As parents, we can directly impact kids' attitude and beliefs towards money. However, certain inflection points in the child's life, like a college education or a major career option will warrant not only educating them on money, but also might warrant some quick arrangement of money for unforeseen expenditure.
A good credit score will have a huge impact on your life. So much so, that it is worth investing time developing your score in order to maintain a consistently high rating. Every company will score you differently when you apply for credit, be it a small investment or a major life-changing purchase. That said, there are some elements that they will all look for, namely the ability to repay credit in a timely manner.
The following three methods are the quickest ways to boost your credit score. However, they can also be risky. So before proceeding, take both the pros and cons into account.
Cash Installment Loans
A cash installment loan is a longer-term loan that requires you to pay back the money owed through a series of regular payments. The loan itself will accrue interest, the percentage of which is dependent on each individual contract. You can apply for installment loans online for small quantities of cash (1,000 dollars), and have it released into your bank account within a matter of days.
The benefit of using such a company is evident when you are in immediate financial difficulty and need to pay off another loan that has a greater amount of interest, or you're facing debt collection action for missing repayments. With minimal application requirements, it is a short-term quick fix that can bide you time whilst you source a more stable form of income. If you are able to make the payments each month, this can improve your credit score, as it demonstrates your financial reliability.
Unfortunately, these money-lending services often come with very high-interest rates, which can cause you to fall further behind with your overall debt payments. They should really only be used if you are able to pay off the monthly charges with ease, as missing payments will adversely affect your rating.
Taking out a credit card can also help you to improve your credit score, provided you are able to make regular credit payments and pay them off. To make this easier it can be done both online and over the phone. In order to reduce the risk of late payments and accumulating credit debt, it's best to opt for a low-interest card with a spending limit. This will allow you to use the card for fuel, food and monthly essentials without the risk of overspending.
Credit cards must be used with caution though, as it is easy to use money that you don't have. This can result in large end-of-month charges, which if missed, will also affect your credit score.
Consolidation loans are advertised as a solution to paying off multiple loans with varying interest rates. What happens is that your current loans are paid off, leaving you with one monthly repayment with a lower interest rate. Just like the other two methods, if you are able to demonstrate financial reliability your rating will increase.
Unfortunately, your home is often used as security against these loans. Therefore it's imperative that you have a regular guaranteed income that will allow you to pay off the charges each month.
About the author:
Devishobha Chandramouli is the founder and editor of Kidskintha- a platform dedicated to helping millennial parents raise happy kids. Get your own FREE copy of the eBook "137 Proven Productivity Hacks For The Millennial Parent" now.