Well done for reaching day 5! I hope you have enjoyed the stories and activities whilst learning a lot more about money.
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Inside the Treasure Box is the full 50 page activity book, 3 story books, an audio book and special bonuses. To find out more click here
It’s been a pleasure being on this journey with you. Thanks for all your comments and feedback. Until next time, here are the last of this week’s Money Quest activities
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.
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.
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…
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.
