15 Facts Everyone Should Know About How Credit Works

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Credit doesn’t have to be so mysterious; here are fifteen things everyone should know about how credit works.

1. Checking Your Credit Isn’t as Bad You Think It Is

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You’ve probably heard before that you shouldn’t check your credit score too much. But checking your score is technically a soft inquiry, which doesn’t affect your credit score.

2. Paying Your Card Down Early Helps Your Score

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Pay your balance down early when you can; not only will it help you stay on top of your debt, but it will help lower your credit score.

3. You Might Have Varying Credit Scores

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You probably have more than one credit score and could theoretically have dozens. The good news? Improving one improves them all!

4. Creditors Will Pick and Choose Which Score They Prefer

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Creditors might cherry-pick between your different credit scores and might even combine your scores.

5. You Can Monitor Your Credit for Free

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Many sites charge you for your credit score, but you shouldn’t and don’t have to pay to get your credit report. Just as many sites allow you to check them for free.

6. Some People’s Credit Aren’t Visible

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Some individuals don’t have enough information on their credit report to make it visible. That’s not necessarily a good thing; you’ll want to take steps to establish credit if this lasts.

7. Closing Your Card Can Hurt Your Score

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Reconsider closing your card: The age of your credit impacts your score, too, and having a longer line of credit is generally more favorable.

8. High Balances Can Hurt Your Score More Than You Think

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Your credit utilization can significantly hurt your credit score. Anything around 75% or above is considered very high, so manage it as much as possible to keep your score in a good spot.

9. Over-Applying for Credit Isn’t Great, Either

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Unlike checking your credit report, applying for new lines of credit is a hard inquiry, negatively impacting your credit card.

10. A Good Credit Score Requires a Healthy Mix of Credits

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Diversification is essential, even with your credit! Having multiple kinds of credit, like an auto loan and a credit card, is healthy!

11. You Have a Right to View an Accurate Credit Report

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The ability to access your credit report is your right as a debtor. It’s federal law!

12. Keeping a Credit Card Balance Doesn’t Help Your Score

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This is another common myth; keeping a balance on your card isn’t necessarily healthy for your score. It’s more about how you manage the balance and when you pay it off.

13. Your Score Will Change Outside the US

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Every country handles its credit reporting differently. So, should you ever leave the US or wherever you live, you’ll probably see some changes to your report.

14. Credit Scores Are Relatively New

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The concept of credit scores is only a few decades old. They popped up around the 1950s, so you didn’t always have to talk face-to-face with a banker to get a loan.

15. You Can Self-Report Some Payments

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Keeping up with utility and rent payments doesn’t always get reported accurately. Still, you can report them yourself and potentially boost your score.

20 Frugal Tips From the “Grandparents Generation” That Still Apply Today

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Many of today’s grandparents had parents or grandparents who lived through the Great Depression. They adopted many of the frugal living tips they learned and passed them on to their own children.

Grandkids sometimes think that they know everything and that their grandparents are out of touch with today’s world and reality. And while there might be a kernel of truth to that, grandparents still have a wealth of knowledge that can really help. They may need to be tweaked to fit the current world but they are still valuable.

20 Frugal Tips From the “Grandparents Generation” That Still Apply Today

30 Super Simple Ways To Save Money at Home in 2024

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Looking for some ways to save money at home? Now is the time to cut expenses, save some money, and keep your money in your wallet. Here are some simple ways to save money at home this year. Whether it’s as simple as switching what you buy when you go to the store or being a little more creative in the ways you use items in your home, maybe some of these ways will work for you!

Here are 30 ways to save money at home and put more in your pocket.

30 Super Simple Ways To Save Money at Home in 2024

20 Poor Hacks Frugal People Use on a Fairly Regular Basis

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Even if you’re not poor, you sometimes feel that way, and you probably have some tricks and tips for coping with that. In this article, we’ve compiled several poor hacks that people utilize at least a few times a month or even a week. It’s always good to share these hacks; we hope some of them help!

20 Poor Hacks Frugal People Use on a Fairly Regular Basis

28 Practical Ways Frugal People Save Lots of Money

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Saving money doesn’t have to mean saying goodbye to life’s little indulgences. With a few smart tweaks, you can stash away cash for that dream vacation, rainy day fund, or splurge-worthy purchase without feeling like you’re on a constant budget patrol.

Think of it as a side hustle that pays off without the extra hours. Whether you’re looking to conquer debt or simply boost your bank account, these tips are guaranteed to put more money in your pocket, painlessly.

28 Practical Ways Frugal People Save Lots of Money

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

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I’m super frugal, and one of my passions is sharing my frugal living tips with everyone.

Here are some of my absolute favorite frugal tips to help you get started on your journey to frugal living.

I’m Frugal: Here Are My Top 30 Frugal Living Tips to Save Money

Author: CJ Darnieder

Bio:

CJ is a writer and musician from Chicago.  When he’s not practicing the divine art of stoicism, focusing on achieving a deafening inner quiet, or attempting to reconcile with the inherent powers of the universe, he loves to cook!

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