If you are thinking of making a large purchase down the road such as a home or vehicle, you cannot do any of these without someone reviewing your credit score. To ensure loan approval, not to mention that you are not paying outrageous amounts of interest with little going back to principal balance, you need to at least have above-average credit scores. Credit score ranges from 350 to 850 and is based on information on from your credit report such as credit history and payment amounts. The higher the score, the more favorable you are to a lender, and that goes along with having the least amounts of interest to pay back. A “good” credit score can range from 720 to 750, 750 to 800 is “very good”, and 800 and over is the top tier and should never have any issue getting approval. Now what if I do not have any credit and want to build it up?
Well first how do I know my credit score? Well you are entitled to a free copy of your credit report once a year from the three major credit bureaus: Experian, Equifax, and TransUnion, directly, or from trusted sites such as freecreditreport.com. The only problem with using this free service is that your credit score is not included, so you will have to pay for that. The report from each credit bureau could look a little different depending on the information it reads, so it is important to double check for accuracy.
Now what can I do to build credit? Opening a charge card, using it every month, and then paying the entire statement balance off each month can be a great way to start. It shows the creditor that you are responsible enough charging your account up, but making sure that it is all paid back. You may not start out with a high limit, so don’t worry if you are approaching the limit, but make sure it is paid off when the time comes. Lenders will start to raise your credit limit, and continued increases with responsible payment history and your score will rise. Opening up additional credit such as auto and home are important, but with every credit account you have, payment history is important, so make sure all payments are made on time, even if you fall short one month and can only make the minimum payment.
Do you find that you always seem to be in debt? Are your expenses outweighing your monthly income? This is actually more common than you may believe. It has recently been shown that the average adult will owe a disturbing $60,000 pounds by the year 2020. Take comfort that you are not alone in your financial woes. Still, there are ways around this rather dubious future. Online trading has become a viable and lucrative means of smashing your debt over time while showing you the path to financial independence. Let us take a closer look at this concept.
A Range of Markets
Traditional investing tended to revolve around medium-yield stocks which would have to be followed for relatively long periods of time. We naturally still hear about the profits accrued by major firms such as Apple, Facebook or Windows. However, there are a multitude of other vehicles at your disposal through respectable online platforms. Some of these will include:
- Currency exchanges (Forex)
It is clear to see that different sectors and underlying assets will suit the discrete needs of the individual investor. This was simply not possible in the past without the help of a professional broker.
Powerful Trading Platforms
Streamlined trading platforms truly represent cutting-edge technology that anyone can use to their advantage. CMC Markets has been a consistent industry leader, and for good reason. From more than 80 advanced technical indicators to one-click order executions and flexible charting capabilities, the sky is literally the limit in terms of the options that the investor has at his or her disposal.
Liquidity on Your Side
Eradicating debt involves accruing wealth faster than would be possible through traditional methods. Otherwise, you will be paying just as much interest as the principal. The very short-term nature of many online marketplaces enables you to utilise an incremental approach. Small profits can agglomerate into large yields with time. This is obviously much more agreeable than relying upon the stagnant interest rates which banks and individual savings accounts currently provide. The platforms at CMC Markets offer this very same sense of financial freedom.
Erasing Debt One Pound at a Time
Another notable aspect of the modern trading platform is that it can be accessed during any time of the day or evening. There is an expression which states that the markets never sleep. Thanks to streamlined algorithms and mobile-friendly software, you are no longer forced to remain at your laptop or office computer to execute trades. The most efficient platforms offer this unrivalled sense of flexibility.
Debt is a four-letter word which haunts millions of individuals from all walks of life. For the first time in modern history, there are alternatives available. Choosing the instruments offered at CMC Markets can help you to tackle your financial woes while building a sustainable level of wealth. It is time to begin working smart as opposed to hard.
I am doing a home renovation project, changing the layout of our first floor and the fireplace now being a focal point as the TV is mounted over and furniture setup is adjusted accordingly. Our living and dining great room is long and narrow, with the fireplace on one of the long walls, so we have limited space and tried to keep the TV as low to the fireplace as we could to avoid looking up too far, so getting a new mantle that was thin was needed. We found a floating shelf that fit perfectly at a good price on Home Depot online and honestly, compared with competitor’s sites and was the only shelf that I could find that would work. It was not available in stores so I placed an online order.
The shelf arrived via UPS within a week or so after processing and shipping, opened it up and there was a chip in the top of the face, something I would not be able to hide, so I called customer service, explained it was chipped, and they placed a new order, while I had to take this shelf back into a store to get a refund. Within another less than a week or so, received the replacement, opened it up, and it was cracked along the top. Once again, called customer service, explained this was the second one I have received that has been broken, and I need to have another one shipped and a discount. All I could get out of them was 10% off. I really needed this shelf, so I agreed and they placed a new order, and they claimed that they would request additional padding and ensure it would not be damaged upon shipping.
In another handful of days, received the third order, second replacement, and would you believe that it was cracked along the side, damaged worse than the other two. I called customer service back and immediately asked for a supervisor, explained my situation receiving three orders all damaged, and that I just want a shelf. The supervisor contacted the third party warehouse, actually felt bad for me and said they would do quality control to make sure I received one not damaged, and shipped out right away, entirely for free. Received the shelf a few days later, packaged nicely, was not damaged, and is finally on my wall. Granted I had the time to wait, I needed this shelf, but would you have done the same?
Speaking as someone who did not put a lot of focus on savings when I was first out of college and even into my later twenties, it is never too late to start saving, and if you were contributing a little and are behind on where you would like to be, the only time is the present. It is easy when you are young to live for the moment, but there is a feeling of panic when you get into your thirties and realized you do not have much saved.
Increase 401(k) Contributions
The first way place to start would be to, if you are not already contributing to a retirement account, to begin now. It does not have to be much now, a couple percent of your paycheck is better than nothing, but at least it will get you in the habit and begin to not miss the extra money. If you already are contributing, then at least do the max that your company will match, as you are just throwing away free money if you are not. It may seem like a huge chuck out of your check, but just think what you will have at the end of the year, and double it with your company’s matching contributions.
Look for Alternative Investment Vehicles
A 401k, Roth IRA, and Traditional IRA are all great investments! However, they all have income and contribution limitations. While I generally recommend maxing these investments out first, you definitely shouldn’t stop here. Consider opening an after-tax brokerage account online to start investing in some mutual or index funds. Or perhaps you want a slightly more aggressive strategy to grow your savings. Binary options are a nice fixed return on investments. Consider looking into Banc De Binary for more information.
Direct Deposit to a Savings Account
If you manually have to transfer money into a savings account, let’s face it, it just will not happen. There is always something you want to spend money on, so if the funds are there, you are going to use them. It needs to be enough where it does not strap you from paying monthly bills, allotting yourself a little spending money in the end, but enough that your account will grow each month without dipping into it. Start with a few hundred a month and build from there.
Use a Raise to Increase Savings
If you’ve had a recent raise or promotion it can be exciting to start to see the extra on your paycheck, but before you go and get used to the money rolling in, increase your retirement and savings contributions. You have been getting by with your previous salary, so the bump in pay you will not miss by saving it. As you start to get used to seeing your retirement and savings accounts rise, you will feel the satisfaction of your hard work and will continue to focus on letting them grow.