Category: Finance (Page 1 of 163)

Credit Scores Are Easy To Raise: Reach Excellent

Your credit score determines how trustworthy you are to the lenders eyes so maintaining a healthy score is very important.

Especially if you’re looking to make a big purchase like your first home.

Whether you’re looking to add points or reach an excellent score, here’s how to increase your credit score.

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Welcome to Franknez.com – the blog where you can digest content on personal finance, entrepreneurship, and trending investing topics.

Let’s get started!

#1. Be Active

You will need to be active if you want to increase your credit score.

If you’ve just graduated from high school chances are you have 0 credit score.

You’ll need to be active by opening up accounts under your name.

If you’ve had more experience economically but are debt free, you too will need to open accounts in order to increase your credit score.

Reaching an excellent credit score will require that you have quite a history of credit use and will also be earned by a number of factors.

Let’s start with the easiest form of building credit.

#2. Utilize A Credit Card

One of the easiest forms of building credit is to utilize a credit card.

If you’re fresh out of high school, it can be a great way to begin building your credit through small purchases from which you can pay back once your statement has been provided to you.

Do not take up a credit card unless you are working.

A credit card is not free cash.

A credit card is merely a tool for you to prove to lenders you are responsible enough to handle a credit line.

I’ve compiled a list of ways to use a credit card responsibly here.

If you’ve used a credit card in the past but have since then buried them or your credit card expired, you’re going to need to be active once again.

Use a credit card with a low credit line just so you may continue to show lenders a history of active credit use.

Here are a few great ways you can use a credit card in order to show history while staying out of credit card debt:

Do’s

  • Use it at the gasoline station
  • Buy small groceries
  • Purchase a book from it
  • Treat yourself to lunch/dinner once a month

As you can tell from the list, these are all small ticket items you can pay back without any problem.

The key to using a credit card responsibly is to use it on things you can pay back then and there without using the credit card.

This trick will allow you to begin building your credit score from scratch and to increase it as well.

Here are the don’ts to using a credit card:

Don’ts

  • Don’t buy luxuries (tv, game consoles, phones, etc.)
  • In other words, don’t buy anything that will require you to make payments (stay away from creating that debt)
  • Do not use more than 30% of your initial credit line
  • Stay away from the quicksand (read more about it here)
  • Keep using debit for all your bills, never use your credit card for those

Let us know in the comments section below how you’re using your credit card. Have you been using it wisely or do you have credit card horror stories to share with our readers?

What happens if I stop using my credit card?

If you stop using your credit card it will automatically deactivate after 3 months of no use.

Your credit score won’t go down but by deactivating your credit card, your chances to raise your score become slimmer.

This is why it’s important to be active with your accounts.

#3. Use An Auto Loan to Increase Your Credit Score

At some point in life, you’re going to need your own transportation, especially if you’re in the states.

An auto loan is a great way to lock you in a term of non-stop credit achievement.

While staying out of debt will become a goal for you at some point, your first auto loan will also give your credit score a massive boost which will help increase it to excellent.

Auto loans show lenders commitment and responsibility.

Each month you pay your vehicle on time will essentially reflect on your credit score throughout the years of your term.

You do not necessarily have to finance a new car.

Start with a used and reliable vehicle that isn’t so expensive.

This car should only be a tool from which it can transfer you from point A to point B while allowing you to allocate points to your credit score.

Your credit score will spike once you have paid the vehicle off.

Again, the point is to increase your credit score effectively without drowning yourself in debt.

What if I make two payments per month on my car?

Your credit score won’t really be phased by making more than one monthly payment on your car. It will only close the account quicker.

Credit scores evaluate on-time and late payments, not so much the number of payments within a statement.

#4. Pay Your Tuition

This will apply to those who carry a student loan.

If you’ve decided to further your education in order to start a career you’ll understand student loans are no joke.

While it takes most of us a long time to close these tuitions, they certainly play a big role in our credit history and help increase our score throughout the years.

While it’s easy to disregard them once we graduate or even years beyond, it’s important to continue paying your tuition off.

If you continuously paid for your tuition while you were enrolled in school, then you most likely graduated with some credit score to your name.

Tuitions can easily become a hinderance once we’ve begun to take on more from life in general.

Fortunately, tuitions can be put on forbearance.

If you find yourself needing to take some time off from student loans, take the opportunity to gather your finances before continuing to pay off the debt.

This strategy will allow you to safely put your loans on hold without it affecting your credit score.

Once you’re ready, start aiming for that excellent credit score!

What happens if you pay your student loans all at once?

If you were paying your student loans and all of a sudden come across the opportunity to pay off your entire tuition that’s amazing!

As soon as you close your tuition account you will see a huge spike in your credit score.

Every time you close any account, you should get an email regarding one of your accounts has been closed.

If you personally don’t have any student loans but your child does, pay it a few months to increase your credit score before fully paying it off and eliminating that liability.

#5. Pay Your Rent on Time

Though this might seem like a no-brainer, it must be mentioned.

Pay your rent on time in order to increase your credit score.

Whether you’re currently financing a home or renting, timely payments builds trust with lenders and property managers.

The last thing you’d want is to run into a bad rental history when applying for a bigger unit or a new home.

Impress lenders with a great record of paying rent on time.

This will increase your credit score and help you reach an excellent score quicker.

Rent should be one of your biggest priorities.

Utilities Also Help Increase Your Credit Score

Gas, electricity, water, garbage, & internet all help increase your credit score.

All bills have a due date and accumulate towards helping you reach an excellent credit score.

Keep in mind that if your utilities are not under your name (e.g., your spouse) then you will not earn points.

This applies to any bill you might pay but don’t otherwise have your name to.

What If I have A Lot of Debt?

If you’re have a ton of debt, continue paying down your debt.

Never stop paying down the minimum.

Although your debt continues to grow due to interest, you’ll have to keep paying it off so that your credit score is not affected.

Read: Debt Sucks | Here’s How To Pay Off Thousands In Debt

We published a post on the best strategy to pay off debt using the snowball effect method.

If you are having difficulty paying off your debt, be sure to read it and begin to start changing your life today.

Should I Open Multiple Credit Cards?

Opening multiple credit cards will result in a higher possibility of falling into credit card debt.

One credit card is enough to boost your credit score even after you’ve managed to pay off large amounts of debt.

Also, the more credit cards you apply for will result in a drop of credit score.

Keep an eye out for it as it will happen even when you apply for your first one.

Do not worry as it is normal and will eventually pick up after a few months of you establishing trust with the lender.

Do not open multiple credit cards and do not spend more as the lender increases your credit line.

It’s how they get ya! Do not fall victim of this quicksand.

What if I have a business and need the credit lines?

If you’re a small business and you need the credit lines to grow, then it should be no problem.

It only becomes a problem if you can’t repay your balance when you receive your statement.

What are the best type of credit cards to use?

Use a credit card that’s going to provide you with more value than just borrowing money in advance.

One of my credit cards give me cash back, or discounts on certain purchases.

This money accumulates over time resulting in money being saved over a long period of time. Another benefit this card has is that it has 0% APR during its first year.

0% APR cards can help you out of a sticky situation.

You can use this card to close the balance of another card that keeps rolling over in interest.

The 0% APR card allows you to pay your balance without the extra fees.

Cards like these can actually help you recover from debt and increase your credit score at the same time!

Will checking my credit score drop it lower?

Despite what someone older than you might have said, no; checking your credit score does not lower it.

What causes credit score to drop?

  • Late payments
  • Accounts sent to collections
  • Hard inquiries on an account
  • Any sort of temporary credit score check

The only exception on this list is the last bullet. Whenever you’re applying for something that requires a credit score check know that it will drop.

This is only temporary however and you can expect your score to rise after a few weeks to a few months.

How Do I Reach an Excellent Credit Score?

How Do I Reach An Excellent Credit Score?

An excellent credit score will require you to reach a 700+ credit score.

In order to reach a 700+ credit score you will need to have a great history of paying on time.

The more accounts you have open will mean the greater chance you have of obtaining an excellent credit score sooner than later.

While balancing a car loan, tuition, rent, and a credit card simultaneously can sound stressful, it’s certainly doable given that you are managing your finances properly.

Most people will buy too much car, or too much house and get themselves into credit card debt. It’s these sort of financial horror stories you do not want to live.

Even if you aren’t simultaneously paying different lenders every month, the important thing is that you’re responsible with the expenses you do have.

Pay on time every month and your credit score will continue to increase no matter how long it takes to reach an excellent credit score.

Frank Nez How To Get Clients To Pay You When They're Past Due

What’s Your Credit Score?

Let us know what your credit score is below. Do you have an excellent credit score? Share with our readers what you’ve done to increase your score!

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5 Powerful Strategies To Begin Growing Your Net Worth

How to grow your net worth.
How to grow your net worth.

What is net worth? Your net worth is the financial value you have after deducting all your liabilities from your assets. Think of your net worth as the vitality to your personal finances.

An over-simplified example would be:

You have $10,000 in savings but owe $2,000 on your car loan and $5,000 in student loans. Your net worth is then $3,000.

Or, you have $10,000 in savings but just financed a brand new vehicle for $35,000 so your net worth is -$25,000. In this scenario you owe instead of own.

Building your net worth can be a challenging yet fun experience during your financial growth.

how to grow your net worth

Welcome to Franknez.com – the blog where you can digest content on personal finance, side hustle ideas, entrepreneurship, and trending investing topics.

Lets get started!

So, what are some strategies I can use to grow my net worth?

I’m going to walk you through 5 ways I’m personally growing my own net worth.

Anyone can use these very simple strategies to have money multiplying for them.

Also Read: I Made A Whopping $65K Online Without Showing My Face

1. Open a high-yielding savings account

What better way to grow your net worth passively than by having a bank consistently pay you a percentage per month for holding your money.

This is exactly what high-yield savings and money market accounts do. I’ve personally seen accounts generating $20 per month in passive income to a little over $200 per month.

This type of account is a better alternative to your traditional savings account from Wells Fargo or Bank of America.

How does this work?

One thing you have to understand is that banks are always moving money. They are always investing money which is why they’re so powerful.

The instance you deposit any money into your bank account, they’re already investing it. Huge commercial banks like Wells Fargo and Bank of America will typically only pay you a penny per year for banking with them.

Ever notice that $0.01 or $0.02 randomly deposited into your savings account? Yup, that’s what you earned for banking with them.

High yielding savings accounts simply pay you a higher percentage for banking with them.

How safe are these bank accounts?

Most of these banks are FDIC insured and can insure up to $250,000. Just like Chase, Bank of America, and Wells Fargo.

What banks offer high-yield savings accounts?

It is important to note that APY rates do change depending on the circumstances of our economy. They were higher previously to the pandemic and have gone down during the pandemic.

This is completely normal though and should not stop you from generating passive income to increase your net worth.

You can calculate an actual interest earned on an investment using this APY calculator.

Here’s are two banks that offer high-yielding savings and money market accounts:

*Rates are applicable to change

Now, although these aren’t very high at the moment, you certainly get a better APY than with a traditional account.

Before the pandemic, my high yield savings account had an APY of 2.05%. I didn’t include BMO Harris on the list because the account now earns less than the others on the list above.

There are more banks I didn’t include simply because they’re around 0.20% and I want to provide you with the highest return possible at the moment.

How can I get the best out of my high-yield savings account?

  1. Use it for your emergency fund and watch it grow
  2. Deposit money every month to accumulate compound interest
  3. Don’t withdraw unless it’s for an absolute emergency

A high yield savings account is not going to make you rich. I personally think the best way to utilize this account is by putting money in it you don’t intend on using unless it’s for a priority emergency.

This strategy allows your emergency fund to grow a little passively without collecting dust in a traditional bank account.

Can I withdraw money from a high-yield savings account?

Yes. However, this is usually done through an ACH transfer which can take up to 3 days to see the balance reflect in your personal bank account.

For this reason I suggest funding both your high yield savings account as well as you personal savings account. Always have liquid funds available.

Your personal savings account should have enough money to take care of something quick and unexpected. Dave Ramsey recommends $1,000 if you’re still paying off debt in efforts to continue paying off debt. I prefer more, but everyone’s situation will vary.

Now that you have your money bringing back more dollars every month, I’m going to discuss a little more about purchasing assets to further grow your net worth.

2. Purchase stocks

Purchasing stocks has never been easier with all the online platforms now available to you. The stock marketing on average provides a 8% return during a period of 10 years.

To put things into perspective, I earned a whopping 40% return of investment my first year investing in the stock market.

What are stocks?

Stocks are assets in companies you can invest in through the purchase of shares. Shares are fractions of a business that you can own through the purchase of said stocks.

For example: If you wanted to invest in Apple, you would invest in the (AAPL) stock and purchase ten, fifty, or one hundred shares of the company.

What are the risks of stock investments?

Most people instantly think risk when they hear the words ‘stock market’. The truth is the only risk is not taking the risk. In my honest opinion, not investing and having your hard earned money collect dust is the real risk.

Your mindset needs to change so you think ‘abundance’ when you think of the stock market.

Warren Buffett transfer of wealth quote

“The stock market is a device for transferring money from the impatient to the patient.”

Warren Buffett

(Scenario)

What scares most early investors is when they see their first investments take a dive. They spend $50 on a share and a week later it’s worth $44, then they sell the share and lose $6. This is the game plan you want to avoid. Stock investment for the most part should be a long term play.

In this scenario, the strategic thing to do would be to purchase a second share at $44 at a discount and hold it until their worth increases over time. By the time the share is worth $55 your first share would have gained a return of $5 and your second share would have gained a return of $11.

This ladies and gentlemen is how a total investment of $99 can earn you $16 without having to work and give your time to someone else for it. By purchasing assets, you’re able to further grow your net worth.

I recommend you only invest in companies you believe are great companies and have room for plenty of potential growth. These are the companies that are always striving to get better. And when they do, your investments will grow alongside with that company.

How can I invest in the stock market?

You can invest in the stock market through online platforms such as Vanguard, Fidelity, E*Trade, Ameritrade, and Merrill.

Once you create an account with one of these platforms you’ll be able to connect your bank and begin funding your brokerage account so you can purchase stocks.

Bookmark: How To Invest In The Stock Market (Step by Step) For Beginners

3. Diversify your income

Most wealth builders have increased their net worth by diversifying their income. Multiple streams of income is what has allowed the wealthy to stay highly successful.

Having more than one stream of income allows you to pivot should one stream lose momentum. During the pandemic millions of people lost their only source of income. Those with multiple streams of income were able to pivot and thrive.

However, when all your streams of income are doing extremely well then you will be doing extremely well.

What are some ways I can diversify my income?

This is the fun part because diversifying your income varies from person to person. Ask yourself, what are you good at? What do you enjoy doing?

You may be working a 9-5 but enjoy making music. Distribute your music online and get paid for every stream. Perhaps you really enjoy driving, take on a ride sharing or food delivery service.

You can find several ways to make money using my side hustles tab where I provide my readers with creative ideas to increase their income.

One thing I will always recommend is building a scalable online business. This can be a blog, YouTube channel, or other streaming service.

The more income you’re able to generate means the more resource you will have at your disposal to begin growing your net worth.

4. Become debt free

What better way than to liberate all your income sources by becoming debt free.

When you’re debt free you can really tackle savings and investments to grow your net worth. Yes you can have debt and still have a positive net worth; however, by becoming debt free you can maximize your investment capabilities.

Freeing up your income capabilities will provide you with the best investing results. This is primarily because when an opportunity comes, you’ll be ready. You will not lack the means to invest like you mean it.

If you have debt, focus on building a small emergency fund then paying off your debt so you may continue to grow your net worth.

Hacks to avoid getting in debt:

  • In need of a vehicle? Purchase it cash.
  • Learn to generate money without a college degree.
  • Avoid payment options provided by store retailers.
  • Keep your credit card spending limit below 30%.

Debt has a lot to do with our spending habits. If most people cannot manage $1,000 then they won’t be able to mange $10,000 and so forth. Invest in your future self and eliminate debt. You will thank yourself later.

5. Live below your means

This last strategy on the list is very powerful. Very few people have the discipline to stay put as their income level increases.

Living below your means, just like becoming debt free can unlock your savings and investing capabilities.

To live below your means simply means your expenses do not exceed your level of income. In other words, you spend less than you earn.

Keeping your expenses low as you continue to increase your income is a guaranteed way you can grow your net worth even if you don’t invest. This is why this strategy is so powerful.

Example

If you were making $80K a year and got hired somewhere else for $100k a year, keep living the same lifestyle at $80K while you use the additional $20K to build your net worth.

More than often, people will fall into income creep lifestyle where they get a raise and they upgrade just about everything. This is how even high earners have trouble getting off the never-ending cycle of debt and living paycheck to paycheck.

Don’t be average, continue to increase your net worth so that you can look out for your future self and and for your family.

A few last words from Frank Nez

Franknez.com

Growing your net worth takes time, serious dedication, and work. There will be times where you’re doing great, being consistent and something happens where you have to take money out.

It’s normal, it’s life. Do not get discouraged when you face roadblocks that halt your growth. Instead, continue to set goals to grow your net worth and make it happen.

Follow these strategies and you’ll be on the path to long-term financial success.

FAQs on Net Worth

Can net worth go down?

Your net worth can be zero if your assets and liabilities break even. A net worth at zero is much better than having a negative net worth.

Can net worth be zero?

Your net worth can be zero if your assets, and liabilities break even. A net worth at zero is much better than having a negative net worth.

Can net worth be negative?

If your liabilities are greater than your assets then your net worth will be negative. This is most common amongst younger people enrolled in college.

Why is net worth important?

Net worth is important because it reflects the health of your financial situation. Whether you’re negative, break even, or have a positive net worth, it says a lot about how you manage your finances.

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Free Live Daily Updates: AMC Short Interest Today + More

AMC Short Interest Today

Free Live Daily Updates: AMC Short Interest Today + More.

Community, I’m going to be updating this list of momentum stock and their short interest and utilization daily (AMC short interest, BBIG, MULN, BIOR, GME, APE, and many others).

Be sure to bookmark this page for daily AMC short interest updates and more.

Other metrics being updated daily will include the cost to borrow, shares on loan, + short squeeze scores.

If there are other heavily shorted stocks you’d like me to update daily, please leave a comment below and I’ll be sure to look into them before adding them to the list!

– Frank Nez

Franknez.com

#1. MMAT Short Interest

Short Interest: 10.73% | Utilization: 90.77 | Cost To Borrow: 17.05 | Shares On Loan: 39.24 Million | Days To Cover: 9.03

MMAT Short Squeeze Score: 84

(Updated Daily)

Market News Today - Senator Inquiries Now Grow on The MMTLP Scandal

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#2. AMC Short Interest Today

Short Interest: 7.80% | Utilization: 47.70 | Cost To Borrow: 1.79 | Shares On Loan: 22.26 Million | Days To Cover: 1.22

AMC Short Squeeze Score: 57

(Updated Daily)

Market News Today - AMC CEO Now Identified As Extortion Bid Victim

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#3. GME Short Interest

Short Interest: 20.52% | Utilization: 85.30 | Cost To Borrow: 2.96 | Shares On Loan: 72.73 Million | Days To Cover: 24.36

(Updated Daily)

GME Short Squeeze Score: 86

Click the image to read the latest GameStop news article.

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#4. MULN SI

Short Interest: 19.70% | Utilization: 88.31 | Cost To Borrow: 15.55 | Shares On Loan: 73.37 million | Days To Cover: 1.35

(Updated Daily)

MULN Short Squeeze Score: 75

MULN Stock News
Click the image to read the latest MULN stock news aritlce.

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#5. LCID SI

Short Interest: 25.37% | Utilization: 96.03 | Cost To Borrow: 10.99 | Shares On Loan: 355.08 Million | Days To Cover: 10.86

(Updated Daily)

LCID Short Squeeze Score: 86

Daily Market News

FrankNez - Daily Market News and stock updates.
FrankNez – Daily Market News and stock updates.

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Related: This is What’s Stopping AMC From Squeezing Today



A Unique Retailer Now Files For An Unexpected Bankruptcy

A unique retailer is now filing for an unexpected bankruptcy during a period where Chapter 11 filings have increased over 60% in 2023.

“The retail carnage continues as it has been a bleak year for retailers.

You can’t blame any one cause for Chapter 11 filings from companies as diverse as Bed Bath & Beyond, Tuesday Morning, and Christmas Tree Shops (which all were liquidated) to David’s Bridal and Party City (which survived),” says TheStreet.

“Customer spending changes and inflation certainly have played a part as have rising costs due to supply chain problems.

You can also broadly blame the higher cost of money making it much harder for struggling brands to find the funds needed to reinvent themselves.

Many of these problems are tied directly to the covid pandemic.

That global event forced non-essential retailers to close in many parts of the country while consumer spending patterns shifted.

Showfields has become the latest once-popular and successful company to file Chapter 11.

Showfields calls itself “the most interesting store in the world.”

It has locations in Washington, Los Angeles, Miami, Manhattan, and Brooklyn.

The company has filed for bankruptcy protection in U.S. Bankruptcy Court’s Eastern New York branch.

The filing shared the company’s plans to focus on Brooklyn and Washington and close its Miami and Manhattan locations.

However, the L.A. store is not part of the bankruptcy filing.

Showfields has “entered into an agreement with the debt-financing company Pipe Technologies Inc. whereby the debtor sold its accounts receivable and recurring revenues to obtain operating capital for its businesses in the aggregate amount of $1.4 million,” the filing said.

The company blames its current situation on the dragging effects of the pandemic.

Also Read: Another Popular Retailer Now Declares An Unexpected Bankruptcy

Other Economy News Today

Market News Today - A Unique Retailer Now Files For An Unexpected Bankruptcy.
Market News Today – A Unique Retailer Now Files For An Unexpected Bankruptcy.

A new wave of massive layoffs is now hitting Pennsylvania according to the latest data from the Pennsylvania Department of Labor & Industry.

“Pennsylvania has experienced a wave of job cuts in 2023, with a wide range of businesses announcing layoffs across the year.

Under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide a 60-day notice before laying off 50 or more people at a single site,” reports Ash Jurberg.

“So far, over 8,000 jobs have been cut in Pennsylvania across the first nine months of 2023. As a comparison, across all of 2022, there were 7044 jobs lost.”

California remains the #1 state with the most layoffs in the country.

In second place is Colorado, with approximately 26,816 layoffs and 81 WARN notices, followed by Illinois, Washington, New York, Texas, New Jersey, FloridaMichigan, and Massachusetts.

Below are the businesses that filed a WARN act with the Pennsylvania Department of Labor & Industry advising of upcoming layoffs.

View the full list of upcoming layoffs in Pennsylvania here.

Also Read: A US Bank is Now Denying Customers Access to Money

Market News Published Daily 📰

Market News Today - A Unique Retailer Now Files For An Unexpected Bankruptcy.
Market News Today – A Unique Retailer Now Files For An Unexpected Bankruptcy.

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