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 Private Mortgage Insurance (PMI)? Understanding Its Role in Homeownership

6,146 views

9 min read

A Guide to Private Mortgage Insurance (PMI)

To some folks, insurance is like a porcupine at the picnic — an unwelcome guest. But mortgage lenders... read more »

Credit Cards

What is Purchase Protection? How Your Card Can Help Reimburse Certain Purchases

6,552 views

11 min read

How Purchase Protection Works and Benefits Cardholders

Credit cards and some prepaid and debit cards offer a benefit known as purchase protection to help cardholders replace, repair, or receive reimbursement for items that have been stolen... read more »

By: Andrew Allen • 12/30/24

Credit Reports

What is Underwriting? How Lenders and Insurers Determine Your Risk Level and Creditworthiness

8,551 views

9 min read

How Underwriting Helps Lenders Determine Your Creditworthiness

Let’s clear up the confusion once and for all: An underwriter isn’t someone who edits novels. In the financial sense, an underwriter is a professional who helps assess a borrower’s... read more »

By: Eric Bank • 12/26/24

Lessons

What is Forbearance? How Temporary Financial Relief Works & Affects Your Credit

9,360 views

7 min read

How Forbearance Works and When to Request Relief

Now, I assume we’ve all practiced a bit of forbearance, like holding your tongue when your cousin Earl questions your chili recipe. But forbearance can also involve receiving grace from... read more »

By: Eric Bank • 12/24/24

Loans

What is a Balloon Payment? A Guide to Lump-Sum Principal Payments Due at the End of Some Loans

8,134 views

9 min read

What is a Balloon Payment? A Guide to Lump Sum Payments

When something in the financial services industry sounds too good to be true, I don’t mind saying that there’s usually a catch. For example, some loans offer monthly payments and... read more »

By: Mike Senecal • 12/23/24

Holidays

5 Tricks to Dodge Seasonal Impulse Purchases

6,720 views

3 min read

How To Dodge Holiday Impulse Purchases

The holiday season sends many Americans into a buying frenzy, often leading to unnecessary purchases and excessive spending.  According to one study, the average American consumer... read more »

By: Andrea Woroch • 12/20/24

Interest

What is a Variable Interest Rate? How Adjustable Rates Work for Loans and Credit Cards

8,364 views

9 min read

How Variable Interest Rates Work on Loans and Credit Cards

I’ve heard people say that change is one thing you can count on. Anyone who’s taken more than a few trips around the sun can attest to the ever-changing nature of life on planet Earth.... read more »

By: Andrew Allen • 12/19/24

Lessons

What is Secured Debt? When Lenders and Credit Card Issuers Require Collateral

13,699 views

11 min read

What is Secured Debt? How Financing Collateral Works

Let’s be real — debt isn’t exactly the kind of thing you want to shout about from the rooftops. But secured debt can be a great tool for accessing credit, especially when you’re looking... read more »

By: Choncé Maddox • 12/18/24

Mortgages

What is an Adjustable Rate Mortgage? How Interest is Determined and When an ARM is a Good Idea 

10,778 views

11 min read

How Adjustable Rate Mortgages Work

I’ve owned my fair share of mortgages over the years, and if memory serves, that first one was adjustable. Now, interest rates were sky-high back then, and that ARM looked mighty... read more »

By: Eric Bank • 12/17/24

Banks

What is Overdraft Protection? How to Protect Yourself From Fees Associated with Overspending

11,382 views

9 min read

How Overdraft Protection Works and How to Set it Up

Overdraft protection can save your bacon when you get a bit too free with your debit card, but sometimes the cost is steeper than a jackrabbit’s jump. It ensures your transaction goes... read more »

By: Eric Bank • 12/16/24

Lessons

What is a Balance? Breaking Down the Money You Owe Lenders and Creditors

9,256 views

11 min read

A Guide to Loan and Credit Account Balances

When I first learned about money — dollars and coins, at least — I was intrigued that I could exchange something so inconsequential for toys. But sometimes, I’d see adults purchase... read more »

By: Andrew Allen • 12/16/24

Debt

What is Debt Forgiveness? How the Process Can Provide Relief, but Sometimes at a Cost 

13,622 views

11 min read

How Debt Forgiveness Works and Affects Your Credit

Forgiveness is a mighty big concept, isn’t it? You see it figure into everything from Sunday sermons to those 12-step programs to help folks wrangle their addictions.  Now, some things... read more »

By: Eric Bank • 12/12/24

Lessons

What is an Annual Fee? Why You Pay Them on Credit Cards and Other Financial Products

15,732 views

11 min read

Why Some Financial Products Charge an Annual Fee

No bones about it: When it comes to annual fees, I’m a choosy customer. Maybe I’m just cheap, but you better believe I scope out these fees before applying for a new card. I don’t care... read more »

By: Eric Bank • 12/12/24

Bills

What is a Billing Cycle? Understanding the Basics of Credit Card and Loan Statements

8,613 views

11 min read

How Billing Cycles Work For Loans and Credit Cards

When you open a credit card or loan, the financial institution will send you a monthly statement showing a lot of information pertaining to your account. While that document is... read more »

By: Erica Sandberg • 12/11/24

Credit Scores

What is Your Credit Utilization Ratio? Why the Percentage is So Important to Lenders

13,604 views

9 min read

What is Your Credit Utilization Ratio?

Your credit utilization ratio is an important consideration to lenders, so it is a major factor in your credit scores. Over the years, I have had to dispel quite a bit of harmful... read more »

By: Erica Sandberg • 12/11/24

Lending

What is Revolving Credit? Understanding Credit Lines and How They Differ from Loans

10,356 views

9 min read

What is Revolving Credit? How Credit Lines Differ from Loans

Revolving doors are pretty clever if you ask me; they’re never quite open or closed. If a loan is similar to a door that you open once to purchase a big-ticket item like a car or house... read more »

By: Andrew Allen • 12/10/24

Accounts

What is a Joint Account? How Shared Responsibility Works in Financial Products

12,592 views

9 min read

How Joint Accounts Allow Shared Financial Responsibility

They say two heads are better than one. We all have different perspectives and talents, and when we unite, we can access each other’s skills to create a team rich in synergy. Some of... read more »

By: Andrew Allen • 12/10/24

Lessons

What is a Late Fee? How Missing Payments Can Cost Money and Inflict Credit Damage

11,050 views

7 min read

What is a Late Fee? How Missing Payments Impacts Your Credit

Some people consider punctuality to be a virtue. But nobody’s perfect. We’ve all arrived at an occasion or two later than we would have liked. Arriving late to something can be... read more »

By: Andrew Allen • 12/9/24

Cash

What is Personal Cash Flow? How to Manage Your Financial Accounts and Debt

13,300 views

9 min read

What is Personal Cash Flow? How to Manage Money and Debt

I’ve wrangled my own business for the majority of my adult life, and that’s meant my cash flow has wandered between a little trickle and the occasional flood. This journey’s taught me... read more »

By: Eric Bank • 12/9/24

Debt

What is a Minimum Payment? A Guide to Required Payments and Why You Should Try to Pay More

15,568 views

11 min read

A Guide to Minimum Payments and How They Impact Your Debt

I won’t tell you that making the minimum payment amount required on all your loans is a ticket to Easy Street because it’s not. A minimum payment is the smallest amount you’re required... read more »

By: Mike Senecal • 12/5/24

Interest

What is the Prime Rate? How it Impacts the Interest You Pay on Loans and Credit Cards

11,940 views

7 min read

What is the Prime Rate? How it Impacts Loans and Credit Card Interest

Many food connoisseurs have long esteemed prime rib as one of the most prized cuts of beef. That must be why hearing the words “prime rate” has always made me a little hungry. Noting... read more »

By: Andrew Allen • 12/5/24

Lessons

What is a Credit Limit? How Your Credit Past & Income Determine How Much You Can Borrow

12,363 views

9 min read

What is a Credit Limit and How is it Determined?

I remember when I was just a kid, Mama sat me down, looked me straight in the eye, and told me I could be anything I wanted — the sky’s the limit, or so she said. Well, fast-forward... read more »

By: Eric Bank • 12/4/24

Credit Checks

What is a Soft Pull? A Guide to Soft Credit Inquiries and How to Use Them to Your Advantage

10,404 views

7 min read

The Basics of Soft Credit Pulls and How to Use Them to Your Advantage

Improving your credit score is a delicate dance. On one hand, you need to work down your debt. On the other, you need a robust credit history. To make matters worse, taking out new... read more »

By: Jon McDonald • 12/4/24

Debt

What is Financial Hardship? Common Causes and How to Mitigate Credit Damage

19,817 views

9 min read

How to Deal With Debt During Financial Hardship

You can fix your financial problems, and there are plenty of resources to help. That’s the message I want to get across as we tackle the most frustrating thing about money: not having... read more »

By: Mike Senecal • 12/3/24

Loans

What is a Secured Loan? How Collateral Can Help You Secure Financing

17,136 views

9 min read

What Is a Secured Loan? How Collateral Can Help You Secure Financing

Nothing warms up a lender’s heart like good ol’ collateral! Dangle some valued property in front of them, and you’ll likely see that loan approval much quicker. Now, just what would a... read more »

By: Eric Bank • 12/3/24

Credit Reports

What is Alternative Credit Data? When Issuers Look Outside Your Credit Scores for Insights

12,684 views

9 min read

A Guide to Alternative Credit Data

Ever thought about taking up an alternative lifestyle? Maybe going vegan, living in a van, or dressing in a smashing neo-soul wardrobe? It seems your run-of-the-mill creditor may have... read more »

By: Eric Bank • 12/2/24

Credit Scores

What is VantageScore? All About the Credit Scoring Model and How it Compares to FICO

16,211 views

9 min read

What is VantageScore? How the Credit Scoring Model Compares to FICO

Have any of you ever tried figuring credit scores out? Well, sit tight as I get ready to wade into the world of VantageScore — the credit score system that is less known than FICO but... read more »

By: Eric Bank • 12/2/24

Credit Reports

What is TransUnion? A Closer Look at One of the Three Major Credit Bureaus in the U.S.

13,200 views

7 min read

Everything You Need to Know About TransUnion Credit Reporting

When I first started learning about credit and the role credit bureaus play in the financial landscape, I remember thinking there was something distinct about the name of one of the... read more »

By: Andrew Allen • 11/27/24

Credit Scores

What is Credit Utilization? A Look at One of the Key Components of Your Credit Score

10,536 views

11 min read

What is Credit Utilization? How to Manage Your Balances

If you’ve ever gone on a shopping spree, you know how easy it can be to spend more than you planned. Sometimes, I can’t resist going over my budget at a store like Target. Hey, it’s not... read more »

By: Jon McDonald • 11/27/24

Credit Checks

What Does No Credit Check Mean? How Lenders Determine Risk Without Viewing Your Credit History

16,926 views

11 min read

What Does "No Credit Check" Really Mean?

When you have poor credit, some financial necessities may seem tricky to qualify for. From renting an apartment to picking a phone plan, you have to fight extra hard just to get the... read more »

By: Jon McDonald • 11/26/24

Credit Scores

What is FICO? The Influential Credit Scoring Model that Can Determine Your Approval For Financing 

12,950 views

11 min read

What is FICO and How Does Its Scoring Model Work?

If you’re like me, being judged fairly and objectively is important to you. That includes how a potential lender might assess an application for a loan or credit card. For this reason,... read more »

By: Erica Sandberg • 11/26/24

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