4 Serious Ways Poor Credit Will Make Life More Expensive

A credit history is a record of someone’s payment of debt over a period of years. The record may contain such details as how much credit card debt you have, whether or not you have paid your mortgage on time and details on loans you have paid off in the past. 

If you have had credit problems, this information will also be on your record, and the negative data can affect your financial prospects in a variety of different ways.

1. Higher Mortgage Rates

Your credit record is an important factor in getting a lower mortgage rate when you purchase a home. Home financing institutions generally offer their best rates to individuals with a credit rating of 740 or higher. 

You may still be able to get a loan if your credit score is 600, or even 540, but the interest rates are likely to be higher.

2. Less Access to Good Jobs

Many employers will check applicants’ credit scores with the assumption that a good credit score implies a reliable person that can be trusted to perform well in the work environment. 

Although this may seem unfair, the trend to associate credit history with a good risk for employment continues, and your bad credit record can cost you an opportunity to acquire a good job.

3. Higher Auto Loan Rates

Financial institutions may offer loans with higher interest rates to those seeking an auto loan, or they may not be willing to lend at all. 

Fortunately, there are alternative lenders, such as BlueSky Auto Finance, that specialize in acquiring auto financing for individuals with bad credit. 

These lenders can help you to find the financing you need so you can purchase the vehicle you need for work, school and other important activities.

4. Credit Card Rates

Negative data on your credit record can also cause you to pay a higher interest rate on your credit cards. 

Even if you start out with a low credit card rate, problems on your credit record can cause your credit card company to increase your rate significantly, so that the purchases you need to make cost much more, if you must carry a balance on your statement.

When you research your credit record and take care of any problems that exist, you can restore your ability to get better interest rates and better opportunities. 

Always check your credit record to make sure it is up-to-date and has no errors, and you will be rewarded with greater financial opportunities.

Cost of Living: How to Cut Back on Major Expenses

When the car breaks down, you have no choice but to fix or replace it. The same is true when it comes to your refrigerator or any other household appliance. 

While you may not want to shell out a lot of money to cover a major expense, there are ways in which you can keep the bill to a minimum.

Find a Roommate to Save on Housing

When you take on a roommate, you have someone to split your rent or mortgage payment with. However, you also have someone to split the cable bill, light bill and other associated expenses with. 

If you have kids or pets, your roommate may be able to help out with child or pet care, which could save hundreds of dollars more per month.

Buy Insurance to Cut Back on Medical Expenses

If you have need to have surgery or need dental work, you should buy an insurance or discount plan. 

With a good plan, you may pay little or nothing for your care. At a minimum, your deductible is likely to be less than what you would pay if you didn't have insurance. 

Local clinics may charge based on your income, and charitable groups may be willing to help pay for emergency expenses.

Go to the Junkyard to Find Used Car Parts

A junk or salvage yard, like U Pull & Pay, is a great place to find used car parts to fix your car with. Instead of paying $500 at an auto body shop, you could pay $50 or $100 for something that will work for months or years to come. 

In most cases, you can take a look at a location's inventory before you go there to ensure that it has what you need.

Garage Sales May Offer Great Discounts

Those who are looking for used appliances, car parts or other supplies needed for a major project may find them at garage sales. 

It may also be worthwhile to check out an estate sale or flea market to help you cut back on major expenses in your life. If you don't want to buy, it may be possible to rent an appliance or otherwise expensive item and pay on a weekly basis.

There is never a good idea to have to deal with a major expense. However, there are many ways to make paying for it easier if you know where to look. 

Buying insurance, perusing salvage yards and buying from garage sales may help you save money without sacrificing on too much, if any, quality.

6 Improvements You Must Do Before Selling Your House

 With the current housing market booming, now is the time to sell. Whether you are moving to a new home or apartment, getting the best price for your home is important. 

The easiest way to increase the value of your house is fixing the small issues that you have become used to over the years. With the small problems out of the way, sprucing the place up can increase its value to potential customers with a minimal outlay of time and money.

Upgrade Doors and Windows

Sticky windows or doors that jam from the house settling are minor issues to you. You have had years to get used to your home’s quirks, but for potential buyers these nuisances can lead to worry about how well the house has been maintained. 

As the seller, it is a clever idea to put your buyer’s minds at ease. One of the easiest ways to do that is to make sure that the doors and windows open easily and completely.

Get Rid of the Carpet

Carpet that is more than a few years old is already dated. Add to that the years of ground in dirt, it is easier to replace carpet than try to get it completely clean. 

Pulling the carpet yourself and replacing it with hardwood floorboards or a modern flooring can increase the amount you get for your house. The potential buyers don’t have to factor in the cost of carpet removal and replacement, leaving more money to spend on the house. 

If the cost of replacement is too high, of course, or the floors leave a bit to be desired make sure you get a thorough cleaning of all carpets in your house.

Update the Bathroom and Kitchen

Bathrooms and kitchens can be easily overlooked by sellers since they are used to seeing them daily. A new set of eyes, however, can see a completely different room than what you are used to. 

Lighting, appliances and fixtures can all be changed out relatively inexpensively and will improve the value of your home.

Clean the House Up

Although it should go without saying, potential buyers are going to poke through everything if they can. 

With good reason, of course, they are dropping a great deal of money on a house that they intend to live in for years. Neither the buyer or the seller want to find surprises during these inspections. 

Clean everything from carpets to drapes and furniture (even if the furniture is going to be removed) to closets and the insides of cabinets. Dirt and grime will devalue your home quicker than shabby carpet.

Spruce Up the Yard

A little landscaping goes a long way and shows that you cared for your home. Mow the grass, trim the hedges and update lighting along drives and walkways. Remove any junk from the yard and garage before potential buyers come to visit the house. 

Learn More - Dirtiest Places in Your Home and How to Kill Germs -

Look at the hedges and plants and replace the mulch or ground cover. Trim drooping limbs on trees and ensure that nothing blocks the view of your house or the view from the house.

Slap a Fresh Coat of Paint on Everything

A fresh coat of paint makes everything look better. Interior design has trends and paint that was trendy a few years ago may not be now. This is also an appropriate time to paint the interior with neutral colors. 

According to experts behind ASAP painters Sydney, “avoid white interior paint, but neutral colors can be a tremendous selling point as they add character to a room.”

You don’t want to ignore the outside of the house, either. Since the first look potential buyers have is the exterior, making sure it looks good is an easy and inexpensive way to add value and appeal to your home.

When it comes to selling your home, you should put yourself in the buyer’s shoes and take an honest look at the house you are selling. 

Anything that bothers you about it will most likely bother the buyer, fix those small issues and selling your home will not only be easier, but more lucrative as well.

Author bio: Steven Clarke is a business consultant and a DIY enthusiast. In his spare time he likes to write about his ideas and share them with the world. Steven is a regular contributor to several websites.

Saving for Retirement with a Health Savings Account

Health Savings Accounts, or an HSA, are quickly becoming more and more popular in the United States. Not only are they a useful vehicle for saving for health care costs and expenses, but they can be a valuable tool for retirement savings as well. 

If you have a high-deductible insurance plan, you are eligible for an HSA account. Many plans and companies offer an HSA account to accompany your insurance, or you may open your own account at a financial institution. 

Health Savings accounts can be rolled over year after year and the money in your account can be invested. Often, Health Savings Accounts are often confused with Flexible Savings Accounts, which do not roll over each year.

An HSA is a great way to get and use the tax-free money for medical expenses that you may incur over your lifetime. Health Savings Accounts save you money on taxes in three different ways:

1. Your money goes into your account before it is taxed and is not counted toward your taxable income. 
2. You can invest the money in your Health Savings Account and it grows tax deferred. Any interest, dividends, or capital gains you earn are not taxed, as long as they are spent on medical expenses. 
3. When you withdraw the funds for qualified medical purposes, they are withdrawn tax-free as well - which includes all deductible and health care costs that are not covered by your insurance plan. 

Tax Implications

Since Health Savings Accounts can be rolled over year after year and the money within the account can be invested, it is another great way to save money for retirement. 

Once you turn sixty-five, the money in your health savings account can be withdrawn without a tax penalty and can be spent on non-medical expenses. The money is taxed as income, like with a traditional IRA, but there are no other tax penalties associated with using the money for things other than medical expenses. 

However, once you turn sixty-five, you are no longer able to contribute to your account, so be sure to start saving early. Saving early will help give you a good nest egg for any medical issues that may arise at any time in your life and prevent you from having to make or use a bad credit loan.

Limits and Deductibles

There are limits on who can contribute to a health savings account. You cannot be enrolled in Medicare or claimed as a dependent by another person. Your health insurance plan also must qualify as a high deductible plan. 

The qualifications for that may change, but currently, your deductible must at least $1300 for an individual and $2600 for families. The amount of money that can be placed into an account is also variable between individuals and age. 

For those under the age of fifty-five, you currently can place up to $3400 into an account per year for an individual and as much as $6750 for families in 2017. If you are over the age of fifty-five, you may add an additional one thousand dollars per year into the account as a catch-up contribution until the age of sixty-five. 

These limits are set by the IRS each year and will increase over time, as they are adjusted for inflation.

Planning for Retirement

Funds from a 401K or traditional IRA are taxed regardless of how the money is spent. With an HSA, as long as the money is spent on medical expenses, the money and your earnings will not be taxed. 

If you are over sixty-five and need the money for expenses other than medical, you can simply use the money as regular income and taxed as a 401K or traditional IRA would be, without additional tax penalties. 

The HSA also does not require account holders to withdraw funds at a certain age, as with some IRA’s and 401k’s. They can remain in the HSA for as long as the account holder wants.

4 Ways To Make Property Management The Best Financial Decision

If you own property that you don't live in, don't live in year round or are responsible for a homeowners or condo association, hiring a property management company to oversee your property is often the best financial decision. 

By letting your property management company do the things listed below, you can ensure hiring property management is the best financial decision.

1. Let Them Manage Your Finances

Property management companies will manage the finances of the property in addition to ensuring regular maintenance and upkeep. 

They will find the best deals with the best contractors that they frequently work with and effectively manage a property's finances so you'll have a realistic picture of your property's finances at all times. 

This can help you make the best financial decisions as well as ensure you always have some money stashed away for when you need it.

2. Let Them Handle Legal Matters

Property management firms have contacts in the legal field who deal with property law. If you have tenants, they will adhere to relevant tenant law so you can steer clear of potential problems that could end you up in a lawsuit and out a lot of money. 

The same is true for homeowners associations. Making sure your property stays legally compliant is often enough financial reason to hire property management.

3. Let Them Manage Big Projects

Professional property managers are going to help you collect bids from various construction companies when you need to make a major change like a remodel or put on a new roof. 

They coordinate with the construction company, manage necessary equipment logistics like cranes or even hire a construction supervisor to oversee the project so it is completed successfully, on time and in a quality manner. 

They also can help with smaller projects as well, such working with plumbing companies like the professionals at Brad's Plumbing. This will save you a lot of time and could prevent costly mistakes, generally making it a good financial decision.

4. Let Them Handle Insurance

Your property manager will get bids from various insurance companies and work with insurance agents to get you not only the cheapest policy but also one that gives the right amount of coverage to your property. 

This can save you a lot of money, as not only will you save on your premiums by not having more coverage than you need, but your property will also be covered in the right areas if anything catastrophic ever happens. 

They will also make sure any contractor doing work on your property carries proper insurance so an injury lawsuit is less likely to happen.

Property management is usually the best financial decision for all of the reasons listed above. It often saves you money, gets projects done right the first time and leaves you with peace of mind.

How Old is Too Old to Start Investing?

While it is ideal to get started investing early, it is by no means only for the very young. Even if you are in your forties or are approaching retirement age, you can still build your wealth, prepare for your retirement, or create a better future for your children and grandchildren. What is important is that you get started. And the sooner you do it, the better.

The power of compound interest

One compelling reason for you to invest today is the power of compound interest. If you invest $10,000 today and it earns an interest of 15% every year, you will double it to $20,113.57 in five years. 

If you set aside $100,000 from your retirement fund and it earns 15% annually, you will have $201,135.72 after five years, and $404,555.77 in ten years.

No matter how much you choose to invest, compound interest has the potential to help you build your wealth faster than if you were to save all of your money in the bank.

Learning how to invest

Before you start investing, learn as much as you can first. There are plenty of books and blogs dedicated to the subject, so you will have all the resources you need. 

Begin with the fundamentals because you will be able to apply these to different forms of investment, such as stocks, bonds, and real estate.

You can also use free online tools to practice what you have learned. Virtual stock markets, for example, let you follow real-world stock movements and trade these stocks using virtual funds. 

Practice in an online sandbox until you are confident enough to use actual money to invest.

The importance of diversification

All investments have inherent risks. Companies go bankrupt, markets experience downturns, and inflation can erase your gains. 

You can minimize your exposure to risk by creating a highly diversified portfolio. If you invest in stocks, buy shares from companies across a wide range of industries.

While stocks are a popular form of investment, diversify further by investing in bonds and real estate. Real estate, in particular, has proven to be relatively safe and stable, especially if you want a long-term investment.

When investing in real estate, you can also buy shares in real estate investment trusts (REITs). These allow you to invest in a portfolio of properties and provide you with income through dividends. 

By investing in a REIT, you will have a diverse real estate portfolio, which would limit your risk significantly compared to owning actual properties.

Use the equity in your property

When your children have all moved out, and as you near retirement, it may be a practical choice for you to move to a smaller house. It is easier to maintain and provides you with only the space you actually need. 

But more than that, you can release the equity that you built up in your current property and have some capital to start your investment.

Knowing what your goals are

Know what your specific goals are before you invest because your goals will let you determine your most ideal type of investment. 

For example, if you wish to save up for your retirement, it may be a wise choice to invest mostly in low- to medium-risk investments. If you want to build your wealth faster, you can invest some of your capital in high-risk investments to get higher returns. 

Keep in mind, however, that high-risk investments also have more chances of failing, so limit your risk accordingly.

Whatever your goals are, whatever your preferred investments, and whatever your age, getting started may be a scary step to take, but it can be rewarding too. So invest today—it can change your future for the better.

Kenneth T. writes for The Investor, a real estate blog with a passion for real estate investments and provides real estate investors with insights on the most pertinent issues in the market to help support their investment decisions, wherever they are in the world.