The credit bureaus keep the exact method for figuring credit scores a mystery. But there are a number of factors that are known to impact our credit scores. Here are five things you can do to improve yours:

1. Keep an eye on the information contained in your credit report. Sometimes the bureaus make mistakes, and identity theft can also wreak havoc on one’s credit report and score. Federal law requires each credit bureau to provide one free report per year to any consumer who requests it online, by phone or in writing, and we are also entitled to a free report if we are denied credit. So check your report regularly, and if you find any inaccuracies, dispute them in writing.

2. Always pay your bills on time. Even if you’ve made payments late in the past, keeping current bills paid on schedule will help raise your credit score. The longer your history of keeping payments current, the more it will improve your credit score.

3. Keep credit card balances low. Just because you have a $10,000 credit limit, that doesn’t mean you should use it all. A good rule of thumb is to keep each credit card balance at or below 25 percent of the limit. Even if you have a perfect payment history, carrying too large of a balance can adversely affect your credit score.

4. Avoid opening too many accounts in a short time frame. This is especially important if you have a short credit history, but it also applies if you have well-established credit. Opening lots of accounts in rapid succession raises concerns that you could get in over your head, hence lowering your credit score.

5. If you pay off an account, keep it open. This will help by lengthening your credit history. It can also reduce your balance to credit limit ratio, unless you transferred the balance to another card.

Improving your credit score is not as difficult as you might think. A few simple adjustments can really make a difference, but it does take some time. If you are planning to apply for credit, start working on your credit score a few months ahead of time. This will increase your chances of getting the loan or credit card, and it could save you lots of money on interest.

Originating post: 5 Ways You Can Improve Your Credit Score

5 Ways You Can Improve Your Credit Score is a post from: The Family Wallet.

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What about Credit Cards?

Over the past decade or so, credit cards have developed a somewhat negative connotation in our society for various reasons. When people hear “credit cards” they think of those little plastic cards that enable people to spend more than they have, which causes them to go into greater and greater debt from which they cannot escape. Yes, credit cards can provide a gateway for people to fall into debt. But the fact is that if you want a good credit rating, you must own a couple of credit cards.

Owning a credit card for a long period of time is one of the fastest, easiest ways to increase your credit score. In fact, there are even credit cards for bad credit. The sole purpose of these cards is to help you improve your credit rating so that you can eventually get a better credit card. The best thing you can do to improve your credit is to apply for a small credit card, use it to pay for a $50 expense and slowly pay it off over time. Always keep a low balance and never miss a payment.

This advice even goes for those who have a high balance and have been dealing with credit card debt for a long time, which might seem counter-intuitive since the credit card debt caused a low rating in the first place. If you have been working overtime for the past ten years just to pay off a credit card, it is a mistake to cancel the card as soon as the balance hits zero.

Having a credit card in your name that you have had for a long time is a great way to improve your score. Having a low balance on your card that you make payments on every single month will help your rating even more. If possible, avoid lowering your balance to zero at all. Try to keep your balance at 35% of your limit or lower, but do not let the balance get down to zero. However, it is definitely not in your best interest to go out and apply for credit cards left and right. Each time an inquiry is put through to the credit report, your credit score will drop by a few points. It is better to acquire a small number of credit cards over a long period of time instead. If your credit card applications are denied, consider applying for credit cards for bad credit until you get back on your feet.

Originating post: You Could Be Wrecking Your Credit Score Without Knowing It

You Could Be Wrecking Your Credit Score Without Knowing It is a post from: The Family Wallet.

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When you use your debit card, you have the option of having the store’s cashier have your card authorized as a debit card or credit card. Either option will work for you; the bank will remove the appropriate amount of money from your account based upon your transaction. However, there are some differences going on behind the scenes in each type of transaction.

If you opt to use your card as a debit card, you will be prompted to enter your PIN (personal identification number). This interaction offers the merchant an additional layer of confidence that you are the authorized user of your debit card although that security does little to affect your side of the transaction. Merchants often pay their credit card processor lower fees for transactions using debit cards than they do for transactions using credit cards.

No entry of your PIN is required when you use your bank card as a credit card. Your purchase is instead authorized by the Visa or Mastercard system. After the transaction is approved, you simply need to sign your receipt to complete the process.

Aside from the processing going on in the background of your transaction, debit and credit card transactions offer different benefits to cardholders. Debit card users can expect to have the convenience of using their debit card to pay for transactions and withdraw cash from their account at the same time. Cardholders just need to select the “cash back” option when they check out.

Alternatively, credit card users can expect to receive certain perks on their purchases that are a part of shopping with Mastercard or Visa. Mediation with retailers when purchases go awry and fraud protection are common benefits.

All things considered, most cardholders are better served by using their bank cards as debit cards. They can rest assured, then, that the requirement of a PIN will help protect them from identity theft. They can also enjoy cash back privileges. However, while traveling away from home or making very large purchases, cardholders may prefer the protection of Visa or Mastercard benefits.

Originating post: Bank Cards: Should You Use Them as a Debit or Credit Card?

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So what exactly are the benefits?

You don’t pay any interest.
Of course, the most obvious benefit of a 0% APR credit card is that you don’t pay any interest. Be forewarned though, that the majority of these cards require you to make all your payments on time and to pay the balance in full (after the initial grace period) or you will pay interest charges. Be very certain you read and understand the conditions of any card you decide to acquire.

Reward Programs
Many cards offer the opportunity to earn rewards or points for card use. Some of these include frequent flier miles, rebates, discounts on merchandise, or even fuel rewards. Again, be sure to consult the agreement for the terms and conditions of the rewards program.

If you are currently paying interest on your current card, you may wish to consider changing to 0% APR credit card. Some people like to consolidate all their credit cards onto one card and you can save a considerable amount of money if you are paying interest on several different card balances each month. However, to completely avoid paying interest charges, you would need to pay the balance off before the introductory period expires, or transfer the balance again to another 0% APR credit card. There are some things to consider, however, about balance transfers. Some banks will limit the amount of the balance that can be transferred. There may fees involved as well.

Originating post: The 0% APR Credit Card – Any Benefits?

The 0% APR Credit Card – Any Benefits? is a post from: The Family Wallet.

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Never have more cards than you need
While it is always advisable that you have more than 1 credit card, in case it gets lost, you should never have more credit cards than you actually need to use. The principal reason why this is the case is because it becomes harder to keep a track of which cards you have and where you have kept them with the more cards you have.

Always keep a photocopy of your cards
How many times have you been asked what you card number is only to find yourself looking for your card to get the number? Now, what happens if you have a card stolen and no credit card statement to-hand? You have a problem! For this reason, it is always best practice to take photocopies of you credit cards to so that always know where to find the number should anything unfortunate happen to your card.

Always keep your receipts separate
Among the most important of the basic credit card safety tips you’ll receive is never to keep your credit cards and credit card purchase receipts in the same place – because likely as not if you have lost your card, or if it is stolen, then you’ll have lost or stolen the receipts as well. Now there is no way for you to vouch which transactions were yours and which where not – or, there is no way to tell which was the last genuine transaction you made.Moreover, never keep a record of your PIN with your card, this is only asking for trouble!

Never give your account number to someone you don’t know
If you are ever asked to give your credit card details to someone you don’t know, or who as initiated a discussion with you (rather than the other way round) over the phone or via email, you should always refuse. You could call the card issuer and ask them if it is okay for you to divulge the information or phone the enquirer back. If the enquirer seems reluctant to accept this, you have to ask yourself why!

Never leave your account details open to public viewing
It may sound rather basic to say you should never let ‘Joe public’ see your credit card account details, but ask yourself this question: “How often have you received a publication subscription form in postcard format?” Now, suppose you complete this with your credit card details filled in. Suddenly half the world has access your credit card number, expiry date and signature!

Although the above may sound like 5 basic credit card safety tips you already know, you would be surprised to see how many people fail to follow one or all of them!

Originating post: 5 Basic Credit Card Safety Tips

5 Basic Credit Card Safety Tips is a post from: The Family Wallet.

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