Smart Spending Tips on credit repair versus credit building and the differences between them. Credit repair and credit building are important components of managing your credit and improving your creditworthiness. What is credit repair? Credit repair involves fixing errors or inaccuracies on your credit report that negatively impact your credit score. This can include removing late payments, collections, or other negative items that are incorrectly reported. Credit repair services can help you dispute inaccurate information on your credit reports and negotiate with creditors to remove negative items. Is credit repair legal? Credit repair is legal. The Fair Credit Reporting Act (FCRA)…

Smart Spending Tips explores things you may not have thought of that can affect your credit. Your credit score is a three-digit number used by lenders to assess your creditworthiness. It influences everything from loan approvals and interest rates to apartment rentals and even job opportunities. Factors like payment history and credit utilization ratio are widely known to affect your score, but many other surprising things can influence it. From unpaid library fines to parking tickets, even seemingly minor financial obligations can leave a mark on your credit report. Subscription services. Many subscription services (e.g., streaming platforms and gym memberships…

Smart Spending Tips’s personal finance weekly news roundup September 23, 2023. Stories, news, politics and events impacting the personal finance sector during the last week. FTC says watch out for student loan scams as payments restart New study suggests pandemic credit score gains may be short-lived UAW strike carries new inflation threat Study determines financial cost of onset of dementia Mastercard projects holiday spending will keep pace with inflation Fed signals high-interest rates will last longer than initially thought Free credit reports to continue indefinitely Report on credit use reveals growing risk 1. FTC says watch out for student loan…

Getting turned down for a loan can be awkward. You put yourself out there to ask for money, provide highly personal information, back it up with private documents. It stings when the lender declines your application. You might feel angry, disappointed or embarrassed, but it’s not the end of the world. It’s important to understand that lenders tend to focus on different types of borrowers and turn down people who don’t fit their box. One company might reject you while another begs for your business. The roadmap below shows you how to get over rejection, choose the right lender and…

Smart Spending Tips on how mastering credit card basics could be your first step to financial freedom. A credit card is more than a piece of plastic in your wallet. It’s a symbol of your financial independence. It’s a lifeline in the event of an unexpected expense. It’s a tool for building credit. And if you’re seeking practical ways to master credit card basics, you’ve come to the right place. In this article, we’ll touch on some of the most important things you know to use a credit card well. We’ll share practical insights about how credit cards work and…

Smart Spending Tips discusses how to use credit monitoring to avoid unpleasant surprises. Imagine if a work colleague lies about you behind your back. Perhaps dishing dirt on you to your boss, landlord, bank and people who do business with you. Would you like to know what they are saying? Better yet, would you like the chance to do something about it? What if that work colleague is, in fact, your credit report? Your credit report is used by lenders, employers and landlords as a tool to assess your creditworthiness and financial standing. It contains information about how you have…

Smart Spending Tips discusses changes in the U.S. credit landscape with a credit snapshot in July 2024. The concept of credit in the United States has undergone a fascinating transformation. From its humble beginnings as a tool for merchants to extend trust to customers, it has become an intricate part of the financial ecosystem, fueling economic growth and shaping individual financial journeys. Today, the state of credit in the USA presents a complex picture, with positive trends like rising credit scores coexisting alongside lingering concerns about debt levels. A nation of borrowers The USA boasts a credit-driven economy. Consumers rely…

Smart Spending Tips discusses recent credit score gains and why the rising trend may have ended. FICO recently announced that the US average for its widely-used credit score reached an all-time high earlier in 2023. That’s good news, but it has some strings attached. There are several reasons to believe that some recent credit score gains may not be sustainable. Consumers with newly-improved scores will need to be vigilant to make sure their scores don’t suffer a relapse. Most of all, consumers must be aware of several conditions threatening their credit scores. Sustaining a good credit score may mean adjusting…

Smart Spending Tips discusses the value of reviewing three-bureau credit reports. Understanding your credit health begins with knowing your credit scores and reviewing reports from the three major credit bureaus, TransUnion, Experian and Equifax. Each bureau collects and maintains credit data supplied by lenders. This information is compiled into a credit report tracking your historic behavior with credit and loans. The credit reports and credit scores produced by the three bureaus are not identical and reviewing all three reports is the only way to understand your complete credit picture. Such a review might seem daunting, but understanding the factors that…

Smart Spending Tips discusses how poor credit affects your net worth and steps you can take to better manager your personal finances. Creditworthiness and net worth are two key concepts in personal finances. They are distinct but interconnected. Creditworthiness refers to your ability to borrow and repay money, while net worth measures the value of what you own minus what you owe. Poor credit can significantly impact your net worth, affecting your overall financial health. Understanding creditworthiness and net worth Creditworthiness is a measure of how likely you are to repay a loan or credit card debt. It is often…