Using technology to manage finances

Technology has made great leaps and bounds in the last decade. Many new products have been released to streamline and make our lives more efficient. How can this apply to your financial life? Gone are the days of balancing a checkbook, instead you can log in online and review your bank accounts and all transactions. No longer are bills mailed in, but instead they are paid electronically. That is only the beginning. You can use your pc or tablet to do much more. I have an Apple Ipad and I use it to keep a close eye on my finances. I use an app called Billminder to remind me of all of my obligations. I use Mint.com's app to keep track of my spending data. They give you breakdowns of every dollar you spend and give you advice to help manage your finances. I also use Numbers (think excel) to keep a separate log of bills. Most major credit card companies and banks also have applications so that you can keep an eye on all of your accounts. This technology makes it possible for you to stay on top of your bills, control spending and save effectively.

Is it okay to pay the minimum payment on my credit card?

No! You never want to pay just the minimum payment. Ideally you want to keep your balance below 25% of your credit line. So if your credit card has a $5,000 limit and you never want to carry a balance over $1,250. Carry a large balance can drastically lower your credit score. A good tip is to never buy anything on credit you don't already have the money for.

I have no credit. Where do I begin?

Having no credit sucks! It is very hard to establish credit initially because most banks are afraid to be the first on your credit report. How can they properly assess your risk if they have no data to use in their process? Most people get frustrated and want to give up on the process. Some resort to co-signers. I am here to give you the best method to establish your credit. Join a local credit union. By joining a credit union you will have access to multiple financial services and financial advice. A representative will personally guide you through your options to create a program that works best for you. I suggest starting with a small credit card and small loan. Those are easy to qualify for and will help you qualify for auto loans, mortgages, student loans and large limit credit cards in the future.

It's tax season are you getting a refund?

It's that magical time of year that everyone has been waiting on. Uncle Sam has money with your name on it. How much are you getting back this year? What will you do with the money? Take a second and think that through thoroughly. If you have been looking into paying off debt, repairing your credit or investing those are all great options. Avoid the temptation to spend the money on things that will not benefit you long term. Remember this isn't free money, but instead money that has been put away for you into a savings account of sorts. When processing your taxes please avoid rapid refund options which can cost you hundreds of dollars in interest charges. Maximize the amount of money you put into your pocket. I wish you all well with your taxes. Subscribe as I will be adding more info soon.

Boost your credit score rapidly!

I thought that would get your attention. Honestly it's best to take the slow and steady approach to credit repair. The first thing you want to do is completely change your financial culture and increase financial awareness. Without a different mindset you will only find yourself back in the same place again. Once you have changed your outlook on money, spending and saving then you want to add positive credit. The best way to do this is in the form of a credit card or personal loan. You want to start establishing positive credit as soon as possible. Once you have that done you want to start working on removing negative items from
Your credit bureau report. This isn't an overnight process. Remember anything worth having is worth working for. I will be adding detailed information on this as time progresses. Thanks for following this blog.

Do you have any questions about credit?

There are many topics that I plan to cover in the coming weeks, but first I want to give you all the opportunity to ask me any questions you may have about credit. Email me your questions. martinrandyd@gmail.com

What is your credit score made of?

Pay your bills on time and you will have perfect credit. Not exactly. That is a common misconception of credit scoring. Your score is the result of a formula computed by the Fair Isaac Company. It consists of payment history (35%), debt level(30%),age of credit history(15%),number of credit inquiries(10%) and mix of credit(10%).To gain the best score you want to have multiple types of credit, keep low balances on your credit cards and only add new credit as needed. You want to avoid credit inquiries, late payments, collections, judgements and bankruptcies as these all have a negative impact on your score.