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Is it better to use a debit card or a credit card? People often ask us that at Boost Credit 101, though the ultimate answer depends on what benefits or features are most important to you. Let’s dive in and explore the differences between the two so you can figure out the best choice for your needs. How Do Debit and Credit Cards Work? A debit card is linked to a checking account. Whenever a consumer uses a debit card to pay for something, the money is withdrawn directly from your bank. With a credit card, your money isn’t withdrawn…

When it comes to the risk obtained by lenders and consumers, secured credit and unsecured credit are two very different things. Come with us as we explore these two different types of credit and how they can have an impact on your credit score. What Is Secured Credit? Any form of credit that is backed by a physical asset for collateral is what we call secured credit. If you borrow with secured credit and default on your loan, the lender can strip you of your asset to recover the loss they endured. Whenever you take an auto loan out, for…

Unfortunately, credit myths aren’t uncommon. Even people who repair credit often deal with credit myths. In this article, we’re going to explore the top three credit myths in 2021 so that you can better understand your credit and how it works. Myth #1: Credit Utilization Is 30% of Your Credit Score 30% of your FICO score is made up of how much debt you owe, though that is only the general category. The entire piece of the pie is much more complex. Within this category, you’ll find several other metrics, including: ● The total amount of what you owe on…

While credit bureaus are typically pretty thorough in making sure consumers have clean and organized credit files, mistakes can happen. You might find that your credit file is fragmented, duplicated, or mixed up with someone else’s credit file. If you aren’t checking your credit report regularly, this could become a serious problem. However, if you are quick to catch these mistakes, you could end up avoiding one of these devastating downsides.   Lowered Credit Scores If you have large periods of your credit score missing, meaning you have a fragmented credit score, then your credit score might look more sparse…

Credit bureaus are typically pretty good at making sure they only have a single credit report per person. Of course, credit bureaus aren’t immune from making mistakes. Sometimes, you’ll have to deal with fragmented credit files, duplicate credit files, or mixed credit files. While people often use these credit file type terms interchangeably, there are some very notable differences to be aware of. It is important that you are aware of what these terms mean so that you can make the best decision when determining the proper course of action.   What are Fragmented Credit Files? Fragmented credit files are…

Even the slightest bit of debt can feel like a looming and lingering black cloud that you can’t escape. Reclaiming your peace of mind means freeing yourself from debt and freeing up your income. Here at Boost Credit 101, our goal is to help everyday people like you dig themselves out of debt so that they can live financially healthy lives. Here are a few ways that you can work to pay off debt quickly. Reduce Spending When is the last time you looked at your budget? Trying to figure out where you can reduce spending is important to climbing…

When people come to us here at Boost Credit 101, they are often looking for ways to improve their credit scores with tradelines. Of course, credit scores are complex. You need to understand just what it is that you are trying to improve before spending money, right? At least, that would be the smart thing to do. Essentially, improving your credit score means understanding the components found within it.   What Is A Credit Score? At its most basic definition, a credit score is a three-digit number that lenders use to determine whether a person is creditworthy or not. Not…

Your credit score is what tells banks and lenders whether or not they can count on you to make payments. A good credit score is an indicator that you have been financially responsible over time. Unfortunately, credit scores can be quite complex and there is a ton of misinformation out there that leads people to make bad financial decisions in order to boost their scores. Today, we want to take you through five common credit score myths that you should avoid getting sucked into at all costs. You Can Boost Your Credit By Making Tons of Small Payments All payments…

When you incur more debt that you can't afford to pay, bankruptcy is sometimes the only option. However, although bankruptcy can help you get out of debt, it won't help your credit score. In fact, bankruptcy can drop your score by 150 points or even more. After you have filed for bankruptcy, you will need to raise your credit score before you will be able to qualify for credit cards, mortgages, car loans and other types of credit. If you are wondering how to increase your credit score after bankruptcy, follow the tips below. 1. Make sure your credit report…

Your credit score is an important number: it will influence whether or not you get approved for an apartment or home rentals, loans and mortgages, and other types of financial undertakings. For more information about the details of your credit score and how to boost a credit score that's not so hot, read on. What Factors Make Up My Credit Score? The first thing you should understand about your credit score are the factors that influence it. Your credit score is calculated based on an in-depth consideration of your bill-paying history, how much of the credit available to you you're…