Since I'm sure you're tired of reading all those lists of "ways to reduce your spending over the holidays" articles - and I know I'm tired of writing them - I thought I'd mix things up a bit here and post a list of questions you should be asking before you fill out a credit or loan (or even job) application.
Knowing to ask these ahead of time not only makes you look smart, it can also help save you some headache from making the wrong decisions because you didn't know to ask the right questions.
To the insurance company: "Which credit bureau and score do you use?" Knowing the answer to this can make all the difference in the world if you're applying for insurance, or even a loan.
Think of it as a cheat sheet to getting the best deals on insurance premiums or loan offers.
If the insurance agent tells you they primarily look at your Experian score over your Equifax one, you know which credit report and score needs your attention, rather than going in blindly and hoping for the best.
Not all insurance agents or lenders tell you which report or score they use to determine your credit worthiness, but most will if you simply ask.
Just make sure to beef up your score in advance of applying for a loan if it needs a boost - or you can find another lender that uses a credit bureau and score that you're already in good standing with.
To the credit card company: "Do you report my credit limits to the credit bureaus?" Not knowing your credit limits can make a big negative impact on your credit history if you end up maxing out your cards.
This might not even be (entirely) your fault, as some credit card issuers don't report individual limits to the credit bureaus, meaning you may think you have a higher (or lower) limit than you really do.
Knowing your limits is important in figuring your credit utilization ratio, which is critical in maintaining a good credit score.
I generally like to recommend people never go above 30% of their available balance, and that's tough to do when you don't know how high your balance limit goes.
When applying for a new credit card, make sure you know this too so you don't go over your limits and wind up in need of credit repair.
To your potential boss: "Do you look at credit reports during the hiring process?" More and more employers have begun screening the credit reports of prospective employees.
Luckily, they need your permission before they dig into your credit history, so this is a relatively easy one to prep for.
Your boss also won't be looking at your actual credit score - just the report itself - so if your history isn't where you'd like it to be, you can begin working to repair your credit report and working on a nice cover story as to why you're report isn't as high as it should be.
Knowing to ask these ahead of time not only makes you look smart, it can also help save you some headache from making the wrong decisions because you didn't know to ask the right questions.
To the insurance company: "Which credit bureau and score do you use?" Knowing the answer to this can make all the difference in the world if you're applying for insurance, or even a loan.
Think of it as a cheat sheet to getting the best deals on insurance premiums or loan offers.
If the insurance agent tells you they primarily look at your Experian score over your Equifax one, you know which credit report and score needs your attention, rather than going in blindly and hoping for the best.
Not all insurance agents or lenders tell you which report or score they use to determine your credit worthiness, but most will if you simply ask.
Just make sure to beef up your score in advance of applying for a loan if it needs a boost - or you can find another lender that uses a credit bureau and score that you're already in good standing with.
To the credit card company: "Do you report my credit limits to the credit bureaus?" Not knowing your credit limits can make a big negative impact on your credit history if you end up maxing out your cards.
This might not even be (entirely) your fault, as some credit card issuers don't report individual limits to the credit bureaus, meaning you may think you have a higher (or lower) limit than you really do.
Knowing your limits is important in figuring your credit utilization ratio, which is critical in maintaining a good credit score.
I generally like to recommend people never go above 30% of their available balance, and that's tough to do when you don't know how high your balance limit goes.
When applying for a new credit card, make sure you know this too so you don't go over your limits and wind up in need of credit repair.
To your potential boss: "Do you look at credit reports during the hiring process?" More and more employers have begun screening the credit reports of prospective employees.
Luckily, they need your permission before they dig into your credit history, so this is a relatively easy one to prep for.
Your boss also won't be looking at your actual credit score - just the report itself - so if your history isn't where you'd like it to be, you can begin working to repair your credit report and working on a nice cover story as to why you're report isn't as high as it should be.