Struggling with bad credit? It happens to the best of us. A few late payments are no big deal, but when they strike your credit, you need to take charge. So don’t wait around, get down to fixing what you can to increase your credit score. If you’re not sure how you can fix this directly, check out this article. There are small and creative ways in which you can fix a bad credit score, ways that you never even thought of! First, understand the variables you’re dealing with. Credit score is a three-digit number that measures how dependable someone is in terms of repaying borrowed money. It’s got five components: the mix of debit and credit that you use, your debt burden, payment history, the time duration of this history, and the number of inquiries into your credit. To improve your score, you have to change your credit practices. Cut down on your spending and ensure that you make regular payments. Here are some alternative ways of raising a bad credit score: 1. Additional income If you don’t want to cut down on your expenses, you can create a new source of income instead. You could do this by asking your employer for a raise, renting out a room in your house, selling items that you make out of your creativity, or even getting a second job.

Most banks offer checking account services, which are one of the most common types of bank accounts opened by customers. Here’s what you need to know about checking account services. 1. Checking accounts Checking accounts and savings accounts are the two most common types of bank accounts. Savings accounts offer interest, and the bank insists on the account holder maintaining a minimum balance. Checking account services offered by banks, on the other hand, allow its customers to open checking accounts that do not offer interest, but there is no requirement for a minimum balance either. If the account holder maintains a minimum balance, they may be given interest. 2. Features of a checking account A checking account is also referred to as a transactional account, and an individual or business can use this account to carry out all their transactions. Some of the prominent features of a checking account are as follows: It is an account that can be opened by an individual or by a commercial organization or business. Students can also have a checking account in their name, and it can also be opened as a joint account. The main feature of a checking account is the liquidity it offers.

Credit cards are very convenient, and, most often, have very attractive offers. They are indeed a great financial tool when used correctly. On the other hand, credit card debt and all other problems are not going to be far behind in case of mismanagement or wrong usage of a credit card. To keep your credit card and yourself out of trouble, follow these basic rules: 1. Use your card as a convenience and not a loan A credit card should be used with the mindset of making bigger purchases or spends without the hassle of actually carrying cash around. You still have to think hard and only spend or buy what you can afford. If you use the card to make payments far beyond what you can afford, you are, in effect, taking a loan at high-interest rates, and it does not make financial sense. You might as well just get a loan from a financial institution for that specific purpose at better interest rates. If you are not going to be eligible for that loan, you are most likely spending on something that you cannot afford. 2. Save for a rainy day Your emergency fund should be an actual fund.

You may already have a pension plan in place, but you might have to borrow money prior to retirement for medical emergencies or sudden expenses. However, not all retirement plans will permit you to withdraw money in advance. When you borrow money from your own pension, it is different than when you borrow from any lender. So, applying for a 401(k) loan is something like borrowing from yourself. Before applying for a 401(k) loan, it is important that you understand all the risks and consequences. When you fund a 401(k) plan sponsored by your employer, the money will continue to grow with years and can turn out to be a great safety net for you when you retire. But, when there is a financial crisis, as a case of personal bankruptcy, you are left with no choice. In such situations, applying for a 401(k) loan makes sense because it can offer you better loan terms than any bank. 1. Loan limits The loan is going to be subject to some limits, meaning that there is a legal limit to the amount that can be borrowed. The law usually fixes this at 50% of the vested account balance. This balance is what you own and for this, you need to be with an employer for a stipulated period of time.

Sometimes, it is easy to get stuck in the rut of investing or be afraid after losses suffered. Markets always have their ups and lows, but that shouldn’t stop the investor in you. What you need in these scenarios, are some other outlets for your investments. Looking for some maximum returns on investments tips that are a little out-of-the-box? Take a look at these creative ways of investing to get you more financial success. 1. Peer-to-peer lending It’s also called “P2P” and it has made lending a wider activity. In this, two parties get in touch and fix the conditions of a loan in a mutually-beneficial agreement. You can make applications for loans anonymously and avail flexible loans with easier repayment terms if you’re borrowing. On the other side, investors can choose from a variety of loans to add to their portfolios and can earn a lot more than traditional investment options. The way P2P works is that you invest not in entire loans, but rather, small portions of loans. So if someone defaults, you’re still protected. Your arrangement minimizes your risk of losing a large amount. You even have the freedom to pick the loans that should make themselves available to you.

A reverse mortgage is a loan that is available to homeowners who are 62 years and above and allows them to convert a portion of the equity in their home into cash. The main idea behind this concept was to assist retirees who had limited incomes. They could use the accumulated equity in their home to pay for the basic living expenses and healthcare. 1. Why is it called a reverse mortgage? This loan is referred to as reverse mortgage because rather than making monthly payments to some lenders like in traditional mortgage, here, the lender will make his payments to the borrower. The latter need not repay the loan until the home has been sold off or they have vacated it. So, till the time the borrower resides in that house, he/she will not have to make monthly payments for the loan. However, one has to continue paying property taxes, homeowner’s association dues, and homeowner’s insurance. 2. How does it work? The whole loan amount becomes due and must be paid when the homeowner moves away for good, sells their home or dies. According to federal laws, the lender has to structure the transactions in a way so that this amount does not go past the value of the property, and the borrower is not held responsible for paying the resultant difference when the balance becomes more than the original home value.

Once you become a parent, you realize how the rest of your life will involve in-depth financial planning for every big step in your and your child’s life. Saving for college seems like a great option but most parents are clueless where to start. Before you start putting away cash for your young one’s future, it is necessary to ask yourself the following questions: 1. How much do I need to save? While estimates put the number at a relatively low sum for a public school, this number increases much more if the college is out of state, and to almost double the cost of a public school if it is a private university. If you take into account inflation, these numbers are likely to increase. However, scholarships, student jobs, family contributions, all make saving for college much easier. 2. What is my financial situation? The amount that goes into saving for college funds depends on your current financial situation. If there is not much wiggle room in your budget, make monthly deposits that you can afford. Usually, it is convenient to save about 10% of your discretionary income towards your child’s college fund. Discretionary income is the sum that remains after you deduct taxes and the necessary expenses such as groceries, transportation, insurance, healthcare, etc.

Students usually open savings accounts when they move away from home to pursue their studies or when they want to save up some money while studying. Traditionally, banks have not paid much attention to savings accounts for students as they are perceived to be a customer base that does not have much disposable cash or cash to save. With the realization that today’s students are tomorrow’s young adults, banks are starting to woo students by offering them accounts with very attractive options. One of the main things that a student would want to look for in a bank is that the fees are low or practically nil. Students in this day and age are tech-savvy and having access to their money from anywhere and having good online banking services are very important to them. Features of attractive savings accounts for students would be: 1. No fees A student should not have to pay fees and charges to maintain the account. When opening a savings account for students one must ensure that there really are no fees hidden or otherwise that the student has to pay. This includes monthly fees, transaction fees, withdrawal charges, etc. Some banks advertise nil fees but then specify that only certain services are not chargeable and limit the free services available to the account holder.

Due to its promise of quick and easy money, online trading attracts many investors. The stock market is concerned with buying and selling shares of small and large businesses alike. And although quite difficult to navigate, once you’ve got the hang of it, trading in the stock market can be very profitable. The following stock market tips help beginners avoid losses and maximize their yield: 1. Research before you start investing Novice traders tend to blindly follow the stock market tips they read on the internet. It is always better to research the online trading portal, check its credibility, and educate yourself on the basics of the stock market before you start trading. 2. Keep in mind your long-term goals Before you start trading, ask yourself what your long-term goals are. Do you want to save up for retirement? Your kid’s college fund? Do you want to pay off your mortgage? Or, do you need a means of income in the short term? You need to consider the returns you require to meet your goals. Also, consider the amount you need to invest to reach that sum in the stipulated time. This can easily be calculated with the help of the various financial calculators available online.

Taking a mortgage envisages taking a loan for a home or building with the property being used as collateral. Taking a mortgage is a common method of financing for all those who want to buy a home or any property. A mortgage is essentially a loan taken by someone who wants to buy a home but doesn’t have enough funds to make the purchase. The purchased property would be the collateral for the lending institution to lend the money. Every month, repayment installments would need to be made until the loan is cleared. Once the loan is cleared, the property would be transferred to the name of the individual, and they will get its ownership. Here’s a breakdown of everything you need to know about a mortgage: 1. How a mortgage works Buying a home is an expensive proposition, and most people do not have the money required. This is where taking a mortgage comes into the picture. To take a mortgage, a down payment needs to be made, which would usually range from 3.5% to 15% of the total value of the home. This would be decided by the lender, and the interest rate for the mortgage would also be decided in advance.