Five Hints to Better Your Credit Score

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If you are a credit card holder and you realize that your credit score is getting lower, you need to find ways to improve it. Understanding a credit score and enhancing it will give you an excellent reputation. You can take numerous steps to comprehend and improve your credit score without much struggle. Presented below are a few ways you can improve your credit score.

 

Pay Bills on Time

If you pay your bills on time, then you will increase your credit score significantly. If you always delay settling your bills, you will start getting complaints that will lower your score. On the flipside, if you always pay your bills on time, you can be sure that your credit score will rise quickly. Pay your bills on time so that you can be on the safe side.

 

Keep a Low Balance on a Credit

For sure keeping your balance on the credit low will raise your credit score. If you don’t always have credit, then people will start assuming that you are not paying for the things that you purchase with your credit card. You can see why this will earn you a poor credit score. However, if you keep your balance low people will have the impression that you pay for everything you purchase and thus raise your credit score.

 

Use One Credit Card

Sticking to a single credit card will boost your credit score. If you apply for numerous credit cards, it will be difficult to keep track of what you have paid, when you paid it, how much you paid and much more. If you are always confused and forgetful, your credit score will lower with time. However, if you stick to one credit card and pay frequently, you will see a significant increase in your score.

 

credit scoreCheck Reports

With so much activity on your credit history, you should ensure that you have a closer look at all your credit reports. You can do this once every year. Make sure that the reports are correct because just a tiny mistake might prevent you from borrowing and lower your score. If you find errors in your report, you should take the necessary steps to correct it so that it doesn’t impact negatively on your credit score. You can begin by contacting the lender that gave inaccurate information.

 

Get Rid of New Debt

Most people focus their energy on getting rid off debts that they acquired years back. This is good as lenders will see that you have tried to pay your debts consistently over time. However, it’s worth noting that new debt has a huge impact on your credit score and getting rid of it should be your primary focus.

Improving your credit score is easy if you take the steps as presented above and numerous others that could not fit in this post. Also, go through resources that will help in understanding a credit score so that you can know how to raise it without much struggle. In the process, you will realize that understanding your credit score is much easier than you thought.

Tips On How To Apply For Cash Cards

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With the advancement of technology, everything can be done online. This includes the application of cash cards. Umay Plus cash card application  is as easy as entering your details and filling an online form. However, it takes a lot to get your cash card approved. Here are ways you can apply for a cash card and get it approved.

Knowing your credit core

cardsBefore a cash card company decides to issue you with a cash card, they will first have to put your credit score into consideration. Different banks classify peoples’ credit scores differently based on different factors. Therefore, if you know that your credit history is not that good, it is advisable that you put it aside for sometimes before you can apply for a cash card. In the meantime, you can do things that will make your credit score to rise. You can start by ensuring that you make your payments on time, avoiding new debts and ensuring that your balances are low on your current credit cards.

Reduce your debt

Do you know that banks use 30% of how much you owe to determine your credit score? This means that if you have high credit balances, you will have low credit scores. Your credit utilization ratio should also be below 30%. The credit utilization ratio is the ratio of your balance to your credit limit. If you want to lower your credit utilization, you will have to ensure that you lower the balance on your credit card. You can do this by paying down all your credit balances.

Avoid first offers

Having a low credit score means that getting approved for a large sign-up bonus will be difficult. You should, therefore, avoid applying for credit cards if you are not sure you will qualify. This is because each application will be reflected on your credit report. You should only apply for a card with offers that you are sure fits your credit profile.

Show your income

cards and phone Although your credit score is used to determine whether you qualify to be issued with a cash card, still, lenders need to know your income. Your income is very important to card companies and banks since they use it to determine your debt-to-income ratio. To increase your qualification for a card, you need to lower your debt-to-income ratio. You can do this by increasing your income or lowering your debt.

 

Getting On Top Of Your Finances With Scotland’s Trust Deed

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Introduction

Let us be objective; occasionally we get into debts that we cannot pay back with our current income. It piles up and before long; the debt burden is too huge to bear. That is the time you wish for the earth to burst open and swallow you. But it does not work that way with debts: they always have to be paid back to the last coin.
However, Trust Deed Scotland can give you a new lease to financial freedom and stability. It could be the debt management plan you need to find your way back to financial sanity finally.

Why trust deed could be the way out for you

moneyOnce you are deep in unsecured debts, resurfacing to financial stability may be a big challenge. But with a trust deed, this one is no longer an impossibility. It could be achieved as long as you pass the legibility test.

But why would you opt for this plan to manage your debts? Sometimes you do not have any other alternative. The reasons below would explain more.

You get a chance to manage all your debts from one central point

Having to deal with each debt on its own will further complicate your way to financial recovery. Every debtor will be on your back, and you cannot have a good plan for your income. But once you are in the trust deed, all your deeds are managed from one central point. No more calls from debtors since your insolvency practitioner (IP) has everything taken care of.

  • You will be paying what you can afford

Without this debt management plan, you are expected to pay up your debts to the last coin. It does not matter whether you will be left with anything for your living costs or not. But now you will only pay your debts with what remains after your costs of living. Nobody will be dictating to you some installments you have to pay. In a way, you are in control of how much you pay for your debts.

  • Portions of your debts will be written off

The debt payback period is usually four years with room for extension. Once the period is over, your remaining debts are written off. You get a clean financial slate. From there you can bring some sobriety to your financial management and avoid similar occurrences.

  • It gives you back control over your assets

trusted stampWith mounting debts that you cannot pay back, your assets will be at risk of being sold to recover the debts. But with the trust deed plan, you regain significant control over what belongs to you. Now that is what you would want in your endeavors to regain financial ranking.

For those in Scotland and do qualify for the trust deed, this could be financial gift. It could be the one final chance for you to put an end to your bad debts. As long as you can learn a few lessons from this, it will be helpful that you will not be making the same mistakes in the future.

Direct Debit – What Makes It Unique And Different From Debit Cards?

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Introduction

It would seem that banks are regularly coming up with new ways for us to conduct our financial transactions. From the paper checks and credit cards to the ATM cards, debit cards, and ACH electronic transfers, we’ve always had reliable means of paying our bills and transferring our money. Of course, with each new method comes a special set of regulations and fees passed on to account merchants and holders.

A smart businessman or an account user will know how to fully take advantage of any new system. But to do that, they need to know the characteristics and the features of a certain system. The purpose of this article is to cover the direct debit system, which has quickly become one of the most popular payment systems in the world. Therefore, if you are not quite familiar with it, stick with us. Additionally, you could also check Debit Direct, if you need a good direct debit advice or some extra info.

The basics of Direct Debit

man working on laptopThis payment method is undoubtedly one of the easiest methods of deducting a payment straight from a user’s bank account. While it is based on a premise of a paper check, it takes it to a whole new level, thanks to its electronic means of transfer. Simply put, with a direct debit, you will not have to write paper checks ever again. Your clients and customers will simply give you the permission to collect your debts and payments by taking funds directly from the savings or checking accounts and transferring them to your account.

Typically, direct debit is used for regular transactions or auto-recurring billing, such as energy bills or monthly rents. With it, a customer does not have to write checks each month, and they only have to provide a single written permission to allow funds being withdrawn from the account.

Key differences between a Direct Debit transaction and a Debit Card Transaction

Now, since Direct Debit and Debit cards function similarly, you might be confused as to what are differences. Each method authorizes a money transfer from the user’s account and, from a customer’s point of view, they are the same.

However, from a business’ point of view, they are quite different. The transactions themselves are conducted via different networks, while the processing charges are also different too.

Debit card

A debit card transaction will require a business owner to obtain a special business account and to sign a long-term contract. Additionally, they will be required to pay a certain fee to open an account. These transactions are typically processed via the same network as credit card ones, and deposited to a business owner’s account, but without a flat commission. This lack of a flat commission is also known as a discount rate, which is usually lower as opposed to credit card transactions.

Direct debit

laptop On the other hand, the Direct Debit method utilizes the ACH (Automated Clearing House) network, to move funds from one account to the other. With it, you can also use your standard business checking account too. But first, you will have to sign a contract with an institution that will manage the ACH transactions. In most cases, this is not a long-term commitment. There is not an initial fee, but you will have to pay a fee for every transaction. Fortunately, this is usually a flat fee, which is quite low and which does not depend on the size of the transaction.