Let’s be honest — being in debt sucks. You try to make progress, but between the credit cards, the car loan, and that random personal loan from ages ago, it can feel like you’re just treading water. Where do you even start? A few years back, we were right there too — juggling multiple debts, … Read more

Since starting Financial Samurai in 2009, I’ve encouraged folks to keep an open mind and embrace as many different perspectives as possible. So often, we get set in our ways and think our approach is the only right way to do things. But I can assure you, you’re probably missing something—or could do something a […] The post The Shocking Power Of Getting A Different Perspective appeared first on Financial Samurai.

If I could go back and start my budgeting journey all over again, I wouldn’t aim for perfection—I’d aim for progress. These are the honest lessons I wish I had known when I was drowning in debt, living paycheck to paycheck, and just trying to find my way. The post What I’d Do Differently If I Were Starting My Budgeting Journey Today appeared first on The Budget Mom.

So you’ve made that very difficult first step and decided it’s time to do something about your debt. Maybe you’ve reached the end of your financial rope. Perhaps you signed up for a money management program, enrolled in a debt relief plan, or maybe you’re doing it all on your own. You’re excited about the prospect of finally getting your finances on track and starting down the path to achieving this thing called financial freedom that […]

Ok, so if you can’t tell from that title, this is going to be an article where I am not pulling any punches and sharing an uncommon opinion. But stay with me because I believe this is a huge mindset change that we as Christians need to understand. So starting with the truth I wish […] The post The credit score is a scam — and It’s Keeping You in Financial Bondage appeared first on […]

**This is not financial or legal advice** This information is for educational and entertainment purposes only. Does your credit score feels like a mystery or a source of stress? It can feel like you don’t have any control over the number and you probably aren’t even sure how it’s calculated. It seems like a completely … Read More about How to Raise Your Credit Score 100 Points in 6 Months The post How to Raise Your Credit Score 100 Points in 6 Months appeared first on Budgets Made Easy.

I love budgeting because it makes so many things possible that otherwise wouldn’t be. When I first saw that our law school debt added up to six figures, I felt physically ill. I couldn’t envision the crushing weight of that debt ever going away, especially when our take-home pay was under $40K a year. But, thanks to faithful budgeting (and a few other great habits), we were able to pay off that debt of $144K […]

Credit card piggybacking is when you add someone else as an authorized user to help them improve their credit history and thus their credit score. Adding someone as an authorized user is free and they will see that credit line appear on their report, which can help improve it. Remember that the FICO credit score is made up for five factors: If you add in a new credit line with a long history of on-time payments, you help improve Length of Credit History as well as Payment History, which make up 50% of the score. The person you add doesn’t need to get the card itself. Just adding them will confer the benefits. Minimum ages for authorized users Some issuers have a minimum age for authorized users: American Express – 13 Barclays – 13 Discover – 15 U.S. Bank – 13 The following banks do not list an age – Bank of America, Capital One, Chase, Citi, Wells Fargo, and USAA. If you want to help someone, find your oldest credit card and find out if there is an age requirement. Some banks will not report the credit card for authorized users unless they are a certain age. American Express explains in their FAQ on Additional Card Members (emphasis mine): Q. How does the Additional Card Member establish credit? A. Credit information will be provided to the credit bureau for the Additional Card Member when they are 18 or older. The Additional Card Member builds only positive credit history based on the credit behavior of the Basic Card Member. If the Basic Card Member becomes delinquent at any point, we will discontinue reporting on the Additional Card Member’s Card in order to retain positive history on the Additional Card Member. Are there downsides to credit piggybacking? If you do not give the authorized user their card, there is zero downside. If you do, the risk is that you are responsible for their spending. They may have been added as an authorized user but it is still your credit card – you are responsible for the debt and not the person that you added. If they don’t have the card, or the number of the card, there is no risk. Do not pay for credit piggybacking There are some credit repair companies who will claim that this strategy is fool-proof and in a sense they are correct, there’s no risk to doing this and it’s likely to help. There is no guarantee. Many companies have settled with the FTC for promising this. It’s a part of your score but if your history is long and generally bad, adding an additional credit line is unlikely to improve your score significantly. The average credit line factor is an average, so adding one card when you have 5 bad ones is not going to have a big impact. Adding an authorized user Adding an authorized user is really easy – just log into the issuer’s website and it’s