Credit score not so hot? Let’s get it fixed!
What is a credit score? A credit score is like a report card for how good you are with your money. Making your payments on time, spending within your means? A+. Not making payments regularly? Missed a few? This lowers your score. B-. Want to go from a C student to an A? Here are some tips:
While repairing credit does take time, it is possible to improve it. How? We need to gain some positive financial habits.
- Pay your bills on time. If you don’t have the money to buy it, don’t! Well how do I know if I have the money or not? The key is to look at essential expenses and non-essential expenses. We like to recommend that you use a tracker to organize you spending. There are various apps that are available to help track expenses. Mint, Spending tracker, every dollar? It doesn’t matter what you use, what is most important is that you can stick to it.
- Review you credit store and history. We need to look for incorrect information, and accounts that are past due. This will help you to start working on raising that credit score.
- Contact your creditor to find out how to get current on the account. Next try to pay that debt off or pay it down to as low as you can. Start with the cards or debt with the highest interest rates first and, once you’ve paid them off, go to the debt with the next highest interest rate. Over time, you’ll have paid off your debts.
- Once you have credit, it’s important to use it responsibly. At this point you need to start using your credit wisely. Do not open new accounts unless you really need to. Opening several new accounts at a time may raise red flags for potential lenders. As difficult it may be, make effort to keep a low balance on credit cards and revolving credit. Final note, pay off your debt instead of moving it to another account or to a new account.
- If you still find yourself in a rut, please seek professional help.
Friendly reminder… don’t spend “Money you don’t have.”
Article by: Maha Hammad