With five months left to 2019, it is my fervent wish that your financial journey thus far has been prosperous. Although I am certain that unforeseen mishaps, and unexpected costs, may have briefly hindered progress, the key is to remain diligent and steadfast in the completion of short – and long-term goals. Thus, whether you resolved to budget twice and thrice as hard as the months before, have reduced your credit card, an overall, debt, or are ready to book that long overdue vacation, again, full commitment to creating and executing steps for success is crucial.
In examining credit card debt, and the eradication of this lingering debt, further, it is important to note that while education on credit is abundant, access can be limited. Additionally, because every level of comprehension is as unique as the individual, one cannot assume that the information available is easy to digest – it is not. Truly comprehending what credit is, credit laws, interest, and the consequences of poor credit management takes time. To help individuals in this process, Experian held another #CreditChat on Wednesday, July 17th. As such, financial advisors, educators, and enthusiasts spent an hour showcasing their expertise while reflecting on current and past experiences regarding credit. Below you will find my answers to these compelling questions and I encourage you to share your own answers, too! Q1: When did you start realizing how important credit is? WW: Whenever my mother’s monthly credit card statement arrived, she would focus all of her energy on this singular piece of mail before anything else. Setting aside the necessary funds to pay her credit card bill was of the utmost priority! #CreditChat Q2: How did you start building credit? WW: Through student loans. I had borrowed one $6,000 subsidized loan as an undergraduate and was diligent about successfully paying it off upon graduation. #CreditChat Q3: How often do you check your credit report? WW: Whenever Chase emails me about changes to my credit score via the Chase Credit Journey report, I immediately check. #CreditChat Q4: How do you fix an error on your credit report? WW: Similar to many of the responses throughout this thread, immediately contact the credit bureau should you believe information is incorrect. Bureaus like Experian will investigate the claim and report back with a response within 30 days. #CreditChat Q5: What are some pros and cons of being an authorized user on a credit card? WW: My uncle was an authorized user for my first credit card and the benefits were plentiful, including me building credit. However, I often struggled to pay the monthly balance due to inconsistent income and funds, so he often had to pick up where I could not. #CreditChat Q6: Is it a good idea to request a credit line increase? WW: If your credit is top notch and your track record is sold, requesting a credit increase, and subsequent approval, should not pose as an issue. Moreover, with the increase, you should be able to continue making consistent monthly payments. #CreditChat Q7: In what order should you pay off your credit cards? WW: The credit card with the highest interest rate should be paid off first. Choosing this card first will allow you to repay the debt in a shorter amount of time and will help you avoid unnecessary charges. #CreditChat Q8: Should you cancel credit cards that you don’t use? WW: Canceling credit accounts can negatively impact your credit score, especially if the balance(s) on all other cards still need to be paid. Additionally, if the credit card you seek to close is your oldest, leave it open! #CreditChat Q9: How do you stay motivated to work on increasing your credit score? WW: Remind yourself that you are working to achieve long-term financial goals, and a solid credit score assists in achieving this goal. Likewise, the road to financial freedom and security is exhausting; however, it needs to be done. Also, finance must work in the best interest of the people, too! #CreditChat Q10: Any final tips on improving credit scores? WW: Don’t close unused credit cards; keep credit card balances low; and pay all bills on time. #CreditChat
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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