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Top 5 Things Highly Credible People Don’t Do

Top 5 Things Highly Credible People Don’t Do

Good credit is essential for almost anything finance related. From buying a house to opening a credit card, having a good credit score ensures you get the best interest rates and you can open high lines which you can access in an emergency. Building your credit is important and it’s not something you do instantly. However, if you want to learn how to increase your credit score and at the same time, learn good habits, you should follow these things which people with good credit don’t do:

1. They Don’t Pay Their Credit Cards on Their Due Date

Credit card payments are due on a specific date and most people wait until this day to pay them to maximize their credit capacity. However, people with excellent credit usually pay off their cards early. While paying on time means you won’t incur any fee, you might incur a penalty on your credit score. This is because your credit utilization rate goes up when you wait until your due date to pay. If you make a big purchase, then try to pay this off early before you credit card company reports the balance to the credit score companies. That way, you will get a lower utilization rates.

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2. They Don’t  Refuses Credit Limit Increases

Having a large credit limit may seem scary, but as long as you’re responsible and don’t plan to use it all up, then there’re no reason to refuse a credit increase offer from your credit card company. A large credit limit shows other companies that you are trustworthy and also, lowers your utilization rate. This can help increase your credit score and ensure you get approved for loans.

3. They Don’t Co-Sign Loans

Co-signing loans is a dangerous gamble. See, when you co-sign a loan, you are essentially taking responsibility, should the person you co-sign with defaults on the loan, then you are stuck with paying it back. This not only ruins your credit score, but you will have to pay back money you didn’t use in the first place.

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4. They Don’t Ignore Inflation or Rates

Savings accounts are a great way to keep your money safe, but the truth is, keeping all your money in an account that earns you less than one percent APY is one way to lose money. You’re not losing the money exactly, but you are losing its value when you consider inflation or when the cost of goods increase. Studies suggest that inflation could be anywhere between four to six percent per year, which means you have to be making at least that in interest to make sure you have enough money in the future. That said, for your future, you need to think of a way to make sure your money works for you.

For example, if you have a structured settlement, the money you get today may not have the same value in a few years. You might want to consider finding a settlement buyer. A settlement buyer is someone who purchases settlements from other people and gives them a lump sum. With a lump sum of money, you can invest in something that will earn you more money in the long run. Look around and find a settlement buyer who can offer you a good deal.

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5. They Don’t Ignore the Fine Print

Fine print is one way you can get in trouble with financial companies. Many companies are quite sneaky and put important things in fine print. For example, they might put that they can increase you interest rate if you miss a payment. That is why you need to make sure you read the fine print before you agree to anything.

Featured photo credit: Richest people via img.gmw.cn

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Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

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  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

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  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

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Featured photo credit: aryehsampson.com via aryehsampson.com

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