Can Closing a Credit Card Hurt My Credit Score?

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It is a common misconception that closing a credit card account will improve your credit score. So, if you are trying to repair bad credit, it is not necessarily the way to do so. While closing a card may help prevent you from overspending, it can actually cause your credit score to decrease. Sometimes, it may still be in your best interest to cancel a card, but there is a lot to consider before you make that decision.

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Should I Use a Personal Loan to Improve My Credit Score?

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Obtaining a personal loan can be a great way to improve your credit score in certain situations, but it is not always the right choice. Taking on any debt always brings with it a substantial amount of risk, and the decision should never be made lightly.

How a personal loan can improve your credit score

Before you decide whether a personal loan makes sense for you, you need to understand the way it works. A personal loan is a way of consolidating your credit card debt. In general, a personal loan has far lower interest rates than credit cards have, so when you roll your debt into a personal loan and use it to pay off the debt on your cards, you save money. LendingClub reported that its borrowers of personal loans pay 35 percent lower rates on their loans than they were paying on outstanding debts or credit cards. 

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Why You Should Maintain Good Credit During Retirement

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It is a common misconception that those who are retired no longer have to worry about their credit scores. While this may have been the case a long time ago, these days’ seniors are retiring with large amounts of debt. As a result, their credit scores can matter well into their retirement days. Debt, however, is only one of many reasons seniors should continue to maintain good credit after they have retired.

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Best Options for Saving for Retirement

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Saving money for retirement seems like an obvious necessity, but actually planning for retirement and implementing that plan can be difficult. Current expenses can easily seem more important than planning for your financial future 40 years from now. However, saving a little bit now can go a long way in preparing you for financial independence later.

Once you make the decision to save, where do you save? What kind of accounts are best? The answers will vary based on what your goals are, the amount of money you have to save, and what kind of financial options your employer is willing to offer you.

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Medical Debt and Your Credit Score

x_0_0_0_14090067_800Medical debt has always been a huge burden to the American consumer, and for a long time it has been able to substantially weaken your credit score. A 2014 study by the Consumer Financial Protection Bureau found 43 million Americans had medical debt on their credit reports. For 15 million of them, medical debt was their only issue. Unfortunately, it was an issue capable of severely hurting their ability to get a good loan.

After the study, however, CFPB decided it was time for a change. In March 2015, the Chicago Tribune reported a slew of reforms the CFPB decided to implement. One of the most significant changes is how medical debt will be reported to collection agencies and added to a consumer’s credit report. The three major credit bureaus, Equifax, Experian and TransUnion, will now wait 180 days to report debt, which allows time for any insurance payments to go through.

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