Things That You May Not Expect to Affect Your Credit Score

It is always best to keep a good credit score. There may come a time that you will need some financing, for example, a home renovation or the purchase of your dream car. If you don’t have a good credit score, chances are, you won’t be able to avail of loan to help you finance your project. This should be the reason to be aware of the things that affect your credit score.

It’s not uncommon to see people surprised over their credit score that has gone bad. This happens if you are not aware of all the things that may affect your credit score. You should read this article to know if you have committed the following that made you have that bad credit score.

Late Payments

Late payment of utilities, rent, phone, loans, subscriptions, and other services can affect your credit score. More so, when you are 30 days late with your credit card. Your card issuer will likely report you to credit bureaus, resulting in a drop of your credit score.

Several Applications for Credit

The more you apply for credit, whether a store credit card or a mortgage, you are causing your credit score to drop. This is whether your application is approved or not. A hard inquiry is always done on every credit application and this will affect your credit score.

Cancellation of Zero-Balance Credit Card

Cancelling a paid credit card may not give you any good. This is because it can raise your credit utilization ratio because you total credit amount has been reduced. The age of your credit history will also be shortened. It is best that you hold on to your credit cards even if they are already have zero-balance.

Use of a Single Card by Transferring Balances

If you have accumulated several cards, so be it. It is never advised that you transfer all the balances from all your credit cards and lump into one. Just like when you are canceling you zero-balance credit card, you are also shortening your credit history and you are raising your credit utilization ratio.

Lack of Credit Diversity

Be sure to diversify on things that you take on credit. Not having a mix of credit types is not pleasant to see credit bureaus. So mix up your credit to help your credit score go up.


High Balances on Your Credit Card

Lower balances of your credit card as much as possible. If they are near your credit limit, expect that your credit score will go down.

Unemployment leading to missed payment, co-signing loans for friends who missed paying their credits, and ignoring your credit report can also cause your credit score to drop.…

payday loan

Benefits of Payday Loans

Depending on paycheck to settle all your needs can be challenging when emergencies come up. There are little savings for many people given the financial and employment challenges, but payday loan companies have your back. Even the most fiscally responsible individuals occasionally need to borrow money to cater to emergency needs and take advantage of emerging opportunities. Having a paycheck gives you the privilege to sort your needs conveniently because the lender is guaranteed that you can repay. Here are some of the benefits of going for payday loans.

Fast Processing

fast processing Ordinary loans are known to have long processes that can be exhausting and inconvenient. This is not the case for payday loans, and you can get the money in a matter of hours. You can still borrow a large amount of money conveniently if you have a paycheck and a good credit history. The amount, terms and conditions, and loan processing hours vary from one company to another. It is advisable to shop for online companies with favorable loan terms.

Flexible Use and Easy to Qualify

flexibility of useTraditional loans have conditions and limitations on how the borrowed money is used. Payday loans do not require you to state the intended use. The flexibility makes it the best for attending to short-term financial needs such as overdue bills, car repairs, emergency health bills, etc.

Also, payday loans are unlike ordinary loans that have application processes can be lengthy, and still, you could end up being rejected if you fail to meet specific financial requirements. You qualify for a payday loan as long as you are salaried. Online payday loans have straightforward requirements that you can check on their website. The standard documents that need to be submitted are proof of monthly income, a bank account, and an identification document.

Protection by Legislation

You could be doubting whether the online payday loan companies are genuine given the ease of borrowing money. The interest rates are regulated, and they cannot share your confidential information. You can clear doubts about the payday loan companies are regulated by the legislation that governs the traditional lenders.

The Amount Depends on Your Salary

Payday loans do not ask for collateral or guarantors because the amount you qualify for depends on your income level. It forms a good check on your financial well-being because you will not be eligible for a loan that you cannot repay. As such, you access funds to meet your urgent needs and pay in installments without much struggle.…