You might find yourself asking why you were not approved for a loan or credit card. That decision was made based on many factors. Some of those reason might be because there is a history of not paying on time, you do not have any credit yet, or you are adding too much debt into your accounts. If you are looking to improve your credit score, I will be listing some tips as well as what goes into your score. First, we will be breaking down the categories in which they use to determine your score. Credit Score History Credit Utilization Ratio This ratio once again is made up of how much you owe and how much available credit you have. You want to keep it low because you do not want to give the image that you need all the money, they are handing you. Lenders basically want to see your money habits as well as your organization and responsibility with their money. This is because they want to ensure that their money is going to return, which is why they usually grant it to those with higher scores. A higher score is usually an indication of low risk
Everyone loves the idea of earning money while they sleep. And while passive income can absolutely help build long-term wealth and financial freedom, there’s one thing that often gets overlooked: taxes. Whether you’re earning money from a rental property, a YouTube channel, or your dividend-paying stocks, the IRS doesn’t care how “passive” it feels to you. They still want their share. And depending on the type of passive income you’re earning, how much of that money you keep can vary significantly. Let’s walk through the basics of passive income, how it gets taxed, and what you can do to keep more of what you earn. What Counts as Passive Income? Spoiler alert: “passive income” isn’t always 100% passive. Most streams require upfront work, capital, or both. Once they’re up and running, though, they can generate income with less hands-on involvement. Here are some common examples: These income streams can be great tools for financial growth. But each is taxed a little differently. How Passive Income Gets Taxed Understanding how the IRS treats your income is key to planning wisely. Here’s a quick breakdown of how various types of passive income are taxed: 1. Rental Income Rental income is taxed as