Tag: finances

What To Look For In A Financial Advisor

On March 2, 2018

In Blog, Entrepreneurship, Finance, personal

Finding a financial advisor is an important task in anyone’s life. Your financial advisor will walk you through your financial goals and then formulate a plan to help you reach them. Before you make a decision on who your financial advisor will be, consider the points listed in this article to ensure you are making the right choice.

Experience and Education

When looking for a financial advisor consider what kind of qualifications they have. Look for a Certified Financial Planner (CFP) before making your decision. Conduct an online search for your potential financial advisor and refer to any and all articles and websites about them. Follow up on previous or current clients to gather more information about their practices. It is one thing to state that a financial advisor has the proper qualifications but if they cannot correctly apply good methods than it is not worth the investment.

Pay Structure

The way a financial advisor sets up their payment structure speaks to their intentions in being your financial advisor. There are a few ways advisors can set up their payment structure. One way is commission based. Commission based advisors could be biased about what kind of investments you should consider because they are ultimately getting a cut of that investment. This could lead to investments that may not be working towards your financial goals. Another payment structure is fee-based. A fee-based advisor could give you advice that will benefit them in the long-run causing you to potentially stray away from your financial goals. Consider a financial advisor who charges by the hour. An hourly payment structure does not allow the advisor to be biased towards any financial decisions.

Contact

Make sure you understand how often you and your financial advisor will be meeting. Some advisors will have an initial meeting then only have scheduled meetings once a year from then on. If you are new to having a financial advisor, recommend that you and your advisor meet quarterly or more often than that if needed.

Outcome

You want to find a financial advisor who will point you in the right direction to achieve your goals. Eventually, you should be armed with enough knowledge to take over the reigns and conduct your own financial plan. Avoid getting stuck with an advisor who suggests that you need to stay with them to reach your goals. That kind of financial advisor may not have your best interests at heart.

Avoid These Things That Can Harm Your Credit Score

By Tom Leydiker

On February 26, 2018

In Blog, Debt, Finance

Your credit score is incredibly important when it comes to making any big purchases. If you are thinking about purchasing a car or your first home, then banks are going to look into your credit score to determine what kind of loan you will receive. There is plenty of information on how to keep a good credit score, but it is equally as important to know what will drive your credit score down.

Missing Payments

Your payment history accounts for thirty-five percent of your credit score. Missing a payment over thirty days could drop your credit score one hundred points. Credit card companies may not report a late payment until sixty days after it is due. By the sixty day mark, your credit score may have suffered severe damage. Set reminders for yourself about when payments are due on your credit card. Never miss a payment, and your credit score will be just fine.

Cancelling Credit Cards

If you have a credit card that you do not use anymore, do not cancel it. Cancelling a credit card with a zero balance eliminates all the credit history you have associated with that card. Say you have had a credit card for four years and then cancel it one day. Those four years of purchasing items on that credit card disappear, making your credit history seem shorter than it actually is. Keep your old credit cards open to showcase your extensive credit history!

Collections

When a payment is overdue for an extended period of time, credit card companies will either sell or hire a third party to collect the payment. A collection usually occurs after six months of no payments. A collection can drastically reduce your credit score by one hundred points, sometimes more. A collection can stay in your credit history for up to seven years, affecting any future purchases or loans you apply for.

Settling Debt

If you settle a debt with a creditor and it is less than the amount you originally owed this can dramatically affect your credit score. People who have settles a debt with a creditor saw drops in their score ranging from forty-five to one hundred points.

Bankruptcy

Declaring bankruptcy has the most detrimental effect on your credit score. Filing for bankruptcy can stay on your credit report for almost ten years. A credit score can suffer up to a two hundred and forty point reduction from declaring bankruptcy.

How Collections Can Affect Your Credit

By Tom Leydiker

On August 25, 2017

In Blog, Debt, Finance

tom leydiker how collections blog header

Debt collectors, according to both the Federal Trade Commission and Consumer Financial Protection Bureau, are one of the most complained-about businesses. When you hear about “debt collectors,” the first image to come to mind is an aggressive loan shark. Even a “nice” debt collector can be a pain – yet they aren’t going anywhere anytime soon.

A debt collection is a type of financial account that’s been sent to a third-party debt collector. Hiring a debt collector is usually more cost-effective for a company than to keep spending their resources pursuing payment. Most credit card accounts get sent to a collection agency after six months of non-payment, while other businesses send them out even sooner – it varies business by business.

Debt collectors will call you and your friends, send letters, and even show up at your home to collect money – all of which is perfectly legal. If a debt collector doesn’t have your phone number or correct address, however, you may never receive notice of the debt until you see it listed on your credit report.

How does this all affect your credit?

Whenever an account is sent to a collection agency, the original creditor or the collector updates the account on your credit report. A debt collection is one of the worst types of credit report accounts. It reveals that you have become seriously delinquent on an account. This will cause your credit score to plummet, causing you to be denied for credit cards and loans in the future, particularly if it’s recent or remains unpaid.

These accounts can stay on your credit report for as long as seven years, meaning that their negative effects can haunt you for a long time. One of the best ways to lessen the harm of a collection account is to pay off the debt so that it will affect your collection less over time. Another way is to continue to pay all of your additional bills on time.