5 Ways You Can Rebuild Credit When You Reach the Twenties

Debt repayment

Credit scores aren’t even considered as important by many of you till the time you decide on making some form of investment. You may realize your dream of being a businessman or homeowner when you’ve settled down in your thirties or forties. Very few of you tend to maintain a good credit when you’re in your thirties. The damages caused to your credit score when you’re young can actually be repaired if you maintain a few good habits.

Keep an Eye on Your Credit Report

In order to lower your credit more efficiently, you must be aware of the true extent of damage caused to it. TransUnion, Equifax, and Experian are the three leading credit monitoring services that help in generating the credit score of a person. Your credit score is bound to take a hit when these reports depict errors. Errors may reflect anything ranging from careless payment mix-ups to fraudulent accounts that can leave a negative impact on your history. You’ll often need to submit some verifiable documents in order to get these errors rectified.

Reconsider Your Credit Approach

Until you’re able to pay off your credit card balance within the same month, you must avoid using your card. Refrain from applying for new cards. All credit card applications that you make are tracked by credit reporting agencies. Your credit score is bound to be underlined when you consider applying for an excessive amount of credit. Once you pay off your older cards, you must keep a record of them. Lenders prefer issuing a credit to applicants that have a long credit history. You must attempt to keep your account active even if you need to use the account for once every month.

 Meet Bills on a Timely Basis

All of your bills ought to be paid off in a timely manner if you really wish to main a strong credit under all circumstances. Your credit score is bound to reflect a negative impact once you get past the due date of your car and mortgage loans by over 30 days. Your debt repayment track record holds about 30% of your liability to the lender. By intending to pay off your monthly bills on a timely basis, you may initiate the process of credit repair.  In order to make your payments on time, you may choose to use text reminder messages or set up your financial calendar.

Pay off Debt

It often becomes tough for many of you to practice healthy credit habits till the time you work out of a heavy debt burden. You’ll stand the risk of falling back on certain ill-habits after your finances get restricted by debt; you may have acquired some of these habits when you were in your twenties. Prioritizing debt repayment with whatever extra you earn will help in repairing your credit. Credit scores are bound to rise when your debt balance lowers as an outcome of the reduced credit-utilization ratio, which reflects your outstanding debt against that of your credit line.

Secure a Fresh Credit Line

You may easily achieve a usable line of credit when you achieve a retail card or any secured credit line. You’ll find it much easier to qualify for retail credit cards as they come with credit lines that are relatively low. If you choose to use any traditional credit card, you may consider being an authorized user on the account of a friend or a loved one. However, by doing this, you can make them liable for your own financial mistakes. When it comes to improving your financial history, you must work towards repairing your credit.  Repairing your credit gets easier when you achieve any loanable opportunity with an eminent lender or get a secured credit card.

The tips mentioned above are likely to help you in repairing your credit score and curb your damage by a large extent. You must have taken a number of bad decisions in the past if you need to repair your credit score right now. So, it’s high time you be careful about your finances!

Your Debt Repayment Timeline: What to Pay When

It is important to create a repayment plan when tackling debt. When deciding which debts to pay and when, you will want to consider the payment amount, the length of the loan term, and the current interest rate.

Credit Cards

Debt repayment

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Most households have some type of credit card debt spread among numerous credit cards. In fact, American credit card debt has reached an astounding one trillion dollars in 2017. When you owe to multiple credit cards each month, creating a repayment plan can feel overwhelming. When it comes to paying down credit card debt, you can organize your debt either by amount owed or by the current interest rate.

Organizing credit cards by the amount owed allows you to pay off larger debts first. These are the credit cards with higher monthly payments. You can also choose to start at the lowest amounts owed, giving you a sense of success upon quickly paying off lower credit cards. Organizing credit card debt by interest rate can save you money in the long run by avoiding costly fees. This will lead to the lowest amount paid over the life of the credit card.

Student Loans

Shortly after college graduation, you will begin receiving student loan bills. Depending on the amount owed, monthly student loan bills can be quite high. Instead of ignoring them, gain control of your student loans by consolidating or refinancing them. Consolidating your student loans combines them into one monthly payment that is easier to track. If you have good credit, you might even qualify for a more affordable monthly payment with a lower interest rate.


Many homeowners wonder if they should prioritize paying down their mortgage over other types of debt. A mortgage is considered good debt. This means that it is a debt that offers a return on the investment. Mortgages represent one of the longest loan terms and also one of the biggest purchases you will make. As long as you keep up with your monthly mortgage payments, it is unlikely to hurt your credit. The interest rate on your mortgage is also likely to be less than your credit cards. While your lender may offer the option to pay ahead on your mortgage principal, consider allocating extra cash to high-interest debts like credit cards and personal loans first.

Auto Loans

Auto loans are fairly easy to get but often come with higher interest rates. Paying off an auto loan early can free up monthly cash flow, but it is best to tackle even higher-interest payments first. Refinancing your car loan is another option if you qualify for a lower interest rate. Maintaining a responsible payment schedule on auto loans can boost your credit score.

Personal Loans

Personal loans come with higher interest rates and shorter repayment terms. Defaulting on a personal loan can also severely affect your credit and your ability to take out future loans for a mortgage or student loan. Because of the financial effects of personal loans, they should usually be paid off sooner.

Eliminating debt requires you to organize and evaluate your debt repayments. Considering term length, type of credit, and interest rate can help you get a better grasp on your debt.

Credit cards search has never been this fast and easy to do with Silver

Silver Screen ShotSilver is a new mobile application that helps you to find the best credit cards in seconds, get all the details you need, and even let you apply directly from your mobile device. With Silver, you stay on top of your credit cards, so you never miss a renewal or get hit with annual fee & interest fees again.

With constantly fluctuating rates and available services, the developers of the Silver mobile app understand how difficult and time-consuming it can be to research and compare the plethora of credit cards that exist in the market.

How Silver works is simple: users answer a short questionnaire that reveals what they are looking for in a credit card. From better interest rates to exclusive services and perks, Silver reviews users’ answers to provide them with a comprehensive list of credit cards that match their needs. Hundreds of cards can be instantly compared using the app’s easy-to-use and intuitive interface. Once users find the cards they are interested in, they can view card details, apply and even be instantly approved from their mobile device! Silver uses a unique algorithm to make finding the credit cards that makes the most sense for you quick and painless.

Created by graduates of Wharton and the Harvard Business School, Silver was born out of the frustration of receiving an overwhelming influx of credit card offers, and the demand of others in the market for a credit card could benefit from using the Silver app.

Silver is available for free on Android and iOS.

The Mileage Plus Credit Card: How it Made my Trip an Affair to Remember

I’ve been a single mom for almost five years now. Doing all of the parenting on my own is not easy, but I love the close relationship that I have with my two kids. During a normal week, I wake up early, drop the kids off at preschool, go to work, pick up my kids and spend quality time with them in the evenings. Being a mom is incredible, but it does not leave much room for time with my friends.

Last summer, one of my high school friends called me with an exciting offer. She was planning a girls’ weekend at her beach house for the following year. I am blessed to have a wonderful group of friends from high school that I am still close to, and connecting with those ladies sounded like something I just had to do. However, I also had a lot of expenses for my home and my children, so I wasn’t quite sure how I would be able to cover the cost of my trip. [Read more…]

Credit Cards Pros and Cons

Agencies like bank, financial institute are offering their clients to opt for another credit card even if they already have, to generate more business by them. Customers are also trying to get as many cards so that they will be able to have more credit limit. But the question is having a lot of card is good option for the customers or will it create future problems to their users. Let’s figure it out by discussing the pros and cons of having many cards.


If a customer has many cards then it is very obvious he’ll have good credit limit if he required on the time of uncertainty. But need of number of cards required only at the time when your card don’t have sufficient limit. So if you repaying your debt on time it will enhance your credit reputation. Banks may extend your card limit so you don’t need number of cards with increase in high interest rate. [Read more…]

Building My Credit History: An Update

As some of you might remember, my first ever post here at This That and the MBA was about how I had no credit history. That’s right. I have a very unique problem here in the PF world. No student loans, no debt, no coming-back-from-the-edge-of-the-financial-cliff story. I literally had no credit history. I explained in the first post that this happened because I was afraid of credit cards and how I might misuse them. But, that led me to being (almost) 27 and having no credit history. Oops. I finally decided that I had a few options: open a credit card with a co-signer, take out a small loan with a cosigner, or apply for a secured credit card.

I decided to go the Secured Credit Card route.

I spent a lot of time deciding which route I would take. My husband has excellent credit and it would have been easy to add my name to one of his cards or have him cosign with me for a new card. But truthfully, I wanted to do this myself. I am a very independent person and did not like the idea of having to rely on anyone else to help build my credit! Besides, building my credit is more important to me than it is to anyone else so I wanted to take responsibility for it!

How the Secured Card Works

The bank I work for offers a Secured Credit Card so I decided to try them first. The minimum “deposit” was $300 so I added $200 to my brand new New (to Me) Car Fund, which brought the total in that account to $304 dollars, just enough to apply for the card. I was so relieved when it was approved on the first go! After a few days $300 was withdrawn from that account and my new credit card was mailed out to me. Now all I have to do is use it wisely!

What Exactly Using It Wisely Means

Unfortunately a lot of people still think you need to carry a balance and accrue interest on a credit card in order to build credit history. NOT TRUE! Do not fall prey to the interest mongers! I digress. My plan is to use my card for a few pre-planned expenses each month and then pay off the full balance before the due date. The awesome thing about the secured card is that it reports your payments to all three credit bureaus. The scary thing about the secured card is that it reports your payments (or lack thereof) to all three credit bureaus. This is not the card you want to miss a payment on. However, if you use it wisely and pay it off each month, it can be a really quick way to build up some credit history. Once the bank feels I’ve been responsible with the card for a long enough period of time, they will refund my $300 deposit and send me a “regular” Unsecured Credit Card.

Unfortunately, one credit card does not a credit history make. To have “good credit” you need to have had various types of credit extended to you over a period of time. It is good to have had loans, credit cards, and the like that you’ve handled well in the past. Creditors also look at things like the length of time you’ve had certain credit accounts, debt to income ratio, and how you’ve handled it all. So while this credit card is not the only thing I’ll need to have great credit, it will certainly enable me to have enough credit history to continue building my credit in other ways.

What have you done lately to build, improve, or maintain your credit?