What are options for cash emergencies?

Sometimes no matter how well you plan you can face bad luck in life.   Between cars, homes, apartments, medical bills, and just general expenses life can knock you back.

While many financial professionals all state that you should have 6 months of your salary saved for an emergency, many of us know that is just impractical.  It’s hard to save 6 months of your salary in the world today. So, what do you do when a disaster strikes?

Here are some things you can do.

First, you can get a short term loan.  One option is to get a car title loan. These generally have high interest rates and are designed to be a short-term loan.  Contact Family Title Loans to learn more.

Second, you can look into refinancing any credit cards into a lower interest rate.  Refinancing your home is one option.

Third, consider taking a loan from friends and family.  But, before you do this be prepared to talk through things ahead of time.  A relationship can be ruined if money comes in between people.

Fourth, contact your current creditors.  If you are going to get behind in paying your bills many times your creditors can and will work with you.  Contact them to setup a payment plan. Whatever you do, always strive to pay your mortgage first.

Fifth, look around your house for things you can sell for quick money.  Look into posting things in your local neighborhood group or Craigslist.  Getting a part-time gig can be a way to earn additional money, but that does take a lot of time, unfortunately.

Finally, look at what expenses you can cut.  Many times you can cut the cord on cable tv or satellite and still get excellent entertainment.  Getting clothes at second hand stores works, and being frugal. You can clip coupons, budget effectively, and be creative.  The internet has every type of idea imaginable. From making your own laundry detergent, and growing your own food–you can figure out a way if you have a cash emergency to get by.

How the Three Major Credit Bureaus Compare

Ever wonder where your credit report comes from? The answer is simple: the credit bureaus. Equifax, Experian and TransUnion represent the three largest consumer credit reporting agencies in the U.S.

All three bureaus collect information about your financial accounts and use them to generate your credit report. The information in your report is then used to calculate your credit score, the three-digit number lenders use to make credit decisions.

But, your credit score with one bureau may not be the same as the other two. That’s because the three credit bureaus don’t always use the same information to create your credit report.

 

How credit reporting works

Equifax, Experian and TransUnion all rely on your creditors to report information about your financial accounts. That includes things like:

  • Your payment history
  • Account balances
  • Credit limits
  • Inquiries for new credit
  • Types of credit you’re using
  • Age of your credit accounts

These factors are what’s used to tally up your credit score. The credit bureaus also collect non-financial information, including your name, Social Security number, birth date, address history and employment history.

 

Why your Equifax, Experian and TransUnion credit reports may differ

While all three credit bureaus can track the same information, they’re not responsible for actually reporting it–your creditors are. For example, if you have a major credit card like the Platinum Card® from American Express, that account would likely show up on all three reports. But, if you have a personal loan with your local bank, they may only report it to one of the bureaus. Some credit accounts are never reported at all. There’s no requirement that creditors do so; the process is completely voluntary.

The credit bureaus can also differ with regard to things like how your employment data is reported. Equifax and Experian may just list your employer’s name while TransUnion may list your employer’s name, your position and your dates of employment. Keep in mind, however, that your employment history has no impact whatsoever on your credit score.

Differences in what’s included in your credit report concerning your credit accounts can directly impact your credit score. Your Experian credit score could be higher than your TransUnion or Equifax scores, for instance, if you have a positive payment history with a creditor that’s reporting only to that bureau.

 

Checking your credit reports

If you’ve never checked your credit before, it’s a good idea to consider reviewing your report from all three credit bureaus. That way, you can see where they overlap and where they differ in terms of what’s being reported and how that may impact your credit score. You can get one free copy of each bureau’s credit report per year through AnnualCreditReport.com.

As you check your report, also be on the lookout for any errors. If you successfully dispute an error, the credit bureau that reports it is required to remove or correct this information. And finally, remember to scan your report for accounts you don’t recognize, which could be a sign of identity theft.