Sunday, February 16, 2020
What The New FICO Credit Score Changes Mean
Fair Isaac, the giant credit score company, recently announced the biggest change since 2014 in how it determines its FICO credit scores. This new FICO 10 system — expected to go into effect by year’s end — could affect your home buying and credit borrowing in big ways, possibly for the worse and possibly for the better.
But there are a few things you can do to help prevent it from lowering your credit score.
Having good credit is especially important in retirement. It can save you thousands of dollars — with a lower interest rate on a mortgage, car loan or credit card — at a time of life when every penny really counts. And a high credit score could help you get a rewards credit card or a better interest rate with one, making travel in retirement less expensive. Insurance premiums, utility bills and apartment rents may also be more affordable when your credit is in good shape.
Conversely, having a poor credit score could keep you from getting a mortgage on a retirement home or raise your monthly expenses due to higher borrowing costs.
What the New FICO Credit Score Changes Will Do
According to FICO, about 40 million people could see their credit scores rise 20 points or more with the new system. But another 40 million could see their scores drop 20 points or more. And about 110 million people could see their credit scores go up or down by under 20 points.
What’s behind FICO 10? Something known as credit score inflation.
A few years ago, due to a legal settlement, the three major credit reporting agencies (Equifax, Experian and TransUnion) agreed to remove tax liens and judgments from credit reports. That caused millions of Americans to see a boost in their credit scores. The average FICO score climbed to an all-time high of 706 in 2019; scores typically range from 300 to 850.
But lenders weren’t thrilled with this development. Some argued the credit score increases weren’t deserved and could lead some people to get loans and credit cards they wouldn’t be able to pay on time.
According to FICO, a credit card issuer might be able to lower its number of defaults by up to 10% under the new scoring model, though. One reason: FICO 10 will put more weight on a borrower’s rising debt levels. So, if you switched from paying off your cards in full each month to carrying growing balances, you may well see a lower credit score.
3 Ways FICO 10 Could Hurt Your Credit Score
Here are three ways the FICO 10 changes could hurt your credit score:
1. Late payments could trigger a bigger credit score drop than before.
2. If you have a history of not paying off your credit card debt in full every month, your credit score may decline.
3. Personal loans might damage your credit score, especially if you use them to consolidate credit card debt, but then run up credit card balances.
That said, many of the general rules you’ve learned about earning a good credit score still apply under FICO 10. For example, it will still help to pay your bills on time, keep credit cards open and review your credit reports for errors often.
How to Change Your Credit Habits Due to FICO 10
But you may want to tweak your approach to credit management in light of the new scoring changes to come. Here’s how:
Be sure not to be late on your loan and credit card payments. Even the occasional late payment might be a bigger issue under FICO 10.
Make paying off credit cards a bigger priority. FICO 10T (an alternative version of the new scoring system) will look back at how you’ve managed your credit cards over the last 24 months. If you have a history of paying off card balances every month, this good habit should work in your favor.
Be careful how you use personal loans. Using a low-rate personal loan to consolidate credit card debt may still be a smart financial move. However, it will be more important than ever to avoid getting back into credit card debt because a personal loan consolidates your debt.
If you start following the good habits and steering clear of bad ones, you may be able to avoid potential credit score problems in retirement.
Saturday, February 15, 2020
Easy Curb Appeal Updates For 2020
Does curb appeal matter if you are trying to flip a house? Yes it does! Research claims that buyers can decide if they would be willing to buy a house within the first eight seconds of seeing the property. What will potential homebuyers see in the first eight seconds after driving up to your property? If you’re listing a house soon and want to see immediate interest, give the below tips a try in order to update your curb appeal and get your home sold fast.
Tidy Up The Yard
You may not have the time or the money to invest in brand new landscaping, but that doesn’t mean that you can’t make the yard look clean. You can buy mulch in bulk at Home
Depot for cheap. Having mulch is the easiest way to transform your yard and make it look neat and fresh. Plant some new flowers in pots placed near your front door, and add a new welcome mat. Finally, Mow the lawn and trim branches.
Clear The Pathways
Paint or Power Wash?
Take a walk around your home and inspect the exterior. Do you notice any peeling or chipped paint? It may be time to consider repainting the exterior. Check the walkways, windows, and smaller details that are looking drab. A fast power wash can help transform these areas without costing a fortune. You can easily rent a power washer if you don’t have one.
Add Color
Consider updating your front door for a fresh, new look. Add a pop of color by painting your front door if you don’t have the funds to update the whole house with a fresh paint. A new entry can return between 75–100% of your investment. Follow the above tips for some easy curb appeal fixes to sell your home quickly in 2020. Good luck!
Friday, February 14, 2020
How to Make Your Valentine’s Flowers Last Longer
There is nothing quite like a floral display to add a touch of love and warmth to a room. Receiving a glorious bouquet of
flowers definitely puts a smile on our face and since it’s February, our thoughts turn to Valentine’s Day, romance and that special someone in our life.
So when that special someone in your life gives you a big bunch of fabulous red roses this weekend and has that silly grin on their face that asks – "Did I do good?", you can give them a winsome smile and let them know how much you love and care for them.
Try These Tips to Help Your Flowers Stay Fresh
The love that you receive on Valentine's Day can indeed last a lifetime. Don't you wish those romantic roses you receive did too? So when you receive your Valentine’s Day flowers, here are a few tips to keep them looking fresh and beautiful for as long as possible:
Before you start, make sure that your vase is clean. Then remove any leaves from the lower part of the stems that will be submerged in the water.
Trim about 1cm from the end of each stem, at a 45o angle and do this under water. This stops air getting into the stem and makes it easier for the flowers to draw fresh water into their stems.
Re-trim the ends of the stems every day or so, to keep the ends fresh.
Give your flowers the right nutrients to keep them fresh and healthy for longer. Some florists include little packets of flower food with each bouquet. Make sure to use it. Add one packet of flower food every time you refresh the water – either daily or every second day.
Lastly, add a few drops of bleach to the water to help keep the water clean. Remember, only a couple of drops or you will damage the flowers.
More Pro Tricks to Keep Valentine's Day Flowers Blooming
Fresh Flowers need just the right temperature to remain vibrant and blooming. Avoid placing your Valentine's day roses directly under the air conditioner, in direct sunlight, or near a heat source. Natural indoor lighting works just fine for your flowers as long as you're following the tips we've listed above.
Most important of all, make sure to wash the vase clean with soapy and dry it thoroughly each time you want to replace the water. This will help get rid of the bacterial growth and help your flowers stay fresh longer.
That’s the secret to keeping your Valentine’s Day flowers in tip top shape for as long as possible. Happy Valentine’s Day everyone!
Subscribe to:
Posts (Atom)
Popular Posts
-
If you’re faced with a clogged toilet and you don’t have a plunger or don’t want to use a plunger because it’s too disgusting try this tri...
-
A Joliet, Illinois mansion may be the deal of a lifetime -- or it may scare you to death. The Hiram Scutt Mansion is a national landm...
-
You're ready to take the leap and buy a home. If this is your first time, you may want to know what to do to make the process go more s...
-
Do you like to travel? Do you travel to Europe? If so, you need to read this article... Here’s what you need to know about the new E...
-
One of the best reasons to list your home with a real estate agent isn't just about getting more money for your home. While a real esta...
-
When you're selling your home, you need every advantage you can get. And there are few homes that are magically market ready without a ...
-
There is nothing quite like a floral display to add a touch of love and warmth to a room. Receiving a glorious bouquet of flowers defi...
-
In the Tampa Bay area, a 60,000-square-foot mansion in Hillsboro Beach has hit the market after seven years of construction. "...
-
A recent survey by the National Association of Realtors (NAR) found that Eighty-three percent of people view their home as a good financial...
-
With the housing market being a seller's market on steroids, due to lack of homes are the market, you need to be prepared to have to fig...