Why It’s Important to Maintain a Strong Credit Rating

Dec 30, 2013 by

In the United States, three major credit reporting bureaus set a credit rating for every individual who uses credit cards and other forms of credit. Depending on whether you make timely debt payments, live within your means, and don’t have too much credit card debt at once, your own credit score can rise and fall over time. Let’s take a look at some of the benefits of having a strong credit score.

Lower Your Interest Rates

Your credit rating affects the interest rate that you pay on virtually any loan or credit card. If you have a high credit score, you’ll enjoy relatively low rates on your credit cards. By contrast, a lower credit score makes you look like a riskier bet and may encourage lenders to raise your interest rates, contributing to even more potential credit card debt.

Secure Loan Approval More Easily

In addition to lowering your interest rates, a solid credit rating makes it easier to obtain approval for new credit cards, home loans and auto loans. As a rule, lenders prefer to work with borrowers who have made timely loan payments in the past.

Find Choice Housing

Your mortgage is likely to be the largest loan that you take out during your lifetime, so it’s important to get as good a deal as possible. While every lender is different, borrowers with high credit scores generally receive favorable interest rates on their loans and may enjoy lower down payments. Borrowers with low credit scores and high credit card debt generally pay higher interest rates on their mortgages.

Your credit score may affect your ability to find rental housing as well. Many landlords and management companies won’t accept tenants with low credit scores. Even if they do, they may demand higher security deposits or rent payments.

Improving Your Credit Rating

Because your credit rating isn’t static, you don’t have to worry about permanently bad scores. However, it’s still in your financial interest to maintain or improve your rating over time. If you discover that your credit rating is slipping or feel as if your credit card debt is becoming too difficult to manage, getting help from a trustworthy debt management company like this one can reduce your monthly payments, waive late fees and consolidate your unsecured debts. With the right partner at your side, credit card debt relief can be within your reach.

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Debt Help – Activities That Don’t Require Much Money

Dec 20, 2013 by

As part of an effective debt management plan, you might strive to cut some luxuries out of your monthly budget. But, if you think this means you have to lead a boring, unfulfilling lifestyle, think again. With a strong debt management plan to help you pay off your debts and a commitment to better spending habits, you’ll be well on your way to debt relief, which will in turn give you peace of mind.

Save Your Credit Cards for a Rainy Day

Limiting your credit card use is one of the easiest and fastest ways to change your spending habits. Most American families own more than one credit card. Coincidentally, a number of people carry with them a substantial amount of credit card debt as well. Falling in debt is easy, but getting yourself out of debt takes time. Try to curb your credit habits by resorting to cash-only spending. Only carrying cash means you have a tangible amount at any given time, and when you’re out, you’re out. Cash-only spending will help you learn new spending habits, and will let see the difference between essential and non-essential purchases.

Learn to Shop Without Spending

Shopping without actually spending is an excellent way for you to practice your hard-won financial skills. Go to some stores that would ordinarily be a danger zone for your credit cards. Browse the selection, taking note of anything you would love to buy. If you make a regular habit of shopping without spending, you’ll find that the temptation to whip out the plastic will fade. This not only gives you something to do, but it will strengthen your financial decisions in the future.

It takes a lot of dedication to change your spending habits, but doing so, along with putting together a strong debt management plan, can really make a huge difference in your debt.

A Word on Debt Consolidation

If you’ve already made the commitment to spend less and save more, but you still aren’t able to make a dent in your credit card debt, you may benefit from talking to a debt management company. These organizations can provide money management plans, credit counseling and affordable debt consolidation services to help make getting out of debt quicker and easier.

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How to Get Help with Credit Card Relief

Dec 4, 2013 by

Credit Cards

Being free from credit card worries truly is a relief. It takes a load off your mind and makes you feel as though you can do anything. Getting there, however, is a challenge for many people who find themselves with too much credit card debt and not enough income to pay it off quickly.

If you’re in a situation where you feel trapped by debt, consider debt consolidation as a way to achieve credit card relief. Debt consolidation is a solution that combines effective interest rate management with conservative month-to-month payments. It is perfect for the individual or family who needs credit management that will have a real impact while not being subjected to credit score worries.

The Benefits of Debt Consolidation

The conservative, effective approach that debt consolidation from a company like CreditGuard of America brings to the table is one of its most attractive qualities. Financial savings and credit card relief come through the interest rate reductions you achieve thanks to the debt consolidation company’s ability to negotiate with lenders. While you may not be able to convince a lender to give you a lower rate, the consolidation company does business with lenders across thousands of accounts, and their greater financial backing makes it more advantageous for lenders to give them a lower interest rate.

With these savings, you may end up paying off your loans decades sooner than you would have if you’d just made minimum payments. In many cases, the long-term savings cancel out any minimal monthly fees charged by the consolidation provider.

At the same time, because debt consolidation is not a loan, it will not register as a negative hit on your credit score. Instead, you give the consolidation company access to your accounts, and they make payments each month at a specified time. You pay the consolidation company a fixed amount each month to handle your debt management plan.

Making the Smart Choice for the Future

Debt consolidation can give you the opportunity to achieve credit card relief more quickly than you could imagine. If you have plans on sending kids to college, getting a new car or enjoying a comfortable retirement, it is best to get your credit card expenses squared away as quickly as possible so you can put more money toward savings.

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Credit Counseling Helps People Take Charge of Their Finances

Oct 12, 2013 by

credit counseling can help you get out of debt

Many Americans don’t get the opportunity to learn much about personal finance. Some might take an optional class in high school or college, but for the most part the school system hasn’t done much to fill the financial knowledge gap. As a result, many consumers (possibly including you) struggle to live within their means and remain debt-free.

But just because someone struggles with finances doesn’t mean he or she lacks responsibility. It only means that they need to learn from someone who is more knowledgeable about how to effectively manage it all. And lucky for us, this education is possible with credit counseling.

The Impact of Your Credit Score

With low credit scores, a lender may decide to charge you a high interest rate for an auto loan. Credit counseling includes teaching individuals how they can increase their credit scores so that they are not charged high interest rates every time they need to borrow money.

The Benefits of Credit Counseling

Every American consumer has a credit report with each of the three major credit bureaus. These bureaus have formulas that they use to compute your scores, and they may use your payment history, outstanding debts, credit history, and the credit you are currently using to calculate these scores. If you have a credit counselor like CreditGuard, he or she can help you understand each of the above criteria and how you can improve them.

For example, if your creditors have reported that you have been making late payments, this will have a detrimental effect on your credit scores. Your counselor will explain what this means to you and your financial future. He or she can also help you set up a budget so that you can pay all of your bills on time.

Consider joining the countless Americans who have received help from consumer credit counseling. Counseling can be very beneficial and can assist you in receiving the debt relief that you need.

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Top Four Reasons to Pursue Debt Consolidation

Sep 20, 2013 by

With more and more Americans struggling to climb out of debt every year, many seek the aid of professionals for advice on how to effectively tackle the challenge.  With professional guidance from debt consolidation services, borrowers can find their footing again and start planning for a better, more financially stable future. But what exactly does it mean to consolidate your debt?

Debt Consolidation

Consolidation is the practice of signing up for a single account with a service provider that will automatically make monthly payments for your debt you’ve acquired. In return, you pay the debt consolidation service like CreditGuard of America a reasonable monthly fee that often ends up being less than what you would pay to service your debt.  There are many benefits and reasons you might want to pursue using debt consolidation to get out debt. These include:

  1. Improving Your Credit Score: When you pay down your debts on a regular monthly basis, your credit score will go up. The quick reduction in debt-to-credit ratio will also help your credit score improve.
  2. Reduced Interest Rates: The debt consolidator will negotiate with your creditors to get you more affordable interest rates as well as try to waive any fees that may have accrued due to late payments. You may achieve thousands of dollars in savings as a result of reduced interest rates.
  3. Never Forget to Pay Your Debts: Many people have more than one credit card, and forgetting to pay off a single account can leave a significant mark on your credit score. Using a professional debt consolidation service prevents and avoids that from happening as long as you remember to make the single monthly payment on time.
  4. Consolidate Other Types of Loans Too: Debt consolidation can help you pay down credit cards, personal loans, store lines of credit and other unsecured loans more quickly. You can get reduced interest rates and waived fees on these loans as well.

Does debt consolidation sound like the right option for you? If so, find a debt consolidation company and get started with the process today.

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Debt Management 101

Sep 17, 2013 by

Tips for Debt Management and Reducing Monthly Expenses

Reducing your monthly obligations offers many benefits for living a better life. Good credit management can reduce interest charges so that you have more money each month. You can use the extra money to save for retirement, down payments on cars or homes or to start a business. Extra money each month comes in handy for emergencies, financial opportunities or buying new appliances or furniture without going into debt to do so.

Tips to Save Money

Saving money in general is hard to do, so you should set specific goals to provide compelling reasons to save. Put money aside for a new car, down payment or vacation fund. You can make your money last longer by trying these financial strategies:

  • Make a budget. First, keep track of every penny you spend for one month so that you can find out where your money goes to find ways to cut wasteful spending.
  • Stick to the plan. The best intentions will not work unless you follow through and cut unnecessary spending.
  • Cut entertainment expenses by dropping communications services, eliminating your land telephone line or borrowing DVD’s from the local library.
  • Use unexpected windfalls to pay down unsecured credit card debt to lower your monthly interest charges.
  • Use coupons to reduce how much you spend each month, and try to enlist other family members in your efforts to save money.

Tips to Get out of Debt

The interest charges on unsecured debts can wreck your plans because you need to spend this money each month but get nothing in return. Treat your unsecured debts as financial emergencies that rank at the top of your to-do list.  Professional advisers from a company like Credit Guard can help you get out of debt using strategies like these.

  1. You can reduce your withholding at work and apply the extra money each month to making larger payments on your credit card debt.
  2. Paying more than the monthly minimums each month will reduce your payments next month and help to pay off debts faster.
  3. Start by paying extra on the loan that has the highest interest rate, and work your way down the list to pay off each debt.
  4. If you can’t find enough money to pay more than minimum monthly payments, you should investigate debt consolidation programs.

Debt consolidation programs negotiate with your creditors to reduce interest rates and waive fees and penalties. These services also offer valuable credit management advice that can help you meet your financial goals.


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