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You may have heard that your credit score is important, but what is a FICO score? FICO is short for Fair Isaac and Co. The Fair Isaac Company developed custom software back in the 1980s that helped other companies determine a credit risk based on a number derived from a person's credit history. This number soon became a standard that was adopted by the three main credit bureaus: Experian, TransUnion, and Equifax. The FICO score ranges between 300 and 850.
If your credit score is suffering, there are things you can do to help improve your score. While there's no silver bullet that can give you a good score overnight, just a few changes in your behavior can go a long way in improving it. Learn more about your credit score today.
Where do you turn when a financial emergency strikes? Do you resort to credit cards, borrowing money from friends and family, or do you have some money set aside? How you respond to a financial crisis can significantly impact your finances for years to come. Tapping into resources that are meant for something else to cover an emergency can set your retirement back, take money away from a college fund, or even lead to bankruptcy. Creating a financial safety net lies at the foundation of any financial plan. We hope to never have to use it, but we're thankful when it's there in a time of need. Learn some of the ways you can create your own financial safety net.
When you hear people talk about debt, the general consensus is that debt is bad and must be avoided at all costs. Credit cards or any type of debt are really just a financial tool, and when used properly, can be very beneficial. For example, how many people could save up hundreds of thousands of dollars to buy a home with cash? It can be done, but it might take a few decades to reach that goal. Instead, by borrowing money you can use leverage to make the purchase now instead of waiting.
The problem with any tool is that they can be used improperly, which can ultimately do more harm than good. Using credit is no different. When used properly, you can leverage your buying power to make financial decisions that will benefit you in the long run. The basics to credit and debt cover:
1. How to establish credit.
2. The importance of your credit score.
3. How to improve your credit score.
4. Getting out of debt.
5. Borrowing money for college or a business.
Weather you're trying to establish credit for the first time, or you're already up to your eyeballs in debt, this credit and debt basics guide can help you begin to take control of your finances.
Are you planning and saving for retirement? That's good, but that may not be enough. While taking the initiative to plan for the future and begin saving money to fund your retirement goals is a great start, there are plenty of additional planning items to take note of. Here are six of the most common planning mistakes:
1. Not maximizing your employer match.
2. Borrowing from your retirement assets.
3. Failing to diversify.
4. Failing to rebalance your portfolio.
5. Taking an early distribution.
6. Becoming paralyzed by choices.
As you can see, saving for retirement is a great start, but there are many areas in which you can still make mistakes. Continue reading to learn more about these six retirement planning mistakes and how you can avoid them.
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