What You Can do to Avoid Overdraft Fees

Nobody likes overdraft fees.

Nobody likes dealing with overdraft fees, and they can get fairly expensive depending on your bank. Fortunately, there are a number of ways that you can avoid having to pay these fees to begin with. If you want to keep as much money as possible in your account, you’ll definitely want to keep reading. Incurring overdraft fees once can quickly snowball and lead to major financial issues. This is why it is so important that you are careful about not getting into this predicament at all.

Take out a loan if you need it.

Take Out a Loan When You Need One

Instead of overdrafting on your bank account, you’ll want to consider getting a loan instead. This is an easy way to get the funds you need when you don’t have the cash in your bank account. It is easier than ever to get a loan thanks to the internet. All you have to do is go online and look for a lender that will match your needs. Borrowing from a private lender that is based online can help you get the necessary funds within a single business day. Take all the time you need to review your options before making a decision though.

Set Up Automatic Payments

Another good way to avoid getting charged an overdraft fee by your bank is by setting up automatic payment for all your bills. This is possible with most everything, including utilities, internet and much more. While you might not be able to pay all of your bills automatically, you should do it wherever possible. This will save you from having to keep writing checks, which can quickly land you in trouble.

Always check your bank statement.

Look Over Your Monthly Statement

It is also very important that you look over your monthly bank account statement without fail. If something seems off with the balance on your statement, you probably shouldn’t make any major purchases for a bit. This can be a very effective means of avoiding overdraft fees. Make sure that you check the balance of your account online throughout the month between your statements as well.

Set Aside Some Money

When you have money set aside for “rainy days”, you won’t have to worry so much about overdraft fees. This will allow you to either prevent or take care of these fees without any issues. You can also just let the money sit in your bank account so that this never becomes an issue in the first place. It is always a good idea to have at least a hundred pounds or so set aside for things like this.

Look into Overdraft Protection

Many banks offer overdraft protection as an option to its members. You should take the time to at least look into this, as it can be quite useful. While you might have to pay a very small fee each year, it could be well worth it. This will keep you from having to pay a ridiculous amount in overdraft fees if you ever go over. Speak with someone from your bank to find out the details, as it is different with every institution.

Be careful with debit cards.

Be Careful About Using Debit Cards

While debit cards might seem harmless enough, they can land you in trouble with your bank. You shouldn’t use these cards for certain things like buying gas or even getting a hotel room. Anything where there is a delay on the payment can result in overdraft fees, which is never a good thing. You’ll want to have a credit card for these kinds of purchases. You won’t have to be concerned with overdrafting, and there are usually some pretty great perks. Take the time to find the right credit card, as there will be tons of options to choose from.

Stay in Touch with Your Bank

If you ever find that you have overdrafted on your account, you should get in touch with someone from your bank right away. You don’t want to simply ignore this problem, because it isn’t going to just go away. The sooner you do this, the easier it will be to minimise the fallout. If you have a good history with the bank, they might be willing to waive the overdraft fee. This all depends on whether or not this is your first time.

Overdraft fees can do quite a bit of damage to your finances, so it is something to be taken seriously. As annoying as these fees are, they are entirely avoidable. It is imperative that you make a conscious effort to do these things so you don’t slip up in the first place. Some banks are more forgiving than others, but you don’t want to depend on yours showing any mercy. There is a good chance that you’ll have to pay every pound that you are charged in this situation.

What Every College Student Should Know About Credit

It is important for young people to focus on building up their credit and learning about how it all works. The sooner you start learning about these things, the easier it will to keep your score soaring high. You definitely want to focus on building up good credit from an early age. Failing to do this can result in difficulty obtaining a loan when you need one. These days there are lots of different reasons why a person’s credit is important.

You too can get a loan with a low credit score.

Getting a Loan Can Boost Your Score

It might be a good idea to get a loan right now even if you don’t necessarily need one. If you pay off the full amount of the loan on time, you can increase your credit score significantly. You should find it fairly easy to get approved from a private lender when you go online. Getting a traditional bank loan is simply too much hassle, especially if you don’t have much credit established yet.

By getting a small loan and paying it back by the due date, you’ll find that your overall score will increase. This will make it easier for you to get an even better deal on another loan when the need arises.

You Have Multiple Credit Scores

Many younger people don’t even realise that they have multiple credit scores and reports. You should make a point of looking at all three of your credit reports at least once each year. This will provide you with the perfect opportunity to spot any errors. Sometimes credit reporting bureaus make mistakes, and it is up to you to catch them. It is important to keep this in mind as you make an effort to establish and improve your credit over time.

It’s good to avoid late bills.

Late Bills Hurt Your Credit

Being late on a utility bill or car payment might not seem like a huge deal, but each time your credit will be negatively affected. It is very important that you are always on time with paying your bills, regardless of what they are. This can go a long way towards helping you to keep your credit in good shape over the long term. The last thing you want to do is get into the habit of paying any of your bills late.

Don’t be Afraid to get a Credit Card

Some young people are very eager to get a credit card, while others are extremely apprehensive. The fact is that having one of these cards can do wonders for your credit within a very short amount of time. You just have to make a point of not carrying a balance on your account. If you have debt that you need to pay off, make sure you pay more than the minimum. By paying off what you owe by the due date on a consistent basis, you can improve your credit a lot.

Not Every Credit Card Will Match Your Needs

When you are going about getting a credit card, it is crucial that you find the right one. Most credit card companies offer cards specifically for college students. You’ll want to take a close look at all of the details for each card before making a decision. This is not the sort of choice that you want to make lightly by any means. Make sure that you take enough time to explore your options online. Try to get a credit card with a zero percent introductory interest rate. It will only last for a certain amount of time, but it’s still a good thing to consider.

Think before applying for too many loans.

Limit Your Applications for New Lines of Credit

Whether it is a retail store credit card or a loan, you’ll want to limit the number of applications you fill out. Each of these applications comes with a credit check, which counts as a hard inquiry. If you submit too many applications with a short amount of time, your credit score will definitely suffer as a direct result. When you are looking for a loan, you need to take the time to find the right lender to apply with. This will help you get what you need without damaging your credit in the process.

Your credit has a huge impact on numerous aspects of your life, so it is something you’ll need to take seriously. When you start making an effort to build your credit while you are in college, you’ll be a lot better off once you graduate. Most college students aren’t as affected by their credit as older adults, but it’s still something you need to remember. At a certain point, your credit is going to start impacting you in a much bigger way. The information in this article can help you a lot with making your life much easier as a whole.