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Re: What are some really effective ways to boost a credit score?

Deven ·
If you can afford to, all at once ! It stops the bleeding immediately. By bleeding, I mean all the interest that's tacked on each month. If you can't do it all at once, definitely cut off the highest interest one first, by paying the minimum payment required on the lower interest rates and throwing the excess on the highest interest one. Once you've reached zero balance on a card, just leave it at $0. You don't need to use it and you definitely shouldn't close it because closing that account...
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Re: What are some really effective ways to boost a credit score?

Men On A Budget ·
Great Question! According to the research that I've done and my experience with helping people remove errors from credit reports, the more you pay and the sooner will reduce your utilization rate the moment it posts (subject to next update of credit reporting) so "all at once" would quicken that for you. The rest of the factors, as you will read in this recap article, are not affected. The sooner you pay the less interest you are paying; however, to avoid needing credit and having to pay...
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Re: What are some really effective ways to boost a credit score?

Adam ·
If you're just establishing credit, a secured credit card might be good. They usually make you pay a deposit to start the card, then after a certain amount of successful payments, they give you the deposit back plus interest and you graduate to a way better credit card with a better APR.
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Re: What are some really effective ways to boost a credit score?

Briana ·
@Deven @Adam thank you, thank you! These are great tips. I actually looked into a balance transfer card to cut out the interest for a certain number of months - that way it holds me accountable to actually pay off the card by that time.
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Re: What are some really effective ways to boost a credit score?

Wen Dee ·
I was told to negotiate with the creditor , many debts are sold for pennies on the dollar and the credit company sometimes will settle for a lower amount. Can't hurt to ask, never know what the company will say.
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Re: What are some really effective ways to boost a credit score?

Drumtrip ·
@Briana I used to work for a credit card company! Some of the best ways to quickly boost credit scores. 1) Don't close credit cards, especially your oldest one. Instead you can just shred the card if you never intend to use it. This keeps your credit line open on your credit report. 3) Ensure you have enough credit, this sounds counter intuitive but having the right amount of credit in good standing shows that you can handle it and helps in the algorithm, even if you pay it off every month.
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Re: What are some really effective ways to boost a credit score?

Briana ·
These are all great tips! Thank you so much! I was always questioning whether I should close one of my cards or not, so now I have my answer.
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Re: What are some really effective ways to boost a credit score?

Drumtrip ·
@Briana It is a balance, you want to keep your credit utilization low, you don't want to have too much credit, and you don't want to have too little If you have too much then closing an account is fine, just don't close the oldest one, that is actually a factor in calculating your score (at least in the older models). I suggest using something like creditwise from Capital One, its free, you don't have to have an account with them and it gives you tips!
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Re: What are some really effective ways to boost a credit score?

Kirsten Cherry ·
I was always told to stay away from credit cards. Even as an adult, I had moved out of the house and lived on my own for 7 years without having a credit card. So what I struggle with is lack of credit. I got my first credit card a year ago and then a few months after that, I bought my first car that required a loan. I have a decent score but hardly any history. I guess I just have to play the waiting game?
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Re: What are some really effective ways to boost a credit score?

AverageJoe ·
All at once is the best way to go! We did it, and we've never regretted it for a minute. We'd rather have that money going into the bank every month than into interest to another bank for what we borrowed. After the crash, the banks raised everyone's interest rates with promises to lower the rates. This wasn't the case. By taking away that interest payment on what you had borrowed, you're not only showing that you can get out of debt, you're showing your disapproval with the way they lied...
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Re: What are some really effective ways to boost a credit score?

FreebiePharm ·
Some banks are flexible with this such as Discover. Others such as Chase will not lower your APR. I recently negotiated with Discover and they agreed to do a 6 month hardship at 9.99%, which is nearly half my previous APR. It has really helped me zero in on paying off that debt!
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Re: What are some really effective ways to boost a credit score?

FreebiePharm ·
There are also credit score stimulators online which can help you when debating how quickly and how much you want to pay off. For instance, you can plug in reducing your debt by $1,000 v. $5,000 and it will tell you how much your score will go up. Great for planning whether you want your money to go towards debt or emergency funds.
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Re: Debt Pay Down Tool - Now THIS is Cool!!!

Bonnie Squires ·
thank you this is my biggest thing now credit card debt and a light bill from our old place than my house payment
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Re: Debt Pay Down Tool - Now THIS is Cool!!!

FreebiePharm ·
I LOVE Bankrate! It allows me to visualize my paydown plan and edit as I need!
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Re: Payday loans - essential or evil?

Moore Income ·
I personally have never used a payday loan. However, I think they ultimately are hurting people when it comes to managing money. I can see how in some cases there may be a need for one but I don't think they should become something that anyone should rely on. The idea of getting your money now instead of waiting creates an attitude of instant gratification and if you are not careful, can lead to much deeper financial issues. Developing a mindset of getting everything "now" will only...
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Re: Payday loans - essential or evil?

Nicole ·
I have never taken out a payday loan & never intend to, as I believe that they are EVIL. I have heard that the interest is extremely unreasonable & it seems that these places pray on people that are unable to get credit for various reasons that need some sort of immediate help. It seems that they are located in some of the poorest areas of town with a lot of vulnerable people in the neighbourhood. That & cheque cashing places that charge extremely high fees. The government...
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Re: Payday loans - essential or evil?

Former Member ·
I was listening to The Indicator podcast the other day, which focused on payday loans. It shared the story of a woman who got a payday loan when she had a financial emergency, but then it spiraled out of control when she could never catch up after taking out that one loan. She explained that she would use a credit card to pay off a loan, then a new loan to pay the credit card, and so on and so forth. She's in a better situation now, but it helped put into perspective how an emergency...
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Re: Payday loans - essential or evil?

Vivienne Stephen ·
These loans are absolutely predatory and evil. They are concentrated in poor minority neighborhoods to take advantage of people who historically, have little or no access to credit. They are yet another tax on the poor. I include the rent-to-own stores and the buy-here pay-here car lots in that category as well.
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Re: Payday loans - essential or evil?

Arthur Pember ·
I have never had to take a payday loan, but I believe they are a financial tool that serves a need for un-banked or under-banked persons. The purveyors of these loans do not and could not remain in business by servicing customers who use the loan products to provide a stop gap in an emergency. The purveyors prosper by enslaving the customers to long periods of indenture paying increasing interest to service the loans. I actually compare the companies to drug dealers, bar owners, and casino...
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Re: Payday loans - essential or evil?

Bonnie Squires ·
I never had to use a pay day loan but fro hearing my daughter store. I would never use them. It took her about 2 to 4 months to pay her loans off. to me they just use people that are poor or can't get a real loan.
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Re: Payday loans - essential or evil?

Caroline Jones ·
I have used payday loans,unfortunately. However they got me out of a difficult situation..My goal is always pay it off asap.
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Re: Payday loans - essential or evil?

KerryE ·
Years ago I was stuck in a vicious cycle of payday loans. The only way I got out from under it was to borrow less and less each time I repaid/reapplied. Took me several weeks but I got away from them and never looked back. They are like escaping an abusive relationship. LOL
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Re: Payday loans - essential or evil?

AnnieB ·
Payday loans prey on the poor and minority population. They are evil. Source: I used to work for one. Quit the job because I could no longer live with myself. We were taught to battle objections for paying back the loan. We had an entire BINDER on collections practices. I have seen employees take checks to the bank to convert the check to a cashier's check when clients did not come in to pay the loan. I have seen employees who would ask the questions of bank tellers, "Is this check good? If...
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Re: Payday loans - essential or evil?

Adam ·
I would like to see post offices adopt more financial services so that payday loans would become obsolete
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Re: Payday loans - essential or evil?

Former Member ·
@Adam I love that idea, except our post office locations would have to increase their hours and their counter staff to make that work without frustrating the masses! I recently learned that some check-cashing/payday loan stores are open 24 hours. No wonder busy, stressed people go there - it's convenient as heck.
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Re: Payday loans - essential or evil?

Adam ·
I'd love to see the USPS expand its staff. I think it's also a good way for the USPS to respond to technological changes in the industry. I don't know if they would have to necessarily increase hours. I didn't check, but aren't banking hours and USPS hours pretty much the same already? The biggest reason I think those payday loan providers exist is because they are in areas where banks don't want to operate.
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Re: Hello, to all

Moore Income ·
Hello @Karen White nice to meet you! I understand the struggle of trying to pay off debt! Just when things seem to be getting under control, something else seems to come up and set you back. I just encourage you to not give up hope! It will take a lot of work and effort but it is possible. If there are any specific areas you could use help with or need any tips or pointers please don't hesitate to reach out here on the forum. There are lots of friendly folks who are willing to be of help in...
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Re: Payday loans - essential or evil?

Arthur Pember ·
Payday loan companies are responding to a market. They charge the high interest, because they can. Other than the unusually high rate they are not too much different than other companies that offer credit and loans. They all charge what ever the market will bear. Think of the actual rate of interest you pay on a credit card, if you only pay the minimum required amount. People who use their credit cards for convenience paying them off in the grace period or as quickly as possible pay little...
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Re: Payday loans - essential or evil?

Moore Income ·
@Arthur Pember I think the USPS already has their hands full enough trying to stay in business delivering packages and competing with other companies! You are right in the fact that they are similar in concept to a traditional loan. Unfortunately, the people who use payday loans consistently do so generally because they just don't have a good grasp on their finances. Without realizing it, they end up falling deeper and deeper into financial problems. I do believe there needs to be a little...
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Re: Payday loans - essential or evil?

AnnieB ·
The post office does not need to be in the payday loan business. Do we really need the government involved in another industry? They have enough problems. My issue with payday loan companies has nothing to do with interest. Remember, I said up thread that I have worked in the industry. My issue is with the collection practices. If you default on a credit card, you're receiving annoying mail and the occasional phone call. You may even end up receiving a judgment and a garnishment. Do the...
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Re: Payday loans - essential or evil?

Moore Income ·
Wow! That is pretty crazy @AnnieB ! That definitely sounds a lot worse than if someone were to simply fall behind on credit card payments!
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Re: What are some really effective ways to boost a credit score?

Sue sweet ·
Re: What are some really effective ways to boost a credit score?
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Re: What are some really effective ways to boost a credit score?

MsKimberly ·
I have not looked at my credit rating lately. This is something I need to make a point to do.
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Re: What are some really effective ways to boost a credit score?

MarieS ·
I have learned that since there are so many ways to help increase your score, focusing on one area and taking baby steps has helped me! Right now, I a focusing on minimizing my utilization of credit. I try to pay more then the minimum payment and then not touch the cards! I have already seen significant increase in my score in a short period of time!
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Re: What are some really effective ways to boost a credit score?

Moore Income ·
@MarieS True statement. I have got mine under 10% utilization and that has really helped my score!
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Re: What are some really effective ways to boost a credit score?

MsKimberly ·
Re: What are some really effective ways to boost a credit score?
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Re: What are some really effective ways to boost a credit score?

Prince_Alarming ·
Another way to help boost your credit is, Experian Boost. I'm not trying to advertise or anything like that, just passing on some good solid info. Experian Boost is free. It uses you electric bill, cell phone/home phone to help boost your score. Just thought I'd pass this on.
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Re: What are some really effective ways to boost a credit score?

Moore Income ·
@Prince_Alarming Thanks for sharing this tip. I had come across them before but wasn't sure exactly how it worked. I can see how that can be helpful.
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Re: What are some really effective ways to boost a credit score?

MarieS ·
I have never heard of that but I have always said how amazing it is that we are not able to include our household bills to establish payment history and credit worthiness! They definitely pull our credit to determine deposit information!!!! Definitely will check this out! Thanks for sharing!
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Re: What are some really effective ways to boost a credit score?

MsKimberly ·
I never heard of that. That sounds great!
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Re: Payday loans - essential or evil?

Stephanie Weisman ·
Yeah I have three that I'm behind on, now. Everyday, two to three times a day calling. Don't answer my phone these days. I need help. Also, live in Texas, I do believe this is the worst place.
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Re: Hello, to all

Joyce Taylor ·
I know what you mean by struggling with bills. I have Medicals bills, I am trying to pay off, I just keep on working online until. i have some money to send my creditors.
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Re: What are some really effective ways to boost a credit score?

Jennifer scarlata ·
Effective ways to boost a credit score 1. Deletion of negatives 2. Clear your debts 3. A maximum of 10% credit utilization 4. Maximum of 3-4 credit cards more than that causes more harm 5. Dispute any errors or items in your credit report 6. If you ever get confuse contact an expert but be very careful 7. Use a reputable credit repair company This should help you http://creditstreamers.com/info/ I started building my score a few months ago and currently have a FICO score of 785
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Re: What are some really effective ways to boost a credit score?

Mike Johnson ·
These are some steps to get faster results: 1. Find out when your issuer reports payment history There’s something called a “credit utilization ratio.” This is the amount of credit you’ve used compared to the amount of credit you have available. You have a ratio for your overall credit card use as well as for each credit card. It’s best to have a ratio — overall and on individual cards — of less than 30%. But here’s an insider tip: To boost your score even quicker, keep your credit...
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Re: The Snowball Method for Paying Off Debt

Robert Kidd ·
Debt reduction
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Re: The Snowball Method for Paying Off Debt

Melissa ·
I'm a fan of the avalanche method too, but I would love to hear how people like use the snowball method. Pros vs Cons? As for helpful tips, I would say it helps me to physically write down every transaction I spend money on: groceries, gas, lunch out. This way I don't forget about the purchase and I can add up the totals at the end of each week. It's almost like a competition to see how little I can spend and the left over money does towards paying off my debt.
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Re: Senior Couple drowning in debt

Lyndsey ·
Maybe it’s time for a bankruptcy and a fresh start! I know it’s a last ditch effort, but why live the rest of your life in such debt? You can keep your home in most cases . It doesn’t cost a thing to look into it. If you or your husband are veterans, they have free financial help available to you.
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Re: The Snowball Method for Paying Off Debt

Savvy Susie ·
The avalanche method is best. Why? Because the goal is not only to reduce your debt but to pay the least amount for carrying that debt. The snowball method can cost you more to use depending on your combined debt and the monthly interest payments you accrue.
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Re: Senior Couple drowning in debt

Birdman ·
Thank you Lindsey. Yes, I am a veteran. I guess our 3 choices are Tirle 7 bankruptcy since we have no assets but the house and a life insurance policy, a reverse mortgage, or a Home Equity loan. Not sure which would be best.
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Re: The Snowball Method for Paying Off Debt

jenakle ·
Vertex42 has a great spreadsheet for comparing which method is going to save you more long term, and includes the ability to customize it (like paying a small one off first, then tackling a higher interest rate). I've tweaked it by copying the estimated pay off dates to the bottom and enjoy seeing the pay off dates reduce as I add extra money each month. I also love their monthly budget and checkbook register spreadsheets! https://www.vertex42.com/Calcu...tion-calculator.html
 
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