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Why It’s Important To Up Your Credit Score After Graduation

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One would think getting and maintaining a good credit score ends with your education but life has a bigger plan for you as you realize you having a consistent credit score which is good, is important in your finances.

You’re young and probably have no use for loans right now but it is paramount that your financial credit score if very good as it makes it easier to get what you may need later on in life.

Getting a good job, taking loans from the banks/schools, having a home, negotiating for better interest rates, buying a car and many more, all require you to present a good credit score in order to enjoy these benefits.

…and it’s not too early to start…

What is a Credit Score?

A credit score is a single number that represents how dependable you are from the view of someone who would lend you money. Basically, you have to prove yourself as an individual with reliable financial history and this can be done by having a high credit score.

Your credit score can be known through credit reporting agencies, which are businesses whose job is to collect information about your financial behavior. They are most concerned about three major things which are:

  • The money you’ve borrowed
  • The amount of money you owe
  • Whether you’ve been making your payments

What Do You Need A Good Credit Score For?

It’s easier to get a loan whether a mortgage loan, credit card, or an installment loan. Also, you tend to get a lower interest rate which a good credit score.

It can be easier to get (or keep) a job as some employers ask for and are allowed to check your credit scores. Any red flags in your credit history could potentially cost you your job.

It can help you launch your dreams into the entrepreneurial world as your personal credit history may be all you have to go on when you need to borrow money for a embryonic business.

These are some of the few reasons why you need a good credit score and history. Again, it’s never too late to start.

Have a lovely week ahead.

This article originally appeared on Piggybank.ng. Please follow them on Facebook , Twitter , and Instagram

Personal Finance

Productivity Hacks Infographic: Top 20 Apps That Can Maximize Your Time

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In today’s competitive and demand-driven world, there’s a constant need to stay on top of things. Between incessant emails and back-to-back meetings, phone calls and dozens of things to cross off your checklist, it’s no surprise we’re struggling to reach our productivity’s peak.

Here are 20 apps that helps you do just that.

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Personal Finance

DIY: Your 5-Step Financial Planning Guide

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If you’re starting out to plan your financial future, it can get overwhelming. While many opt for a financial advisor to take care of the entire process, you can always handle your financial planning all by yourself (it’s simple, really) if you’ve got the right tools.

For starters, here’s what you need:

1. Set Goals!

Chalk out your goals—it can be short term, like paying off your card payment bills or long term, to meet expenses like retirement and your kids’ education.

Take a step back and do a reality check. Where do you stand now? How are your cash flows? How soon can you meet your expenses? Create a timeline to achieve these targets (and ensure you meet them!)

2. Do The Math

Calculate your total assets, after deducting the debts—and budget smart. Ditch your debt to stay away from piling on more to your list of financial risks. If you’ve got way too many debts to clear and it’s becoming increasingly difficult to keep track of them, here’s a great tool that comes in handy.

3. Build An Emergency Fund

Uncertainties can be hard, more so if they have a significant financial impact—be it an illness, job loss, or even global downturns.

To evade being stranded, ensure that you’ve built an emergency fund (a good start would be to keep aside six months’ worth of expenses), along with solid insurance coverage to back you up.

4. Hire The Right Agents

Apart from the general power of attorney, also ensure you lay out a directive in case a medical emergency comes up (if you’re incapacitated—we know, it’s not the best of thoughts to ponder over). To ensure you plan right, avail the services of an accountant, a real estate planning authority, and a medical power of attorney.

5. Earn Money On Your Money

The final step is to make sure you earn returns off your money. How’d you go about this? To start with, educate yourself. Read, read and read some more—research about what stocks, bonds, mutual funds, ETFs and other financial instruments do. Understand their risks, costs and how you can work on diversifying your investment.

It’s important to invest in something you understand.

Post this, set up your accounts to meet each of your goals—through monthly contribution plans, 401(k)s, low-cost index funds, IRAs or other savings plans. If all these details get you dizzy (or overwhelmingly hard), you’re better off with a financial planner who can do the research and investment planning for you.

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Personal Finance

VIDEO: How Shaq O’Neal Blew His Very First $1M Check In One Day

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Shaquille O’Neal recounts spending $1M in under an hour, after locking in an endorsement deal just prior to being drafted by the Orlando Magic. The basketball star’s shopping spree gave way to a $150,000 Mercedez-Benz for himself, coupled with two others for his family.

What’s more, he successfully paid down all that his family owed and wanted to do “what all the homeboys do — gotta buy rings and diamonds and earrings and this and that,” he told Business Insider.

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