You must have heard about the term credit score, or maybe you have even checked yours a couple of times. However, do you truly understand what it is and how it works? Well, if you wish to enhance your understanding of the same, then you must continue reading this article. What is a credit score and who creates it? A credit score is a statistical number based on your credit history, and it determines your creditworthiness. This figure is created using information from your credit report. It helps lenders analyze how likely you are to repay your debts based on your history of paying other loans. FICO (Fair Isaac Corporation) creates most credit scores used by lenders and insurance companies. What is a good credit score? The definition of good or bad credit score can vary from one lender to another. However, here are some basic guidelines – 760 – 850: Excellent 720 – 760: Very good 680 – 720: Average/good 620 – 680: Fair/poor Below 620: Poor What are some things everyone should know about credit scores? Credit scores differ from credit reports: Credit scores are calculated using information from your credit reports, which includes credit account details, personal debt collection amounts, public records, etc.

One of the inevitable investments almost everyone makes is buying a home. Investing in that one place where you spend most of the years with your family is a dream most people work towards. What that requires most is budgeting. Buying a home requires years of financial planning in advance. You might have to look into the mortgage as well. There are loads you need to look into as first-time home buyers. There are loads of options available today to save and invest in a house. There is also loads to understand before you set out and invest in the house. Since it is an investment you are making for the future, it should be a sound one. What are the Best Tips for First-time Home Buyers? Buying a home for the first time is an exciting ordeal. There are several tips that can help you take the plunge while retaining your financial goals. Invest in a house only after you are debt free Figure out the amount you can spend over the house Check if the mortgage is affordable for your income Make sure you have a down payment Save for additional expenditure you may incur Prepare in advance to get your loan approved Look for houses within the price range you can afford Find the neighborhood that comes within the expenditure Take your time, visit open houses and then decide Never fail to counter with an offer within your budget from your end Prepare yourself to take the plunge How can you Plan to Buy a House in Advance?

It is a wise decision to save your income so that it can be further used for many other ventures. Hard-earned money should be put to better use with smart choices so that you can live a stress-free life. Earned money is very valuable and spending it more sensibly is definitely a good way to take care of financial responsibilities that grow with age. There are several apps that can be downloaded at the comfort of your mobile phone to help track expenses and set a target for a budget. These apps have become highly popular among young professionals as they help and assist in financial dealings and help balance monetary transactions. Why is it Important to Curb Spending? It is a great idea to save money by balancing the expenses from the income as one can use it for various purposes, some of them are as follows: Peace of mind Financial old age support Financial independence Invest in big deals Make bigger investments Increase buying capacity Emergency cushion in terms of finance Retirement Education Which are the Best Personal Budget Apps to Help Curb Spending? It is very important to track your expenses and set a budget for your spending to get smart to use your hard earned money.

Personal loans have emerged as sought-after options people are using for meeting both their short-term and long-term financial needs. Banks and non-banking financial companies offer these loans to retired pensioners, self-employed professionals, and salaried employees. Read on to find more about personal loans and how to secure them successfully. What is a Personal Loan? These are unsecured small loans, which individuals take from banking and non-banking institutions for fulfilling their personal needs. The criteria for approval of these loans include your repayment capacity, income level, and credit and employment history. The personal loan is unsecured, as it is not secured against any asset like a car or a home loan. Due to the greater perceived risk when sanctioning these loans, the interest rates on personal loans are higher than home, car, or gold loans. It can be used for a plethora of financial needs ranging from meeting unexpected medical expenses, child’s education, and buying latest gadgets to fixing your car, investing in a business, and for down payment of a new home. What are the Things You Must Know Before Applying for a Personal Loan? The following are the things you should know before you apply for a personal bank loan:

Every government employee or working individual aims to spend a dignified life after retirement. If you’re also nearing your retirement, you must be looking for ways to fund your retirement period without being dependent on anyone. A reverse mortgage is a helpful and effective way of funding your expenses during the retirement period. It also allows pensioners to get a regular income. What is a reverse mortgage? A reverse mortgage is a unique plan for people who are above 60 years old and own a residential property. This exclusive offer helps you maintain the ownership of your home. In a reverse mortgage plan, instead of the homeowner paying EMIs to the property lender, the lender is the one who makes payments in installments to the homeowner. How does reverse mortgage work? As the name indicates, a reverse mortgage is the opposite of a mortgage loan. At the start of a mortgage loan, the bank is the sole owner of a property, and with every EMI payment, the equity of that property starts transferring to the name of the borrower. However, in reverse mortgage, the borrower has the whole equity of the home. The bank will grant a loan against the property which is divided into equal parts.

A stock market is a place or platform where private companies, as well as public companies, encourage trading of stocks. It is also known as the equity market. Business owners, public sector companies or investors buy and sell stocks and shares. Stockbrokers are people who trade their company’s stocks and shares. It facilitates a marketplace for companies by allowing them to get capital through the exchange. The investors get stocks or shares which gives them partial ownership where they also share profits and gains of the company’s turnover. Stock market transactions are sensitive to the world economy, and it rises and falls as per global trends. The Securities and Exchange Commision enforces the federal laws regarding the securities industry in the country. What are the various stock market exchanges? The stock market exchange is a market in various places across the world. Some examples are: NYSE: It stands for the New York Stock Exchange, and as the name suggests, it is based in New York. It deals with American and European trade. NASDAQ: This New York-based stock exchange is the second largest in the world. Their website carries information on news related to stocks, global markets, information on companies, history of stocks, the progress of shares, data analysis, reports of companies, general information, etc.

Every day we’re faced with thousands of choices. Do we want a peanut butter and jelly or ham and swiss on our sandwich. Do we want to drive our car or commute to work on public transit. Deciding to open a checking versus a savings bank account is no different. As a general rule of thumb, a savings account is meant for saving money, which is why they tend to have higher interest rates to collect money on those funds. While checking accounts are more meant for everyday money transactions (withdrawals and deposits. However, when it comes to where we put our hard earned money, the answer depends on several factors, and pros and cons: 1. Savings pro: Build interest on your funds If you’re opening a bank account to deposit money and earn interest on the bulk of it, a savings account is your best bet. Most checking accounts don’t pay a ton of interest on bank balances, which means you’re not earning a lot of large deposits (i.e., paychecks). So if you’re aiming to build a rainy day or emergency fund, put that chunk in savings. 2. Checking pro: You’ll have easy access to your money If you plan to deposit your weekly paycheck and use those funds for your day-to-day spending needs (i.e., groceries, entertainment, gas, etc.) a checking account will give you convenient access to your money.

Every year, as tax season draws closer and people start thinking about filing their tax returns, many stressed people leave things to the last minute and find themselves rushing through the required tax forms. However, trying to get through filing taxes as quickly as possible or not having enough attention to detail can cause some serious errors and mistakes during tax filing. These common mistakes can cause things like, the IRS taking a closer look into your return, delayed tax refunds and slower processing time of the tax return, among others: 1. Errors with basic information Believe it or not, some people end up getting their basic information wrong on their tax return. For example, misspelling names of dependents and spouses, errors with dates of birth, and also getting social security numbers wrong. Some people try to guess without double checking the social security numbers for themselves and family members. 2. Filing status When you file taxes online or via paper form, some people find themselves accidentally selecting the wrong filing status. This can easily be done especially between the married filing separately and married filing jointly options. However, this common mistake can cause a huge difference with the tax deductible that’s applied from which status is selected.