Your credit score can have a significant impact on both your personal and professional lives. Personally, your score can impact the availability of and interest rates for mortgages, car loans, and credit cards. Professionally, a bad credit score will hurt your chances of securing certain jobs and obtaining financing for small business endeavors.
Your credit score is a composite of several factors: payment history, credit usage, credit age, types of credit, and credit inquiries. Some of these areas can be impacted more quickly than others.
If you were recently denied credit or told you do not qualify for low interest rates due to bad credit, here are our top tips for raising your score:
Know where you are starting: You have to take a hard look at your credit report and understand the problems.
Dispute any mistakes: Your report could include accounts that are not yours or reflect incorrect payment history. Each incorrect item can be disputed through the agency and/or lender.
Pay off collections: If you have accounts that have gone to a collection agency then it is critical to deal with these first. Work with the original lender to arrange a payment schedule and get your account in good standing.
Get current on payments: If you are more than three months overdue, a lender may be reporting that activity. Again, to protect your credit you will want to start making payments immediately in order to bring your account in good standing.
Payment history: If you have had a problem with paying your bills on time, look to improve in these areas.
Lower your debt ratio: Maxing out your credit cards can hurt your credit score. Paying down your balances on credit cards can make a significant, and rather quick, impact in this area.
Open new lines of credit or keep paid off credit cards open: You want lots of available credit. For instance, if you have $8,000 of outstanding debt on a credit card, it is better to have a $20,000 limit than $10,000 one. Sometimes applying for an additional credit card can help, but only if you have the discipline not to use it.
Vary your types of credit: Do you have all credit cards? It is better to have a variety of credit accounts open which can include a school loan, car loan, home equity loan of credit (HELOC), and a mortgage. If you are being denied credit, this is a hard one to change in the short term.
Extend the age of your credit: The length of time your accounts have been open is a factor in your credit score. This is often hard for younger people to conquer and takes a longer time to make a significant impact.
Limit credit inquiries: Each time you apply for any type of credit that requires a credit check that action is recorded. Too many inquiries and it will appear as if you are trying to obtain too much credit. If you have problems with your credit report, stop applying – those denials can lower your score.
We can go through your current financial situation with you and look for ways to pay off debt and improve your credit rating. This can give your personal and professional life a boost and set you down a more secure path.
Did You Make a QCD From Your IRA? Tell Your Accountant
Feb 21, 2024
As we navigate the complex world of tax planning, there's a valuable strategy that might have flown under your radar – Qualified Charitable Distributions (QCDs) from your Individual Retirement Account (IRA). In this blog post, we shed light on the potential...
As the new BOI reporting era kicks off on January 1, 2024, we are here to guide you through the process and ensure compliance with these significant regulatory changes.
Your Guide to 1099s
Jan 24, 2024
Many taxpayers are familiar with W-2’s. You likely received one when you worked your first job. As you get older, it is common for your taxes and the paperwork surrounding your taxes gets more complicated.
If you are beginning to receive (or issue) 1099s this guide can help you understand in greater detail what that entails.
Here are some reasons why you will benefit from a trusted CPA firm: Improve your credit score — Whether you're just starting to build your credit or are hoping to significantly improve it after years of credit mistakes, professional accountants can help with your credit rating.
The salary difference between a licensed CPA and an unlicensed accountant throughout a career could be hundreds of thousands of dollars. Moreover, the license is so desirable that accountants can use it as leverage for raises outside the typical pay raise windows. Becoming a CPA has numerous benefits.
It's not unusual for small businesses to get tripped up by their own mistakes or lack of knowledge about tax laws, which means they often end up paying more than necessary. Hiring a CPA means you don't have to worry about tax planning as they can help you navigate the complicated tax filing process.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
The CPA is great if you want to rise up the finance department at a corporate business and ultimately become the CFO, or if you want to rise up the ranks at a public accounting firm. The CFA credential, by contrast, is great if you want to work at a bank and, in particular, in investment management or equity research.
Accountants will be called on for their expertise in areas such as reviewing assets and liabilities. They'll identify what can be liquidated or borrowed to pay off debts as well as jointly held resources.
Accountants are legally allowed to prepare tax returns, although they may not have as much knowledge of tax codes as a CPA does. Another important distinction is that CPAs can represent clients in front of the IRS in the event of a tax audit, and they can sign tax returns, whereas non-CPA accountants cannot.
Although there is no prohibition on you being employed in an accountancy role during your bankruptcy you may find that some employers are reluctant to take you on. In particular accountants in practice may be concerned that this could have an adverse effect on their status.
Address: 2033 Gerhold Pine, Port Jocelyn, VA 12101-5654
Phone: +8524399971620
Job: Central Manufacturing Supervisor
Hobby: Jogging, Metalworking, Tai chi, Shopping, Puzzles, Rock climbing, Crocheting
Introduction: My name is Edmund Hettinger DC, I am a adventurous, colorful, gifted, determined, precious, open, colorful person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
