4 Financial Habits That Can Harm Your Credit Score

Your credit score is the key to financial freedom. But certain financial habits can harm your credit score, making it harder to secure loans, refinance for lower interest rates, or buy a car. 

For people over 50, staying on top of your credit score is crucial to maintaining financial security in your golden years. 

Here are a few common habits to avoid and some practical tips to help you stay on track.

Not Tracking Your Spending

Without keeping tabs on your spending, it’s easy to overdraw your checking account or rack up unnecessary debt. And did you know that there’s a connection between your checking account and your credit score? 

Overdraft fees are not typically linked to your credit score, but they can harm it in some cases. Setting a monthly budget and using online tools to monitor your expenses can help you manage your finances and avoid accidental overdrafts.

Ignoring or Missing Payments

Late payments are one of the biggest factors that damage credit scores. Missing deadlines, even by a couple of days, can result in late fees and a drop in your score if the payment is overdue by more than 30 days. 

Automated payment systems are a simple solution to ensure you never miss a due date again. Whether it’s for your credit card, mortgage, or utility bill, consistently making payments is one of the easiest ways to protect your financial standing.

Applying for Too Much Credit

It can be tempting to apply for multiple credit cards to take advantage of promotions, but this habit can be harmful. Each application results in a hard inquiry on your credit report, which can lower your score over time. 

Try to space out credit applications and only apply for credit when it’s necessary. Being selective in this way ensures you’re seen as a responsible borrower in the eyes of lenders.

Not Checking Your Credit Report Regularly

Your credit report holds all the details that contribute to your score. Errors and fraudulent activity can sneak in if you’re not vigilant. Checking your credit report at least once a year through free services allows you to spot inaccuracies and dispute them. 

Being proactive ensures that your credit score reflects your true financial habits without errors dragging it down.

The Impact of Small Changes on Your Credit Score

Even the most responsible savers can fall into these financial habits that can harm your credit score over time. But the good news is that with a little effort and consistency, you can replace these habits with better ones. 

Monitor your spending and review your credit report to achieve the financial stability you deserve. Start today, and your credit score will thank you tomorrow!

5 Steps For Making A Solid Financial Plan for Your Family

Most family heads would list financial stability as one of their key priorities. A stable financial situation is not something that happens accidentally. It requires planning. Thankfully, financial planning is not as difficult as some might think. The following are five steps for making a solid financial plan for your family.

1. Keep Track of Where You Are Spending Your Money

The first step toward creating a financial plan is making a budget that lays out how you are spending your money and where your money is coming from every month.

Budget creation can be simple. You could use a pen and paper to track your income and expenses in a notebook. There are budget template spreadsheets readily available online that can help you record your spending. 

There are budgeting apps that link to your bank account, investment accounts, and credit cards to help you automatically track your income and expenses. Once you have a clear picture of your expenses, you can make a plan.

2. Set Goals

Now that you have a comprehensive report of your income and expenses, it’s time to think about your financial goals. Most financial experts recommend that your first goal be to build an emergency fund that you can use during a personal financial crisis. It is recommended that you have enough money to live on for three to six months.

Ask yourself, where do you want your family to be five or 10 years from now? Avoid generalities. Instead, write down specifics, like you want to have your mortgage paid off in 10 years, have a $700,000 investment portfolio, or want to visit 10 countries. If you have specific goals, you can stay on track with your financial plan.

3. Make Your Debt Disappear

With a clear picture of your finances in hand, an emergency fund set aside for a few months, and your specific goals for the future, the next step is to make your debt disappear.




There are several proven methods for attacking debt. One method is the snowball method. You will pay the minimum on all of your credit cards or other sources of debt, but you aggressively pay the source of debt that has the lowest balance. 

If you have four credit cards and the first one has a balance of $5,000, the second has a balance of $4,000, the third has a balance of $3,000, and the fourth has a balance of $1,000, you would pay the minimum payment on the highest three cards, but you would aggressively put all of your extra money into paying off the card with the $1,000 balance. 

Once that card has been paid off, you will switch to aggressively attacking the card with the $3,000 balance and so on.

It may be beneficial to do a debt assessment. Many people have been able to achieve financial stability by settling their debts for less than what they owe.

4. Start Saving for Major Goals

Once you have an emergency fund and your debt paid off, it’s time to start saving for your long-term goals. You may need to re-examine how you are spending your money and see if there are ways to cut expenses or increase your income.

Many have turned to the gig economy to add more money to their budget. It’s important to make sure that the extra income you are earning is being put into some form of savings account directed toward your goals.

5. Monitor and Adjust Your Financial Plan

The financial planning steps that are being discussed are not just a one and done type of system. You will always need to review your personal financial situation. With time, your goals might change. Your income might increase, or your debt might drastically go down. You may see that your investments are performing better than expected, or there may be pressing financial situations, like health issues, that require you to divert from your original plan.

As you make a financial plan for your family or as you review your plan, don’t confuse your long-term goals with short-term fluctuations in your personal situation. Don’t change your family’s financial plan without considering the entire picture.

The sooner you make a financial plan for your family, the more control you will have over all your money. You will soon see that instead of working for your money, your money is working for you.

Keeping Afloat: 4 Tips for Staying Financially Stable after an Accident

Any kind of accident can be life-changing. Even if you’re not severely injured, any injuries that you do sustain can result in not being able to work as you did before the accident. 

This means that you won’t be able to support yourself or your family in a financial manner, which can then lead to getting behind on monthly bills that include your house payment or utility payments. Fortunately, there are a few tips to keep in mind so that you do stay financially stable.

Make Phone Calls

Before you get behind on your finances, contact the people you owe money to so that you can make payment arrangements. Many companies will work with you to accept a lower payment each month or even extend the number of payments that you have as long as you are upfront about your situation. Stay in contact with all of these companies to show that you’re willing to make an effort in staying on top of your financial obligations.

Seek Help

Consult with an auto accident lawyer who can often help you file a suit to get money for your injuries and lost wages. Give the attorney all of the information that you have about the accident as well as medical records and details about your finances. Your attorney can do the work for you regarding talking to insurance companies and working to get the best settlement.

Better Budgeting

Take the time to go over your monthly budget. Since you might not have as much money to work with, you need to examine the things that you have to pay each month and the things that you can set aside until you’re financially stable once again. 



Any subscriptions that you have can often be pushed aside as well as any entertainment expenses that you can do without. Think of ways that you can save money each month, such as buying items when they are on sale or turning the lights off in the home unless someone is in the room.

Side Work

There are often several people who are seeking assistance doing things that they can’t do on their own. Talk to some of the people in your community about odd jobs that you can take on, such as raking leaves or cleaning a house. You can also advertise your services to try to make extra money.

With a little more organization and making a few phone calls, an accident doesn’t have to set you back. You’re going to have to stretch the money that you have, but if you detail your budget and seek assistance when needed, then this can be a time when you can stay on top of the essential payments that you need to make. Keep in mind that your family is there to offer assistance along with organizations and your attorney.

How do Fixed Deposits Affect your Financial Stability?

Following the demonetization drive, a lot of banks have seen an increase in investment in fixed deposits. Fixed deposits are a safer option as opposed to market stocks and mutual funds, and they are rarely affected by the volatility of the market.

Investing in the fixed deposit is easier since you have to invest your funds only once throughout the tenure of the deposit as opposed to recurring deposits where you have to keep investing some part of your limited monthly income.

Fixed Deposits

Different banks offer different interest rates which are dependent on their policies, the tenure of the fixed deposit and the amount of money that you want to invest. Not only banks but companies also offer fixed deposits.

The company fixed deposits provide you with a higher rate of interest as compared to bank fixed deposits. Whenever you decide to invest in fixed deposits, it is necessary that you choose a financial institution, lender or company based on their reputation in the market and the rate of interest that they provide.

It is necessary to keep in mind that the income that if you receive more than INR 10, 000 in one financial year, you will have to pay tax on this extra income and the tax amount will be decided based on the tax bracket that you fall into.

Financial Goals

The tenure of the fixed deposit depends on your financial goals. A fixed deposit is dependent on the amount that you invest in and the rate of interest that is paid to you by the financial institutions or lenders. The term of your fixed deposit can range anywhere from 7 days to 20 years.

If you have a large amount of cash that you want to invest, it is advised that you invest in different investment options. This will provide you with financial security since all your investments will not be affected by the volatility of the market.

If you have opted for a short-term fixed deposit, you can extend the tenure of this fixed deposit once it matures and this will help you in increasing your liquidity. 

Whenever you invest your funds, make sure you choose the tenure in such a way that you keep receiving the benefits of your investment in a timely fashion. 

Rate of Interest

The best type of fixed deposit in which you can earn go rate of interest is the one where the rate of interest is calculated the compound interest, with the help of online fd calculator you can check your returns of invested your saving in FD . 

If you are opting for a Non-Banking Financial Institution (NBFC) or a Housing Finance Companies (HFCs) you should consider the nature and stability of their business, the services provided by these companies and credit rating of the companies. 

As credit rating has very less impact on the interest offered by the company’s fixed deposit, it's the investor’s responsibility to check the rating of the company should be AAA rated. 

Financial Emergency

If you are facing a financial emergency, you can break the fixed deposit and use this money. No penalty charges are usually applied by the financial institutions or lenders if you break your fixed deposit before its maturity. 

It offers attractive features like cashless hospitalization benefits, discount rating from 5% to 25% on medical services, doctor on call. In company deposits, new customized options are available for each customer, as per their goals and budget, specialized offers for women, free accidental insurances for the individual investor.