Medical Professionals Find Out Practice Financing Issues With Your Credit Report!
Credit Score Tips – How to Maintain a High Credit Score
by Nicholas T Ihrke
So you have a decent credit score and you want to keep it that way? Here we outline steps to take to maintain your credit score.
Pay Off Your Credit Card Balances – Paying off your credit card balance each month is a good way to make sure you could weather bad times and take advantage of good times if you don't carry a credit card balance around. You won't be paying much in interest if you did this as well. A person that carries a $5,000 balance will end up paying about $70 a month just in interest. That's lost money that could be used to invest in retirement savings.
Have An Emergency Fund – A staggering amount of households are living paycheck-to-paycheck with less than $1,000 in liquid assets. With how volatile the economy is, and the amount of debt that some people carry, that is asking for trouble. With companies doing layoffs, shutting down, or shipping jobs overseas, its important to have an emergency fund available. Saving might not be an easy thing to do, especially when you are paying on debt, but you should start saving something. How long would you be able to pay your bills for if you lost your job tomorrow? It would be best to keep this in a savings account or money market account. Don't put your emergency fund into stocks as you could lose money.
Have Good Insurance – With health insurance premiums always rising, this may be easier said than done. This is a reason why so many people are uninsured. It is still important though because a large amount of bankruptcies are caused by medical bills. Younger people tend to think they don't need insurance if they are healthy, but you never know when an accident or major illness might occur. If you're employer offers it, look into getting it. If you don't have any insurance and have a low income, try looking into any state funded medical assistance. You might opt to get a policy with a higher deductible or "catastrophic" policy. You'll pay more if you have something serious, but the premiums will be cheaper.
Don't Buy More House Than You Can Afford – With the recent crash due to sub-prime lending, and many homeowners now underwater with their mortgage, this is an important piece. A lot of homeowners will underestimate all the costs of being an actual homeowner, like maintenance, repairs, improvements, decoration, etc. You don't need to buy the biggest you possible with your money.
Don't Rack Up Too Much In Student Loans – Some view student loans as "good" debt in that should increase your earning power with the completion of a degree. With the ever rising cost of tuition and graduates currently facing a harder time getting a decent job after graduation, it is important not to borrow too much. Student loans are almost never wiped out with a bankruptcy. Student loans shouldn't total more than 10 percent of your first job's monthly pay. If you already have a lot of student loan debt and still haven't finished school, you might want to consider transferring to a cheaper school or taking some time off to work. If you are already done, you should consider consolidating your federal loans to stretch out payments. You could also look into getting a second job to increase income.
Don't Raid Your Retirement Or Your Home Equity To Pay Off Credit Cards – Lenders will sometimes try to push home equity lines of credit (HELOC) as a solution to your debt problems. This will sometimes cause more trouble than good. You shouldn't use it because if you happened to incur a job loss, it could be used as a financial cushion if you don't have much in savings. This also doesn't solve the overspending that got you into the mess in the first place. Lastly, you're taking unsecured debt which could be erased with a bankruptcy, and turning it into secured debt. If you can't pay the debt, you could lose your home.
Credit And Divorce: How A Divorce Could Destroy Your Score
Divorce people sometimes find out that even years after a divorce, an ex can still affect their score. Creditors don't really care what a divorce decree says, they only care about getting paid. If you made agreements prior to a divorce, then get divorced, as long as your name is still associated with it, your score could suffer if an ex isn't doing their part to pay on time. This can come from not having an attorney help you through a divorce, or weren't advised about a potential problem. Lawyers may sometimes just let couples work out on their own how accounts will be split, and not advise them to the potential harm of not shutting down a joint credit. It is usually policy of financial institutions to close an account and reopen with a new account number in order to remove a user of the account.
Article Source: EzineArticles.com
Having and maintaing a high credit score is of the upmost importance to all medical professionals in todays economic climate. If you ever decide to open your own office you will need to obtain practice financing to start the practice of your dreams!