Secured Credit Cards

In the realm of credit cards, you’ll notice that there are two broad categories: secured and unsecured. However, most of the credit cards that are vigorously advertised tend to be unsecured, meaning that you don’t have to make a refundable deposit to use them. Conversely, secured credit cards require a potential holder to make a security deposit to open an account with the credit card company.

In most cases, secured credit cards have the word “secured” attached to the name. After making a deposit, your account will be evaluated after some duration to assess your credit management.

Unsecured Credit Cards

These are the cards that most people categorize as traditional cards since one doesn’t require any deposit to open an account with the card-issuing company. In this category, you’ll find several types of cards that are generally unsecured, such as:

Student Credit Cards

The student credit card is for college students who have no or limited credit. Typically, the cards come with no or a low annual fee coupled with an educational component in the form of rewards. The credit limit for these cards is often low due to credit history and low incomes of the beneficiaries.

Business Credit Cards

These cards fall under two categories: small business credit cards and corporate credit cards. The qualification for either of the two cards varies with the card issuer. The small business credit card specifically targets young businesses and operates as a personal credit card. It serves owners who lack sufficient credit history and, therefore, uses their names to get the card.

Companies with adequate credit ratings meet the requirements of getting a corporate credit card.

Reward Credit Cards

Reward credit cards offer users valuable rewards. These cards seek to build loyalty by rewarding cardholders whenever they use their cards. The cards include cashback credit cards, travel reward credit cards, and branded credit cards.

Subprime Credit Cards

These cards are intended to serve borrowers with poor credit scores. Generally, the cards come with costly fees and high-interest rates.

If you’re looking for a credit card to help you solve your liquidity issues, visit us at Finance Finder. We’ll help you to connect with top finance companies online for credit cards.

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2019 has been a good year so far; offering several rewards and incentives. Below are some of the trends to watch.

More rewards and incentives

The strong economy has made it possible for more companies to launch cards and offer better rewards. Towards the end of 2018, Wells Fargo introduced the Wells Fargo Propel American Express card which aims at providing more points every time a card is used.

More companies have followed the Wells Fargo initiative to reward credit card holders more. In the last quarter of 2019 and beyond, rewards and incentives will only get better thanks to the upping competition between credit card issuers.

More spending on credit cards

Over the past year, many businesses have adopted a cashless system. Sweetgreen and Dos Toros are some of the firms that do not take cash – more are joining the bandwagon. A cashless system is advantageous to merchants as they do not have to count money at the end of the day or balance accounts.

As more businesses prefer plastic money, credit card holders hunting for rewards will use their cards more. While this may not be a preferable option for those who prefer cash, it is already a trend.

Higher interest rates

If your credit card debt is getting out of hand, make a plan to pay it off. Instead of focusing on all the rewards a card accrues, concentrate on making partial payments to ensure your debt does not become unmanageable.

Interest rates have been going up since 2018, and the trend may continue through 2020 and beyond.

Finance Finder connects you to top finance companies online for credit cards and auto and personal loans – ensuring you have it the easy way.

Visit FinanceFinder today for personalized services within the shortest time possible.

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What is a credit score?

Credit scores are numbers usually ranging from 300-850 issued by the three U.S national credit bureaus – Transunion, Equifax, and Experian. With high credit scores, you will not only qualify for higher credit limits, but you can also get approved for better interest rates than you could with low or no credit. All of your financial details involving credit such as your debt, payment history, and unused credit will also show in your credit report along with your credit score. Whenever you apply for a personal loan or a credit card, your lender will query one or all of these credit agencies to acquire your credit data.

What is a FICO score?

FICO scores are commonly used by the top 90% of major lending institutions to determine credit risk, but not all credit scores are FICO scores. There’s a more than likely chance that when you apply for a mortgage, credit card, or auto loan, your potential lender will look at your FICO score to determine if you qualify or not. FICO scores are based on many factors such as payment history, total debt, amount of credit limit used, and the age of your credit history. FICO scores are generally considered to be more reliable than standard credit scores because they use more advanced algorithms to calculate credit risk and provide scores based on your credit reports. This usually leads to decisions being made using FICO scores that are drastically different from the result of decisions made using standard credit score ratings.

The bottom line

While traditional credit scores may be arguably inferior to FICO scores, you should do your best to keep yourself in good standing with as many credit models as you possibly can. Building your credit history and keeping a close track of your current ratings is a good place to start.

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1. Pay back the debt you do have

If you have student loans, and since 44 million Americans have student loan debt you very well might, pay them back. Make your payments on time and in full. Making loan payments correctly will build your credit score but be sure to pay on time. Late payments or partial payments will lower your credit score.

2. Pay your rent

This might seem like it won’t do any good, but paying your rent is important for at least two reasons. First, so that you can continue to live in your place of residence. Secondly, because you can tell the credit bureaus about your timely rent payments and they will include it in your credit score. It’s important that you tell them because chances are, your landlord won’t (unless you have a really nice, responsible and caring landlord who also happens to know a lot about credit). Find a third-party site such as this site [https://rentalkharma.com/?adw=HowToReportRentalPayments3&gclid=CjwKCAjw7anqBRALEiwAgvGgm_eWuxXT3z5mq-P57e1TXV2Xz-XOPHvCAqCd0WnBg_MYtEADZxsN8RoCXGgQAvD_BwE] to report your rent.

3. Become an authorized user

An authorized user is like having a credit card on loan that you’re not responsible for. Find someone who trusts you for this, because the authorized user gets all the benefits and the cardholder takes all the risk. Authorized users don’t get the rewards points, but they do get all of the purchasing power of that card. More importantly, the card history appears on the authorized user’s credit report, (hopefully) raising it over time.

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Late Payments

Life and mistakes happen. Whether you forgot to make a payment or there was an error in the company receiving the payment, being late can have drastic consequences. Your payment history is a major factor in calculating your credit score. Paying your bills on time shows you are a responsible consumer.

Your lender will not report your payment late until 30 days+. So, if you notice the payment isn’t posted, be sure to call them and get this corrected immediately. You may even get your late fee waived. One of the best things you can do is set up auto-pay for your account.

You Have Used Too Much Credit

Credit utilization is another important factor in calculating your credit score. The old rule used to be to use no more than 30 percent of your available credit. However, in recent updates, FICO suggests keeping this between 10 to 20 percent. Using over 20 percent indicates you may be irresponsible with your money or have trouble paying it back. With that said, you still want to use your credit to show you can manage your credit responsibly.

If you are over 20 percent or have maxed your credit cards, you can always contact the lender to see about increasing your credit line. This lowers your utilization. Of course, simply paying it back down works as well!

Your Credit Age Decreased

Your credit score decreased, you go online and noticed an account has closed. Well, if this was one of your older credit lines, it has now decreased the average age of your credit. The average age of your credit is the total number of months you’ve had your accounts divided by the total number of accounts. A longer credit history shows you are responsible. A few reasons your credit age could decrease include:

• You have closed a credit account (possibly a high APR credit card)
• A credit line is paid off and you don’t use it. So, the lender closes it for you.
• You’ve opened a few new accounts

These may seem like simple tips. However, keeping these three reasons in the front of your mind can keep your credit score from decreasing.

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Interest rates

The first thing to look at when choosing a credit card is the interest rate. This is particularly important if you plan on carrying a balance on your card. Even if you plan on paying your card off in full every month, there still may be times when you have a financial emergency and can’t make the full payment. Some cards even will offer you a zero percent interest rate for the first year as a promotion when you sign up.

Rewards points

Many credit cards will also give you rewards for your purchases. An ideal credit card will have rewards points that you can use for the purchases you make the most. For example, some cards will give you points you can put towards gas and groceries, while others are good towards travel purchases like airfare and hotel rooms. Some credit cards will give you points on all purchases, while others will only give you points for specific purchases. You will need to pick the best rewards option for you based on how you typically spend your money.

Minimum payments

When signing up for a credit card, it’s important to find out what the minimum payment is. You need to make sure it’s something you can comfortably fit into your budget every single month, regardless of the circumstances. If you miss a minimum payment, you could experience problems with your credit score, which could limit your ability to make major purchases or rentals in the future.

Annual fees

Some credit cards charge annual fees, and it’s important to make sure the perks of the credit card offset the costs of the annual fees before signing up. For example, you might earn enough in cash back or rewards to make a higher annual fee worth it.

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Credit Cards

If you already have a credit card open, it may be easier to use that for financial support than taking out a loan. If you’ve been good with your credit card payments in the past, you can request a credit limit increase from your financial institution. Some credit card companies will also let you open a card with no or little interest for a limited period of time. If you think you can pay the money back quickly, this could be a good option. However, you’ll need to be aware of how this can affect your credit score.

Pay Advance

If you work for an independent business, you may be able to ask for an advance on your paycheck. This is a good option if your employer tends to be flexible. If the only thing that is holding you back is a paycheck you are waiting on, then it’s worth asking to see what your options are.

Loans from Family or Friends

If you have close family or friends that are financially stable, they may be willing to loan you some money to help you get through a rough time. Borrowing money from loved ones is always preferable to borrowing from the bank, because it won’t affect your credit and you can negotiate payback terms.

Local Welfare Services

If you’re struggling financially due to an injury, illness, natural disaster, or other unforeseen circumstances, check to see if your local government offers support for people in your situation. You might be surprised by the type of support you qualify for.

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Move high interest debt to another card

If you have multiple cards, and some have higher interest rates than others, consider moving your debt around so that the majority of it is on the card with the lowest interest rate. This will help you pay less in interest over time, and you’ll see significant progress instead of feeling like you are at a standstill. Some financial companies offer specific cards designed for debt repayment – just be sure to read the fine print to make sure you’ll actually reap the benefits.

Make payments every time you get a pay check

When doing your budget, earmark a certain percentage of each pay check to go towards your credit card. Make sure you make the payment as soon as you get your pay check, as opposed to waiting until the credit card payment is due. If you wait until the payment is due, it will be tempting to spend the money on other things. This may require some extra planning if your pay checks vary from week to week.

Don’t close your credit cards after they are paid off

Once you have gotten rid of the actual debt plaguing you, the next step is to get your credit score up. A good credit score makes it easier to make big purchases, like a house or car. Having a high credit availability but low credit usage can help your credit score go back up over time.

If you find yourself struggling with credit card debt, don’t panic. With some smart budgeting, it’s possible to pay down your debt. Contacting a financial advisor can also help if you are feeling particularly overwhelmed by your debt. They can help you find debt consolidation options and other recovery strategies so you can get back on track.

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What are the benefits of a Backdoor Roth IRA?

One of the best things about Backdoor Roth IRA’s is the fact that they allow the same tax-free withdrawals that regular Roth IRA accounts offer. They are great choices for young investors or individuals with lower taxes than they expect they will have to pay in the future. You can also use this strategy to get around Roth IRA contribution limits. For example, the U.S government only allows individuals who make less than $203,000 a year to make contributions to a Roth IRA, which makes this a great option for anyone making over this amount looking to create or contribute to a Roth IRA.

The methods for setting up a Backdoor Roth IRA are simple:

• Place your funds in a regular Traditional IRA account
• Switch your Traditional IRA to a Roth IRA account
• Enjoy your new high-income Roth IRA account!

With a Roth IRA, you will never have to pay taxes on the principal or earnings of the amount withdrawn from your retirement account, and there are no guidelines for when you are allowed to withdraw money from your account. Moreover, money from Roth IRAs can also be transferred to heirs tax-free. These benefits make Roth IRAs a great option for high-income individuals with heirs that will be in desperate need of immediate funds.

The backdoor Roth method is by far the greatest way to get around Roth account income limits. They are best for individuals who already have a 401k or Traditional IRA looking to enjoy the tax and contribution benefits offered by a Roth IRA. Just keep in mind, to avoid penalties, make sure the money you receive to rollover into a Roth IRA is deposited into that account in 60 days or less.

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How much will medical debt hurt your credit score?

This debt can prevent you from doing many important things such as getting approved for a loan, a mortgage, and many other important financial services. However, medical bills won’t always have a negative effect on your credit score – only unpaid medical bills will cause a negative effect.

Unpaid medical bills can potentially drop your credit score 50 to 100 points in a matter of months. Usually, hospitals and doctors will not report your debt to credit agencies. Instead, they will sell your debt to a collection company that will report your debt to credit agencies (often with the name of the doctor or medical service provider never being revealed). Very few people have the savings needed to cover this debt, and this usually leaves them with huge amounts of debt they struggle to pay back and rapidly declining credit scores.

What can you do to keep medical bills from affecting your credit score?

Sometimes medical bills can go unpaid from not even realizing you have any unpaid medical bills. You should always check up with your insurance companies and medical service providers after each medical visit to make sure you don’t have any outstanding balances. Never assume that your medical bills have been paid off because you have a good or reputable insurance company, or because you don’t remember being notified of any outstanding balances.

What should you do if you already have medical bills?

You should also check to make sure there are no copays, deductibles or out-of-pocket expenses in your insurance plan you may have forgotten about.

if you contact your medical service provider and find medical bills you will have to personally pay for, you should immediately negotiate a payment plan. Knowing about medical bills ahead of time will help keep unpaid medical bills from negatively affecting your credit score in the future.

After agreeing to a monthly payment plan, make sure you get the details of the agreement in writing so you will have a paper trail in the future for disputing unpaid collections. And make sure you continue monitoring your medical bills for medical visits in the future to prevent them from having a negative impact on your credit score as well.

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