Sara, a 50-year-old working professional, was in a car accident. She suffered some serious injuries and submitted a claim for permanent partial disability benefits with her insurance company. Her personal physician had already provided detailed documentation. But her insurance company requested her to attend an examination with another doctor, provided by them. This doctor, they said, is an "insurance doctor." Now, this was something new to Sara. But is it a new concept? Let us find out. Who Is an Insurance Doctor? Insurance doctors play a critical role in the insurance sector, which is quite underrated and misunderstood. Most of us assume that they actually replace the role of our treating physicians, but that is not the case. Our physicians treat us in case of any mishap, but they do not assess or evaluate our level of injury or disability. But then, who actually does it? This work is done by Insurance doctors, which, in turn, impacts or affects our insurance benefits. Th...
Why Credit Cards??
Credit cards have become a very useful part of our daily lives, allowing us to make purchases, pay bills, take loans, and so on. However, all these will add value to our lives only when we know how to use credit cards wisely and responsibly. This also means that with knowing the uses of a credit card, be it an Amazon credit card or an American Express credit card, it is equally essential to be well informed about the downsides of the same so as not to fall into unnecessary problems but be able to derive the maximum utility of this facility that banks and financial institutions provide to us.
Tips and tricks:
Here are some tips and tricks that will help you to manage it well:
- Pay on time - It is essential to keep track of the payment schedule and pay back the pending amount within the due date. For this purpose, set up reminders or auto debit from your bank account to meet the requirement. Why is this essential? The use of credit cards will generate a credit report that will be stored in the system and will reflect your entire credit history, and your credit score will depend on it. Now, imagine that you have skipped payments or failed to pay back on time. Will this not create a negative impact on your score?
- Do not close your old accounts against credit cards - This will reduce your credit history because closing those accounts will delete the credit history for those accounts, reducing your overall record and credit score too. Worried about unnecessary payment of fees? Try to negotiate!!!
- Apply for credits only if you need them - Why are you in need of so much money? Why are you borrowing so much at once without paying the old debt? Banks will raise these questions and conduct a thorough inquiry related to your credit history and report. So, if you want to avoid them and show that you are financially strong to handle your expenses, even if you are using an Amex card or a zero interest credit card, ensure not to take multiple credits within a short span of time.
- Avoid using the maximum limit—You may have the best credit card for points, which tempts you to spend more, but remember that a high credit utilization ratio (ratio of credit usage to credit limit) has a negative impact on your credit score.
- Keep track of your credit report—Your credit report should be accurate, updated, and free of errors. This is necessary to ensure that lenders are not misguided by it and that you do not lose the chance of a good credit opportunity. Therefore, you should review your report, identify any errors, and get them corrected as soon as possible.
Conclusion:
The above 5 tips can save you from financial stress because they help show your actual creditworthiness. Who knows, you may get a boost in your credit limit once again and get some excellent deals regarding interest rates or rewards from the best rewards credit card, which may lead to some hefty savings in the future.
Have any more tips? Share with me in the comments.
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