A bad credit score refers to the state of your personal credit if your score is poor. In many cases, a poor credit score means you will not be eligible for applying for a new credit or a personal loan. Things that count against your credit score include bankruptcies, tax liens, and unpaid or defaulted debt, and legal steps may be taken against you. In general, credit scores are measured in between 300 and 855 with a credit score of 700 or above is considered good, a score of 800 or above considered excellent, and a credit score under 600 as poor. A credit score is important both for finance and professional life because one is generally dependent on the other. There are a few factors that can lead to a bad credit score: 1. Foreclosure If you are not able to keep up with payments on your home or car, the lender could foreclose on your account, meaning may lose your home and other assets (i.e., wages). 2. Loan default If you cease re-paying the monthly loan payments to your lending bank, you will be considered in loan default, and your credit score will automatically decrease. 3. Late payments Delaying your monthly payment on a loan can also affect your credit score as the payment history accounts for 35% of the credit score.

A reverse mortgage loan is specially designed for senior citizens. This loan against the property lets the borrowers pay the EMIs at any time. Rather than taking the regular loan, this loan provides the facility to the retired senior citizens to take a loan according to the current market value of the houses they are living in. They can pay the loan until they shift to another house, or get expired. Who are eligible for this loan? As reverse mortgage loan is only applicable for retired senior citizens, there are a few eligibility criteria. These eligibility criteria have been developed and enforced by the HUD. The minimum age which is required for the eligibility of this loan is 62 years. The person who wants to take this loan has to meet all the financial criteria as designed by HUD to apply for this loan. In addition, there are some other criteria that are developed by the FHA (Federal Housing Administration) which you have to meet simultaneously. This is because it is a type of home loan. The criteria developed by FHA are given below: The interest rates are imposed by the FHA. The balance of any mortgage loans (if it exists).

A financial planner is a certified professional who gives financial advice to clients. He or she can help you learn about various investment plans and strategies, save for retirement, your children’s education, buying your first home, and lots more. Financial planners essentially act as financial guides and help you to restructure your financial plan to meet your future goals. For financial planners to provide proper wealth and savings advice to clients, they will first thoroughly analyze every aspect of your personal finances, such as your annual income, monthly income, insurance plans, student loans, investments, debt, and more. There are both advantages and disadvantages of using a financial planner. Financial planners can significantly affect your wealth as well as your money investment so it’s important to choose one wisely and take the following cautions to heart: 1. Unresponsive As proper timing is necessary for investments and financial scenarios, don’t put your money with a financial planner who don’t respond to your calls and emails. This may affect your financial growth. 2. High risk Sometimes, the advisor will offers you invests that you consider too risky, and they may fail to return a profit. 3. Not risky enough If you’re a risk taker, don’t go with a financial planner that only offers low risk, low return invest plans.

Money management is a unique way of budgeting, investing, tracking, evaluating taxes and banking. Money management technology helps people to learn the process of saving money and make it profitable while lowering daily expenses. Nowadays, thanks to your smartphone, you can manage your finances at your fingertips using money management apps. Most of these apps have been developed by renowned financial companies to enable people to learn how to responsibly manage their wealth. The main benefits of money management apps include: Gathering of coupons: It can help you save coupons for future use and save a lot of money on day to day groceries and personal hygiene items. Receipt records: Stores a record of the receipts from your monthly expenses, even those done online. At the end of the day, you can easily calculate your monthly expenditures. Investment tracking: You can keep a track record of money coming out and being put towards personal investments. Go paperless: You don’t have to ransack your whole house to find a single receipt, instead store your records right there on your phone! Compare prices: Before making a purchase, many money apps allow you to compare prices and choose the best one from across different websites and apps.

Your first home is perhaps the biggest investment that you will ever make in your lifetime, which is why you’ll need to take certain factors into account before buying your first home. In fact, as a first-time buyer you can become overwhelmed by the constant fluctuations in terms of mortgage rates. However, a strict budget can be a crucial factor in securing a mortgage loan to make your home buying venture a real success. Tips for buying your first home should include: 1. Make timely repayments Debt is a huge burden for those who aspire to home ownership. this may mean paying off other debts in order to improve your credit score to get the best mortgage rate possible. It is also wise for first time home buyers to have an emergency fund that can help them to meet the expenses that might suddenly arise after purchasing the new home (i.e., legal fees, furniture, surprise repairs, etc.). 2. Conduct thorough research Setting a realistic goal will assist first time homebuyers to make wise home buying decisions. Online sites can be of immense help in comparing prices of residences and mortgage rates. Your research should be based on price, location, house size, and features.

Saving more money is a goal we all want to achieve. Sadly, most of us fail to do so miserably. In order to ensure that you do not compromise your financial aspirations, a well-planned monthly budget is essential. Thanks to personal budgeting apps, people are learning to curb overspending and even save. Today’s market offers apps for almost everything aspect of budgeting, on shopping, rent, food, and more. Here are the ways in which personal budgeting apps can help you manage your spending: 1. Track your spending A personal budget app, like Mint, has special features that help you to keep track of every aspect of your total monthly spending. Mint is a free app developed by Android, and offers automated updates regarding all of your transactions, and a detailed record of your total spending in a given month. 2. Simplify bill payments If you are confused while deciding on the ways to simplify the process of saving, then choose an app that can divide the spending into smaller digits. Pocketguard is one such app that divides your spending into different sections (i.e., spending on food, clothing, or shopping) to easily show you where your spending and what’s left in your wallet.

A credit score is a reflection of an individual’s or a businesses’ financial health. If you have a poor credit score and start a business, you’ll likely face a lot of problems due to your poor personal credit score, such as troubles if you apply for a business loan as far as rates and size of the loan. In fact, your loan applications can instantly get rejected for a business loan if you have a bad personal credit score. Read on about the loss that your business can suffer due to your poor credit score: 1. Limited capital for business If you are an entrepreneur, you probably know the importance of smooth capital flow. An insufficient budget can take a toll on your business. A business has to spend money on a large number of assets like licenses, equipment, office space, utilities, and much more. If you start a small business venture, there will likely be times when you have to use your personal expenses to ensure your business runs smoothly. However, if you have a poor credit score, this can jeopardize your chance to get loans for your business. 2. Rejection of business loans A business, especially a startup firm, has to spend large upfront costs on a number of things that often can’t be invested in without a loan.

Personal loans act as a savior for those who are in an urgent need of cash. One can apply for personal loans either from banks or private lenders with a set duration for repayments. If you don’t have the luxury of getting a personal loan from family members or friends, getting one through a lender can be an overwhelming process. Before you try to secure a personal loan, consider the following: 1. Get your credit report This is perhaps one of the most crucial components that will ensure whether you are going to get approved for a personal loan or not. In order to qualify for a personal loan, you need to obtain a personal credit card score of at least 720 or more. Your credit score is like a blueprint of your financial security, and a lender will always consider it in order to validate your loan repayment capability. This is why it’s better to request your credit report before applying for a personal loan to ensure you have good credit. 2. Choose your lender carefully When it comes to where to secure a personal loan, you have options. This is perhaps a dilemma for many lenders who automatically go to their bank.

Money is likely to be the biggest struggle in your teens. With a lot of dreams and desires top of mind, it becomes pretty tough to manage your finances when you’re in school and only have part time work, if any. Needless to say, you are yet to establish an financial identity of your own.. Many teenagers opt for personal savings. However, that does not often help you save money in the long run. However, we have some tips that can help you manage your finances so you do not run out of money while chasing your dreams: 1. Start earning The best thing you could do in order to save is to start earning some type of steady income. As a result, you will have your financial stability that you can depend upon monthly as well as a budget you can stick to in order to start paying down student loans or saving for a car. 2. Curb your expenses Saving begins when you spend less. Therefore, try to cut down your unnecessary expenditures to a minimum. For instance, eating out less will be a quick way to save money. 3. Maintain a budget This has helped a number of individuals save, not just teenagers.

The stock market is a tricky labyrinth, and investing without financial risk is a dream. As a result, people are searching for hacks and tips to enter it and earn a fortune. While some may earn considerable amounts out of sheer luck or strategy, others might lose everything. Although, it is difficult to assess the potential risk factors involved in the stock market, there are certain tips and tricks that you may incorporate or practice while investing in stocks so you can avoid market risk: 1. Set goals When you are investing in stocks, make sure your goals are long term. To do this, assess your financial condition first and decide on whether you are going to need the amount for anything else in near future. Assessing your own financial status is very important, as the amount invested is not liquid in nature. You might not be able to withdraw the amount as per requirement. You might even incur a loss in the process. 2. Know the basics Every investment sphere has its own set of rules, and the stock market is no exception. Therefore, it is very important that you have a prior knowledge of the fundamentals in order to invest.