Saving money has a lot to do with having a budget, learning how to save by managing expenses and knowing how to secure more income when you need to en route to having a savings account and, more importantly, piece of mind that you don’t have to fret your finances.
But saving also is about managing debt, credit analysis and knowing when to transfer balances or pay off cards in a manner that takes into consideration total amount owed and interest rate, among other elements worth considering.
The correlation between saving and credit means you aren’t spending money on that aforementioned interest rates and manage the monthly payments you’re making versus the entire scope of your budget.
Have you ever, however, asked the question as to why you can’t get a loan or credit in general? Have you stopped to mull over why you were rejected for that credit card?
The truth is a lot of factors play into your lack of ability to get a credit card or loan in general, starting with your credit score. Your credit score can be lowered for a number of reasons, but the one that stands out the most is the easiest one to fix: late payments. Paying on time can add to your score, and it again goes back to being able to budget accordingly and know exactly income versus expenses and how that plays into your overall financial situation.
Of course, income plays a big role in how much credit you receive, if any. The income portion can be combined with your debt to income ratio not being sufficient to lend you money. That ratio should be about 70 to 30 in your favor and something around the 50 to 50 ratio or less isn’t going to cut it as far as getting a loan. The thought is that income can be increased but more realistically is being able to eliminate that by paying off the debt you have and eliminate monthly payments off that debt to income ratio.
Not being able to get a loan due to poor credit, lack of income or a credit to credit ceiling balance (that means you have a $5,000 in debt on a credit card and your monthly limit is $5,000) is going to be something that plagues you when you want to buy a house, car or have a financial future that isn’t difficult.
The key is learning why you haven’t been able to secure credit and begin working toward fixing it and thus changing the landscape of your overall credit score.
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