Understanding Your Credit Score

Having a good credit score is the gateway to obtaining affordable interest rates, and thus more affordable payments. Our ability to take out a mortgage, or get a loan for a new car, hinges on credit reports and overall scores. It’s the equivalent of having a good grade point average in school, your future qualification and acceptance depend on it. Which is why it’s even more puzzling how few people pay attention to what their score is, or even understand how it is calculated.

The credit score range is quite vast, it ranges from 301 to 850. Most lenders consider a score of 750+ to be stellar, and the top echelon of low-risk borrowers. Anything between 650 and 699 is typically considered to be an average credit score. An average credit score is usually the threshold for obtaining affordable interest rates, if anything at all. While there are some less risk-adverse lenders out there that are more than willing to provide capital to these borrowers, just know that they charge exorbitant rates and upfront fees to mitigate that risk. For all intents and purposes, you want to keep your credit score at 700+ for affordable credit.

So, what exactly affects my overall credit score? People have a common misconception that if they pay all of their monthly bills on time they will have A+ credit, and that isn’t always true. For example, say you have the ability to borrow $10,000 in credit based on revolving loans and open credit cards, and you currently have $9,000 in outstanding debt on those accounts. You may be paying the monthly bills like clockwork, but your credit score will be adversely affected because you are utilizing your available debt at 90%! Lenders will see that borrowing need as risky every time.

Another factor to take into account is the age of your open accounts. If you have 3 credit cards that have all been open less than 1 year, there isn’t much history of on-time payments for the credit rating agencies to pull in. Having newer accounts, and closing out older more established accounts, can actually hurt your score. Consider that before you go out there opening and closing credit cards in order to take advantage of upfront bonus awards.

Lastly, the type of accounts open can affect your score a great deal as well. Mortgage and student loan debt is seen as being more consumer friendly. Whereas, credit card borrowing is seen as more toxic since the rates tend to be higher and there aren’t any tax benefits from paying interest on those.

7 Smart Ways to Save Money on Food Shopping

Price of everything is rising. No matter who or what you blame. You always want to save bucks. If you are going to buy food then it is time to get an idea of 10 tips that help you save money on groceries. You will be able not only to save money but also to eat well. Let’s check details of them.

1.Make a list

It is better to decide your weekly menu. Ask your family members what they need for full week. When you plan ahead then it gives you a chance to keep an eye on best sale deals available in local and online store. You can easily save bucks by going to grocery sales or just to use some discount coupons. No matter what option you use, you get a chance to save bucks.

2.Eat Healthy Food

If you want to keep yourself healthy and have a desire of beautiful/fresh skin then you should eat healthy food. It has been observed that families who emphasize on dieting tend to spend less on extras such as high calories products, sweets, candies and other similar things. Less spending means less expense and thereby more money in saving account. So, if you also follow the healthy diet and minus extras, you surely get a chance to grow your savings. Know what are healthy food items and add them in your menu.

3.Buy from Farmers

If possible then you should contact with local farmers when you need produce. For example, you can contact farmers to ship you corn in season. You are able to get this corn at a very cheap price from the farmer.

4.Pack your lunch

Instead of buying things from a fast food club, you should try to keep your lunch with you. If you have food at home then pack it and carry with you. You don’t need to spend money, when you have packed food with you. Keep in mind that home food is always better than market food.

5.Use Coupons

If you read sunday newspaper then it is quite easy for you to find a lot of coupons. Don’t forget to save these coupons, so you can use them during your food shopping.

6.Buy Affordable Food Form

You are able to get food in many different forms like frozen, dried, powdered, canned, etc. It is a fact that frozen food is less expensive you can afford then easily. So, whenever you go for food shopping try to pick a form that not only fulfils your food need but also help you save money.

7.Focus on Less-Expensive Food

When you are going for weekly menu planning, you should make sure that you add some inexpensive food items in your meals. For example, you can add eggs, beans, tofu, legumes, etc. They are cheap but again they are the best substitute for expensive meat, fish or poultry.

Follow these tips and you will be able to save a lot of money on grocery shopping.