Pay Your Library Fines!!

Many local municipalities are crunched for funds. Some cities have hired collection agencies to ferret out unpaid parking tickets and library fines. This may not sound like a big deal, but if you haven’t returned your long over due books, and your name is turned over to a collection agency, your credit scores may be damaged. Any time a debt goes to a collection agency, your credit score may be dropped by as much as 100 points.

Advice From Suze Orman

America’s financial advisor Suze Orman suggests an easy way to save money: raise your FICO score. This score determines how much interest you pay on everything from credit cards to mortgages. If you could raise your score from 500 to 760, you’d save $78 a month on car payments for a $20,000 vehicle. Thirty percent of your FICO score is your debt-to-credit-limit ratio. If you can’t pay off your credit card, request an increase in your limit, but don’t actually use the extra credit. Another thing you can do to raise your FICO score is to have a relative with a high score add your name as an authorized user to his or her card. Your relative doesn’t actually have to give you a card. This will help your score, without lowering your loved ones.