The Sticky Note Budget

Your credit reports is a lot like a report card. It tracks each of your financial accounts, under your identity. Look over the report and make sure every account listed is something that you opened.

Embrace reality even if it burns you! Take control of your credit score today by arming yourself with information. Improving your credit score will improve your life. Not ruining your credit score because you don't know what you're doing...priceless. Employers and landlords check your credit score. Interest rates, deposit requirements, and insurance rates are based on your credit score.

There is a loan that is a hybrid of revolving and installment loans. This is most often seen in a HELOC or Home Equity Line of Credit. For the first 10 years of the loan, it functions as a revolving line of credit that may come with a debit card, checks, and the ability to advance money into your checking account. The second 10 years of the loan function like an installment loan where you pay off the final balance of what you racked up in the first 10 years. At the end of this, the loan is paid off and closed out. This loan is amazing for homeowners because it allows you to tap into your home's equity, these loans lower interest rates, and you don't have to burn through all your savings if you need a new furnace and a water heater in the same month.

Did you know there are different types of credit. I like to think of revolving credit as a circle loan. Kinda like a revolving door that can turn over and over. A revolving loan is borrow, pay down, borrow, pay down and it doesn't really end unless you close it or you don't use it or use it badly and they close it.

There are two types of credit, and not having both will affect your credit score. A good formula for good credit variety is at least three loans, one revolving, one installment, plus one more. That may look like a credit card, an overdraft line of credit, and a mortgage. Showing you can handle a variety of credit is good for your credit score.