Why is it so Important to Have a Better Credit Score?

As you go through life, you'll quickly learn the various aspects of it that have serious impacts on you. Health is a good example, and another is your credit score. Simply put, bad credit can have detrimental impacts on your life in a number of ways. From trying to purchase a new car to insurance rates, your credit score will affect nearly everything related to your finances. You'll save money with a better credit score and have more opportunities, which is why understanding the basics of credit and how to improve it are vital for your financial future as well as your future as a whole.

A better credit score will help you save money in numerous ways.

• You may not be able to get a loan at all with a poor credit score. If you can, there's a good chance that it will feature a much higher interest rate than if your credit score was good.
• A bad credit score tells lenders that you're a risk. That risk means that they want more incentive to loan you money, and that incentive comes in the form of higher interest.
• You could pay thousands of dollars extra due to your bad credit score. Even auto insurance companies may charge more in premiums due to bad credit.

What factors contribute to my credit score?

• Your credit score is the sum of a simple mathematical formula that potential lenders use to assess just how likely it is that you'll repay your loans on time.
• Nearly everything that you've done financially will show up on your credit report, which is why it's important that you pay your bills on time and don't overextend yourself financially.
• A number of different factors will influence your credit score, and knowing what they are will help you. Your credit report will show your length of credit history, outstanding debt, your loan payment history, the incidence of negative factors like defaulting on payments or outstanding collections against you, and more.

Lending companies will look at these factors to determine whether or not you qualify for their loan as well as just what your interest rate will be. A history of paying your bills on time will help them see that they can trust you with a loan, so it's vital that you take the time to make sure you always repay your loans. Even financial mistakes you make when you're young can remain on your credit report and haunt you for years, so be sure that you treat your finances and debts with the respect that they deserve.

For more valuable information, visit www.prudentcreditrepair.ca

Money Management 101 how to Take Control of Your Finances

Every penny counts in today's economy, whether you're struggling to make the rent on a lower salary than you're used to or whether you're still marching forward through these rough economic times. Everywhere you look you'll see articles or reports on how to save money, rebuild credit, or just put groceries on the table. There's one basic principal that can help you tremendously, however, and it applies to those dealing with financial difficulties just as much as it does to those who are still doing fine financially. That principal is basic money management, and if you lack it then you'll never be able to keep your head above water.

1) Basic money management.

Design a budget that fits your needs. It can take time to plan out your budget, but it's an investment in time and energy you can't afford not to make.

Make a list of all your expenses and bills.

Compare that list to your income after taxes.

This will give you an idea of how much money you have left over each month to spend or save. Doing so may also give you an idea of bills you can eliminate and luxuries you can afford to do without, two excellent ways to save money.

2) Take a look at your credit report.

Be sure to review your various credit cards as well and note which ones have the highest interest rates. If you can avoid using those high-interest cards, you may be able to save money in huge sums over the course of a year.

Knowing if you have good credit or if you need to repair your credit can help you see just how you've done with money management in the past and learn what you should focus on in the future as far as your credit is concerned.

Essentially, good money management comes down to understanding your budget and exercising a bit of self-control. Online financial sites like Prudent Financial will have budget and mortgage calculators that you can use to figure out where your money is going, and can simplify financial planning. Look at where your money is being spent, cut out all of your unneeded expenses, and force yourself to try to save money whenever you can. Rewarding yourself is great, but buying a new pair of shoes or going out to eat each week are costs that can add up. It may be tough at first, but once you see your bank account starting to gradually improve, the efforts that you make will be well worth it. For more valuable information, visit www.prudentcreditrepair.ca

The Danger of Credit Cards and their Impact on your Homeowner's Insurance

It seems like every store you set foot in today offers you credit cards. With the opportunity to be able to apply right at the checkout counter and get a new credit card instead of having to buy out of pocket for your purchase, and with promises of easy approval, these cards are certainly tantalizing. But they also carry dangers with them – dangers that can impact areas of your life that you're unlikely to be considering while filling out the simple application for them. In short, retail credit cards can carry some very serious threats behind them.

The Pro’s and Con’s of Credit Cards:

1. In most cases, credit cards don't have quite the flexibility or the better terms that some of the best credit cards have.
2. Some may have great interest rates, but many have higher than average ones. And if you find yourself in a financial bind, they're usually among the first cards that you decide to skip a payment on.
3. Carrying a high balance or missing payments on your credit cards, even retail credit cards, can not only impact your overall credit score and make it more difficult to get a personal loan at a great interest rate, but they can also affect your homeowner's insurance.

How Credit Cards can affect your Homeowner’s Insurance

· Seventy five percent of customers in a recent surveyed had no idea that bad credit could drive up their homeowner's insurance, but it's the truth.

· And since a huge number of people include their homeowner's insurance in their mortgage payments, that means that your monthly mortgage payments may end up being even higher than they should be.

· It's hard to fathom, but the allure of retail credit cards could actually result in you having to pay out a higher mortgage payment and get worse insurance rates on your home and even your vehicle. Because of these, there's been talk of trying to make some changes.

The repercussions you never knew in the Fine Print

There's now talk of filing formal petitions to change this unfair practice. Insurance companies don't have to ask for your permission before checking your credit score due to a simple matter of confusing contract wording. Most never even realize they're paying more for insurance due to their credit score. And since homeowners still paying loans have to have insurance, there is actually very little that they can do once their credit score drops. With inaccuracies in credit reports being fairly common today, and with the shady nature of these insurance rate increases, most agree that the time has come to change this system completely. For more valuable information, visit www.prudentcreditrepair.ca