Boost Mobile: How to get your credit score quickly moving in right direction

Your credit score is the life blood of not only how you’re viewed by lenders but also if you’re going to be afforded loans for things that you want and need: cars, schooling, house, etc.

So the question is quite simple: Is your credit score on life support?

To answer that question, you have to know what it is first, and foremost.

Knowing your score can give you a good idea of a starting point and ultimately where you want to go from there. Getting your score also allows you to make sure it’s accurate, as you wouldn’t be the first person to suffer from some sort of mistake that is not in your favor and thusly is dragging down that three digit number.

If all the information and debt is accurate, then it’s time to go to work on building that score back up again, and this time for good.

But if you’re fretting because you believe that your score and raising it is going to take considerable amount of time, you’re right.

And wrong.

You can start breathing life into your score by only doing a few simple things.

In addition to checking your score for accuracy, you also want to begin a better management system for your debt, specifically paying down current debt. To do that correctly in order to better manage your credit score, check your balance to credit limit ratio and start there.

That means if you have a current balance that is extremely close to your actual limit, you’ll want to focus on that right away, because if that is the case, creditors assume that you’re essentially “maxing out” all your available credit.

The flip side of that process is the thought that you want to close your unused credit cards, but that only hurts your chances of improving your score. Think about it, if you have credit cards with high balances that are right up your limit, then closing accounts that have zero balances on them is only going to make your debt utilization look worse.

Finally, if this pertains to you and how you pay bills, you want to immediately do one thing: stop paying your credit cards late. Every time you go beyond 30 days of unpaid balances, you will be sent to collections. Even late payments on credit cards are noted and will negatively affect your account and standing with your current lenders.

The best course of action is to pay at least the minimum payment just to avoid missing, since something is better than nothing pertains to this situation.

Your score might not be where you want it, but that doesn’t mean you can’t adjust slightly how you’re currently managing your debt to start climbing back to financial respectability.

Balancing Act: Why credit card balances sometimes make sense

Nothing is quite as deterring and crushing as credit card debt, more specifically trying to balance between having multiple cards and lines of credit and figuring out exactly how to get out from underneath all of it.

Financial experts argue back and forth for varying opinions on all of it. Some say you should take whatever savings you have and pay off all your debt or as much as possible, which leaves you without your emergency fund. Others suggest that you should use an inverted paying scale, so that you focus on the small debts first and then work your way up to the heavier hitters on your list.

That point is valid, but also you have to consider interest rates at some point, too.

The balance transfer is no different in that it has its good points and other times when doing it just make very little sense at all, if any.

For starters, the balance transfer only works primarily if you plan is to take that zero interest rate or low introductory rate and pay the entire balance off in the time suggested by the promotion. If your interest rate is 0, and you transfer $5,000 and that rate is good for 24 months, you should budget out payments that equate to a two year plan includes payment that allow you to pay off the entire amount. Anything short of that is going to leave you in a similar spot you were when you took the card out and transferred the balance: you’ll have money left to pay and the lower rate goes away and is replaced by the same larger interest rate you’ve just tried to get rid of previously.

You also, as part of your balance transfer, need to take into account that you’re not going to add more debt as well. Having a balance transfer from one card to the next doesn’t give you free reign to start charging again or racking up another balance on that now free and clear card. That free and clear card is a very good thing in that it actually helps your credit score, with the worst next step actually being closing the account altogether.

Closing a line of credit does count against your credit score, and your debt ceiling could be affected in a positive way seeing as how you have a card that has nothing on it in the way of owed money.

Balance transfers aren’t a fail safe in that you can identify it as an easy way to eliminate debt. It simply takes debt and makes it more manageable, as it is still up to you to see the entire process and payoff all the way through.

Tip-Jarred: How to save money without breaking sweat

From consolidation to cutting expenses, everyone is trying to save money.

Saving money is unique in a lot of ways, mostly because everyone wants to do it, few are good at it, and there really isn’t any way to get around the fact that having it is going to make your financial future brighter and, in turn, easier to manage.

And that goes for simple, day-to-day expenses or the much anticipated retirement.

Simply put, everything revolves around saving money.

And with good reason: you have to budget your money, make sure you’re spending less then you make (a fact lost on most of us) and that your planning of how, when and why your money is being put into play is constantly questioned and can change on a whim based on your financial need.

But why do you tend to make saving money so hard? Is it because we want things we can’t afford or don’t need (vacation, abundance of clothes, second homes, etc.) and we decide that we’d rather have them and borrow money we don’t have to ensure that these things are taking over and our financial goals of saving and securing retirement funds fall by the wayside?

The truth is we make money, saving it, more difficult then it needs. The truth of the matter is your budget and how you look at money needs to start with a stripped down budget and a not being afraid to cut as needed.

You can save money by doing one of the two things: cutting expenses or increasing income. Both can be done without much heartburn if you know where to look. The two biggest money pitfalls are food and unused goods or services. The food one is easy, as many eat out at restaurants for lunch or dinner on a weekly basis, yet we can still spend hundreds of dollars a week at the grocery store. Seems like we’re double dipping on that line item. Taking the time to meal prep and pack lunches is going to save you thousands each year.

As for the unused items, look around your house or consider the services you employ and never use. Gym and tanning spa memberships come to mind immediately, as well as things such as cell phones and cable television. Your phone and cable (with internet) is likely costing you upwards of $300 per month, when a Netflix account and a phone on a lesser, yet reliable network (Sprint, T Mobile, Boost, etc.) is all you’ll need to cut that previous bill in half.

Saving isn’t about working your fingers to the bone at five jobs but more about knowing your financial limitations and not being afraid to save when you least expected it.

Spend Undone: Bad spending hurts your debt situation

Do you know how to spend correctly?

Now, the definition of “correctly” is what get most of us in trouble when you’re talking about debt as some might deem that sports car a correct way of spending, while others think of more astute and more intelligent ways to spend their money, such as that pesky 401K contribution or setting aside five to 10 percent of every paycheck into their savings account.

Bad spending can be identified as what not to do with your money or habits that are going to lead to a lack of money saved or a financial standing filled with debt, among other money faux pas that could be in your not so distant future.

The first rule of thumb when it comes to spending is to actually know what you’re able to spend, and that starts with a budget you actually follow. Otherwise, you’ll be making the one mistake that the majority of people with a plethora of debt do: spend more than you actually make. That means quite simply if you spend $2,000 per month and make $1,700, you’re operating at a deficiency.

As obvious as that should seem, a good portion of the population resides with more than $20,000 in debt on average (per household). The reason most spend this way is because they live beyond their means, and budgeting is something that sounds good in theory, like when someone knows that their car payment is due “around” a certain date, but actually isn’t being practiced the way it should.

Bad spending could also be considered the kind of spending that is done with money that isn’t really even yours. That’s not to suggest theft by any means, but more along the lines of spending money on vacation and charging it on a credit card. Or using that same plastic to charge your way to a new work wardrobe or, even worse, using credit to pay your bills, a sign that again, budgeting isn’t your strong suit.

Debt is meant to be paid in an orderly fashion, so borrowing more to pay off debt is spending that is a totally neutral or lateral move. Now, if you want to lower an interest rate or consolidate so that you only have to pay one payment, so be it. But if you’re paying credit card debt with opening another credit card of the same ilk, you’re not going to get ahead any time soon.

So what exactly is “correct” spending? The kind of spending that allows you to have what you need and put the wants on hold or at least prioritized when you actually have the money.

Credit Guard: How to know when to use your credit card

One of the age old adages about money and how to spend it centers on credit cards, more specifically when to use them and when not to.

As much as we debate this topic, the answer is fairly clear cut when you consider credit cards, interest rates and duration, along with debt to income ration and having the ability to pay off what you borrow in a short amount of time.

Credit cards essentially are a short-term fix, something that you want to use as a last resort and only for emergency purposes. Ironically, you should be using your own money for emergencies from that savings account or proverbial nest egg, but that isn’t always an option since more than half of the population doesn’t have a savings account.

That said, credit cards can be used in a pinch, for car repairs, home fix ups or medical issues, things like being off work or braces for the kids all at the same time.

When using a credit card, you have to consider that the interest rates on most cards is high, particularly department store cards. You want to steer clear of using a credit card and not being able to pay it off within 30 days. The trick is learning how to manipulate those highly marketable store cards when they offer you a certain percentage off what you buy if you open a store card. That is best for you if you can get the money saved and pay off the balance as soon as the first (and only) bill comes in the mail.

As you would expect, you should never use credit cards for things that are whimsical in nature or that aren’t tangible. For example, you never use credit cards for such events as vacations or to buy concert tickets or really anything entertainment related (again, unless it’s to get free bonus miles or points and pay it off as soon as the bill arrives).

If you are thinking about home repair, think home equity or another means of financing that isn’t credit cards. Plenty of flooring, roofing companies or even bigger box stores offer you special financing for these types of updates and upgrades to your home, so paying 21 percent interest on a Visa card is asinine when you consider other alternatives make more sense.

Credit cards aren’t evil, until they’re used for all the wrong reasons and you end up spending not only what you intended to purchase but the interest that compounds on top of it all.