Attain Financial Freedom by being Educated about your Credit.
Typically most problems could be avoided with a little more education. We all have been in the boat of making the wrong decision which resulted with issues down the road. I personally believe life is like following grandmother’s recipe for your favorite peach cobbler. If you leave something out of the recipe, the end result will be less favorable.
Being educated about a particular topic is going to be more favorable .vs not being educated. Credit is the same way. Had you known what to do, you may have taking a different route. Now you have found yourself in the same situation so many others are in. You have financial problems, low credit scores, and the stress is mounting.
Here is some tips to start implementing immediately……
The first step to better credit is to avoid impulse buys. This is one of the hardest parts of money management. How in the world can you save, if you are impulse buying all the time? Stop buying stuff you don’t really need and start saving your money. Any financial advisor will advise you on this matter.
The second step is to save 6 months of income in the bank. If you make $5,000 a month, you will need $30,000 in your money market account. This is a must. You need savings for emergencies.
The third step is to know your credit rating. How do you get your credit rating? Well there is only one source on the web where you can get your free credit report. However this source does not provide your credit score with each credit bureau for free. Annualcreditreport.com is the site that provides your credit report for free once a year by law. If you want to see your credit scores you will need to pay for them. Pull your credit report and make sure everything is accurate. I recommend getting a copy of your credit report with scores. Being educated about your credit rating will help you get better rates and terms on loans. Make sure you check your credit report with scores every 3 months or so.
The fourth step is to keep your debt low. Don’t charge more on your credit cards than you can pay off the following month. Credit Cards are not for buying stuff you don’t need. They are for small necessity purchases and emergencies. When buying something on credit, make sure you can pay that debt off in full within a couple of month’s minimum. Debt accounts for 30% of your overall credit rating. So it’s very important to keep your credit card debt at a minimum.
The fifth step is to build credit if you don’t have any. There are a couple of ways to do this. You can get a secured credit card or get a family member to add you to their credit card as an authorized user. You will need a couple lines of credit on your credit report. This will help establish credit scores.
The 6th and final step is to repair your credit report. If you find you are in need of credit repair, make sure you repair your credit report yourself. Don’t pay someone money to do so. You can use our Help Yourself Credit Repair guide.
Here are some more online resources for “Do it Yourself Credit Repair.”
These are all good resources to repair your own credit. There is no easy or quick way to repair your credit. Depending how bad your credit is, the process could take 12 months or so.
Being educated about money management will make life a lot easier. Good money management will result in good credit as well.
Author: Mike Clover
CreditScoreQuick.com
