Quick Loan

Now, more than ever, we are ever reminded of our credit score.  As prices rise and wages fall, shortfalls in the pocketbook are increasingly common.  What has been quickest and easiest way to solve this problem?  Credit cards and quick loans, or payday loans.  However, even now, the economy is affecting credit cards and how they shape our own financial history and stability. 

Long ago, older generations began warning us of overusing our “plastic” (credit and debit cards included), and some even avoided using their own bank cards, preferring to use cash.  The economy in general, however welcomed and encouraged plastic.  Those who would slide their card over using cash were rewarded and congratulated for their modern outlook and participation.  Not only were we, as a public, rewarded by way of “cash back” and tangible goods; but our credit scores were said to be raised by such activities.  How was one to acquire their first loan if they had no credit history?  What’s the best way to build up a credit history?  Get a credit card.  It was simple and oh-so-easy.  But, now more than ever, consumers should be wary; especially those with existing accounts.

There are many factors that make up your credit score; each one having a different “weight” placed on it by the evaluator.  Over half of the credit score is usually made up of your payment history and how much you owe to lenders in general.  Payment history is compromised of paying your bills on time and in full consistently.  How much you owe is measured in relation to how much credit is available to you.  Most financial advisers suggest carrying a balance of no more than 50 percent of your available credit.  However, in this situation, less is more.  If you can carry 25 percent or less your score will be even higher.  Another significant chunk of your score is how long your history has been building.  This is slightly dependant on how long you have been able to carry credit on your own.  Late teens, for example, will definitely have a shorter history than their parents.  Thus, many are opting early on to start building their scores.  While this is good, it can be dangerous and should be done with care.  Other smaller influences include; requests for your score, steady employment, and frequent requests for new lines of credit. 

Well informed consumers can safely acquire and use a credit card for their advantage to build up credit.  Using and paying off a credit card is an excellent way to stabilize and develop your score.  Doing so with the same card for several years is even better.  Even using quick loans or fast cash occasionally can be useful.  Now, though, credit card companies are in trouble just like the rest of the economy.  What’s their solution?  Lower your limit unexpectedly.  Some argue it is better than raising interest rates.  On the other hand, it can be very damaging to your credit score depending on how much the limit is lowered and if you are capable of paying down your balance on short notice.  Further, some companies continue to lower the available credit limit as the balance is paid off by the card-holder.  This increases the loss on your score and effectively makes the card less useful to you as the consumer. 

How could one decrease their balance unexpectedly?  Ideally, credit card holders can pay off their cards, they just choose not to.  Having money saved for such an occasion would be the easiest and least painful way of eliminating such problems.  However, many of us use credit cards to help out when money is tight.  This generally does not suggest extra money lying around.  Another option would be to take out a quick loan; assuming that the money for that loan would be available sooner rather than later. 

It is increasingly important that we keep close tabs on our credit cards, credit scores, and general financial reports.  Many companies like Experian and Equifax offer scores for a fee and by law, a consumer can check their score for free a certain number of times.  With so much accessibility, being aware of the actual money we spend can go leaps and bounds in aiding any credit score.  Even if one must or chooses to use credit cards and quick loans, it can be done to an advantage.