How to Improve your Credit Score

How to Improve your Credit Score

If you are suffering with bad credit there are things that you can do to improve your credit score. You may then wonder how to improve your credit score. Here we will show you some helpful tips for how to improve your credit score.

How to Improve your Credit Score

 

1. You will need to get a copy of your credit reports as you are not able to improve your credit score without knowing what it is that you need to work on. Your credit report will include a list of the accounts that are damaging your credit score. You should review the accounts that need to be improved.

2. If your credit report contains any errors then you should dispute these errors so that they are removed. You will need to write to the credit bureau or the creditor that has listed the account on your credit report and ask them to remove the error. Errors are able to severely damage your credit score so they should always be questioned.

3.  You need to avoid using your credit card to make new purchases as this will raise your credit utilization that is the ratio between your credit card balances and the credit limit you have. The higher that your balances are then the more your credit score will be effected. You need to reduce the credit card balance as this will improve your credit score.

4. Your credit score is made up from 35% of your payment history. Your credit score is then hurt when you are behind on your payments. If you are able to, you need to pay off these past due balances.

5. You should avoid making new applications for credit as even credit enquiries are able to hurt your credit score. Also opening a new credit account will lower your average credit age which will also damage your credit score.

6. You will be tempted to close the credit card accounts but before you do this you need to make sure that this will not negatively affect credit. The accounts that balance on should be left open and these will need to be paid off.

7. You should contact your credit card issuer to improve your credit score as they are able to help you. There are credit card issuers that have temporary hardship programs that will reduce the monthly payments until you are able to get back on your feet.

8. 30% of your credit score is the amount of your debt. Your credit situation will only improve once you start paying off your debts. You can opt in selling off some of your items if you do not have the money on hand.

9. There are help aids out there to help you to improve your credit score like the credit counselling agencies. Getting professional help can aid in prioritizing what needs to be done and how it can be.

10. When you are on the road to improve your credit score you will need to be patient as it will take time to improve it.

It is then possible to improve your credit score but it will take time to do so.

SureSwipe is a South African credit provider for merchants that offer free reporting for transactions processed each day.

Small Business Credit Cards

Small Business Credit Cards and How they Work

As a business owner you will want to keep your personal and business finances separately. A small business credit card is then a must. These work like a personal credit card but as the expenses will be separate from your personal ones, doing taxes become easier.

Banks, credit unions and credit card companies are able to provide small business credit cards and there are various options that you can look at.

In South Africa merchants are able to get their credit card machines and information from SureSwipe.

Why have Small Business Credits Cards

 

A small business credit card is dedicated to that of all the business purchases and expenses. They are important in both small businesses and also for home businesses as keeping track of transactions become easier.

When it comes to tax time having a separate credit card for your small business makes the period easier. The tax return forms have separate sections for personal and business. You will know exactly what is what as the transactions are kept separately.

All the business transactions should be kept on the business credit card and all personal transactions should be kept on your personal card. The receipts from each of these should also be kept separately. You will then just need to look at your business credit card statement at tax time and fill in the required fields.

You are able to get small business credit cards that will go a step further and categorise your expenses to make it even easier.

Finding a Small Business Credit Card

If you already have a bank account then you can talk to your bank about business credit cards and what they offer. This can often be the best idea in finding small business credit cards as you already have a relationship with the bank. You are able to get approval quickly this way as long as you have kept your account in good standing.

A great source of information is online as you can compare the terms of various offerings before you choose.

In order to apply for a small business credit card you will be asked for:

1. Name

2. Business Name

3. Contact Details – number, address etc.

4. Verification of Identity and

5. Annual Income

What to Look For

Credit card terms for small businesses will vary across providers. It is then important to research these so that you are making the right choice for what you need.

·         Sole Proprietor – you may make fewer purchases and just need a basic card that has low rates and no annual fees.

·         Business Owner – you will likely make more purchases so a card that offers reward points might be suitable, especially if travel is frequent as you can earn travel rewards which can be redeemed against accommodation and flights. These cards may have higher rates and annual fees. Ensure you know what you are paying before selecting the card and also compare reward cards.

·         Employees – you may need your employees to have their own business credit cards which will influence your decision. You can find cards that have spending limits and will track the transactions of your employees.

Small business credit cards are ideal but remember you still need to aim to pay these off in full each month to avoid interests. You can easily rack up debt if you are not disciplined s ensure you pay each month.

 

Difference between Payday Loans and Cash Advances

Difference between Payday Loans and Cash Advances

If you are considering a short term personal loan then you can consider a payday loan and cash advances.

Payday loans allows you to take small amounts that need to be paid back in full come the next payday.

There are also personal loans that can be larger and the repayments can be stretched over a longer period of time.

SureSwipe are credit card merchant providers that you can talk to about cash advances.

The main short term loan solutions are payday loans and cash advances.

 

Payday Loans

A payday loan is also referred to payday advances and online personal loans are unsecured loans. This means that there is no collateral and there is usually no credit checks required for approval.

A payday loan is approved based on your income and they are designed so that they are paid back on the specific date that you receive your next pay check. Generally they are paid back in one repayment which is the full amount of the loan plus the interest on the loan.

You will also need a bank account that is in good standing in order for an online payday loan. This is because the loan will be transferred straight to your account and your repayment will be deducted electronically on the due date.

Your income will determine that maximum payday loan that you are eligible for. There are lenders that will decline your loan if they find that you already have unpaid loan with other lenders. If you are in bankruptcy or have ever filed for bankruptcy then your loan can also be denied.

Cash Advances

There are generally two types of cash advances. The first is where the term cash advance is used interchangeably with payday loan as it refers to an advance on your pay check.

This type of cash advance has the same structure as a payday loan in that the maximum that the loan can be will depend on your income. These cash advances are expected to be paid back on the next payday or within a month of taking the loan.

The other type of cash advance is those that are based on a credit card or a line of credit. The credit limit that you have available on a credit card will determine the amount that you can loan.

A credit card cash advance is generally treated like a purchase that is made with a credit card. This means that the repayment terms will follow the policies of the credit card.

A cash advance may offer or may not offer you a better deal than a payday loan as it will depend on your credit rating and the terms of your credit contract. There are credit card companies that will charge a higher interest rate on a cash advance.

Unsecured loans in general will have a much higher interest rate then a secured loan. The lender for an unsecured loan has a much higher risk of not being repaid.

When it comes to payday loans and cash advances it is hard to say which the best for a short term loan is.

You need to look at how much you will need to borrow and the interest rate that is attached.

If you need to borrow more then what a payday loan site is offering then a cash advance could be the better option. It is vital that you look at what you can afford, so you can ensure that you can pay it back.

 

Methods of Payment

Methods of Payment

There are generally three methods of payments, those being cash, debit card and credit card. It can be tough in deciding the best methods of payment but it mainly depends on your needs.



You need to take into consideration your spending habits and how well you keep track of your finance.

Cash is not always the best of the methods of payment as debit and credit can prove better depending on the situation.

Cash could be unsafe to carry, you may want to build a credit score or just keep a better track on your spending.

The methods of payment come down to you and what is best. Here is a look at all three methods of payment so you can decide.

Cash

Having cash on hand can be a great way to keep from over spending. You can decide how much cash you want to spend and only have this on you. Once the cash has run out so has the spending.

However for some having cash on hand increases the temptation for spending that they did not plan for.

The one flaw with cash is that it could be stolen or you could lose it. Cash is not insured so when it’s gone, it’s gone. Debit and credit cards are protected in the case of theft and loss.

Debit Card

Debit cards are accepted by many merchants as they will have machines like those from SureSwipe, so they are able to process them, which make purchasing easy.

Debit cards also have an easy record keeping so you can always keep track.

With debit cards the money comes out of your personal checking account, so you can only use the funds that are in there.

You then have to know what is in your account so that your card isn’t declined or you incur an overdraft fee. This then forces you to know your finances and what you have and don’t have as well as how much you can spend.

You need to know and understand your debit cards security. There are some that have similar protection to a credit card. If your debit card is lost or stolen, you will need to report it so that fraud can be stopped and you are not liable for purchases you didn’t make.

Credit Card

A credit card is the best way to create and build your credit score as long as you use it responsibly.

You can use your credit card to make purchases, but you need to be aware of the repayments and interest.

Each month you are required to pay a minimum repayment on your outstanding balance. Interest is charged on any remaining balance at the end of the month.

The interest can be reduced by paying more than the minimum or you can avoid interest by paying the full balance off each month.

Rewards programs and credit cards seem to go together nowadays. You are able to earn points that can be exchanged for items or travel. There are also cash back programs, which give you a certain percentage of money back for each purchase that is made using the credit card.

If your aim is to improve or build your credit score then you need to be careful with how much you spend and also make timely repayments each month. It is a good idea to rather make small purchases at the beginning with your credit card and pay them off in full each month, so that you can start a good credit history.

Credit cards offer a certain protection on items bought.

The best thing to do is to read all the terms and conditions before you sign up for a credit card and sees if it’s the right choice for you.

There are no best methods of payment as each differs and some will find one better than the other.
You may find that a combination is best. It all comes down to your individual circumstances.

It is best to consider the benefits of each of the methods of payments before you buy, so you can keep track of your money better.

How do Prepaid Credit Cards Work

How do Prepaid Credit Cards Work

If you are thinking about a prepaid credit card then you will need to know how do prepaid credit cards work so that you know exactly what you are getting and what is expected of you.


How do Prepaid Credit Cards Work

1. When it comes to how do prepaid credit cards work, you need to know that they are a hybrid. A prepaid credit card works more like a debit card. The amount that is on the card is what you have loaded onto it, which can be topped up. These cards can be used anywhere like with SureSwipe, as they are associated with one of the major credit card providers.

2. A prepaid credit card makes things easier as they are not linked to a bank account, so you will not need to deal with the banks.

The prepaid credit card allows you to do things that usually require a credit card like hire a car or make hotel reservations.

3. If you do not have a credit history or a low credit score, you can still get a prepaid credit card as there is no credit check to qualify. This also means you can’t build a credit score.

It is then a way for you to use it like a credit card but it is your money that you load and spend.
4. Prepaid credit cards will usually allow you to make purchases, withdraw from an ATM, pay bills online, and authorize payments to creditors and other features.

It is important to check the features on offer to understand how do prepaid credit cards work.

5. The card can be reloaded either by:

• Transferring money from a bank account
• Ask your employer to make a direct deposit onto your card with your pay check.
• Transfer from PayPal or
• Reload in a retail store that offers the service.

6. How do prepaid credit cards work in terms of fees could be a question on your mind as there is usually an interest attached to credit cards.

Prepaid credit cards have some pretty hefty fees so shop around.

The fees attached can be to buy the card, to add more cash to the card, to withdraw from an ATM and also to check your balance. Also there could be a monthly fee for the card as well.

Check all the fees associated with the card before you take one.

7. A prepaid credit card can help in managing your money. You could use it as a budgeting tool where you can load the grocery budget on and only use it as such. When the money has ran out, and then you’re spending also stops.

8. Even though a prepaid card is not strictly a credit card you will still receive theft and loss protection.

If you report a loss or theft of the card then the original balance will be restored and a new card issued.

When it comes to how do prepaid credit cards work it is an alternative and whilst it has the properties of a debit card it still acts to some degree like a credit card, which gives you more flexibility