- Keep a track of your expenses: When you’re determined to save money, the smallest amount of expense should be tracked as it can make a huge difference in your monthly saving target. Besides, you may not notice the small amount that you keep spending each day on your roadside tea or bus ride till you realize that you haven’t reached the saving target of the month. Therefore, make sure to follow a daily expense sheet where you input the details of the smallest amount that you’ve spent. If you can cut down on your morning tea that costs 5 Rupees a cup daily, you can save at least 100 Rupees a month.
- Keeping a credit isn’t a credit: You may feel that if you use the credit card to make a purchase in the heat of the moment, you’re doing the biggest mistake that must be stopped to stop overspending. Research says that it’s easy to follow a strict saving regime if you make your purchases using cash. While you’re handing over the cash, you can actually see how much you’re spending and what remains in your monthly fund. On the contrary, handing over the credit card doesn’t make
The first problem that people have with budgeting that I would like to help you solve is having unrealistic expectations. This is probably the most common mistake when trying to make a budget. Basically what happens is that most people get these ideas in their heads that they’re going to save a big amount of money per week/month/year etc. While it’s a great notion to want to save a big amount of money, most people have a hard time actually sticking to it. A good of example of this actually comes from my personal life. I have a friend who’s a little older than me, and she went to Bradley University in Peoria, Illinois. Additional she chose to live in the dorms and not commute. When she graduated a couple years back, she realized that she needed to make a budget so she could put aside money to pay off her student loans. Because she wanted to pay off her loans quickly, she decided to save a fairly good amount of money in comparison to her income. Due to this, she had a hard time sticking to her budget and would often times break it. Naturally, she had
Couponing can be a lot of fun too whether you are doing it with someone or you are going solo. What an experience it is when you are at the register listening to every beep bringing down your total as your coupons are applied reducing the retail price of your goods. All of your time, effort, and hard work is paying off as they play your favorite beep song in subtraction mode.
Equipped only with the fundamentals you too can realize a great deal of savings. Couponing in the beginning is a lot of work, because your couponing skill is new and has not yet become habit. Learning couponing can pay off big however if you stay the course. For example, think about when you were learning to walk. It wasn’t easy but you stayed with it. How about when you learned how to cook, the amount of work it was in the beginning. But after you mastered the basics, you could almost cook in your sleep.
So you want to know how to get started grocery couponing? Couponing like any skill requires knowledge. Grocery couponing can be frustrating, and almost impossible if you don’t equip
Just as how you’d go on a diet to cut out all the ‘harmful’ food from your meals, a money diet gets rid of all the ‘bad’ spending that you’ve been doing. Call it a financial cleanse of sorts, where you eliminate all unnecessary spending and end up saving more money. It won’t help if you’re a compulsive spender but it will do you good if all you want to do is tighten the belt after spending too much over the festive period.
Make a plan
Start by giving yourself a time frame, so you can evaluate how you’ve done at the end of it, by looking at your expenses and savings. It’s also good to set a target for the end of this time frame, say, to save $1,000 by the end of it. This gives you more motivation, just as an ‘ideal weight’ does when you’re on a diet.
Cut non-essential items
It’s fabulous to check out a new posh restaurant every month or meet the girls for martinis every fortnight but is this really necessary? It could be as simple as forgoing the coffees you have every day from that nice
- Let you decide. When you allocate dollars as part of a budget, you give yourself a chance to be thoughtful about where your money is going and to make adjustments, if needed. For example, if you are shocked by how much you’re spending dining out or buying new clothes, you can curtail spending in those areas. Ultimately, knowing your spending patterns gives you the power to put your dollars toward the things that mean the most to you, and help you reach your long-term goals.
- Take the pain out of daily decisions. Daily temptations to overspend become easier to navigate when you have a framework and guidance in black and white. Setting a budget equips you with the power to say “yes” or “no” to a purchase without guilt. You’ll be able to see what’s within your price range and get a clear view of how each purchase will impact your savings plan. The more specific your budget is, the better.
- Make it easier to see the value of every dollar. When you’re cavalier about your spending, you’re discounting the effort it takes to earn money. In contrast, when you consider everything that goes into earning
Most of the time when someone is talking about their budget, they are referring to an operational budget. An operational budget is one that tracks ongoing financial activity. This the day-to-day budget of a business or a family.
An operational budget tracks both income and expenses. The purpose of this document is two-fold. First, by tracking all financial movement, or “cash flow”, a person can get a much clearer picture of the financial situation. Hopefully, this picture will allow a person to make any desired changes in an efficient manner. Second, the focus of this budget is on the difference between income and expenses. In a business, this is the profit; for a family, this is the “fun” money. What to do with this difference is another topic, for another time.
A project budget focuses on controlling expenses. The idea is there is a certain fixed amount of money available to pay for everything. By tracking expenses, a person can make sure that everything will be covered. When a person delivers a result “on budget”, this is the type of budget being discussed.
The key is to track expenses,
- It is crucial every person checks their credit score before applying for any loan. Taking the time to dispute discrepancies on a report is an excellent way to add a few points to a credit score, which will ultimately increase the chance of being approved for a loan.
- Check around and research any bank or agency that offers home loans for bad credit. There are too many shady companies willing to charge a small fortune in fees to those who feel they cannot get a loan any other way. Check with the Better Business Bureau, the internet and friends and family members who have dealt with a particular bank.
- Check with local and state agencies that specialize in home loans for those who would not otherwise qualify for a standard loan. FHA loans are an option as well as loans for homes that are in rural areas.
- Make a concerted effort to come up with a substantial down payment. Many lenders will underwrite home loans for bad credit with a 20 percent down payment. Borrowed down payments are acceptable. However, the money needs to sit in the bank for at least three months.
When you miss payments.
Late payments are totally different from missed payments. On average, late payments can fall behind a day to three to at least a week. But missed payments take longer and can generally overlap with the next billing period making the minimum amount due larger and total amount due even higher.
When you use it impulsively.
Credit cards are really tempting to use for cashless purchases. But when you use it for the sole purpose of having a shopping spree galore without even canvassing for the lowest prices and discounted items, you can actually fall short not only of funds for bills payment but also for other important things like food, clothing, and daily needs of your family, especially if you have kids.
When you max it out.
The spending power given by credit cards to their owners can be out of control. Within this is the tendency to max out the credit card of funds. Because of the relatively huge amount associated with the purchases plus the interest charges that may be imposed by the credit company, you may end up being in a really big financial dilemma. If
First if you are a newbie in handling your own affairs, you need to establish credit. If you have a steady job with money coming in regularly, one way to begin is to purchase something that you may be able to afford already.
You might, for example, buy a comfortable chair and set up a small revolving line of credit with a furniture company. Credit tips and credit counseling recommend paying off this small loan as a good beginning to creating a positive credit history. Should you be a college student, think twice about taking out a credit card in your own name. You are probably saddled with student loans and certainly are faced with huge temptations to spend, spend, spend. Not having a card could preclude going into debt before you know what has happened to you.
For anyone, having one credit card only is a good practice. Use it wisely and for emergencies or for infrequent things such as plane tickets. Your credit card payments and any loans should be at or below 20 percent of your income. Go over that amount and you are on a slippery slope to problems with credit card
Credit repair software is an option for those who prefer a do-it-yourself approach. These five tips will help those who are looking to use the software to repair their credit.
- Choose a credit repair software program that is affordable and does not have any hidden fees. There are plenty of programs that offer free services in the beginning and then exorbitant rates are charged every month. A program that charges one flat rate is ideal.
- Use the software to write letters to creditors that have reported inaccurate information. Things like late payments, inaccurate balances or judgments can all be disputed if a company has misreported the information to a credit bureau and negatively impacted a credit report.
- Research the results of other people who have used the software. Be wary of claims that sound too good to be true. One way to determine whether a company is legitimate is by checking out the website. A website that is filled with claims of overnight results or filled with articles that are full of grammar and spelling mistakes are often a sign of a fly-by-night company.
- Credit repair software that offers a money back guarantee is
Customize Your Dispute Letter
Even though you can easily grab a “credit repair letter template” on the Internet – avoid them!
Credit bureaus receive tons of dispute letters each and every day. Because of this they use an automated letter sorter that scans each letter and prioritizes requests. Trouble is, this sorting technology is sophisticated enough to notice duplicate content, which can result in your letter being earmarked as a low priority.
Plus, if your dispute letter is labeled as trivial or non-essential, you could be stopped from disputing specific items for several months.
You can certainly follow the guidelines of a form letter or template, but you’ll want to customize it so that it looks unique and “original”.
Avoid Being Just a Number!
A customized letter not only stands out, it allows you to attach supporting documentation and get into far more detail about your dispute.
Another little-known thing that credit bureaus do is to use an automated process called e-Oscar. This method scans a dispute letter, and creates a two or three digit code, which is sent to the Creditor of your dispute. In this situation the creditor must
The credit card holder, though, is responsible for ensuring the company that supplied the card reports it to the three major credit bureaus. There are five main things a person can do to find the best secured cards.
- The first thing to do is to check with a credit union. Many offer secured credit cards to members. Sometimes they also waive application and annual fees. They often offer low interest rates and additional options for rebuilding credit.
- The next way is to examine credit-card comparison websites. This is a good way to look at the good and bad points of the cards side-by-side and see which one is really best for each personal situation. A person can use what they learn to then research individual cards better.
- The third way to find the best secured credit cards is to look at how much a person should spend in fees and interest rates. Some available cards offer zero processing or application fees. A person should also choose an interest rate they are comfortable with to prevent potential problems later on.
- Another way is to look at the credit limit. The limits vary drastically by card,
Pre-paid cards are a better alternative for those people, who don’t want their finances to go out of control. The process of using these cards is similar to that of conventional ones, and you can use them in almost all places.
They are offered by most of the recognized banks, and they come with a lot of attractive features for the users. These cards are issued against the deposit that you make. The good thing is that your bad credit will not affect your eligibility to get one. Your application will be immediately approved, and banks do not ask for any kind of credit check. Also, your employment status is not the requisite for procuring your pre paid cash card.
Since you pay money in advance, there is simply no question of any late payment fees. This is one of the reasons why it is believed to be the best option, for those who wish to curtail their unnecessary spending habits. It can be used for buying things online, just like any debit or credit card. The only difference being is that this works on the deposits you make.
Helpful for improving your credit score:
Whether it happens to be your credit card bills or monthly dues such as rent, gas, electricity etc it is always a good idea to keep up with all your dues so that you can stay worry free. Although there are several provisions to pay your dues at a later date, procrastinating never helps, especially wherever money is involved.
The upside to paying your bills on time is that:
- No delay, no dues.
The moment you default in repaying your loans or forget about your bills, you end up spending more than the original bill’s worth. Why? Because you have to bear the value of the bills plus some kind of late payment charges. Now, do you honestly believe that it’s necessary? Don’t you think with a bit of planning you can beat the odds of defaulting? You sure can. But, planning alone isn’t enough. Implementing your plans is where it all figures.
- Maintain a healthy credit record
By being prompt in all your payments, you automatically ensure a positive credit record and eventually an improved credit score. Wondering why a healthy credit record is even necessary? Well, the next time you want
A dispute can be raised if:
- 1Your personal information such as name, date of birth, pan number or residential address is not entered correctly.
- Your account information containing data such as previous loan status, date of last payment, outstanding amount and other such details can be questioned.
- Your personal information does not match with your account information.
- In case your account is reflecting more than once.
Before you raise a dispute, ensure that you are confident that an error has been made in your report. Now, let us have a look at the general process followed to solve a cibil related dispute.
- Step 1 Raise a dispute by applying in the official website.
- Step 2 Make a note of the reference number mentioned in your application form.
- Step 3 Depending on the type of dispute, action is taken. i.e. If required, a lending institution mentioned in your report, may be contacted for clarification.
- Step 4 Once the request has been placed, the lending institution indicates whether the dispute made is valid or invalid. Depending on which the necessary changes are made to the original data.
- Step 5 The
- Loans – FHA loans are often considered an option for those that are struggling with their poor credit score. What is an FHA loan and what makes it such an interesting option? These loans are supported by the government and this provides an additional safeguard on them. These can be a great option for those who are looking to finance homes.
- Planning – Planning is an essential part of the process. Nothing can be done without having a plan to act upon. Credit will not improve over night and it requires a series of well planned steps to get out of the hole. It is important to understand what kind of purchases can be made and what should be avoided.
- Credit Cards – The use of one’s credit card is what ultimately decides the course of the credit score and whether it goes up or down. Using the credit card wisely will go a long way in ensuring the results are positive.
- Installments – Installment accounts are an intriguing proposition for many individuals. They are easier to handle and can ensure the credit score does not continue to dip as time passes by. They will
I will give you a couple of good examples of what I mean. An average male, height 5’9″, weighing 150lbs, may appear to be in great physical health to the naked eye. On second thought, if you did some homework about the background about that same individual you may find some things that can severely impact your perception of his health. Does that person have an eating disorder, that is causing him to lose weight? Is that person a smoker or does his family have a long history of heart disease? How’s his cholesterol level? See what I mean.
The same things applies to credit. If you assume that credit is more than the threes digit score but rather an amalgam of different factors then you will agree that simply making the payments on time is not a clear indication of your actual credit health.
Credit in my opinion is a bridge towards borrowing money. Ultimately, credit is simply the ability to borrow money from a lender, bank, or broker. Many people mistake having a positive payment history for having credit. Let’s dig a little deeper. In today’s harsh economic environment banks, who are the gatekeepers of
These credit-scoring programs do the following:
- Detect fraud in credit or insurance applications
- Calculate the amount of profit a credit card issuer is likely to make on a particular amount
- Predict the risk of a default by the consumer
- Forecast the probability that a policyholder will cost an insurer money
- Estimate how much the borrower is likely to pay on any delinquent account
- Anticipate which customers might close a credit card account or pay the balance to zero
- Predict the likelihood that someone will respond to a direct-mail credit card solicitation
Lenders are most likely to base their decisions off of the FICO score or its cousin, the NextGen score, than any other type of credit score. FICO is the industry leader and is used in about 75 percent of mortgage-lending assessments.
With this in mind, if you have a bad score, you don’t have to be stuck with it. On the flip side, if you have a good score, you need to make sure you maintain and monitor it.
The Most Important Factors
Your Payment History – This makes up about 35 percent of your score. This is because it is a record of you paying your bills
Each inquiry can drop your credit score by a few points or more! There are a few creditors that do what is called a soft inquiry and offer a credit card if your credit profile meets their minimum standards. A soft inquiry does not affect your credit score and is only seen by you, the consumer.
Although this can be a welcomed way of gaining credit while rebuilding, one should be very careful not to accept any and every offer as too many retail accounts can be perceived as a negative indicator by other credit issuers. Additionally, many consumers who run across this “Shopping Cart Trick” accept every offer they receive they wind up with too many overall new accounts which also dings one’s “Average Age of Accounts”. Generally speaking, these accounts come with low limits which can also hurt your credit score (ie a $80 balance on a $200 credit line is 40% in utilization). Credit seeker, beware! Only seek and accept offers that you can truly use! A relatively safe option is to accept no more than 3 of the store cards. For credit purposes accepting the cards with the co-branding is thought to be
These kinds of cards have become a lot more popular because gas prices have risen so sharply. You can earn up to 5% cash back on eligible purchases like utility bill and phone payments, cable and gas bills, groceries, and dining when you get some of the more widely available cash back cards.
A lot of cash back cards are in the lower range of percentage payback, hovering at around 1% to 2%. However, there has been a trend to raise the cashback percentage to 5% amongst major card issuers. However, the 5% cashback rate usually just applies to purchases made at gas stations, pharmacies, and grocery stores. You usually only get the 5% cash back on one of these items, but getting 5% back is substantial. Image getting 5% back on gasoline?! In today’s world, where gas prices as so high, getting 5% back can be quite substantial.
The trend towards offering cash back, in general, is increasing for a variety of reasons. The uptick in gas prices, the higher percentages being offered by card issuers, and the increased competition being faced by credit card issuers as well, are all contributing to the larger numbers