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How to Build a Healthy Credit Score

When choosing a loan, one of the first things we check on is the interest rates. Apparently, the lowest interest rates and the best deals are only offered to those with good to excellent credit. If you have plans on obtaining a personal loan, car loan or mortgage, check your credit first to see if you’ll qualify for the best rates. If you have a low credit score, it’s a good idea to work on improving your credit first before applying for a loan. How can you build up your credit score? Here are some tips:

Remove negative information. Negative information can dramatically pull down your overall credit score. If those negative remarks are old and have already been settled, ask the credit bureau who issued your report if these remarks can be removed. Also, check for errors or incorrect charges in your report. If you found errors, call your creditor involved to clarify the issue and send a letter of dispute to your credit bureau.

Do not maximize your credit limit. See to it that you’re not using more than 50% of your credit limit on all your accounts. Experts recommend using only 30%-40% of your allotted credit to reduce the risk of accumulating debts and improve your credit score at the same time. Don’t close old accounts. Be careful about cancelling credit cards especially if you’ve had those cards for a long time. If those cards have high rates and charges, you don’t have to use them often. Use them once in awhile only for small purchases to keep them from automatically closing. After swiping the card, pay off your balance completely before your scheduled due date.

Submit payments on time. It’s important to submit your payments on time not only to your credit cards but to all your creditors. Pay close attention to your payment dates. As much as possible, try to submit your payments ahead of your due date to avoid delays or missed payments. Not only will this habit help build up your credit score, you can also save money by not paying the extra interest rate and late penalty charges.

Avoid submitting multiple applications to different lending companies. If you want to apply for a new credit card, choose carefully and submit your application to only one credit card company. Don’t try to apply for credit cards just to get the freebies they offer. Remember, too many inquiries on your credit report sends out a negative impression to other lenders and may pull down your credit score.

Call in advance if you’re going to be late. If you know that you can’t submit your payment on time for this month, call your lender or credit card company right away and explain your situation. If you do so, it is most likely that your creditor would extend your due date without reporting it as late payment. If you promised your creditor that you will be paying your balance by the next month, do your best to keep your promise.

The Importance of FAFSA for Applying for College Grants

The Free Application for Federal Student Aid (FAFSA) is the best way to apply for a college grant or a scholarship that could help pay for college. This online application form is a real time-saver, as you don’t have to waste any more time doing research on the Internet about scholarships and grants you are eligible for and you can also increase your chances at getting an advantageous grant by submitting your application on the FAFSA website.

You only have to access their website to learn about the eligibility criteria and other useful information you need to consider while applying for a college grant. Understanding the instructions correctly is the first step of making sure you don’t miss out on the opportunity to obtain a good scholarship. Check out their FAQ section and try to get clear answers to all the issues that may arise because any mistakes or misunderstandings will lead to your elimination.

It is imperious to fill out the application form correctly and in strict accordance with reality. Usually, many student applications are rejected even from the beginning due to mistakes or inadvertences in their application forms. Collect all the documents you might need before you fill out and submit the application, to make sure you are eligible for such grant.

The main documents you’ll need at hand are bank statements, driver’s license, Social Security Number and tax returns. Having all these documents at hand before you start completing the application form will definitely help you win time and enter correct information. Also, this is a good way to make sure you do have all the necessary documents in case you must submit them.

A more efficient way of signing the FAFSA application is by means of FAFSA pin, which is a unique and personal identification number you can obtain on the FAFSA website. This number will allow you to sign electronically your application form and to grant you access on the status of your applications. You can use the FAFSA pin to apply for other financial products in the future, but students are limited to using this number in order to verify the status of their application.

The best way to maximize your chances of obtaining a great scholarship would be to sign up for it in time. Check the FAFSA deadline to see when it’s best to fill out the application form. If you are organized and responsible, you are very likely to receive positive outcomes.