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Tiffany The Budgetnista

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I have a Visa Credit Card, that is about 15 months old. The balance is at $0. However, I want to put your advice to work to increase my credit score by 100 points. But I want to close this account and switch to a card that allows me to earn points or rewards. Should I switch? Or stay put?

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Tiffany The Budgetnista
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Hey Credit Stay or Go!
Great question. The length of your credit history accounts for 15% of your score. The credit reporting agencies take an average of how long you've had your credit and divide it by the number of creditors you have.
This means that closing a credit card and opening a new one will lower your average. Buuuuuuut if you can find an AWSOME card with great rewards it maybe worth it to switch since the Visa is only 15 months old.
An alternative: Keep both cards and charge a very small amount (automatically) to both each month and pay them off automatically via your bank's online bill-pay. You'll see your score jump up even faster than with one card. The key is to leave the cards at home and not to physically use them. Instead, let them be charged and paid off in an automatic cycle.
Reminder: Always keep your oldest credit card open and active. It will help to balance out your length of credit history.
LIVE RICHER
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Latest answers from Tiffany The Budgetnista

Hi Tiffany, I want to buy my first home but won't do so until I have 20% as a down payment. I don't have 20% in cash but I do have double that in my 401k. Should I wait until I save that amount in cash (approx 5 years), or borrow from my 401k? It just doesn't make sense to keep paying rent...

The answer is... it depends.
1st there are programs you can look into that will help you with that 20%. Take a look at NACA's (The Neighborhood Assistance Corporation of America) Purchasing Program: https://www.naca.com/
2nd: Renting isn't always a bad option. Here's a checklist to help you see if you're really ready for homeownership: http://thebudgetnistablog.com/2014/buying-a-home-checklist/
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.
22

I just started about two months ago keeping great track of my money. I have done well. However, I love celebrating my birthday. It is in November. The way my leisure(fun money) is set up I wont have the money I am used to spending to have a good time. Do you have any suggestions ?

1st Congrats!!
2nd, take a look at @Groupon & @LivingSocial . They have great deals on food, spas, escapes & adventures. You maybe able to maintain your birthday agenda without the usual costs. ;)
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.

I have a ton(exaggerating a tad) of receipts that help me keep track of what I purchase. I have found it to be a great way to keep track of what I spend. However, I feel like it is a lot of paper to keep track of. any suggestions?

Yup!
Get a digital scanner and upload your receipts to a file on your computer.

Try Doxie Go - Rechargeable Mobile Document Scanner or Epson WorkForce DS-30 Portable Document & Image Scanner they have great reviews on Amazon.
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.

Hi. I worked w/ an adviser til Dec2013. To make room for savings, she had me pay less than the min on 3 of my CC's. 2 companies set up pmt arrangements w/ me. But 1 wouldn't unless I paid for their credit counseling.Now they've sent me to collections.Should I make arrangements?I've read their shady.

It seems odd that certified financial advisor would suggest that you pay less that the minimum on your credit cards.
1) The minimum is the smallest amount they will accept without sending you to collections
2) Doing so is like not making a payment at all and will be reflected badly on your credit report & lower your score
1st I would look into getting another advisor.
2nd There's nothing wrong with making arrangements once you know the best way to do so. Here's help: How to Settle Your Credit Card Debt (in 6 Steps): http://thebudgetnistablog.com/2014/settle-credit-card-debt/
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.
1

Hi Tiffany !Once you pay off a credit card or a loan. Would you reward your self any leisure money or just place more of your money on another card you want to pay off as well?

Heeeeey! Great question.
Rewarding yourself is essential to maintaining your financial discipline. BUT, I challenge you to build your "reward" money into your budget. (more about that later)
This is how I would handle my debt: Roll over the money you were paying to the 'paid-off loan', onto the payment you're paying a current loan.
Let's say you were paying $300 to a car that's now paid off. I would add that $300 to the next debt on your list. If the next debt is a credit card that you usually pay $100/month, now give it the old car payment too ($300). You're use to paying it, so you won't miss it. Now your credit card will get $400 ($300 car payment + $100 credit card payment)
Once the credit card is paid off, roll over the $400 to the next debt. Keep doing this until your debt free.
Back to rewarding yourself....
Include reward money into your budget like a bill. I set aside a percentage of my income for travel (that's my reward). You may want to set aside a specific amount each pay period to a savings account as a reward. When you collect enough money for what you want, splurge without guilt.
Live richer,
The Budgetnista
www.livericherchallenge.com <--my new, free, financial resource for women.

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Hi Tiffany! I made a huge mistake and cosigned for a loan. The individual is now 60 days delinquent and cinsidering bankruptcy. Is there anyway I can get out of this? Or anything possible I can do besides pay for it?

Hi Co-Signed,
Unfortunately, when you co-sign for a loan, that makes you equally responsible for repayment. What you can do is contact the creditor and try to negotiate with them.
You won't be able to avoid not paying anything, but you can negotiate to pay less then what is owed. You can also negotiate for it not to be on your credit report.
I wrote an article here that will help you negotiate. How to Settle your Credit Card Debt in 6 Steps. http://thebudgetnistablog.com/2014/settle-credit-card-debt/ (these steps will work for most types of debt).
Hope this help!
Live richer,
Tiffany
www.livericherchallenge.com <--my new, free, financial resource for women.

My sisterhood wants to know if there will be any financial committment after the Live Richer challenge has been completed.

Nope!
The challenge is free, because of my awesome sponsors. I'll address this on the call too. :)

Hi Tiffany, I'm currently self employed "hairstylist" and I'm finding to very hard to set a bugdet. Each each my income is different. What do you suggest?

Hello "Self Empoyed"!
Thank you for being patient. You asked such a great question that I wrote a post to answer it for you and others in your position.
You can find the answer here:
How To Budget When You Don’t Have a Regular Paycheck : http://thebudgetnistablog.com/2014/dont-have-a-regular-paycheck/
Live richer,
Tiffany
www.livericherchallenge.com << my new, free, financial resource for women
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