Follow these tips and raise your credit score. The percentage shows you the weight of certain things that affect your credit score.

• Payment history is 35% - Pay your bills on time every month. Even if you have to borrow it, pay your bills! Missing payments is an absolute killer!

• Debt level is 30% - Don’t take on any unnecessary debt. My general rule of thumb is if you can’t pay cash for it, don’t buy it. (This excludes a home, college loans, etc.)

• Length of credit history 15% - Having a longer credit history is good because it gives more information about your spending habits. Remember, it’s good to leave open the accounts that you’ve had for a long time even if you don’t use them.

• Inquiries are 10% - Do not apply for new credit unless absolutely necessary. Too many inquiries shows you are looking to take on a lot of debt or you are in financial dire straits.

• Mix of credit is 10% - Having different kinds of accounts is good because it shows you have skills managing different types of credit.

Reasons to Avoid Store Credit Cards

Store credit cards are a negative debt. Not only can they only be used in one type of store but also they most often carry the highest interest rate around. Store credit cards can be very alluring, especially at the holidays.

There’s a nice lady at the front of the store offering you a free gift if you apply for the card. Don’t fall for it!

There might be an offer at the checkout to save 20% on today’s purchase if you apply for a store credit card. Don’t fall for that either!

Not only do the store cards put you at a disadvantage from an interest rate perspective but can lead to overspending. Not only will you tend to buy more at that store rather than shop around for the lowest priced product but you’ll pay a lot more for the goods when you factor in the interest.

Credit card companies offer a very low monthly minimum payment because they want you to carry a balance. It’s much better to opt for a generic credit card that can be used anywhere as you’ll be less likely to spend and when you do spend, you’ll probably save on interest charges.

Department store spending is generally for variable expenditures and using cash for these types of expenses will help you stay on track and help reduce overspending.

Every person has a risk tolerance when it comes to investing. Any good stock broker or financial planner knows this, and should help you determine what your risk tolerance is. Once they know that, they should work with you to find investments that do not exceed your risk tolerance.

How do you determine this? First, you need to know how much money you have to invest, and what your investment and financial goals are.

For example, if you plan to retire in ten years, and you haven’t begun saving, you need to have a high risk tolerance – because you will need to do some aggressive – risky – investing in order to reach your financial goal.

On the other side of the coin, if you are in your early twenties and you want to start investing for your retirement, your risk tolerance will be low. You can afford to watch your money grow slowly over time.

Of course, this might be what your investment counselor recommends but if you are uncomfortable with risky investing, then obvious the first scenario man not be for you.

Take a test. If you invested in the stock market and you watched the movement of that stock daily and saw that it was dropping slightly, what would you do?

Would you sell and get out or would you let your money ride? If you have a low tolerance for risk, you would want to sell to cut your losses… if you have a high tolerance, you would let your money ride and see what happens. This is not based on what your financial goals are. This tolerance is based on how you feel about your money!

Again, a good financial planner or stock broker should help you determine the level of risk that you are comfortable with, and help you choose your investments accordingly. You cannot overlook this. It’s your money and you need to be comfortable in your investing.

Investing in pink sheets should only be done with extreme caution and with throw away money. However, having said that, they are not the only companies you need to be aware of.

Listen - I have watched many of my pinksheets reverse split and ruin any chance I had of making money, but reverse splits don’t just happen in pinksheets.

I felt solid about the company Matech Corp (Material Technologies) - MTTG.OB now. Here is a company that can test and find miniscule stress cracks in our bridges. They are the only company, supposedly, that can do this. So I invested in it and bought 300 shares. Well - apparently this company, as well as many others, have small disregard for small shareholders.

Their stock price dropped, but I still felt at some point it would pick back up, especially when I read many of their news releases. The problem was they decided they needed to do a reverse split - 1000 to 1 - which meant myself and others in my situation were simply dropped out of the equation. No stock left! NADA!

The sad part is these companies claim to do this to help their stock prices rise and, in effect, their stockholders. But not the little guy. I emailed this company with my concerns when I found out this was in the works and did not get any sort of reply back whatsoever. Apparently people like myself, who invested solid money with them, mean absolutely nothing. If you don’t have a large amount of stock, you are toast.

I have information elsewhere on this site showing what a reverse split is but basically, in this case, if you own 1000 shares of stock with them, you now have 1 share. Shareholders such as myself have none. They were very happy to accept your money to help them build the company, and not too concerned when they had to eliminate the small fry.

Use caution when investing in any company, whether it be small or large, but particularly these small cap companies. The bottom line is they want to make profit and it does not matter who loses along the way.

The best way to take control of your finances is to make a budget. Not only do you need to write down everything but you need to make a plan to tackle your debt and reduce your spending. There are four major factors in budgeting:

• Fixed Expenses

• Variable Expenses

• Debt Reduction

• Savings

Track your fixed expenses so you know precisely what must be put out each month.

Track your variable spending to see how much you’re spending.

Write down all your debts and plan to tackle them one at a time above and beyond the minimum payment.

Plan to save money for a rainy day.

If you cannot balance your budget, it’s time to cut costs somewhere. Most likely, this will be in your variable spending. Set a strict budget for yourself so you can get ahead of the game. This may take sacrifice and discipline but is the surest way to get out of debt fast.

When buying a new home, you can use foreclosure listings to your advantage. Unfortunately, many people lose their homes due to financial problems. Oftentimes they could not afford their mortgage in the first place. There are listings available that show prospective buyers many homes that are discounted due to the original owner defaulting on their mortgage.

Use the many online resources wisely and read through foreclosure listings to find a home at a great price. It’s too bad that your good fortune could come at the price of someone else’s misfortune but looking at foreclosure listings could save you tens of thousands of dollars off when buying your home.

Should You Use Free or Paid Subscriptions?

There are free and paid foreclosure listings available that show you power of sale properties at a fraction of the original listing. Free listings may not be updated as regularly as the listings you pay a subscription fee for so keep that in mind. Take a look at all the available options before you pay for a subscription service.

Whether you are looking for a loan, a mortgage loan, a credit card or some other financial products, it’s always wise to shop around. If you have a good credit history you could have some negotiating power and have financial institutions clamoring for your business.

Never Take The First Offer You Get!

The first offer of a loan, mortgage or a credit card doesn’t have to be one you jump on. Don’t hesitate to shop around. Be careful about applying everywhere as too many credit inquiries on your credit report can actually do more harm than good, but don’t hesitate to see how competitors to your bank or financial institution fare in terms of savings.

Shop Around!

Balance transfers and introductory rates can make it very worthwhile to shop around and be choosy about the financial products you purchase. Do be careful about the time line for introductory rates and be careful about adjustable rate programs, which can vary significantly.
The current financial situation should make you think twice about what terms you look for when you borrow.

There are a number of excellent benefits associated with VA loans. If you have considered applying for one, you might want to read a few pertinent facts about these specialized loans that are available for more than 30 million military veterans and other armed service personnel.

At the top of anyone’s list is the fact that VA loans do not typically require that the borrower place a down payment. This is major boon to many vets who do not otherwise have the resources to purchase a home and may allow you to get a house right now and start enjoying the tax benefits.

This benefit is shortly followed by another one: in most cases, those applying for VA loans have the option of negotiating the level of interest rate they will have to pay. The vet will not have to come up extensive amounts for closing costs since limitations are imposed. You do not have to purchase private mortgage insurance or pay the extra premium costs.

These are just some of the serious money-saving benefits of applying for a Veteran’s Administration Loan. If you are a veteran, do not forget to at least investigate this if buying a home is in your plans.

Whether you are looking for a loan, a mortgage, a credit card or some other financial product, it’s wise to shop around. If you have a good credit history you could have some negotiating power and have financial institutions clamoring for your business.

Don’t Take The First Offer You Get!

The first offer of a loan, mortgage or credit card doesn’t have to be one you jump on. Don’t hesitate to shop around. Be careful about applying everywhere as too many credit inquiries on your credit report can actually do more harm than good but don’t hesitate to see how competitors to your bank or financial institution fare in terms of savings.

Shop Around!

Balance transfers and introductory rates can make it very worthwhile to shop around and be choosy about the financial products you purchase. Do be careful about the timeline for introductory rates and be careful about adjustable rate programs, which can vary significantly.

Before you start withdrawing money from your retirement accounts, most financial planners suggest setting a target annual withdrawal rate. Make it low enough to avoid depleting these funds too quickly.

You can fine tune your withdrawal strategy each year, preferably with the guidance of your financial or tax adviser. For example, if your personal situation changes, you can adjust how much you should withdraw.

It is going to take some time for you to adjust to your new way of living, so you don’t want to jump in and start pulling out your funds before you have even made a plan as to how to use them to your best benefit.