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Raise Your Credit Score

Raise Your Credit Score

Raise your credit score for better interest rates and easy lending from banks and financial institutions.
If you have never checked on your credit score, it is now easier than ever to see how you rate when lenders are looking at your financial record. Your credit score is based on your financial history in your credit record with all activity, both good and bad, influencing your score.

Three easy tips for maintaining or raising your credit score:

Pay off debt

Okay, I understand! That sounds much easier to say, but you can do it! I advise my clients to look at all of their credit card balances and pick the smallest debt. Changing your habits with small steps and small wins will increase your confidence and give you a chance to pat yourself on the back for a successful step toward financial health. Pay off the smallest debt and then tackle the next lowest bill. It is so gratifying to know one account has been paid off and with each paycheck, you whittle down more debt without intense emotional pain.

Keep low balances on bank-issued credit cards and revolving credit cards

According to Nerd Wallet, in 2016, the average U.S. household had nearly $17,000 in credit card debt. You are not alone. But you can reduce that debt. Pick one of your accounts and be sure to pay more than the minimum balance each month. Get one card down to a reasonable amount and then lower the balance on another card.
Not able to pay more than the minimum? It might be time to put those credit cards on ice. Literally! Take all but one of your credit cards, throw them in a container, fill it up with water and DEEP FREEZE those plastic cards. Now you can make payments on the cards each month and get that balance down.

Don’t open an excessive number of credit cards you don’t really need, in an attempt to increase your available credit.

If you have recently established credit, opening up four or five new accounts within two-three years could hurt your credit score, because you don’t have enough of a “track record” for the loan companies to make an educated decision as to your ability to manage your finances. In comparison, when a person has a few credit cards for eleven to fifteen years and later opens several new accounts, it may not have an adverse effect. What is more important than a lot of credit cards is the ability to make payments on time and demonstrate self-discipline in spending activity.

Don’t close several unused credit cards at the same time attempting to raise your credit score.

Positive credit scores are enhanced by a long credit history, so even if your account is not active, keeping an old card in your credit history gives you longevity and counts for about 15% of a FICO score.
A closed account will fall off your credit report sooner than an open one. In most cases, negative credit information will remain on your credit files for seven years from the time the debt first became delinquent. Here’s the good news: Positive credit information can stay on record indefinitely; however, closed accounts in good standing often drop off the credit report within ten years.
You can check your three credit reports for free once a year. 

Here’s a timely bonus that will raise your credit score this year.

Beginning September 15, 2017, the three credit reporting companies will phase in a host of changes that will lower the number of “mixed files,” which often had a negative impact on credit reports of people with similar names, and will update procedural changes aimed at improving the accuracy of these reports.
Find more tips for investing in you!

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Investing In a Volatile Market

Guest Blogger George Diaz

Investing In a Volatile Market

Ever since the election of Donald Trump, markets have been very volatile, hitting record highs one minute, and then experiencing massive selloffs the next. For this reason, it is imperative to know “how and where” when investing in a volatile market.

We are living in turbulent times.

Market volatility should be a reminder to regularly review your investments and make sure you have a diversified investment strategy that matches the overall risk in your portfolio to your personality and goals. Here are some guidelines for you to invest in an unpredictable market.

1. Stand firm: Crises happen on a regular basis and are usually of short duration.

Market crashes can be annoying, but history shows that the stock market has been able to recover from declines and can still offer investors a positive return in the long run.

In fact, in the last 35 years, the market has experienced an average decrease of 14% from highest to lowest during each year, but still had a positive annual return more than 80% of the time.

2. Be at ease with your investments

If you are nervous when the market goes down, you may not have the right investments. Your time horizon, goals and risk tolerance are key factors in ensuring that you have an investment strategy that works for you. Even if your time horizon is long enough to justify an aggressive portfolio, you have to be comfortable with the bumps you will encounter.

However, you should be mindful of not being too conservative, especially if you have a long-term horizon because strategies that are more conservative can not provide the growth potential you need to achieve your goals.

 

Attempting to enter and exit the market can be costly.

3. Do not try to time the market

4. Invest regularly despite volatility

If you invest regularly for months, years and decades, short-term crises will not have a big impact on your bottom line. Instead of trying to judge when to buy and sell based on market conditions, if you take a disciplined approach to investing, you avoid the dangers of market timing. Seize opportunities!

Bear Market Strategies

During a general downturn in financial markets as a result of economic uncertainty, investors rush and seek security in their investments.

There may be some actions to take while the markets are down, to help you have a better position for the long term. These strategies are complex, and you may want to consult a professional before making any investment or tax decisions.

1. Avoid positioning yourself in volatile funds or ETFs of complex nature, even more so during a full correction.

2. Say goodbye to the losers. Now is the right time to do a portfolio cleaning. If these stocks did not perform well in boom times, why would it be any different now?

3. Reduce your stock positions. If the market continues to decline, you will be able to go hunting for undervalued securities, because you will have sufficient liquidity.

4. Buy bonds. Debt securities can be great allies in the midst of bearish gaps in the market.

5. If the stock market continues to move down, try to avoid constant monitoring, as fear will make you anxious and often results in people making hasty decisions about their assets.

6. Taking short positions is one way to make money in a bear market, such as selling futures, betting on declines or helping to reduce your portfolio exposure to the market.

Guest blooger George Diaz writes for finance sites: sobredinero.com and Myfinancialwisdom.com. He can be reached at george@sobredinero.com or via Twitter @sobredinero1