There’s a new currency circulating right now and it’s freedom! For good reason, too. This modern-day luxury opens up an abundance of opportunities. Freedom of time, freedom of career, freedom of finances, it all allows us to enjoy life to the fullest. With these pillars of freedom secured, we can go for our big dreams without limitations, explore the world at leisure, and spend precious time with our loved ones. Tell me, how different would your life look if you could claim even just one of these pillars for yourself?
There’s good news. I can help you achieve one of them– financial freedom! Was that the one you were hoping for? Many people aren’t aware of how their credit health contributes to accomplishing financial independence or why it even matters. But it turns out it’s a BIG piece of the puzzle when it comes to living a life of opportunity.
I didn’t always know this. If you know my story, you know that I went through my own valley of poor credit before I came to this realization and dedicated my life to helping others achieve optimal financial literacy too. When I was a young, recently divorced, single mom, I was striving to get myself back on my feet by purchasing my own home. To my dismay, I encountered A LOT of rejection. Turns out little things I didn’t even know were affecting my credit were taking major hits in my report – a missed $10 copay at the doctor’s office, a broken contract with an unreasonable phone company, and even paying my car loan late. This made it nearly impossible to get a mortgage.
So I took the steps I needed to reclaim my credit and set my daughter and myself up for a successful future. Below I’m sharing some simple (yet effective!) credit repair tips with you so you can find this for yourself…even if it seems impossible. Let me tell you if I can do it, so can you!
- Pay Your Bills on Time. This might seem obvious, but it’s not always easy to accomplish. Life gets busy and if we’re not careful, we can lose track of what’s due and when. Take some time to get organized. Look into scheduling apps that will track your payments and hold you accountable so you’re always aware of due dates. Late payments stay on your credit report for seven years, so it’s crucial to get a handle on a schedule that is maintained easily! Document your paycheck cycles to align them with your billing dates. Most accounts now have convenient online autopay options that allow you to choose when you have your payments withdrawn. This is great because you can always ensure you have enough money in your bank account before the withdrawal takes effect. Being in control of your bills and consistently paying them on time is a crucial way to establish healthy credit.
- Review Your Credit Report Regularly. You can’t fix what you don’t know is broken, and in this circumstance knowledge is certainly power! I highly recommend you get in the habit of reviewing your credit reports to track your progress (Experian offers free credit reports, check it out here). This is also a great way to detect and take early action on any fraudulent charges or errors. If you do find an error on your report, you’ll have ample time to sort it out without accruing any severe damage.
- Pay Down Credit Card Balances. It’s ideal to keep your credit utilization ratio under 10% to achieve good credit. Having a high utilization rate can work against you, as it shows you’re relying too much on credit and could struggle to meet your payments. If you’re targeting debt, it’s a good idea to pay down your credit card debt first to halt the negative effects of operating at a high utilization rate.
Give these credit-boosting practices a try and watch your credit score transform! For more customized credit coaching, get in touch with me here. I want to see you win the credit game and live the life of your dreams, on your terms! Let’s be real, a good credit score will position you for exactly that with all the best perks when it comes to interest rates and renting, PLUS recent studies have reported that raising your credit score from fair (580-669) to very good (740-799) can save you hundreds of thousands of dollars in your lifetime….talk about financial freedom! I look forward to hearing your credit success story!