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.

Best Ways to Earn Money Fast

If you are in need of money or extra cash and don’t have much time then you may find yourself in a bit of a pickle. The good news is that there are many ways you can make a dollar very quickly and without too much effort. Here are some ways to make cash fast.

Perform Tasks

There are many websites on the Internet that can connect you with people and companies that need small tasks completed. For example, there are websites that allow you to connect with people in your local area who will pay you for various tasks. There are also the websites that connect people with those who need errands and chores completed and are willing to pay for it. As long as you are willing to complete random tasks from going grocery shopping to mowing someone’s lawn, you can make a decent amount of money very quickly.

Babysit, House-sit, Pet-sit

There are few different types of sitting jobs you can do in order to make fast cash. For one, you can ask your friends or neighbors if they ever want to get out of town if they need a pet or house sitter. This can be an easy job that will make you a quick dollar. If you are good with kids you could also market yourself as a nanny or baby-sitter. Keep in mind that babysitting isn’t just for teenagers, and in fact you can make more money as an adult as you are generally considered more trustworthy.

Sell Stuff

There are plenty of different ways you can sell some of your possessions for quick cash. For one, you can hold a garage sale in order to make extra cash while de-cluttering your house. You can also bring some of your things to pawn shops or consignment stores in order to have them sell it for you. You can also head online to such websites as Craigslist and EBay in order to sell your items that way.

Rent Out Your Room or House

If you don’t mind sharing your house with someone then you could rent out a room to a vacationer for a few days or even weeks. On top of this, if you are planning on being out of town you could rent out your whole house. This is especially the case if you are in a prime location.

Make Arts and Crafts

If you have a little creativity up your sleeve then you could get crafty and sell your wares on different websites. A popular one is Etsy, which is an online marketplace for crafters and artists. You can sell virtually anything on this site from knitted scarves to paintings. You can also check out your local craft fairs to see if you can get a spot to sell your wares.

Find Lost Money

One of the easiest ways to make money is to look on the website Unclaimed.org to claim any money you lost. This website lets you check any state that you resided in to see if there is money being held for you such as old rebates, refunds or paychecks.