Tisn't the Season to be in Debt

Hi all! With the holidays fast approaching, we run the risk of trying to purchase well above our means. That means we feel pressured and compelled to make credit card purchases for most of our gifts. While this seems like a quick and easy solution, credit card debt can definitely become overwhelming once the novelty has warn off. Now don't get me wrong, credit cards aren't inherently bad. They can even help you build up a credit score, but there are plenty of opportunities for pitfalls and misdirection when it comes to credit card usage. I will be discussing some lesser known credit card myths and do my best to debunk them.

Myth 1:

• Using a credit card for all purchases will increase a credit score

This is a huge myth because while yes credit cards can help you credit score, they can also hurt it. If you are wracking up high rates of spending, and only paying the minimum, you risk your credit score dropping.  Essentially, you are spending more than you can pay.

Myth 2:

• Applying for multiple lines of credit at one time won’t hurt my score

Unfortunately, this hurts your score because for every line of credit you open, your average account age lowers. As a result, your score may potentially take a dive. It also makes you look like a risky borrower, if all the lines are new.

Myth 3:

• Closing the account with the highest credit allowance/limit is better for your score than closing a lower limit account

 The main issue with this is that say you have four accounts: Three accounts are a limit of $500 each and one of the accounts is a $1000 limit. If you maxed out the three cards at the $500 limit, but have paid off the $1000 card and closed it. Before, it looked like you owed $1500 out of $2500, which isn't very good, but compared to owing $1500 out of $1500, it wouldn't have hurt your credit score as bad. When in doubt, look at the amounts owed on all cards collectively before considering closing out a high limit card.

Myth 4:

• Closing the oldest account can help my credit score

The primary issue with closing out the oldest account is that it makes your credit history look shorter by lowering your account age.

Myth 5:

• Tossing out old cards will make your account disappear

This is a big myth in the sense that unless you actively work to close your own accounts, they will not close on their own. Be sure to pay off your balances, call the customer service department, and insist that they close your account. Typically, upon closing an account, you'll receive letter confirmation about the account closing within a week or so. If you don't get that confirmation, be sure to call the customer service line again.

Lastly, remember to monitor your accounts in order to notice and address unexpected or authorized activity that could seriously hurt your credit report. When it comes to disputing errors that appear on your credit report, always address discrepancies immediately to avoid lasting damage.

I hope that my debunking of myths was useful to you, and be sure to check out the following guide to learn more about how a poor credit score can affect your financial health!

Let me know in the comments below what tips you have for people using credit during the holidays.


Till Next Time!

-Hachi

Worried About Dormitory Decor? Well I Say, No More!

Hi all! Apologies for the delay in posting. I was on a brief three week hiatus for personal reasons, but am back now! I hope my fellow Americans enjoyed their 4th of July, this past Tuesday!

So it has been almost two years since I left the Inland Empire and moved to Orange County. This is my second time making a big city move since I first started college down in Southern California.  Something about living alone with your pets and having a new slate to work with seems magical in a way. However, it can occasionally be stressful when you have to think about how to decorate your new home. I have lived in over four different apartments and the college dormitories over the past nine years. So I have learned how to decorate for both limited space and seemingly unlimited space. Keeping up with the school theme, I would like to help you out with figuring out how to decorate your dormitory with the help of Aura Frames.

Dorm Living:

Dorms, they're pretty small. Typically, you share them with one other person, but sometime you might have two, or even three other people per dorm. A lot of big box stores will give you check lists full of the most unnecessary things ever to buy just to get you to spend extra money at their stores. My list of essentials would have to be the most basic and the most realistic from my own personal experiences.

Bed: Twin XL - Bed set (for most dormitories, the best are Twin XL -some times you can find bed-sets that fit both regular Twin and Twin XL). They are fairly cheap so feel free to buy more than one, you'll be in that dorm for at least one year.

Pillows - You can usually find some good pillows on deal from Macy's or J.C. Penny.

Under the Bed Organizers - Remember that you are sharing a very small space with other people. If you have two or three roommates, you might also be sharing a closet. Under the bed organizers helped me out so much as a Freshman in the dorms.

Full body Mirror - Not all dorms will come fully furnished aside from the bed and desk (I bought mine at Target for under 4$.)

Bundles of Hangers for Clothes - most dorms have closets and dresser-drawers

Laundry Essentials - Baskets, Pods/Detergents, Fabric Softener, Iron/ Iron Board- Look for coupon deals on laundry items, believe me, you can find so many.

Bath Supplies - Flip-flops, Shower Caddy, Towels, and the basic shower essentials (body wash, soap, shampoo, conditioner. (The reason that I recommend the flip-flops is because you will be sharing those showers with several other men or women and can risk getting foot fungus.)

Frames for Photos - You can be low tech and get very simple frames to put up photos to combat homesickness, or you can be high tech and get some pretty neat digital frames like the ones that Aura Frames has.

Posters - Posters can be a cheap way to decorate your apartment as well, and it's also a good way to really personalize your space with posters displaying your interests.

Stuffed Animals or other comfort items - If you were like me and moved to a college far from home, then bringing moments with you can help combat homesickness as well. For me, it was old stuffed animals, but it could be something different for you. 

If you are artsy, I recommend that you draw some pictures or make some little decorations for your dorm side. Even have your friends help you!

*Desks are typically included and lamps/lighting as well. If I think of anything else to add, I'll let you know! Highly recommend a trip to Walmart and Target for some cheap dorm supplies. Good luck with your first year at the dorms!

A picture from my freshman year in my dormitory at UC Riverside - East Lothian ( Nine years ago).

If you guys have any comments on the items you brought with you to the dorms, feel free to let me know in the comments below!

Till Next Time!

-Hachi