Tips for Turning Your Credit Around in 2016

by Kaylie Phelps

Credit scores will matter even more in 2016 than they did in 2015. With the economy threatening to see interest rates rise, lenders are going to place more weight on this score than ever before. Don’t be left behind or you could find it impossible to obtain any type of loan. Those who already have bad credit are in the most vulnerable position. We’re going to show you how to turn your credit around in 2016.

 Figure Out Your Budget

To begin with, you must figure out your incomings and outgoings in a normal scenario. In other words, take your salary and your conventional household bills. Only then should you add on your debts. After that, look at whatever you have left. You have to change your budget until you can at least cover the repayments on your outstanding debts. Paying your bills at the right time is the cornerstone of any credit score. It accounts for at least 30% of the whole thing, which is by far the biggest proportion.

Total Credit Limit

For each credit card you have, figure out what 35% of your total credit limit is. You must never go over this magic number. In the eyes of credit card companies, anyone who is using more than 35% of their total credit limit is in trouble and is relying on the money of others to get by. There may be some truth to this, but whether you agree with it or not you must get your credit card debt below this percentage for each individual card.

Longer History Trumps All

The longer your credit card history the better, even if you’ve barely touched the account in years. You can technically have a credit card that you haven’t used in years and it will contribute to a positive score. Even if you intend on never using certain cards again, cut up the card but leave the account where it is.

Closing an account can actually reduce your score. This is usually caused when your total available credit goes down.  Another thing to be cautious of is to not have too many personal loans.  Often times people with bad credit take out several personal loans to help pay for things they don’t need.  Personal loans are fine just as you are responsible with them.

Correct Mistakes

So many people don’t request a copy of their credit records when they get into a situation where they have to review their credit. You would be surprised at how often the major credit reporting agencies make mistakes. There are people who have completely altered their financial prospects by correcting the mistakes of others.

Reduce Credit Enquiries

Making enquires for new cards and loans will stay on your record for two years. For one year, it will reduce your score. A rejection makes it even worse. It’s an interesting line of thinking because applying for credit is bad, but so is not having any credit at all.

In short, only apply for the lines of credit you believe you have a good chance of being accepted for. Furthermore, you should make an effort to not apply for too many cards in a short space of time. Try to space them out as and when you need them. Hopefully, these tips will help you turn your credit around in 2016. What other tips do you have for a better credit score?


Forex Lessons for 2016

by Kaylie Phelps

As the new year is now upon us, many Forex traders are looking back and appreciating the lessons learned during 2015. This is critical for anyone who hopes to take advantage of the most liquid marketplace in the world. Failing to take such lessons to heart will inevitably result in stagnation and falling profits. Let us therefore take a quick look at some of the enlightenment that 2015 has provided and how such information can be applied during the coming 12 commercial water slide

Failing to Watch the News

Some traders became caught up in what is known in some circles as the “do-or-die” syndrome. To put it another way, watching the charts and the relationship between two currency pairs alone took precedent over a more well-rounded approach. Keeping up to date with the latest news at it occurs has always been one of the defining principles behind any successful Forex trader. As opposed to having to browse disparate news and information portals, CMC Markets has provided a centralised feed which can be paired directly with one’s live trading platform. This will enable even the novice trader to make on-the-fly decisions when they are critical.

A Lack of Familiarisation

This next mistake is quite common during any year. New investors are very eager to reap the potential rewards that the Forex markets have in store. As such positions seem “just around the corner”, this attitude supersedes the principle that a learning curve is always present. One can never take advantage of opportunities that he or she is unaware of. Whether you are a full-time trader or put in a few hours after a day of work, the fact of the matter is that understanding market movements and the impact of numerous variables is essential to make the correct decisions when the time comes. This lesson should never be overlooked.

Keep an Eye on the China and Middle East

The past two lessons were centred around theory. This next observation has some undeniable real-world applications. It is a known fact that regional instability can have a marked impact upon currencies within a short period of time. It can be rightfully argued that two locations which represented the largest of such impacts in 2015 were China and the Middle East. The former is due to such a burgeoning economy and the latter is more associated with the potential for oil disruption and the possibility of regional conflict. These very same locations should be monitored closely. Just as they had a very real influence on Forex trading during 2015, the same notion will hold true for the coming year.

The Myth of the Perfect Trade

There have been countless newcomers who have failed to capitalise on a position because they were awaiting the vaunted “perfect trade”. There is simply no such concept in the real world. Every trade is associated with a certain degree of risk. The key is to appreciate how much risk is present and if this level is acceptable depending upon one’s current financial position. As opposed to missing out on an opportunity, one needs to appreciate that profit is always associated with the occasional loss. Without losses, one would never learn new strategies. In the simplest terms, take the good with the (occasional) bad.

We have already seen a great deal of volatility on the open markets and this has equally translated into the Forex sector. However, informed investors will thrive on such movements. With the use of efficient trading portals such as CMC Markets, 2016 could very well be a year to remember.

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