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Keep Your Credit Score High in Retirement

Most people look forward to retiring with gusto. It’s a time to sit back and relax after decades of hard work. It’s time to enjoy the fruits of your labor, but don’t get lax about your credit. Keeping your credit score high in retirement is just as important now as ever. Here are some ways you can keep that credit in good standing as you enter your golden years.

Pay Down Your Cards

Do you pay more than the minimum due each month? Paying more than the minimum due will dramatically lower the length of time required to pay off the balance and it will lower the amount of money that goes to the interest on the account. It may also help yourKeep Your Credit Score High in Retirement credit score by lowering the credit to debt ratio. The little things do make a difference.

Keep Accounts Open

Closing a credit card you don’t use may affect your debt to credit ratio, and as a result your credit report history and score. This means when you have a credit card with an open balance available it increases the amount of credit you have available.

Fix Errors in Your Credit Report

The credit reporting system is not perfect and because of errors, inaccuracies and mistakes, many consumers do not have accurate credit scores and reports and that affects the way lenders and credit issuers review your credit risk. If this is you, a bad credit report will cost you money. You can fix your credit, and there are consumer laws in place to protect you.

Fixing your credit is more than just about fixing your credit score. It is about repairing the errors so that your credit is a true and accurate reflection of your credit history. Every error, outdated and incomplete account history should be carefully reviewed, verified and corrected. It requires diligence and thoroughness in order to get the job done correctly. Inaccurate, unverifiable and incomplete information must be deleted, removed, updated or re-characterized by the credit bureaus and creditors.

Good Credit

Maintaining good credit after retirement provides you with the opportunity to refinance your home for travel or perhaps you want to start that business you always dreamed of, you’ll need funds to get it off the ground. Maybe you want to downsize to a smaller home and lower mortgage payments. Good credit is your key to the future and continued financial freedom.

What You Need to Know About Bad Credit Auto Loans to Make a Smart Purchase

When you have bad credit, any loan you can manage to get approved for can seem like a blessing. But is it actually? A bad credit auto loan may actually cause you a lot more problems than you may have bargained for. Here are a few things you should know about before you take that bad credit auto loan.

You have bad credit for a reason

Whether you’ve fallen behind on bill payments or made a few too many late payments, there is a reason that your credit score is below average. Finding out why this is may be useful in enabling you to repair your credit so you don’t have to settle for that bad credit auto loan. But understanding how credit works is important, too. When you have bad credit, it means that you pose a higher risk to your credit lenders. Lending finances is a business endeavor for credit lenders; they make their profits off of the interest they charge on their loans. However, if you seem like too high of a risk, they won’t risk losing their return on you. That’s why people with bad credit get rejected for auto loans.

This is important to keep in mind, because bad credit auto loans aren’t offering loans to individuals in need out of the kindness of their hearts. They know that, because individuals who have bad credit are more likely to get rejected for loans, they can charge higher interest rates on the loans they offer. This is a security measure for them as well; charging higher interest rates works to mitigate the risk of their investment.

What can you expect from a bad credit auto loan?

A bad credit loan is called a Sub-prime loan. The main difference between a Sub-prime loan and a Prime loan is that your Sub-prime bad credit auto loan is going to cost you a higher interest rate. However, there are also usually fees associated with bad credit auto loans—such fees can include fees on obtaining the loan, a higher down payment, and sometimes even payment penalties. On top of that higher interest rate, sometimes a bad credit auto loan requires you to provide some form of collateral on the loan—this can be the car itself, in some cases.

Is it worth the extra cost?

This is something you will have to decide for yourself. If you need the car for work so you don’t end up falling deeper into debt and bad credit, then that’s definitely something to take into consideration. But keep in mind, too, that getting the bad credit auto loan may make your credit problems a lot worse—especially if you can’t keep up to the added cost of fees and high insurance rates. When you are factoring this all together, remember that owning a car also means paying for maintenance, insurance, and gas. Are the fees and high rates going to be too much to manage on top of the normal costs associated with car ownership? You may want to wait on that car purchase if it will be, or you may want to purchase a more affordable used car instead.

Remember that bad credit isn’t permanent. There are ways to legally repair your credit. Talk to a credit repair company today for more information about how you can start recovering your credit rating. Don’t just accept that expensive bad credit auto loan; consider your options in credit repair first so you can buy your dream car without having to pay unmanageable interest rates and fees.

Where You Can Go for Credit Repair Help

If you have bad credit, this may be preventing you from accomplishing your financial goals. You may even be wondering where you can get some legitimate help to fix your credit and debt issues. You want to make sure that you obtain help from reputable sources that will truly help you, and not place you in a worse situation. Here is some advice on where to go for credit repair help if you are tired of debt and want to leave it in the past.

Talk to the Credit Bureau

The first place you should go for credit repair help are the three major credit bureaus: Equifax, Experian and Transunion. They will be able to provide you with a detailed report of your credit situation, including your bill payment history, and they can advise you on where you are going wrong. They can help to explain your credit report and analyze to what companies and at what time of the month or year you are most likely to be delinquent on your payments.

Call Your Credit Card Company

Contact your credit card company and they may be able to help you with your credit issue. It could be a possibility that they have overextended too much credit to you, and your limit is much too high. You may have been tempted to overuse this card because you knew the balance was available, but when the bill came in, suddenly you are in over your head with the payments and interest. What about the timing of your credit card payments? This can be an issue for some people, too. They may have trouble making the payment because they have other financial obligations that fall around the same time. Your credit card company may be open to changing the due date of your payment so that it falls at a time when you have the funds available.

This can also apply to other creditors as well. They may be able to negotiate a new payment plan or a new bill payment date for you.

Where You Can Go for Credit Repair Help

Contact Your Bank

If you involve your bank, they may have debt and money management professionals available to help you. Similar to a credit counselor, they may be able to analyze your bills, financial history and current level of income. They can offer you extremely valuable advice and assist you in creating a plan to get you out of debt. If your bank does not offer this service, consider the next option to get help to repair your credit.

See a Credit Counselor

You may be able to receive help in overcoming your debt and credit situation if you make appointments with a credit counselor. Although you should make sure that you do your research first (www.justice.gov/ust/eo/bapcpa/ccde/index.htm), and make sure you are hiring a reputable agency. There are many nonprofit credit counselling agencies that will help you for a very marginal fee. Even though many credit counselling agencies are nonprofit, you should still expect them to be professional. Watch out for companies that make false claims in their advertising or literature. They should not charge you for anything until you have signed a contract and the services that have been agreed upon have been performed. Legitimate credit counselling services will hire qualified and experienced staff. You should inquire about credentials before agreeing to sign a contract and agreeing to let them help you. These agencies may also be able to help their clients to create a workable budget for their household. Some will offer money management classes or workshops, and may even give you materials to take home with you. They may even negotiate with creditors on your behalf. Your credit repair plan will need to be personalized and suited to your particular needs. Your credit counselor should work for you to help you get out of debt.

You may be in debt now, but if you try the organizations listed above, you may be able to get help with repairing your credit. There are many institutions where you can go for credit repair help. These include credit bureaus, banks, your credit card company, and credit counselors. Contact them today to help you get back on your feet and get rid of that debt.

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