Why does my credit history matter?
Many online companies offer to show you a free credit report, or will charge you only a dollar. They also give you the option to enroll in a $19/month credit monitoring service whereby you will get to track your credit history as it rises and falls.
Many people do not know exactly why their credit history matters, which is why I am sharing a few things for which you will want to know it:
Buying a house
If you have good credit then buying a house should be very easy in terms of getting a loan. This is because banks are more willing to let you pay less upfront since they think you are more able to pay it off than somebody who has bad credit (you can find out your credit score in a credit report). While people with bad credit pay 25% or more upfront, people with good credit can pay as little as 10% of their mortgage’s total value at signing. Also, you should be able to get lower interest rates and get a more expensive house if you have good credit.
Buying a car
Buying a car is another time where you want to have good credit. Cars are most family’s second most valuable item if they own a house, and the most valuable item if they are renters. They are almost always the most valuable possession for younger people who have recently graduated college, if they are fortunate enough to own a car in this economy.
Car dealers will do a credit check each time you want to buy a car from them if you are not paying for the car upfront. If you have bad credit, they will still probably issue you a loan but they will also want you to pay more money when you sign the contract to buy the car. This means you will have to save up more money before you can drive away in your car. On top of that, you will see higher interest rates and you will not be able to buy as expensive of a car. But luckily most car loan deals are hashed out in person, so you can negotiate a better loan with the car salesman if you are persuasive.
This is a guest post by Murray Newlands. Murray and his company Influence People do blogger relations work for a variety of clients.
Getting the Best from Your Cash Back Credit Card
In some ways a cash back credit card pays you back every time you use it. It is appealing to learn that with each purchase you are going to get a portion of the amount you just charged back. There are ways to use this bonus to its fullest extent without running into some of the common pitfalls. Here are just a few ideas for getting the most you possibly can from your cash back credit card.
Do you get cash back on every purchase? If there are stipulations about the types of purchases that receive cash back, make sure that you are well informed. In some cases you get more cash back for things like gas, groceries, or even shopping online. If this is the case you want to make sure that you are using the credit card for all of these purchases. Every time you stop by the store for a gallon of milk, use the card.
Each purchase, no matter how small, brings about some cash back. If you tend to shop online, check with your credit card company`s website. They may have an opportunity for you to get even more cash back when you shop through their links. While it takes some time to get used to the system and you may spend considerable time upfront learning the ropes of the cash back credit card, the results are well worth it.
If there is more than one person in your household, be sure that they are using their card as well. The key to both people using the same credit card account is communication. You don`t want each person to be spending away without letting the other know about the purchases. Without communication couples and families can find themselves overwhelmed with debt in a matter of months.
If you are only planning to use the card for the cash back benefits, consider refraining from using them to make other purchases. If you aren`t going to get cash back for airline tickets you may want to use another card, potentially one that offers other types of rewards or discounts.
Staying out of debt isn`t always easy with a cash back credit card. It can be so tempting to put every single purchase on the card without thinking about what you are actually spending. If you have online bill pay with your checking account, you can avoid one of the biggest pitfalls of the cash back credit card.
As soon as you make a purchase on the card, go straight home and send that exact amount to the credit card company using your online bill pay. This adds an extra step but in most cases you won`t be charged by the number of bills you pay online and you are going to end up paying the bill anyway.
Using a cash back credit card can be just like using your debit card. The only difference is making a payment to the credit card each time you use it. At Moneysupermarket you can learn more about the different credit card companies that offer incentives like cash back or even rewards points.