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3 Ways to Take Advantage of Your Rising Credit Scores

3 Ways to Take Advantage of Your Rising Credit Scores

There are many perks that come with having good credit. Not only do you get to live a life without fear of rejection from lenders and creditors, but you also get better interest rates that save you money. That’s why so many of us are consistently working to improve our credit and perhaps even atone for past mistakes

So what happens after you’ve managed to turn things around and bring your credit scores up to a respectable level? Great question! There are a few ways you can welcome yourself to the good life and take advantage of your newly-improved credit. Here are three such examples:

Apply for a rewards credit card and/or do a balance transfer

One of the biggest advantages to having good credit is that credit card companies actually offer you incentives to use their card. Depending on what appeals most to you, this could mean savings on airfare, hotel stays, or just straight-up cash back. When used wisely, and perhaps even a bit creatively, these rewards can save you money, while also helping to further improve your credit scores.

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Speaking of continuing to raise your scores, paying off your debt is a great way to do just that. Once again, as counterintuitive as it may sound, this is where getting approved for a new credit card can actually help. In some cases, credit cards will offer 0% interest for a set period of time. If that’s the case, you can transfer your existing balances from other cards over, allowing you to save on interest.

A word to the wise: just be sure to pay off the balance before the introductory offer expires. Without any new interest accruing, your entire monthly payment will go towards paying off the balance. This makes paying off the debt before the introductory period not only a wise goal but a realistic one as well.

Refinance your car loan

Seeing as cars and other personal vehicles are the preferred method of transportation for most Americans, there’s a good chance you own one. There’s also a strong likelihood that the interest rate you got stuck with when purchasing your car back in your poor credit days is costing you more than it should. While it’s not (yet?) possible to go back in time and get a better deal, it’s not too late to get a lower interest rate.

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Auto refinancing is a fairly straightforward process that in recent years has been growing in popularity. Part of the reason for that is auto loan terms have swelled over the years. In fact, while auto loans once averaged 60 months (5 years) in length, the availability of 6 and even 7 year financing terms have skewed that average upwards. As a result more lenders have stepped in to offer customers the opportunity to pay off their current loan and take out a new one with a better rate. Overall this is great news for first-time car buyers who may have been forced to overpay for a loan or anyone else who has recently turned their finances around.

A new twist on auto refinancing is peer to peer loans. Lending Club recently introduced a new auto refinancing program where borrowers get funds directly from individual investors instead of a bank. If the program proves popular, it’s likely other peer to peer lenders will enter the market. More competition will likely result in lower interest rates for consumers.

Reshuffle your debt by refinancing your mortgage

This one can get a little complicated, but stay with me. First, if you have a home, you’re aware that a mortgage can typically last for 30 years. That’s a long time to stay at the same interest rate you were given when your credit wasn’t so hot.

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Similar to your car loan, you can also refinance your mortgage in order to secure a better rate. However, this also gives the option of doing what’s called debt reshuffling, meaning you can take your other outstanding debts and bill them into your mortgage payment instead. One of the most common uses of this technique is to wipe out the dreaded student debt cloud that hangs over many Millennials.

Why would you bother doing this? Generally speaking, mortgage interest rates tend to be lower than those of other debt types, including student loans. Additionally, mortgage holders are entitled to tax deductions that other types of debt aren’t, making this a double win in some cases. All that being said, debt reshuffling might not be right for everyone, so you’ll want to do some extra research before pulling the trigger.

Get Your Finances in Order

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Getting your finances in order and raising your credit scores is not easy. Now is the time to take advantage of some of the perks that come with having good credit that you’ve missed out on over the past few years. In fact, by getting yourself a new rewards credit card and refinancing your current loans, you will save yourself some extra cash for some new adventures.

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Last Updated on November 24, 2020

10 Steps To Help You Make Your First Million Dollars

10 Steps To Help You Make Your First Million Dollars

Money may not be everything, but the things it could afford makes certain things so much easier. While it can’t afford true love, kindness, passion and wisdom, certain processes becomes much more efficient. A million dollar today compared to a million dollar ages ago is indeed a lot different in terms of value. At the present, it is more possible to make your first million if you really want it. Especially, there are many ways the world can offer to help you make your first million dollars.

Believe you are capable, and you’ll get there. Here are 10 ways to ensure you will reach that goal:

1. Stop planning, start doing

“If you wait, all that happens is that you get older!” – Mario Andretti

The first step is sometimes the most challenging step. If you want to get ahead, you should know not only where to go but also when you are going to perform your first move. Planning alone won’t make you succeed. Too much preparation won’t get your things done. So start doing and remain focused on the goal you’ve set. For example, if you want to earn more money through your current job, seek to have a promotion within the organization or find a company that will help you increase your salary. It’s always about starting to take upon yourself the beliefs and habits of highly successful people.

2. Define your priorities

It’s not enough to simply become busy, give most of your attention to what matters the most and what is important to you. Make sure these priorities you create will continue to support your goal. For example, you want to own a brand new car. What exact amount do you need to feel accomplished? What are your ways and means to make it? These are the questions you probably need to ask so you can begin constructing your priorities list. Let’s say, less spending on home furniture can give you more saving that can accumulate until you achieve your dream car.

3. Track your gains and losses

Sometimes you need to take a look back and see the big picture to realize what you have and where you are today. Tracking your gains and losses means monitoring your past activities to come up with a conclusion regarding your progress. Based on your conclusion, you can decide what you should do next.

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4. Make an investment

Invest in something that will accumulate wealth. Invest in assets and avoid too much liabilities. Investment is like watching your plants grow. How much you keep matters more than how much you spend. Make saving a habit. Save while you can.

5. Be patient

No successful person will think he can make tons of money overnight. Many have found themselves in debt because of too much living in the now. While there are many people as well who really get their patience paid off. Patience works to most people. Being patient doesn’t mean waiting while doing nothing. Remember: no aspiring millionaire is a couch potato.

6. Work with what you have and make the most out of it

Instead of thinking about what you lack, focus on what you have and what amazing things you can do with it. Spend your time and energy wisely.

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7. Expand your knowledge

“True knowledge exists in knowing that you know nothing.” – Socrates

There are several exciting ways to improve your knowledge and perspective about what’s new in your field, it’s endless. It is important so you don’t get stuck to one thing. Have courage to push that goal, you have to keep moving, you have to get deep.

8. Establish routine

Be careful with your actions, you become what you do. Begin each morning with a clear mind and definite plans. Stick faithfully to your routine and finish what you’ve started.

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9. Adapt and develop

You can only do better once you begin to recognize what you need to improve. Change is the only constant thing. Adapt new ways and new strategies to develop more effective results. The value of money is never stable, it changes over time. You have to keep an eye to those changes.

10. Focus on your goal

Keep a clear and determined mind constantly to avoid distractions that drain your energy and mislead you. Know your target and your purpose of getting there. Remind yourself everyday to attract favorable things.

Featured photo credit: Giuliano Maiolini via flic.kr

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