Will My Credit Score Increase As I Age?

As you get older — and hopefully wiser — you’re supposed to become more responsible. You’ve likely stopped rotating spaghetti and ramen noodles as your only two “home-cooked” meals, probably traded out your clubbing heels for sensible walking flats, and maybe started getting annual checkups instead of ignoring your aches and pains.

The question is: Does the credit industry recognize this maturity and throw you a few extra credit score points as you age? No, but your age may indirectly affect your credit. Here’s what you need to know about the relationship between age and credit scores.

First things first: Is my age a factor in my credit score?

Your credit score is made up of five factors — payment history (35%), credit utilization (30%), length of credit history (15%), types of credit in use (10%) and new credit (10%). So age isn’t a direct factor. However, the third factor — length of credit history — may be heavily influenced by age. Let’s start with what “length of credit history” really means.

The length of credit history takes into account the ages of your newest and oldest accounts, as well as an average length of all of your credit accounts. The longer the average age of your credit accounts, the better. Which means as you get older, your credit score will likely go up, provided you’re practicing good credit habits.

How do I increase the average age of my credit accounts?

Patience is the name of the game when it comes to increasing the average age of your accounts. However, there are a few things you can do.

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  Don’t cancel credit accounts, especially your oldest accounts. Let’s say you have one credit card that’s seven years old and two that you applied for this year. If you cancel the oldest card, your score will likely drop quite a bit. Keep your oldest credit cards open. If you absolutely want to cancel a card or two, get rid of younger cards you don’t use much.

  
  


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  Don’t apply for too many new accounts. Each time you get approved for a new account, your length of credit history will go down. Really think about which credit cards you want and try to use your oldest cards occasionally.

  
  


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  Get added as an authorized user on an old card of a friend or relative. If someone wants to help you increase the average age of your accounts, you can ask him to add you as an authorized user on his oldest card. This only makes sense if this person has a pretty old credit account — meaning one or two years old is probably not sufficient. Also, make sure he verifies with his card issuer that authorized users are reported to the credit agencies.

  
  

Length of credit history is only part of the equation …

While it’s great to lengthen the average age of your credit accounts, this factor is only 15% of the credit score equation. In order to build an excellent credit score, you’ll need to practice good credit habits all around. Most importantly, you need to make all of your payments on time and keep your debt balance to credit limit ratio below 30%. Don’t rely on the aging process to fix your credit issues — no number of years passing will get you an excellent score if you’re constantly paying your bills late.

Bottom line: While age isn’t a direct factor in your credit score, length of credit accounts can be heavily influenced as the years go by. To increase the average age of your credit accounts, don’t cancel old cards, don’t apply for too many new cards, and/or ask a loved one to add you as an authorized user on his oldest credit account. Also, don’t ignore the other factors that make up your credit score.

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3 Lame Excuses for Overspending on Credit Cards – And How to Conquer Them

If you have a history of overspending on credit cards, you’ve probably gotten pretty good at rationalizing your bad habit. But the truth is that charging too much to your card is no laughing matter; it’s costly (interest really adds up!) and could put your credit score in danger.

With that in mind, the Nerds are here to bust 3 lame excuses for overspending on credit cards. If you need some tough love, take a look at the details below!

1. “My friends pressured me to go to the mall”

Peer pressure doesn’t end in high school – adults can really lay it on thick. If your friends convince you to go shopping when you’re trying to stick to a budget, you could be putting yourself in temptation’s way.

The obvious way to get past this is to simply say “no” to an invitation to the mall. If you still want some social time, invite them over to your place for a cheap cocktail hour or a potluck dinner. There’s no rule that says trimming your credit card balance has to be boring!

If you really want to join in on a shopping trip, a good way to control your swiping is to leave the credit cards at home. Hit an ATM and take out an amount of cash you’re comfortable spending – when it’s gone, it’s gone. This way, your pals can’t talk you into buying an overpriced item that looks so good on you. You won’t be able to!

2. “I had a bad day/week/month and deserve a treat”

Spending as a way to relieve stress is something a lot of us can relate to. But the next time you’re trying to justify maxing out your card for a last-minute getaway or another takeout meal, consider whether you “deserve” the repercussions that will come with the purchase.

For example, let’s say you’re coming off of a stressful month at work, so you decide to max out your credit card to take a last-minute vacation. In an effort to unwind, you drop $5,000 that you can’t afford to pay off when the bill comes due. If we assume that your card’s APR is 15%, you’ll get hit with an interest charge of roughly $63 the following month. If you let that balance linger, you could end up tacking hundreds of dollars onto that $5,000 getaway.

What’s more, maxing out your credit card could cause your credit score to plummet. Since your credit utilization ratio will shoot up – remember, this factors heavily into 30% of your score – you should expect it to drop substantially. This will make it harder to rent your next apartment or qualify for a car loan.

These outcomes are definitely not worth it. You deserve to de-stress and build a healthy financial future; if you’re upset or anxious, put your credit card down and go for a long walk or call a friend. Pretty soon, you’ll forget all about that expensive treat!

3. “I’m getting a bonus soon – I’ll pay it off then”

We all get excited about the future, but spending too much because you’re anticipating a windfall is a dangerous game to play. First of all, there’s always the possibility that a bonus or a raise won’t come through. If you just spent $2,000 on a new flat screen TV in anticipation of a bonus, having it yanked at the last minute could put you in financial trouble.

And again, there’s the interest rate issue to consider. Even if your bonus does come in on schedule, buying something because you want it now will result in paying more if the charge stays on your card for a few months.

The best way to get past this excuse is to remind yourself that you’re a grown-up, and grown-ups are sensible. In this case, the sensible thing to do is be patient and wait for the extra cash to hit your account. That way, you can use your credit card to buy it and pay off the balance right away. Delaying gratification is tough, but it’s an essential part of making good financial choices.

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Know Your Credit Score For These 4 Occasions

Your credit score — the three-digit number between 300 and 850 that determines your creditworthiness — is important for acquiring credit and proving financial responsibility to non-lenders. Here are four occasions when you should know your credit score.

#1. You’re moving.

Whether you’re buying a house or moving to a new apartment, good credit will make it easier and cheaper for you. An excellent credit score will get you the best mortgage terms possible. While it may not seem important, a 1% difference in interest rate can be a huge chunk of money saved.

If you’re renting, a good credit score will help you get approved for a new place. Also, people with good credit will often have to pay a lower security deposit than those with poor credit, as rental managers aren’t as worried about not getting paid in a timely manner with a creditworthy individual.

By knowing your credit score before you make your move, you’ll be better equipped to increase it to get approved and get the best rates, or prepare yourself for what your rates or deposit will likely be.

#2. You’re applying for new credit.

An excellent credit score will get you approved for the best terms on other credit accounts, including personal and car loans. Having poor credit can cost you hundreds, or even thousands, in interest accrued. Check your credit score before you apply for credit and postpone your application to work on improving your credit if necessary and possible.

#3. You’re getting married.

According to a recent study by Experian, 96% of adults put a high priority on financial compatibility with their mates. This trailed behind only family and life goals and ranked higher than sexual, religious and political compatibility. On top of this, half of all respondents said that their potential spouse’s credit score was important to them.

Before you say “I do,” you and your spouse should discuss your respective finances, including credit scores, debt loads, savings balances and financial priorities. Pull your score and ask your future spouse to do the same so there are no surprises when the honeymoon is over.

#4. You’re getting divorced.

If you’re splitting from your spouse, he or she won’t get your credit score in the settlement. However, divorce can hurt your credit indirectly. If any credit accounts are in your name, it doesn’t matter who the judge orders to pay the balances, your credit will be damaged if they go unpaid. Also, you should split your accounts right away. A vindictive ex with access to your accounts can easily run up bills you can’t afford, hurting your credit. Know your credit score so you can monitor it for changes following your divorce due to a non-paying former spouse.

Another credit issue with divorce: Many people are under the impression that if their spouse has good credit, they don’t need to build theirs. This is totally untrue. In the case of death or divorce, you need a good credit score to help you obtain credit or prove your financial responsibility. Know your score and work to improve it if you’ve been relying on your spouse’s good credit.

How do I check my credit score?

While it may be tempting to use a free score service, you should opt for a FICO score — the most widely used score in the United States. Your credit card issuer may offer this for free. If not, you’ll have to purchase your score. You can buy your scores directly from each of the three major credit reporting agencies:

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  Equifax

  
  


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  Experian

  
  


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  TransUnion

  
  

If your score isn’t up to par, use these five steps to build your credit.

Bottom line: Check your credit score if you’re moving, applying for new credit, getting married or getting divorced. Unless your credit card issuer offers a free score, you’ll have to pay for this privilege. You can purchase your credit scores directly from the reporting agencies.

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5 Opportunities to Set a Good Credit Example for Your Kids

If you’re trying to raise money-smart kids, providing a good model for them to follow is one of the most powerful things you can do. But setting a good credit example is tough – after all, teachable moments are hard to come by!

Don’t worry: The Nerds identified a few opportunities to teach your kids about building credit that you may not have thought of. Take a look at the details below and get started today!

1. When you’re filling out the family’s monthly calendar

To help keep track of schedules and activities, most busy families have a calendar that’s prominently displayed somewhere in the home. It might sound strange, but the monthly task of filling out the calendar is a great time to teach your kids an important, credit-related lesson.

The next time you’re marking your calendar with soccer practices and piano recitals, think about adding in the due dates of your monthly bills. Then, follow through with crossing off each as you pay it. This will show your kids that making timely bill payments is an important priority. Since payment history makes up 35% of our credit scores, the example your kids will take away is likely to have a big impact on their future credit scores.

2. Swiping your credit card for a big purchase

The next time you’re using your credit card to buy a TV or a home appliance, use your card. Use this as a jumping-off point to teach your teen about the importance of spending responsibly with credit cards.

The key point here is that rolling a balance from month to month is a dangerous habit to get into, and that credit cards shouldn’t be treated as extra income to buy the stuff you want. Point out that credit card interest is expensive, and that charging too much can hurt your credit score. The important takeaway is that you’re going to pay off the big purchase right away – then make sure to follow through!

3. Swiping your credit card for a small purchase

If making a big purchases is a chance to get into detail about controlling credit card spending, small spends are a chance to talk about building credit.

Your child might be surprised to see you buy a pack of gum or a $10 fast-food lunch with your credit card; if so, point out that using a credit card carefully and consistently is a great way to build your credit score. Emphasize that credit cards aren’t dangerous, as long as they’re being used responsibly. This will help plant seeds of credit confidence in your child’s mind, which will empower her to make good choices in the future.

4. Your annual review of your credit report

Looking over your credit report is an annual chore that most people don’t enjoy. But if you turn it into an occasion, it will be less tiresome and teach your kids about the importance of the task.

The day you plan to review your credit report, order a pizza, pour a few sodas and call the family together to join in on the activity. While you’re enjoying the meal, explain the document you’re looking at to your kids and discuss why you’re scrutinizing it so carefully. Let them see the report and ask questions if they have them.

When you’re finished, head out for a movie or a round of mini golf together. This approach will simultaneously introduce your kids to what a credit report is and show them that checking it is nothing to be intimidated by. Plus, you might start a new yearly tradition to look forward to!

5. When you’re turning down a retail credit card

At some point, your child will see you get offered a retail credit card at the checkout line. When you turn it down, use the opportunity to make it clear that it’s only a good idea to apply for credit you actually need. Follow up by explaining that doing otherwise can hurt your credit (new credit inquiries count for 10% of your score) and make it hard to keep track of your finances.

The bottom line: It may not seem like it, but there are a lot of opportunities out there to set a good credit example for your kids to follow. Use our tips above, and you’ll soon find yourself surrounded by credit experts!

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How do I stop my brain shrinkage?

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One of the very important questions that should be answered is: If my brain while I simply shrinks with age, is there a way to compensate for that? Yes! There are ways to maintain the health of your brain, even when advancing age, has shown that your body starts to decline, while advancing age, and one of the examples of what is going on while aging is the loss of a large amount of muscle mass, which is directly related to the process of offering our bodies "standard" age. All However, there are ways to prevent this collapse., for example, can reduce the size of the muscle mass that lose together regularly in the activities of lifting weights. despite the fact that your brain is the member most complex in humans, but if you trained him, like the rest of your muscles, can ease the contraction. Although the training process is somewhat different, but the concept of systematic attention stays the same, and almost similar to the allocation of time you spend in the game room, or lifting weights, or a walk, which helps to ensure the health fixed, we also need to train our brain.

You might ask yourself: Is it possible to train a wimp that really affects the brain and my intention to compensate for the loss of the crust? First, it is important to say as we have noted previously that there is an inherent variability, and may require training of some individuals more than others to achieve a level comparable to their peers. Regardless of this, the current evidence suggests that adults enjoy, on an individual level, the ability to change the structure of production of new brain growth. In fact, the researchers from the University of Hong Kong to make the adults involved in the task of learning a simple (similar to those used with children, with one simple adjustment), offering a colorful card and asks the participants to determine the name of the color, resulting in the growth of nervous. Researchers adjusted the task to provide the names of each of the vehicle colors shown, then make the participants learn the new names for later. Photos participants of university students MRI before three days of training, which consisted of five sessions the whole period of only two hours. It is worth noting that the magnetic resonance images that have been implemented after the training showed that all of the nineteen participants may have developed a new gray matter in the left half of their brains (mainly visual cortex) in this period is very short. What should be seen also on these results is that the job did not require effort or a lot of time, noting that the element of the job is important to the seriousness of the names of the words associated with colors are known, with the introduction of new names for the standard colors, it took new links, facilitated the need to re-learn the links , by contrast, thought that they stimulate the growth of the brain. Is also important to note that these participants were not children, proves that it can be seen in the growth of real people nervous adults.

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Different cognitive ability !!

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Like most things in our world, there is an inherent variability in our progress in life, which means in this case that all individuals are not either. When individuals advancing age, they change rates varied, and this includes, of course, one's cognitive ability, so it can not be assumed that if you made ​​in life, this or that kind of specific cognitive deficits. Individuals are persons, and the strengths and weaknesses that have in the course of your youth are likely to be similar to those that you see while advancing age. Is age factor that makes this more common, or life experience that you recognize what is good or witty it is that makes your disability more visible? It may be that a lot of individuals age applicants are fully aware of the deficit infected, but this does not even try to accomplish tasks they know they are not proficient in, people may wonder why.

Well, it may be lack of a sense of pleasure in doing something you do not want to do, or that they have accepted their poor performance (in any task that may performed by that person) and do not have the time or the will to challenge themselves, especially when they can another person or machine completed (Example: Calculator simple math). Generally, individuals are ahead is not affiliated with the school age, and no one of their duties, so if there is no challenge, you will not have a reason or desire to complete the tasks they know it is not fun. Are these the reasons for the infection of certain individuals with disabilities? Possible. But this does not appear clearly even now, then this boot has ensured that the material to think about them while I made some research on cognitive abilities in a variety of age during our progress below.

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New Account Bonuses Draw Bank Hoppers Trying to Cash In

Gone are the free thermoses and knife sets that once rewarded new checking or savings accounts. Now, banks and credit unions are using cash to attract depositors. The incentives may convince some people to switch banks, but others may be opening accounts just to collect the bonuses.

While the promotions may only bring you in the door, banks and credit unions are hoping they will spur the start of lasting relationships.

Bonuses are most often associated with opening checking and sometimes savings accounts. Neither are big money makers for financial institutions, but customers are more likely to shop for loans and other services where they bank, which can mean more income for the lender. Further, it doesn’t hurt the bottom line when new accounts are subject to a litany of fees or are required to use online services to cut costs.

Switching banks versus ‘churning’ accounts

Consumers who take advantage of these promotions generally fall into two groups: those who want a new primary bank or credit union and those who just want the bonuses.

The former will invest more time and consideration into choosing a new account, as they intend to use it for everyday needs, including depositing paychecks and paying bills. Issues with their current bank or a long-distance move could send this type of consumer in search of a lender with some very specific needs in mind. Bonus seekers, on the other hand, often will do only the minimum necessary to fulfill the terms and reap the rewards, closing the account after they’ve been collected.

`Switchers’

From 2008 to 2012, as many as 24 million customers abandoned big banks and went to smaller institutions, MarketWatch reported in April, citing data from Moebs Services, a research firm in Lake Bluff, Illinois. It said the flow has slowed considerably since then, to no more than 2 million a year. People switch banks for a variety of reasons, including location, cost and poor service. While down from 24% in 2010, 16% of consumers surveyed by J.D. Power said they had a problem with their bank this year. Bankers know – all other things being equal – a bonus may be all that’s needed to pry loose some disgruntled depositors.

`Churners’

“Churning” accounts usually refers to credit cards, where customers transfer balances to cards with more favorable rates and rewards for new business, but the term can also apply to those opening bank accounts based on proffered incentives. Message boards and personal-finance blogs are awash with chatter about promotions sought by deal chasers.

Because some banks, like JPMorgan Chase and Capital One often run several new business promotions in a month, a bank-hopper can open multiple accounts, add features to those they already hold and refer friends to maximize returns. If churners can deal with any restrictions, they may wind up with a few hundred dollars a year for their efforts.

How common is it?

Yet depositors are generally reluctant to change financial institutions where they have their primary accounts because it’s a hassle. Bain consultants estimated that banks in developed countries formed new relationships at a rate of only about 3% last year. Google Analytics show a sharp drop in web searches for “new account promotions,” “checking account bonuses” and similar terms since 2012, which may reflect a decline in the number of deals being offered as the U.S. economic recovery strengthens.

But you don’t have to look far to find a bank or credit union offering new account bonuses.

Here are highlights of some recent offers:

Capital One 360: Open a new 360 Checking account and receive a $50 bonus. It requires three debit card purchases within the first 45 days.

Citibank: To collect up to $100, a depositor who opens a new Citibank regular checking account must do so before July 31 and then engage in at least one of three online activities to get $10 each month, including making payments online, depositing a check with a mobile device or transferring funds using PopMoney. Those who opened an account on June 1 could reap the full $100 by satisfying all the terms by Dec. 31.

U.S. Bank: Newly enrolled depositors in U.S. Bank’s S.T.A.R.T. money-market savings program can get up to $100, provided they also open a new checking account, which both require small minimum deposits. By setting up recurring transfers from the checking into the money-market account, a new customer can get a $50 rewards Visa card once the transfers reach $1,000. The depositor must maintain a $1,000 minimum savings balance for a year to get a second $50 card.

Before jumping in, keep in mind that penalties may apply to accounts that are closed too soon. For example, both PNC Bank and Branch Banking & Trust charge $25 on accounts closed within 180 days.

Despite alluring bonuses, it may be difficult for most Americans to play this money-moving game with their primary account, even if they wanted to – which most don’t. Switching banks isn’t as simple as changing grocery stores. But cash incentives may be convincing for those who aren’t happy with their current institution.

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