Froodee

Living. Blogging.

Unconventional Ways Of Raising Your Credit Score

By


You know all about it – how to increase your credit score and keep it that way. Times do change, however, and with it, ideas. Here are some new ideas which might shock you, but experts say that they work to increase your credit scores. I’m not saying you SHOULD do them, but I think they’re worth a shot.

Method 1: Get more credit cards.
This is dangerous – very dangerous if you do not know what you are doing. The idea is to open more credit cards and NOT use all of them to the max. One important thing that creditors look at is credit utilization. If you have several cards and you only use each one up to 30% of the limit, you will be in good standing. Also, do not open credit cards all at the same time. Wait at least 6 months in between. And yes, do NOT max them ALL out.

Method 2: Do NOT request for lower APR on an existing card.
Conventional advice dictates that the lower the APR, the better for you. It still applies, of course, but the idea is to avoid asking for lower APR on what you already have. This is because by doing so, you run the risk of having a credit check run on you unnecessarily. And, if the creditor doesn’t like what it sees, then you might be in hot water.

Method 3: Consider NOT paying off closed credit card accounts.
It doesn’t make sense? Think about method 1 and the utilization of credit. If you have a small balance left in a closed credit card account, it can still be counted towards your credit utilization score. That’s a plus for you!

Savings Or Pay Off Credit Card Debt?

By


Like many young people, I never thought I would find myself facing serious credit card debt. In my early twenties, I told myself that I would never fall into any debt trap. I had heard so many horror stories, and I just knew I would not live out one of those.

Boy, was I wrong! Many many years later, I am struggling with credit card debt, and if I don’t get a grip on things, I just might get buried. Naturally, I have been looking for ways to deal with this debt in the best possible way, as soon as I can.

One thing that I have been considering is using part of my savings and put more towards the credit card debt. A lot of people have been telling me that this is the wrong thing to do, but I do have a gut feeling that it might help. I did find a piece of advice at Money Central:

Earning one or two percentage points of interest on your savings, while paying double-digit interest rates on your credit card debt, gets you nowhere fast. To add to the injury, you pay income tax on the meager savings interest, and you can’t deduct the credit card interest from your income taxes.

Seriously consider paying off high-interest credit cards or auto loans with savings. Pay off the cards with the highest interest rates first. Be sure to keep enough money in an emergency fund or in available cash advances to cover three to six months’ worth of living expenses.

I think that is enough to convince me to get a little bit from my savings account. What is your advice for me?

Social Media CAN Hurt You Financially

By


Last year, the popularity of social networks reached astonishing heights. All over the world, it seemed that everyone suddenly decided to join one social network or another. While it all seems innocuous on the surface, there are some financial implications of joining these networks. Maybe you’ve thought about these, but in case you haven’t, let me point some out.

Your chances of landing a job may be affected. In a bad way, is what I mean. I am sure you have heard of people getting in trouble at work because of Facebook. You might even have heard of prospective employers checking out the Facebook accounts of applicants. This is all true. While what you do and put on Facebook is your personal business, what potential employers see can affect their decision. And if you don’t get a job just because an employer’s impression was affected by your Facebook account, that would really be a bummer. Solution? Make sure you keep your profile private and that you really know who your Facebook friends are.

You can be tracked down more easily by collectors. This one is a no brainer. You may be ignoring phone calls and mail from collectors but they can always track you down online. The solution is the same as above. More so, do not publish details such as phone numbers and addresses.

You open up the risk for identity theft. There will always be scammers online despite the best efforts of social network security. Again, just make sure that you do not divulge any specific information that can be used by others.

Where’s Your Emergency Fund At?

By

EmergencyFundWe all know this: everyone should have some sort of savings account or an emergency fund. After all, we never really know what can happen in the future, and having a stash that can be used in case of emergency is always a useful thing. However, knowing it and actually putting it into practice are two very different things. If you do not have an emergency fund, there is no reason to dillydally. Here’s how to get started.

First, set goals. That is, how much should you have in your fund? Think about minimum amounts – you can always put away more when you get extra money. The important thing is that you will have peace of mind if you have a certain amount ready to be used for emergencies.

Some things that you should consider when determining this amount are:

• How many people work in your family? Each one can contribute a certain sum on a regular basis, thus increasing the minimum.
• How secure is your job (and the jobs of the other earners in your household)? The better the job security, the lower you can set the minimum amount.
• Do you have other sources of income? If you only have one job, then you might want to make sure that your emergency fund is healthier than average.

Once you’ve determined your goals, it is time to start setting aside money. It’s as simple as that. Some things to bear in mind:

• Set up a dedicated account.
• Start small. Don’t set unrealistic goals. Start small if you have to, but make sure you stick to your plan.
• Make sure that you define what an “emergency” is. This way, you don’t dip into the account unnecessarily.

Beware of the Milkmaid

By

The milkmaid...
No, this is not another edition in the series of Halloween excitement here at Froodee. However, this article can be scary if you find yourself counting the last few pennies in your pocket. It was way back in elementary when I first heard her story. My uncle had given me a collection of Aesop’s Fables and one of the stories that struck me was the tale of “The Milkmaid and Her Pail.” Of course, back then, I was more fascinated with the illustrations rather than the story itself.

If you haven’t read the story, drop by here for a while and indulge yourself in a short fable.

However, for those who know what story I’m talking about, let me continue.

I often find the milkmaid emerging in me. In the story, she dreams about what she could have in exchange for her pail of milk. She thought of buying eggs. Said eggs would eventually grow into healthy, young chicks which would consequently become fat chickens and so on and so forth…

While there is nothing wrong with day dreaming, the milkmaid became too lost in her own fantasies that she accidentally dropped the pail of milk and with it spilled all of her dreams… My own version of the milkmaid often makes herself known when I am dealing with money.

I find myself unconsciously spending more than what I really should because at the back of my mind, I know I’ll receive more soon. Unfortunately, soon is not enough and I often end up having only a few bills left in my pocket. I don’t even get to save anything anymore. I also fantasize a lot about the material things I could gain and I get too involved with these thoughts that the word “budget” doesn’t even exist in my vocabulary anymore.

A lot of people don’t even realize the milkmaid in themselves. As for me, I am much more careful with my money now. According the the milkmaid fable, “Don’t count your chickens until they are hatched.” In my case, “Don’t spend your money until they are actually in your hands.”