How-To Guides

Need a better understanding of bad credit and how to fix it? Our finance experts have put together a series of step-by-step guides on a variety of bad credit related subjects.

From the Industry's Top Experts

John Ulzheimer Credit Expert
Erica Sandberg Finance Expert
Andrea Woroch Savings Expert
Ashley Fricker Senior Editor
What is Good Credit? A Look at the Credit Score Range and its Impact on Your Terms and Rates

437 views

13 min read

What is Good Credit? A Closer Look at the Credit Score Range

When I come across the term “good credit,” it sounds to me like getting a pat on the back for behaving... read more »

Retirement

What is an IRA? How an Individual Retirement Account Can Help You Save for the Future

380 views

11 min read

What is an IRA? A Guide to Individual Retirement Accounts

If you’re hiding your money under your mattress, you’re doing it wrong.  Financial services can help you grow what you have into something more. But investing toward a comfortable... read more »

By: Mike Senecal • 10/3/24

Payments

What is a Late Payment? How Paying After the Due Date Can Impact Your Credit Score

864 views

9 min read

What is a Late Payment? How Paying After the Due Date Impacts Your Credit

Nobody’s perfect, least of all when it comes to personal finances. You may struggle to stick to your budget, handle your debts, or remember to pay off expenses before they’re due. And... read more »

By: Jon McDonald • 10/2/24

Credit Scores

What is a FICO Score? How the Popular Credit Scoring Model Calculates Your Risk

864 views

11 min read

What is a FICO Score? How the Credit Scoring Model Calculates Risk

FICO is not the name of a dog. That would be Fido. But FICO can be just as loyal and rewarding — if you treat it right. FICO is a credit scoring system, and your FICO score is a number... read more »

By: Eric Bank • 10/2/24

Credit Scores

What is Excellent Credit? How to Reach the Highest Level of the Credit Score Range

867 views

13 min read

What is Excellent Credit? How to Achieve the Highest Credit Scores

I can recall it as if it were yesterday — my grandnephew, Finn, striding into the living room, his face beaming. It was the first day of first grade, and he proudly held up a crayon... read more »

By: Eric Bank • 10/2/24

Lessons

What is the Fair Credit Reporting Act (FCRA) and How Does It Affect You?

952 views

9 min read

What is the FCRA and How Does It Affect You?

There was a time when we held little power over our credit history or how our private information was accessed or distributed. We had few rights and little say in how companies compiled... read more »

By: Jon McDonald • 10/1/24

Credit Reports

What is Creditworthiness? How Lenders Determine Your Risk Level

825 views

11 min read

What is Creditworthiness? How Lenders Determine Your Risk Level

When people ask me what part of personal finance they should care about, I always tell them: your creditworthiness. Being creditworthy is like having the golden ticket — banks and... read more »

By: Zina Kumok • 10/1/24

Loans

What are Installments? A Closer Look at Fixed Loan Repayments

1,005 views

7 min read

What are Installments? A Look at Loan Repayment Structures

If you’ve ever taken out a loan or shopped for something big, like a car, furniture, a new smartphone, or even a dream vacation (yes, we see you eyeing those beach resorts), you’ve... read more »

By: Choncé Maddox • 10/1/24

Credit Scores

What is a Credit Score? How the Number Shows Your Creditworthiness and Impacts Your Lending Options

858 views

9 min read

What is a Credit Score? How the Number Shows Your Creditworthiness

It may seem a bit strange to take your credit history and reduce it to a three-digit number, but that number is your credit score, and it represents your borrowing and repaying past. ... read more »

By: Erica Sandberg • 9/30/24

Debt

What is Debt-to-Income Ratio? How DTI Impacts Credit and Loan Approval

1,596 views

11 min read

What is Debt-to-Income Ratio? How DTI Impacts Credit

When I was looking into buying a condo, I got to experience plenty of personal finance jargon and acronyms first-hand. LTV, HOI, and PITI were just a few that I had to deal with. But... read more »

By: Bob Haegele • 9/30/24

Lessons

What is the Equal Credit Opportunity Act?

784 views

7 min read

What is the Equal Credit Opportunity Act?

You may find it hard to believe there was ever a time when banks routinely turned down women who applied for credit cards and loans — even when they had a proven ability to repay. Stick... read more »

By: Mike Senecal • 9/30/24

Debt Collectors

What is the Fair Debt Collection Practices Act (FDCPA) and How Does It Protect You?

3,438 views

7 min read

What is the FDCPA and How Does It Protect You?

I’ve had a debt collector sent after me. When I rented my first apartment, I tried to set up the internet before moving into my new place. The internet company I used made a mistake and... read more »

By: Jon McDonald • 9/26/24

Credit Scores

What are Credit Score Factors? How They Highlight Your Financial History and Determine Borrowing Risk

3,116 views

11 min read

Credit Score Factors Highlight Your Financial Habits and History

Your credit score has a huge impact on your financial life. It is like a report card that tells lenders how well you manage loans and credit cards. If that’s the case, that means the... read more »

By: Eric Bank • 9/26/24

Personal Finance

10 Most Impactful Personal Finance Courses in 2024

2,736 views

11 min read

10 Most Impactful Personal Finance Courses in 2024

Do you remember sitting through high school classes where teachers taught you how to compute the area of a parallelogram or conjugate verbs in a foreign language you didn’t quite... read more »

By: Andrew Allen • 9/25/24

Rates

What is APR? How the Annual Percentage Rate Affects Your Borrowing Costs

2,603 views

9 min read

What Does APR Mean?

Anyone who has ever seen APR on a commercial, loan mailer, or credit card ad probably knows that the lower the percentage, the better. A 17% APR is way better than a 24% APR, for... read more »

By: Eric Bank • 9/25/24

Loans

What is Collateral? How Assets Are Used to Secure Loans and Credit

2,856 views

7 min read

What is Collateral? More About Assets That Secure Loans and Credit

Let’s talk about collateral, the backbone of many financial deals. Think of collateral like the safety net under a tightrope walker — it’s there to catch the lender if the borrower... read more »

By: Eric Bank • 9/24/24

Loans

What is a Co-Borrower? How the Process Impacts Loan Approval and Differs from Cosigning

2,604 views

11 min read

How Does Co-Borrowing Work?

Some of my favorite songs are about the importance of getting support when you need it. The Beatles’ “With a Little Help From My Friends,” Bill Withers’ “Lean on Me,” and The... read more »

By: Eric Bank • 9/24/24

Bankruptcy

What is Bankruptcy? A Lengthy Legal Process With Significant Consequences

2,839 views

13 min read

What is Bankruptcy? A Legal Process With Significant Credit Consequences

Whenever I see the word “bankruptcy,” I always hear a live studio audience in my head saying, “Awwww!” That’s probably because I’ve watched way too much Wheel of Fortune. But when you... read more »

By: Eric Bank • 9/23/24

Retirement

What is a 401(k)? How the Retirement Savings Plan Works

2,184 views

13 min read

What is a 401(k) Retirement Savings Plan?

As someone who has been riding the 401(k) train for years, I can attest to its usefulness, like a roaring fireplace on a wintry day. Now, I’m self-employed, so I use a Solo 401(k). But... read more »

By: Eric Bank • 9/23/24

Fraud

What is a Credit Freeze? How Securing Your Credit Report Can Prevent Identity Theft

4,752 views

9 min read

What is a Credit Freeze and How Can it Prevent Fraud?

When the credit bureau Equifax was hacked in 2017, I was worried that my information would be compromised — or someone would open a new credit card in my name. That’s why I decided a... read more »

By: Zina Kumok • 9/19/24

Credit Scores

What is a Credit Scoring Model? How Agencies Like FICO and VantageScore Evaluate Creditworthiness

5,460 views

13 min read

What is a Credit Scoring Model?

When I was a kid, I was always a little anxious when I got my report card. Not that I was a bad student, but the thought of a teacher summing up my knowledge in a single letter grade... read more »

By: Eric Bank • 9/19/24

Loans

What is Amortization? A Guide to Loan Repayment Schedules

4,968 views

11 min read

What is Amortization? A Guide to Loan Payment Schedules

I’ll admit the first time I heard the word “amortization” I thought it sounded like an immortality spell cast by a character from Harry Potter. Can’t you just picture Voldemort shouting... read more »

By: Eric Bank • 9/19/24

Loans

What is Preapproval? How The Process Works in Lending and Credit Card Applications

3,256 views

13 min read

What is Preapproval? How Lenders Vet Applicants

Have you ever been denied a loan or credit card, and then you saw the denied inquiry on your credit report after the fact? Preapproval could have helped prevent that. Preapproval is a... read more »

By: Eric Bank • 9/18/24

Debt Collectors

What are Collections Accounts? When Lenders Send Past-Due Accounts to Collection Agencies

5,706 views

11 min read

What are Collections Accounts? How Lenders Deal with Past-Due Accounts

If you’re currently involved with a debt collection agency and need some answers about the process, you’ve come to the right place. If you’re lucky enough to have never gotten a call... read more »

By: Mike Senecal • 9/17/24

Credit Checks

What is a Credit Inquiry? How Credit Checks Determine Your Borrowing Opportunities

4,624 views

7 min read

What is a Credit Inquiry? How Credit Checks Impact Your Finances

Imagine you’re at a department store. As the cashier finishes ringing you up, they proceed to ask whether you want to apply for a store credit card. I know, the store discount looks... read more »

By: Jon McDonald • 9/17/24

Mortgages

What is Foreclosure? How Homeowners Can Avoid the Painful Process

5,325 views

9 min read

What is Foreclosure? How Homeowners Can Avoid the Painful Process

If you’ve ever missed a bill payment (or come close), you know the sinking feeling that can come with it. When that happens with your mortgage, you could risk losing your house. I know... read more »

By: Choncé Maddox • 9/16/24

Credit Scores

What is Equifax? How the Credit Bureau Communicates and Calculates Your Credit Risk

5,424 views

7 min read

What is Equifax? How the Credit Bureau Communicates Risk to Lenders

If you’ve ever had your application for a loan or credit card denied, you may have gotten upset and blamed the lender. After all, your application looked good — it didn’t even have any... read more »

By: Andrew Allen • 9/16/24

Good Credit

What Is Fair Credit? A Closer Look at the Credit Score Category and How to Improve It

5,681 views

13 min read

What is Fair Credit? (And Ways to Improve It)

I will remember certain numbers my entire life. They include my undergraduate grade point average, my draft lottery number (yes, there used to be a draft), and my first credit score —... read more »

By: Eric Bank • 9/11/24

Payments

What is Delinquency? How Late Payments Can Snowball Into a Credit Catastrophe

4,836 views

9 min read

What is Delinquency? How Late Payments Impact Your Credit

With all the multitasking life often requires, important tasks can often fall by the wayside. I know if I don’t set reminders, many things will go undone. As it happens, credit card... read more »

By: Jon McDonald • 9/10/24

Credit Union

What is a Credit Union? The Basics, Benefits, and Services Offered

8,694 views

9 min read

What is a Credit Union? How the Financial Cooperatives Help Members

I joined a credit union about eight years ago, motivated by the desire to keep my money local. I knew right away it was a good decision, as the employees were helpful and welcoming. ... read more »

By: Eric Bank • 9/9/24

Credit Reports

What is a Credit Bureau? A Look at the Organizations That Produce Credit Reports

6,149 views

9 min read

What is a Credit Bureau and How Do They Produce Credit Reports?

Bureau isn’t a word I hear or use all the time, but some bureaus have a big impact on my daily life — whether I realize it or not. One of the most important bureaus, the Federal Bureau... read more »

By: Andrew Allen • 9/4/24

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