For young graduates, student loans represent one of the biggest financial drains. College tuition is constantly on the rise and each year the average amount of debt amassed by an individual in tertiary education escalates. According to recent figures, graduates have an average debt of $27,000, almost equal to the average yearly salary.
Although most college students get into debt during their varsity years, there is another way. It is entirely possible to make some financial choices during your studies that impact positively on your credit score. Thinking more about the long–term implications of your spending habits during your years of studying is strong motivation to spend smart and save even smarter.
Bad fiscal habits in your twenties last for years to come
Unfortunately, the effects of these decisions can last for many years to come. You stand yourself in better stead if you avoid the common perils that befall many young people in their twenties.
Here are some of the bad habits that occur:
20s MISTAKE #1 – Moving jobs frequently without making retirement contributions
It is understandable that young people in their twenties will unlikely start a job and remain in the same company for 35 years. Things just aren’t like that anymore. Your 20s are a period when you are establishing yourself professionally and may spend a year or two in a position before moving onwards, and hopefully upwards. This is why is it so important to start making contributions to your employer’s retirement plan ASAP. If you are within a company for even 2 or 3 years, make it count and have something to show for it for your future. You can stockpile a healthy amount of retirement savings in those jobs. If you don’t, you are missing out. Don’t make that mistake!
20s MISTAKE #2- Not consolidating loans and paying higher interest on debts
If you have attended college, you will almost certainly have debts and student loans that are racking up considerable interest. If you haven’t attended college, you may have personal loans or other forms of borrowing that are spread over various sources. Perhaps credit cards, and overdraft or two, some store cards or the odd personal loan. Your biggest mistake would be to continue to leave these as is. It is much smarter and more economically efficient to consolidate these debts into one more manageable consolidation loan. This will reduce your interest and can see you repay the capital faster, leaving you debt-free sooner.
20s MISTAKE #3 – Skipping repayments
Student loans, credit cards…all of these require a determined commitment to repayment in your 20s. Missing payments can cause havoc with your credit score and the effects of this can seriously curb your efforts to get a mortgage or sometimes even rent a property. Missing payments means your amounts owed increase and your credit score takes a hit. Be organized and set up repayments automatically through your checking account. Keep on top of this and you can look forward to receiving better interest rates in the near future.
20s MISTAKE #4 – Over-reliance on credit cards
For twety-somethings, plastic isn’t so fantastic. Although it is important to have a credit card in order to establish a good credit score, you shouldn’t be using it more than you can repay comfortably. Do not use a credit card for every day purchases. If you need access to extra money, consider using a personal or short term loan with a set amount that will be repaid definitely in a short period of time. If you allow your credit card balance to creep up month after month unpaid, you are simply accumulating unnecessary interest debt and harming your credit score.
We can help
Young people in their 20s have very particular finance needs. Especially for those with bad credit, it can be hard to develop better habits without some guidance. onlineloansforbadcredit.net is here to help inform your decisions and encourage sensible borrowing with our guides and articles. We can also help connect you to reliable lenders who are ready to help ease your financial burdens the right way.
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Top Jobs to Improve Income Prospects without a College Degree
A highly effective step on the path of improving your credit score is to ramp up your income-earning capabilities. Aside from the obvious benefits of being able to provide more comfortably for you and your family, having a bigger income can mean better borrowing terms and higher credit scores.
Why better income prospects lead to better borrowing options
If you earn more money in a stable career with good job progression prospects, you can save more, pay down any outstanding loans faster and become a more appealing candidate to creditors. This is because, in general, those earning higher salaries receive the more preferential loan terms and rates.
Why not having a college degree is no obstacle
The cost of an average 4-year college degree covering tuition and living expenses often exceeds $100,000 and is off-limits to many for whom the price tag is unaffordable or for whom extra debt on top of bad credit is impossibility. Although it used to be the case that the top income brackets were comprised only of college graduates, this is no longer the case. In fact, right now there are a number of jobs within the high-tech field that offer excellent career progression even without a college degree.
According to a new report by the Brookings Institution, STEM jobs have been redefined to require skills in Science, Technology, Engineering or Math – technical knowledge that can come from on-the-job training and cumulative career experience instead of college. Consequently, according to Brookings’ criteria, 50% of all high-skill positions are held by employees that do not have a bachelor’s degree, representing the American middle class much better.
The top 8 STEM jobs that do not require a college degree
1. Registered Nurses
Number of Jobs: 2,724,570
Average Wages: $69,110
2. Automotive Service Technicians and Mechanics
Number of Jobs: 589,570
Average Wages: $38,560
Number of Jobs: 578,910
Average Wages: $44,330
Number of jobs: 512,290
Average wages: $52,910
5. Computer Systems Analysts
Number of jobs: 487,740
Average wages: $82,320
Number of jobs: 368,510
Average wages: $40,520
7. Plumbers, Pipefitters, Steamfitters
Number of jobs: 349,320
Average wages: $51,830
8. Welders, Cutters, Solderers and Brazers
Number of jobs: 316,290
Average wages: $37,920
The Lowdown on STEM Jobs
If you have substantial skill in Science, Technology, Engineering or Math and do not have a bachelor’s degree, you could potentially get a STEM job paying on average around $53,000. This is 10% higher than other roles that require candidates to have the same level of education.
It makes sense to look within the STEM field to improve your job prospects without a college education – according to the U.S. Bureau of Labor Statistics, the above 8 most popular STEM jobs pay more than the average American annual average wage of $45,230.
At number 5 on the list, a computer systems analyst is a role that also doesn’t need a bachelor’s degree, although the average wage is $82,320. The possibilities are real – 100,000 people held this role without a college degree in 2011 alone.
Vocational and On-The-Job Training Favored Over College Education
So what is required for a STEM job if a 4 year college degree isn’t a prerequisite? Most of these positions have vocational training requirements that applicants can embark upon with only a high school diploma.
• Plumbers, pipefitters and steamfitters must complete four or five year apprenticeship program, which includes studying math, physics and chemistry, according to the Bureau of Labor Statistics.
• Registered nurses, easily the fastest growing STEM job that does not require a bachelor’s degree, are required to complete courses in anatomy, chemistry and microbiology.
onlineloansforbadcredit.net encourages individuals to put energy into career advancement as an important step towards increasing credit scores and creating a more positive financial future. In the meantime, our free comparison service can help get you a bad credit loan at a competitive rate from a reliable lender.
Apply now to see what you can be offered and start your journey towards better credit today!
A new survey conducted by online legal resource FindLaw.com reveals that 1 in 4 or 22 percent of Americans have never checked copy of their credit reports, despite the fact that consumers can order them free of charge under federal laws. The survey also found that consumers with lower incomes are less likely to check their credit scores at least once a year, versus merely 14% of consumers with household incomes over $75,000 per year said that they have never ordered a copy of their credit reports.
Why is it Important to Know Your Credit Score?
Knowing your credit score and checking your file for accuracy is a crucial step to bettering one’s financial standing or maintaining improvements. The accuracy of your credit report can affect you in the following ways:
- Prevent you from obtaining preferential credit deals, meaning that you will pay higher interest
- Credit reports are often used in background checks for jobs and rental housing, so can prevent you from being offered certain jobs of being able to rent particular properties
- If you have incorrect information on late payment or defaults, this can make it difficult for you to obtain a mortgage from many major companies
- Auto Insurance premiums may be higher or, in some cases, certain policies unavailable due to being classed as a high risk consumer
- Credit cards or loans may be harder to come by or interest rates significantly higher if your credit score is low.
Obtain Your Credit Score for Free
Federal law states that consumers are entitled to one copy of their credit report from each of the three major credit bureaus (Experian, TransUnion and Equifax) per year. Consumers can get these free copies at AnnualCreditReport.com.
What to Do if You Notice Incorrect Reporting in Your Credit File
- The Fair Credit Reporting Act requires credit reporting agencies, banks and credit issuers to correct fraudulent information on your credit report.
- You should contact the credit reporting agencies and credit issuers and let them know about the fraud.
- You will have to provide documentation, which the Federal Trade Commission explains here.
- Then, the FTC tells consumers to take the following steps immediately:
1. Place a fraud alert on your credit reports. A fraud alert will tells credit issuers that you’re a victim of credit fraud. They will contact you to verify any applications for credit before granting it to ensure that you and not is fraudster is the bona fide requester.
2. Close the fraudulent accounts. You’ll need to make contact with the fraud department of each card issuer to make sure you’ve closed all of the accounts. This means that the fraudster cannot access any more of your funds.
3. File a complaint with the FTC.
4. File a report with your local police, or the police in the community where the identity theft took place.
5. Continue to monitor your credit file closely and regularly. It is recommended to do this once a month after you have been a victim of credit fraud.
onlineloansforbadcredit.net is partnered with an array of bad credit specialist lenders may be able to approve you for a loan to help you get back onto the right track financially. With our guidance, you can rebuild your credit score and improve your financial future.
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Low credit scores, usually below 620, can have serious consequences, yet often people don’t realize what state their credit is in until it is too late. Facing higher car insurance costs or being rejected for a loan, a mortgage, or even a job because of bad credit is becoming a more common experience for Americans. While bad credit might feel like an insurmountable obstacle, there are steps you can take to improve your score. Here are the most important tips for repairing bad credit.
- Get a copy of your credit report and review it for errors. Credit bureaus make mistakes, and it happens more often than you might think. Simply reviewing your credit report and disputing the mistakes that you find is a crucial first step to repairing bad credit. Dispute carefully though, if it seems like you are just disputing everything then the credit bureau may see your disputes as frivolous and dismiss your claims without fixing real errors.
- Prioritize and pay off your debts. Triaging your debts and paying them according to their impact on your credit score will slowly but surely improve your credit. Continue to keep any accounts that are current as such. Begin to pay as many accounts that are past due or approaching past due as you can, prioritizing the accounts with the highest interest rates. Lastly, address any accounts that have been handed to a collections agency or charged off because paying off these accounts will not remove them from your credit report.
- Do not close any credit cards. Your credit score is affected by your debt to credit ratio. Closing an account and lowering your credit level can seriously damage your debt to credit ratio. Even if you are deeply in debt, the credit that your cards give you keeps your debt to credit ratio more favorable.
- Use your oldest cards, but lightly. The length of time that an account has been open positively affects your credit score. Use your oldest cards but in small amounts that you can pay off in full. Keeping these accounts active shows that you can maintain credit for a long period of time, and shows that you can pay off debts, even small ones. Every bit counts.
It will take time, patience, and discipline but repairing bad credit is possible. Once you have achieved your goal, careful planning, attentive payment of debts, and close monitoring of your accounts will help you maintain the credit that you have worked hard to achieve. The security and the benefits of having a good credit score are worth the investment.
You can get loans for bad credit even if you have a very low credit score and have been declined for a loan. You may need money immediately to pay for utilities, car repairs, a medical procedure, or your child’s tuition. Your bank may ask you to provide collateral or a cosigner with a good credit score and may take at least a week to process your application. Continue reading
Using credit cards for bad credit responsibly will help you to rebuild your credit score. This will help you to qualify for regular credit cards with better rates and terms in the future. You can apply for a credit card within minutes from your home or office. To get a free, no-obligation offer from a reputable credit card company that specializes in providing credit cards for bad credit, please fill out our brief online form now. Continue reading
Bad credit loans may be just right for you if you need cash to meet urgent financial requirements and have a low credit score. You can get a loan even if you have bad credit or no credit and can use it for any purpose, like paying for car repairs, utilities, medical requirements, or your child’s tuition. Continue reading
The most economical student loans can help you to save a lot of money. You need to explore your options and do the math before you decide on a program and financial aid option. Choose an affordable course offered by a reputable accredited school. Make sure that you will get a degree or diploma that’s valued by employers. Continue reading