you can pay off some of your debts completely, then do that.

8. Only take one loan at a time

Piling debt upon debt is another bad idea. While you shouldn’t be able to take out too many loans simultaneously, it’s sometimes possible. Make sure you only really have one major loan debt.

9. Avoid payday loans

If you need money desperately, try not to turn to a payday loan. While these are often a viable short-term option for some people, the interest rates are extremely prohibitive. If you find yourself unable to pay back quickly or miss a payment period, your debt could skyrocket. Try and stick to banks and traditional lenders that have longer payment plans rather than a quick payday loan.

10. Stick to reputable lenders

Do a bit of research to make sure the lender you go with comes recommended – especially if it’s someone you haven’t heard of before. There are tons of different lenders these days, so it’s not unusual to find good rates at a new or unheard of place. But be careful and stick to ones who have good reviews (you can look for these online).

11. Try and fix your rate

You might be offered a flexible rate, but it’s a good idea to try and fix it if possible. With a flexible rate, you might end up paying more if interest rates go up, but a fixed rate will let you know exactly what you’re going to have to pay.

12. Don’t automatically buy PPI

PPI could protect you if you can’t afford to make any repayments – but it can also be expensive. If you want, you can get PPI from a third-party rather than relying on your lender’s own protection. This can often be a cheaper way to stay covered. If you want to find out more about the best personal loans for you, there are plenty of places to look online.

Understanding PIP: Everything You Need to Know About PIP

Personal Injury Protection (PIP) is insurance coverage taken out to cover medical bills and work loss coverage for the driver and passengers in the event of a car accident. If you live in a “no fault” state, it is mandatory, as it offers medical coverage no matter who caused the accident.

What Does it Cover?

PIP covers your medical expenses, lost wages, and rehabilitation services in the event of an accident. It differs from traditional automobile insurance because, unlike traditional policies, PIP covers your bills regardless of who was at fault in the accident.

This means that even if the accident was your fault, the insurance policy will still pay out and cover the medical expenses incurred.

Where is it Mandatory?

In some states with “no fault” laws, PIP is mandatory. No fault laws are there to protect drivers from the delayed payout of automobile insurance. This means that in “no fault” states, even if the accident wasn’t your fault, your PIP coverage will pay out for your medical bills then recover the costs from the other party’s insurance at a later date.

Twelve states require some form of PIP coverage. These are Hawaii, Kansas, Kentucky, New Jersey, Massachusetts, Michigan, Florida, Minnesota, North Dakota, New York, Pennsylvania, and Utah

Understanding PIP: Everything You Need to Know About PIP - personal injury protection insurance image

Does it Cover Everything?

Typically, the PIP policy will not cover everything. There are usually limits on how much the policy covers. In some states, PIP will also only pay 60% of the costs, in others this is increased to 80%. It is important to check your individual policy to see exactly what your upper limits are and how much you would be held financially responsible for in the event of an accident.

The majority of policyholders use PIP in conjunction with their health insurance. This means that if you are hurt in an accident, your health insurance will shoulder the primary costs for any medical expenses. The PIP coverage will only pay for expenses that exceed the health insurance limits or lie outside the scope of the health insurance coverage (like lost wages, for example).

By using PIP in this way, road users can ensure they are not left with an astronomical medical bill following an accident which required substantial medical treatment.

Making a PIP Claim

In the event that you need to make a claim, your state will likely have set guidelines on the process for doing so. In a PIP claim, unlike other forms of personal injury claim, you are often required by state law to provide a statement to the other party’s insurance company. You will also likely be required to visit a doctor approved by the PIP insurer.

If you do not fully cooperate with the state law surrounding PIP claims, you will likely have your claim denied and the insurer will terminate your benefits. This is why it is of paramount importance to educate yourself on what the specific law is in your state surrounding PIP claims.

PIP Claims and Auto Insurance

Getting auto insurance with two PIP claims is often difficult. Given the high rate of PIP fraud, many insurers do not like to insure individuals with more than two PIP claims on their record, even if the accident was not their fault.

Fortunately, there are independent insurers willing to buck the trend and insure “high-risk” policyholders with two PIP claims or more on their record. In some cases, the premiums may be higher, but all hope is not lost. 

ICOs – An Innovative Way Of Fundraising

Through the years, many innovative ways of raising money emerged and the boom that cryptocurrencies made in the last decade meant that a novel way of crowdfunding for startups was created. Initial Coin Offerings (ICOs) are the latest trend for startups to raise money and that is the main topic of today’s article.

ICOs are sources of capital for startup companies, and are used mainly because this way startups can avoid costs of regulatory compliances and intermediaries. Essentially, with ICOs you have several investors buying your cryptocurrency, and in doing so they fund your startup in hopes of getting a return investment in the future.

As of February 2018, BTXchange states that the most used blockchain platform for ICOs with more than 80% of the market share is Ethereum. According to a research by Cointelegraph, a site generalized in cryptocurrency news, the Ethereum network ICOs have resulted in phishing, Ponzi schemes, and other scams, which accounts for around 10% of ICOs.

2017 saw ICOs raise 40 times as much capital as they had in 2016, which shows the astonishing growth that ICOs are experiencing. The capital they have raised is lower than the one raised by its main counterpart called IPOs, or initial public offerings.

The downside that ICOs have is the potential for making scams.

  • In February 2018, Crypto startup Giza raised $2.4 million (2,100 ether) in a fake ICO, which engaged more than 1,000 investors.
  • The US Securities and Exchange Commission has frozen PlexCoin’s $15 million gathered in the ICO in 2017 for advertising astronomically huge return of 1,354% which couldn’t be delivered.
  • In 2017, scammers behind Benebit blockchain token system with faked team photos collected money during ICO and walked away with $2.7M – $4M.

Take a look at the infographic created by to find out more information about ICOs, and what is expected from them.


ICOs infographic image

The Incredible Growth of Fintech (infographic)

The name Fintech was coined by merging two words: finance and technology. With the evolution of every aspect of society, it wasn’t a surprise that modern technology would find its way in finance as well. The latest technological breakthroughs are used in banking, investing and cryptocurrencies.

The financial crisis in 2008 opened the doors for novel ways of providing financial services. The investment in Fintech in the same year was $930 million and in the next 7 years it increased to more than $22 billion. This shows the huge growth of the new financial industry which specializes in areas such as insurance, trading, and risk management.
The major characteristic which attracts customers is that the products and services that these firms offer are cheaper and more innovate that those by traditional banks.

One of the innovations is that many of the companies have shown interest in cryptocurrencies in the past years. Fintech uses software because it is mainly based of digital information. In turn, this makes it vulnerable to hacking attacks, which is why the leading companies opted to using cloud computing as a new solution for data security. Such example is Expedia which was one of the first to adopt Bitcoin when it partnered with Affirm.

Even though Fintech companies experience a rapid growth, it is unlikely that in the foreseeable future they will be able to “kill off” traditional banks. At the very least, the banks are trying to stay in touch with modern technologies, despite their rigid structures.
Take a look at the infographic below which has many statistics that will help you understand the incredible growth of Fintech.

Growth of fintech infographic