Budgeting can be a lot like that.

It’s tough to decide where to begin, especially if it’s been a while since you’ve checked your account balance. But lean times fall upon us all. When it happens, it helps to get organized.

The first step in budgeting is determining income. And the less income you have, the more each dollar you do have, counts. So it follows that a budget is only as good as your personal accounting. Keep paystubs, get bank statements. Add it up, check yourself. It helps to use Excel, Google Sheets. Budgeting tools like Mint and Personal Capital have been popular for a long time now, but they aren’t necessarily where you need to start. I think there’s still something to be said about trying it with pen and paper, and forcing yourself to think about how each dollar comes and goes.

After income, expenses. The really difficult part. Thankfully - since budgeting is something everybody, no matter their financial status, has to do -  there’s a well-established order of priority.

Housing is the most important (and by extension, expensive) line on your budget. You can’t do much without a roof and a bed. This includes rent, mortgage payments, insurance premiums, property taxes, etc. Or even, let’s say: “comparable alternatives.” Life took a turn and suddenly you need a place to stay? Your car payments may suddenly become more important than rent. And it’s worth mentioning that, in absence of a stable housing situation, a $30 gym membership could save your life. It’s a cheap place where you can spend a lot of time, take a shower, and lock up a few valuables. Regardless, shelter will likely account for at least 25 to 40% of most people’s monthly expenses.

Food is, theoretically, next on the hierarchy of needs. Though depending on the severity of your situation, certain utilities could come first. Shelter takes precedence, and housing costs, left unpaid for long enough, can put your whole situation in jeopardy.

Opinion: I think it’s worth mentioning at this point that restaurants, take-out, and convenience items all fall under entertainment, not food. It’s my belief that - unless one is fabulously wealthy - they should make an effort to purchase and cook a majority of their own food. Learning to cook; how to sustain oneself, how to properly prepare and share a meal, is an essential feature of the human experience. Anyone can; everyone should. And don’t even get me started on Fast Food… Forget budgeting. If you want to improve the overall quality of your life, the first step is ending your service to the Colonel, Clown, and King.

Next in the budget: the true essentials. Basic utilities like electric, heat, water, gas. Simple toiletries and houseware like toilet paper, soap, plates, a bed. I won’t go too far into this – as the essentials do vary from person to person. But the basic question you should ask, when making decisions about what costs to include here, is: “Do I need this item to remain a functioning member of society?”

A special subsection of this line in the budget is “Income Earning Expenses” – that is, money spent in the pursuit of more money. The eggs you break to make the omelet. Necessary transportation and associated costs, like auto insurance. Internet and phone, tools-of-trade. Professional attire, if necessary. Home office equipment, if you don’t have a formal workplace.

Even your healthcare plan falls under this section. Can’t work if you aren’t healthy, after all. Unless you’re under 26 and still on a parent or guardian’s plan, or unless your employer offers a plan, most of us are completely priced out of independent health care. There are publicly-subsidized, low-to-no-cost plans available, but you have to demonstrably fall below the poverty line in order to qualify. As in: your income is less than $20K, annually. But, since most of us are dependent on our employers to subsidize the cost, this step in budgeting is as simple as paying the maximum amount into the plan.

So…

Alive, fed, clothed, employed, and in generally good health?

Good.

In debt?

Not good - but likely.

This guide covers the bare necessities of budgeting, but it’s not the end of the story. Emergencies happen, and you need savings. Not to mention: most people in the United States are already saddled with enormous debt loads – in the form of medical bills, student loans, and the Big One: credit card debt. All of which eat away at savings faster than most can build them. It sounds counterintuitive, but it makes no sense to save money when interest on your Credit Card debt grows exponentially in the other direction.

If that’s you: your budget must account for these additional costs of living.

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What are credit cards?

It is a piece of plastic that's rectangular, a metallic alloy, or graphite that's connected to an account. Some cards might contain an RFID chip, but each one has a magnetic strip. If you're an owner, your name and account number might be imprinted on it.

A customer will use the card to pay for services or products using a bank's money, then repay it later. Just like a loan, the money used will have to be paid back with interest. It might be a problem in the future if you use the money and you aren't able to repay it.

How do they work?

When you need to purchase something or pay for a service and you decide to use your card, the information is verified and the cashier or merchant validates if the bank will allow the transaction. When all the information is correct, the transaction goes through, and the whole cost is added to the card.

The retailers pay to be able to accept the cards, while banks that issue the cards receive part of the amount as revenue. You receive a bill of all the accumulated transactions through your card from your bank.
The best way to deal with this is to pay it all off immediately. If you don't, you'll pay extra fees decided by your bank.

Interest is also added if you fail to make the payment to the amount you owe your bank. This is dangerous because the interest rates go up so quickly. When you make your payments on time, your credit rating is upheld. This helps you if you want to borrow money from other companies in the future.

What you should know before applying for one.

The following are the important things you should know before getting one.

● Every month you'll need to make a minimum payment. You should set up a Direct Debit for what you can afford to repay. This helps you not to miss payments.
● When getting the card, your provider will conduct a credit assessment. If you have a good credit rating, your chances for a successful application are higher.
● Some cards require a minimum age of 21, but you need to be at least 18 to apply.

Pros of credit cards.

● You get to buy now and pay later. When you don't have enough money to buy something you can still get it with your card.
● Convenience. They're easy to carry around and use anywhere. They're accepted in a lot of places than other cards like prepaid cards.
● Safety. You get more security than when you use cash. You can just report if it's stolen and it will be canceled by your bank. If any money is used you're most likely to get it back.

Cons of the cards.

● Extra fees. Apart from the interest you're supposed to pay, you might end up paying more money. This might be for exceeding the credit limit or even a late or missed payment. You can also pay extra fees because of using a cash machine.
● Costly. It can be expensive when you have traveled abroad and try to use it. The fees can be high.
● High-interest rates. You'll end up paying interest at the end of every month for your pending balance. The interest rates tend to be high and not as low as a personal loan. You can easily get in debt if you keep using your card and not paying.

What to consider when choosing a card.

● Annual fee. You might be charged for use of your card at the end of the year. If you have a balance due, the fee is added to it and your interest.
● Annual percentage rate (APR). This involves the cost of what you borrow on the card. Compare different cards to choose the one with the best APR.
● Charges. You're charged for late payments, exceeding your credit limit, and using the card abroad. Find out what charges apply.
● Introductory interest rates. You start by paying lower interest rates then it ends up increasing. Know how long it will last and the interest rates after.
● Minimal repayment. You pay a minimum repayment when you don't pay off your balance every month.
● Cashback. This is the money refunded back to your card. It depends on the amount you've spent. You might qualify for the cashback or not.
● Rewards. You can get loyalty points from spending money. You'll have more when you spend more. You can use the rewards to do a lot, like buy new things. You should check whether or not you qualify or not.

The post Everything You Need To Know About Credit Cards! appeared first on FinanceFinder.org.

Credit Score
Before applying for a credit card, check your credit. It is important to know that score when applying for credit cards. Credit card companies will determine how much credit they will give you based on your score. Certain cards are perfect for those who are trying to build credit.
It is important to keep your eye on your credit reports. Companies such as Discover offer both cardmembers and nonmembers free credit reports and other tools to help manage your credit. Look at your FICO score. You can translate your score this way:

• Exceptional: 800-850
• Very good: 740-799
• Good: 670-739
• Fair: 580-669
• Very poor: 300-579
• So, if your score is already in the exceptional range, finding a credit card to fit your need will not be difficult. However, if you are in the fair to the very poor range, it will take some research to find credit cards.

What Goes Into Your Score Anyway?
Several aspects go into determining your score. FICO breaks it down like this:

• Payment history: 35%
• Amounts owed: 30%
• Length of credit history: 15%
• Credit mix: 10%
• New credit: 10%

FICO looks at your credit in several ways. For example, for the amounts owed, FICO looks at the credit you owe such as car loans, student loans, credit balances because they judge them differently. They also look at how much credit you have overall and compare it to how much you are using. Though this may seem a bit confusing, this leaves lots of opportunities to improve your score.

A Secured Card May Be The Answer
If you have bad credit or no credit at all, a secured credit card may be the best solution. Just about anyone can get a secured card, however, there is a catch. Unlike with an unsecured, a secured card requires a deposit. The deposit can range from 200 dollars or more. The deposit is usually the same as the amount of credit that they give you. It is important to note, however, the interest rates are high. You use the secured card the same way as an unsecured card. As long as you make timely payments, your credit score will improve. Once you prove that you are responsible, the credit card company may offer to switch you to unsecured credit.

Do Not Go Crazy
It may be very attempting to apply to every credit card offer that comes in the mail. There is no hard and fast rule as to how many credit cards a person has too many cards can cause trouble. Not only does it get hard to manage them, but it is also too easy to overspend. The next thing you know is that you have accrued more debt than you can handle. This will harm your credit.

Pay On Time
There is nothing more important to your credit than making your credit card payments on time. Missing one payment can have a major impact on your credit. Missed credit card payments will stay as a negative mark on your credit record for seven years. On the flip side, making credit card payments on time will only improve your record. Set up autopay to prevent the chance of missing a payment. It will not take long to build the credit that you desire.

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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.

The post What’s the difference between a FICO Score and a credit score? appeared first on FinanceFinder.org.

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.

The post How to build credit without a credit card appeared first on FinanceFinder.org.

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.

The post 3 Top Reasons Your Credit Score Dropped and How to Reverse It appeared first on FinanceFinder.org.

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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