Tag Archives: credit

Tips to Organize family finances

As you begin your little family, it was not all easy as you imagine, a lot of things that turned out to be considered more mature, especially on the subject of family finances. Change of mindset should be started. Currently, your money is money together, then it’s not like you can use when you are single.

No matter how your income, it turns out there are still people who lack the money at the end of the month. So, the main problem lies not in how much income, but how clever you are set. Managing finances look very hard to do, especially when married. However all is not as difficult as you imagine. Here we give some easy ways
family finances.

1. Understand All Aspects of Family Financial
The first step you should do in order to set up family finances better is to know how much money you have, the income you, and also to know all the number of bills to be paid, such as electricity bills, telephone, monthly expenditure, health costs, even until the cost of servicing the vehicle. Then you also have to always know the amount of credit card debt, mortgage, or mortgage your vehicle. Knowing all this, you can take into account the range of expenses that must be removed.

2. Financial Planning
Once you know all the sources of your spending, it is time you make plans in managing your finances. Arrange all the money you have, where the money will be used or how much will be saved. Make a financial plan that is realistic, not too ideal to forget the needs themselves. Enter funds for fun as part of your financial plan.

3. Saving Together
Similar to arranging personal finance, saving money is very essential for you to do in managing finances. With the savings, you can better feel safer and more stable finances. Set aside some money when you’ve received a salary for savings, so the money you tube will always be there. Try not to use saving money before it is needed.

4. Distinguishing between Wants and Needs
Both of these look very similar, sometimes we want we can make our needs. Therefore, you should really be able to distinguish what it is you need and what you want. An easy way that you can possibly use to distinguish them is by making a list of the needs and desires of you. Every time you meet one of them, give a sign that you need or desire is reached. Try to always meet your needs first, and only then fulfill your wish. But remember, do not excessively so.

5. Avoid Debt
As much as possible, keep yourselves from the name of debt. Often we become accustomed to debt because credit card use. Ease of process payments made by credit card often makes people forget themselves and become very consumptive. This is very bad in your financial arrangements. However, credit cards are also still needed. Or if it should be payable looking for information about the lender, such as in http://www.bestratedcashadvances.com. Here again, the problem is in how you organize your finances.

6. Establish long-term financial
This you do so you have goals that you must accomplish in the future. Suppose you specify that in the next 10 years, you have to have money in a savings of USD10000, to have a target, you can focus more on managing finances and minimize wastage.

7. Start Investing
As a family, you should start thinking about how your life in the future. You begin to think about the financial plan over the long term. Start to invest into the answer. There are many ways to invest, that in playing the stock, buying gold, and buying property. Look for investment products in accordance with the condition of your pocket, but also make sure your investment profitable.

Although the family finances would be more difficult than managing their own finances, but rest assured you certainly can if you want to try. By following these easy ways above, we believe you will be the people who are good in managing family finances.

What is the credit score and how to improve it

Many people think that they do not have a credit score. The fact is, as long as you have a bank account in your name, never apply for a credit card or loan money for other purposes, you have a credit score.
Low credit scores indicate if you have a high risk that the interest rate of the loans will be higher to cover the risk of the lender if you fail to pay. In other words, you should try to maintain a high credit score. Take the example, Credit scores range between 300 – 850. Scores above 720 indicate that you are in a safe zone and you can get credit easily, whereas with a score below 640, you will have difficulties to find credit or can be called poor score.
Tips to improve credit score:

  • Pay bills on time
    Bills unpaid or late payment of invoices will be recorded by the creditor. For example, if you are often late paying your credit card bills, the credit card company will report your debt to the bank which resulted in a decrease in your credit score. Then, when you want to apply for the mortgage, the bank will see this credit score and making decisions in determining the interest rate etc. So, try to start paying your bills now because of all the records of your transactions will be analyzed, especially the most recent transactions.
  • Reduce Debt
    In addition to paying bills on time, you also need to reduce your debt. For those who have more than one credit card, you may consider moving the balance of the bill to a credit card with a lower interest rate. However, you should find out in advance whether the credit card balance transfer offers.
  • Avoid filing some credit simultaneously
    Financial institutions can lower your credit score if found several credit-related transactions conducted in the adjacent.

Like a report card at school, the credit score report the value of your financial management. You will feel happy and proud of your efforts with the higher value. Therefore, pay off debts, bills and check your financial statements regularly so that the value of your credit score remains high.

Here are the main factors that contribute to your credit score:

  • Payment history: This makes 35 percent of your credit score and is the biggest factor in deciding whether you can be trusted to pay back the money loaned to you. In creating the score, they will look at things such as whether you pay your bills on time every month. If there is a delay in payment on your record, they’ll see how long you pay the debt. The longer it takes, the greater the negative impact on your score. They will also see if any of your debts have been referred to a judicial officer or court and if you ever claimed bankruptcy.
  • The total amount of debt: This is the next most important factor. The general rule of thumb is that you should try and use less than 30 percent of the credit available to you. The trick is to keep what you owe to a minimum but because something is better than nothing because as lenders want to see that you can borrow money and repay responsible in full and on time. A mobile phone contract is a great way to do this.
  • Length of credit history: Your score also takes into account how long you have been using credit. The building was a good start but a short history is not bad either, provided you updated.
  • New credit: The number of new credit accounts you’ve tried to open up recently is the fourth-largest factor. If you have applied to many accounts, it is often regarded as proof you are experiencing cash flow problems that make you look like a risk.
  • Types of credit used: This is the last thing they see in coming up with your score. They see everything from store cards and credit cards to loans and mortgages. It is most important that you do not have to worry about it too much.

Get to know the sense of bad credit

Bad credit is a condition that can destroy even the financially strongest people with its implications. Bad credit situations can arise to the borrower if the borrower can be treated by taking appropriate measures for this.

Credit is divided into 2 as well and bad debt. In this case we will discuss about loans for bad credit. Previously we must understand about bad debt, credit is further divided into 3 types namely credit less smoothly, bad credit and credit is doubtful. In the world of banking bad debts this is often feared, because it would be the bank’s finances can be annoying, it gets worse it could have been bad credit can stop a bank activities. Bad credit alone was the credit that has been experiencing a difficulty to installment payment in accordance with the obligations that is caused due to deliberate action of the debtor or the presence of events outside of the alleged cause of the debtor was unable to pay the installments.

  • As for the criteria of nonperforming loans as follows:

– Could not be classified in the credit criteria less smooth, smooth or doubtful credit credit,

– Meet credit criteria is doubtful, but in the long term of 21 months when credit is doubtful categorization, yet also a settlement, installment, or an attempt to rescue credit smoothly,

– The completion of the credit had already filed a request for punitive damages in the insurance companies engaged in the credits.

  • Factor in the emergence of the nonperforming loans of the borrower

– The existence of family problems, such as illness, divorce or a waste of very excessive funds from the debtor itself,

– An error taking care of business management that is run by the debtor, owing to the lack of experience to take care of business,

– A very serious financial Difficulties,

– The incidence of events outside the alleged debtor, such as natural disasters, fires,

– The failure of debtors to manage businesses that had he lived,

– The bad Character of the debtor itself.

  • Prevention of occurrence of bad credit

– Analyze prospective borrowers, analyze this means assessing prospective debtor. Include character, the ability to installment payment each month, income, credit, guarantee the condition of prospective borrowers today, considering the obstacles that will be going through prospective debtor,

– The Bank must monitor the use of the credit, if the loan has been liquid, the bank should continue to monitor the finances of the debtor, the debtor, the debtor’s development efforts after a given loan,

– Inspect carefully credit guarantees, collateral is very necessary to check, due to better anticipate the possibility of the debtor pick or can no longer afford to pay off the debt.

  • The resolution of bad debts
  1. Rescheduling or change these terms concerns the payment schedule, time period, grace period and magnitude of installment credit. But not all debtors can give all these policies, only debtors who have be honest who can give,
  2. restart or reconditioning Requirements, changes to the terms of the credit are not limited to, terms such as interest rate, the time, the payment schedule should be considered again,
  3. Rearrangement or restructuring, changes in credit terms which include the addition of bank funds, the conversion of the whole or a portion of the interest debt into new credit facilities,
  4. Extreme low liquidity, the sale of goods in collateral for the repayment of the debt.
  • Do not exceed the capabilities of the repayments.

When you submit a loan, the thing you should consider is your ability in installment, you should consider your finances in the future, in the formula of the maximal mortgage banking, debt-debt each month who are still capable in tolerance is 30 of the total monthly income