Here are your “Simplify Your Life” tips sponsored by Star One Credit Union.
If you’re planning to get a loan to buy a house or car, your credit score will greatly affect how much it will cost. the lower your credit score, the higher your interest rate will be. You can improve your credit score by always paying your bills on time, because one late payment could hurt your credit rating. Secondly, pay down your existing debt, because more debt could mean a lower credit score.
Many of us don’t think about taxes until the deadline is upon us, but smart tax planning is something we can all do to save money. For example, opening an individual retirement account is a great way to reduce your taxes while saving for the future. When you put money into an I.R.A, you reduce your taxable income. A financial institution, like a credit union, can help you.
Every year nearly ten million people are victims of identity fraud, but there are steps you can take to protect yourself. Many companies offer the option of receiving your statements online. An online statement is far safer and can’t be stolen from your mailbox, delivered to the wrong address, or taken from your trash. Plus, secure log-in means you, and you alone, have access to your confidential information.
Many people live in their homes for years, and never remodel them until it’s time to sell, so they never get to enjoy the results. That used to make sense when interest rates were relatively high, but today’s interest rates are some of the lowest in years. So improve your home now and enjoy it for years to come with a low-interest home equity line of credit.
When it’s time to buy a new car, spend time researching which loan is best for your needs. The right loan can help you buy more car than you thought you could afford. For example, if you get a four-year loan, your monthly payment will be much higher than if you get a six year loan. Get a longer term loan with no prepayment penalty that you can pay off ahead of time if your income goes up.