bad credit scoreGood Morning Dinks. A couple of years ago I had a bad credit score. Many factors contributed to it. Not making on-time payments and not making full payments on certain bills were two of those factors. Things are much better now. My score isn’t in the 500’s anymore. I’m also actively paying off my debt. Having a bad credit score wasn’t fun. In today’s post, I will be going over 5 ways a bad credit score can hurt.

Higher interest rates

The 1st way that a bad credit score can hurt you is that you may have higher interest rates on loans and credit cards. Because your credit is low, you’re looked at as a risk to the lender or creditor. Because of that, you have to pay more in interest than people with good credit. At one point my credit card was charging me almost 26% in Apr. That wasn’t fun at all.

Deposit on utilities

If you have a bad credit score, you will likely have to pay a deposit for your utilities. When I moved to the place I stay now my credit was good so I didn’t have to pay any deposits. I’ve known people that have had to put a deposit on certain utilities such as power, gas and water.

Denied a job

Some jobs will flat out deny you because of your bad credit. While you may not think it’s fair, I understand why some companies do this. An example of this would be if you’re looking for a job in the accounting industry. If you’re horrible with your own money why on earth would someone hire you to work on their accounts? Companies also look at patterns. If you have an up and down pattern with large amounts of debt that you’re struggling to pay off who’s to say that the stress of that won’t affect your work ability.

Loan application denied

The 4th way that a bad credit score can hurt is that you could have loan applications denied. If you’re already in thousands of dollars of debt, a lender might not approve your loan because if you can’t pay your other debts off there is no way you will be able to pay off a new one. A couple of years ago I applied for a personal loan to help me pay some things off. The loan was denied. At the time I was a little hurt, but now I’m glad that it wasn’t approved. I didn’t need the extra debt. Eventually, I was able to bounce back without it anyway.

Unwanted phone calls from debtors

The final way that a bad credit score can hurt you is with unwanted phone calls. While these unwanted phone calls won’t technically hurt you, they are very annoying. There were times where I used to receive multiple phone calls from Sallie Mae daily. They would literally call every couple of hours from 9 am to 8 pm. Since I’ve gotten my act together and started making payments, those calls have stopped. If you have any creditors calling you, please answer the phone and try to work something out.

Has having a bad credit score hurt you before?

Life insuranceLife insurance is something that every adult should think about getting. A lot of adults don’t have it because quite honestly they don’t want to think about dying. Life insurance protects your family members. It pays out a sum of money to them after you pass away. It is something that your family will thank you for doing.

There are four different types of life insurance. The four types are term life, whole life, universal life and valuable life insurance. In today’s post, I will briefly go over all of them.

Term Life

The 1st type of insurance that I will be going over today is called term life insurance. Term life insurance provides life insurance coverage for a specified term. The time is usually between 10-30 years. Term life insurance doesn’t have any cash value to it. The premium is fixed for an initial period of time. The premiums per term are usually lower in the beginning than other types of life insurance. They increase as the policy owner gets older and once you get closer towards the end of the term.

Whole Life

Whole life insurance is the next one on the list. Whole life insurance coverage is lifetime. It is commonly called straight life insurance or ordinary life insurance. The premiums are fixed. They are based on the age of issue and typically do not increase with age. Whole life policies carry a cash value that grows at a guaranteed amount. The premiums are fixed. The benefits are guaranteed for the insurer’s lifetime.

Universal Life

Universal life insurance is a flexible policy. It is a variation of whole life insurance. There are several types of universal life insurance policies such as equity-indexed, variable universal life, and guaranteed death benefit. You can vary the amount of your premium with universal life insurance policies by using part of your accumulated earnings to cover part of the premium cost. Cash values earn an interest rate that is set by the insurance company.

Variable Life

The final type of life insurance that I will be discussing is called variable life insurance. Variable life insurance policies are the most expensive because they build up a cash reserve that you can invest in. It is designed to combine the traditional protection and saving features of whole life insurance with the growth potential of investment funds. With variable life insurance, the value of your cash reserves depends on how well these investments are doing.

To summarize, the four types of life insurance options that I went over today were term life insurance, whole life insurance, universal life insurance, and variable life insurance. Take the time to thoroughly read up about them. Sites like Investopedia go into further detail about them. Before you decide to get a life insurance make sure you weight the pros and cons for them. Remember, the cheapest option may not always be the best one for you.

Do you have life insurance? If so, what kind of life insurance do you have? Why did you go with that type?

AthletesWhen I was younger I used to watch a lot of TV. On many of the shows people spent a lot of money for no reason. I rarely heard stories of people being frugal or saving money. People would buy things because they felt like they needed it or they were trying to keep up with those darn Joneses. Then the recession happened. People stopped their crazy spending habits and started looking for ways to be frugal.

The recession has been over for a few years now. A lot of folks remember what it did to their income. It affected everyone from teachers to athletes. These days you find more and more people being frugal including athletes. Today, I want to showcase a few athletes that are being frugal with their money.

Rob Gronkowski

Rob Gronkowski is a tight end for the New England Patriots. Over the last 6 years, Gronkowski has made over $11 million in the NFL. He hasn’t spent any of that money. Instead, he lives off of money that he’s made from endorsements. A few of the companies that he has endorsements with are Dunkin Donuts, Body Armor Super Drink, and Zynga.

Kirk Cousins

Kirk Cousins is the starting quarterback for the Washington Redskins. He is also one of the most frugal players in the NFL. Cousins just finished a four-year rookie contract that paid him a little more than $2.5 million over four years. He still lives a very frugal life even though he’s a millionaire. Cousins still drives a 16-year-old GMC Savanna passenger van that he received from his grandparents. He also still wears free clothes that he received when he attended Michigan State University. During his rookie year, a couple of his teammates helped him move into his apartment. He stated that he didn’t hire a mover because he was cheap and frugal.

A.J. Francis

A.J. Francis is a defensive tackle for the Seattle Seahawks. He made nearly $500,000 last season but has decided to work as an Uber driver during the offseason. He wanted to supplement his income since he doesn’t get paid during the offseason.

Alfred Morris

Alfred Morris is the starting running back for the Washington Redskins. He just finished a 4 year $2.2 million contract, but he still drives a 1991 Mazda 626. He drove his car from Boca Raton, Florida to D.C. after he was drafted to the Redskins. Mazda even refurbished his car for him free of charge because of the positive publicity his story received.

Ryan Broyles

Ryan Broyles is a free agent wide receiver. He previously played for the Detroit Lions. Ryan made over a million dollars in 3 years. He lives like he’s only making $60,000 per year. He pays off his credit cards each month. He also doesn’t have cable TV.

Ryan Kerrigan

Ryan Kerrigan is an outside linebacker for the Washington Redskins. There must be something good in the water in DC because he is the third Redskin on this list. Kerrigan signed a deal last August that will pay him $57.5 million for 5 years. He still drives a 2011 Chevy Tahoe. Sometime else that’s interesting is that he still has a roommate.

10 Frugal Valentine’s Day Gift Ideas

February 1, 2016

Good morning Dinks. January flew by. I hope everyone had a pleasant and productive month. It’s now February 1st; Valentine’s Day will be here before you know it. Have you purchased your Valentine’s Day gift for your significant other yet? If you haven’t don’t worry, I have ten frugal gift ideas for you to choose […]

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What is a Credit Report?

January 29, 2016

A credit report is a detailed report of a person’s credit history. It is prepared by a credit bureau and used by a lender in determining if a person should receive credit or not. In my opinion, a person should check their credit report a couple times each year. In today’s post, I will be […]

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Money Mistakes that Athletes Make

January 27, 2016

Have you ever noticed over the years that some athletes remain rich after their playing days are over while others end up broke? There are several factors that come into play. Some athletes make a ton of mistakes. Today I will share with you a few money mistakes that athletes make. Splurge Many athletes go […]

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How does Private Student Loan Consolidation Differ from Federal Student Loan Consolidation?

January 27, 2016

So you’ve come to the point where you have too many loans and you’re paying five, six, seven, or in my case 15, different loans at the same time. It’s enough to make your head spin, and combining all those accounts would be such a relief, especially when some of those loans qualify for some […]

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5 Ways to Make Extra Money in the Winter

January 25, 2016

Winter 2016 is officially here. Winter storm Jonas has left large amounts of snow all over the east coast. Even though cities may shut down, there are always opportunities for you to make extra money in the winter. In today’s post, I will discuss five ways that people can earn extra money during the winter. […]

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20 Birthday Freebies

January 22, 2016

Good morning Dinks. Today’s post is a little different. I want to share with you 20 free things that you can receive for your birthday. The majority of the freebies are at restaurants. Continue reading to find out which ones. Applebee’s Applebee’s is the 1st restaurant on the list. When you sign up to be […]

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