Your financial history is including debt, loans, accounts, credit cards, collections, outstanding balances and more. If your credit is good it will be easier to obtain financing with good rates of interest and if it’s bad impact your ability to get loans and services.

When you apply for credit financial institutions and lenders look at two main factors:

* Credit report: a record of your transactions and financial accounts, loans, debt, cards, collections, payments, outstanding balances, personal information and credit applications. The bad financial history can remain on your credit report for seven years or more.

*Credit score: A number, usually between 300 and 850, used by financial institutions and lenders to predict your likelihood to repay loans on time. Your score low if you have too much debt or do not pay up on time and if you manage your money responsibly. A score above 700 is considered very good. A score below 600 represents a risk to the lender and can cause you to receive a higher interest rate or that your application be rejected.

Establish your credit

If you plan on borrowing or financing in the future and have no credit, follow these steps to set:

* Open a savings account or checkbook in your name. Your deposits and withdrawals show that you manage your money responsibly.

* Apply for a credit card from a local store or gas station. It is usually easier to get a card if you have these credit facilities. Always pay on time and without fail.

* Apply for a secured credit card. These are cards that you ensure your own money through a deposit and represent less risk to the lender.

* Apply for a loan or credit card with a person who has established credit. A co-signer agrees to pay the debt if you cannot afford it. Keep in mind that a loan is a financial obligation for you.

Manage and improve your credit

If you already have or need to improve your credit score, consider the following measures:

* Pay your bills on time and without fail. Timely compliance and improve your credit score and history.

* Pay more than the minimum and reduce your debt. This reduces the finance charges and eliminates your debt faster.

* Minimize how much you charge to your card. A balance near the limit of your card can lower your credit score.

* Controls the number of accounts you have. Nice to have credit-based accounts, but have too much credit or request can lower your score. Only open the necessary accounts.

* Check your credit report once a year. By law, you can request a free credit report from each credit reporting agencies every 12 months. Apply online or through each of the credit reporting agencies.

* Corrects errors in your credit report. Under the Act, Fair Credit Reporting Act (FCRA) both the credit reporting agencies and companies that provide your information have a responsibility to correct errors in your credit report. If you find errors, contact the credit reporting agencies and the company that provided the wrong information (e.g. your credit card) immediately to make the necessary corrections. Keep in mind that it may take a month or more to reveal the corrections.

Protect your credit

When someone steals your personal data and illegally use your credit debts are accumulating on your credit report and lower your score.

The most common scams include:

* Credit card offers that ask for upfront fee before submitting your application. If you receive one of these calls, calls not contact you again and hang up.

* Announcements, and people or organizations that provide or arrange your debts to improve or credit. Many times, they do the opposite: declare yourself bankrupt, something that stays on your credit report for ten years. Choose a credit counselor or adviser with care. The Department of Housing and Urban Development sponsors housing counseling agencies that can help with mortgage-related credit issues, rents, etc.. The Justice Department also has a list of approved credit counseling agencies (in English).

* Requests by phone or e-mail appear to be government agencies or financial institution. Many times these are really scams to steal your personal information. Do not spread your data and prevent identity theft.

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3. Tips to Protect Your Identity and Your Credit

In addition to ensuring the economic future of your children, it is important to start planning your retirement, to meet this goal it is necessary to organize to save 10% of your monthly income.

Habits such as saving and financial planning can be great allies of single mothers who head families, as well as build a future for their children should also start working for their own future, said the director of Human Capital Skandia’s investment funds, Maria Eugenia Castillo.

In Mexico there are 4.5 million single mothers (single, widowed or divorced), of which 71.8% work, while the third lives in poverty, according to the National Population Council (CONAPO), and for this reason it is important start thinking about how to prepare for a sound financial future, he said.

“The economic risk of single mothers is that they focus all their financial efforts to provide their children with education, health, clothing, housing and entertainment, neglecting a very important aspect of life, that is their retirement,” said the expert.

While the financial priority in these cases is focused on children and supports themselves, if not start a savings plan for retirement, it is possible that in adulthood does not have the money to sustain themselves.

To avoid economic pressure for the children in the future and have a financially peaceful old age, the challenge is to start a savings plan with that objective.

Begins to identify what are the actual vanishing points of money and start a spending plan that goes hand in hand with your financial means and without increasing your debt, said the board of Skandia.

“We have seen that women in general, including single mothers, whose priority is the education of their children and when saving, seeking to have the capital for their children’s college, but not think about how they want their old age,” Castillo explained.

The recommendation to start saving for retirement is to spend at least 10% of your monthly income to meet this financial goal.

To organize your finances so that you can to hold your child and in turn allows you to plan your future, follow the 10 rules for being a single mom and economically stable.

1. Be wise with money management
2. Have clear goals and objectives and be consistent to achieve
3. Avoid buying impulse
4. Make sacrifices to make your financial dreams
5. Make intelligent use of credit card
6. There is no better investment than pay off debt
7. Fully meets your budget
8. Indebtedness only to create a heritage
9. Put your savings to work
10. Diversify your investments

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1. Tips to manage your financial facing a birth of baby
2. Tips to manage financial for the elderly couple
3. Tips to improving investment

Here are some interesting aspects of his life:

1.- He bought his first share at age 11 and now regrets that he started too late.

2.- He bought a small farm at age 14 with savings from delivering newspapers.

3.- He still lives in the same small 3-bedroom house in Omaha that he bought after he married 50 years ago. He says he has everything he needs in that house. His house has no fence or gate.

4.- He drives his own car everywhere and does not carry a driver or bodyguard.

5.- He never travels by private jet, although he owns the largest private jet company in the world.

6.- His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls regularly.

7.- He has given his CEO’s only two rules:

• Rule 1: Do not lose any money from its shareholder.
• Rule 2: Do not forget rule number 1.

8.- He does not socialize with people of high society. His pastime after he gets home is to prepare some popcorn and watch television.

9.- Bill Gates, the world’s richest man met him 5 years ago. Bill Gates thought he had nothing in common with Warren Buffett. So he had scheduled the meeting for only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffett.

10.- His advice to young people:
Stay away from credit card and invest in yourself.

Warren Buffet does not carry a cell phone, nor has a computer on his desk.

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Today I try to give a few tips on high-yielding deposits. Frankly, the topic I am tempted for a while now, but I decided to just write about it now. The reason is in itself a tip: make haste.

The bloody battle between the unions declared the bank whose aim was to attract more funds through tempting interest rates with high profitability is coming to an end, at least temporarily. Interest rates on deposits more profitable start to fall. In savings or deposit products launched late last year or the beginning of the current notice a slight decrease in average interest rates, many financial experts confirm that this decline will occur even more pronounced. The main reason is the lowering of the interest rate of the ECB.

So my advice is do not expect much, those of you with any intention of hiring a saving deposit, as it is very likely that interest rates fall further. The current bid has still hardly a 5.75% APR or even a 6% APR in some banks, but it seems that the supply will last.

On the other hand, a very important advice is being very careful when signing or hiring. Ask before contracting anything. And because many times the bank officers themselves are not very familiar with the characteristics of the products they sell or just because they are concerned not to disclose all characteristics the beginning, misunderstandings often occur. So I strongly advise you read it the contract, the fine print, advertising brochures, etc., before hiring.

Setting in which many banks undertake to debit the payroll for example, ordering credit card (and use) an insurance or household bills, gas etc. It is important to see what conditions imposed on us by the bank in exchange for offering us an attractive return.

My last advice is that if you look online banking services, will have more options to find deposits with very high yield which is exempt from any fee, because if you charge a high commission might not compensated since the promised returns.

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1. Short term deposits
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If your debt is only $ 10.000 almost never recommend my clients to go bankrupt, but each case is different. Remember that bankruptcy will affect you credit for at least 7 years, but of course, if you cannot pay your debts also be affected. If you do not have any assets (house, car, etc…) In addition, the debt is only credit card I do not recommend that you come out. This decision is affected at the same time, if right now or you’re working on plans to return to work soon (and if the labor market allows).

The worst mistake a person makes is not to call the credit card companies and explain the situation. You have to call them and tell them you want to enter the plan of financial difficulties (Financial Hardship) for them perhaps you can reduce monthly payments so you can meet with them while they fix your situation. This same make the loan consolidation companies that can lower monthly payments.

If you still think your best option is bankruptcy keep in mind that it costs money (maybe more than one thousand dollars) which could be used to make monthly payments of up to one of your cards, and after one year could have good credit yet. If you have no future plans to do anything with your credit or if your credit was damaged in advance could also go bankrupt.

The important thing is that you learn from this situation and you start to have an emergency fund of at least 3 to 6 months of your monthly expenses. If your household spent, $ 1,500 per month should have at least $ 5,000 in a savings account. This seems very hard to do, but if you start saving $ 20 a month from your paycheck that could help you save at least $ 1,000 a year with minimum effort.

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