Getting Your Finances In Order
You may not think of getting your finances in order as a top priority. That is until you discover that your credit is less than desirable. Unfortunately, a large percentage of the working population doesn’t pay attention to their credit score. Thankfully, if your credit score is low, it's not a number you have to live with.
Getting Started
The first order of business is to acquire a copy of your credit report. You are able to apply for one twice each year for free. Once you have it, you can review it to see if there are any discrepancies. If it appears to hold a true accounting of your past payment history, you can use it to begin restoring your good name.
Excessive Debt
Most people have several credit cards, a mortgage, and one or two car loans. You may also have student loans and medical bills. Too much debt can leave you cash poor with no money left over each month to enjoy life. Consolidating the debt into fewer and lower overall monthly payments will free up money. You can take out a personal loan from your local bank. However, if your credit is poor, chances are you won’t meet the criteria. Thankfully, there are other lenders with less stringent guidelines. Go online and look up . This will allow you to consolidate your credit cards and small debt into one lower payment.
Other Ways to Save
To pay down your existing debt you need to spend less. Avoiding wasteful spending by bringing your coffee and lunch to the office and eating meals at home are a few ways to begin the process. Carpooling or taking public transportation, using coupons at grocery stores, and shopping after the holidays will also save money.
Bundling Services
You probably have car insurance and either homeowners or renters insurance. Chances are you have them through two different companies. If you carry insurance with the same provider you can save ten or even twenty percent less. Bundling services is also beneficial with gas, electricity, cable, and internet available through the same provider.
Establishing a Budget
A budget is a wonderful tool to keep you on track with your finances. Unfortunately, it only works if you stick to it. Collect all your bills and make sure to include semi-annual and annual payments so that your budget accounts for all your yearly financial obligations. Once you have the numbers in front of you it’s much easier to see where you can make improvements to your spending.
Raise Your Credit Score
It takes many years to acquire an excellent credit score and only a couple of late payments to lower it. While the rating system may seem unfair, it’s a fact of life. The good news is that you can raise it slowly. There are certain factors that will help you to achieve a higher score sooner. One is to reduce your credit card balances to less than 40 percent of the available credit limit. Another way is to reduce the number of credit sources and make payments on time. Having a mortgage, a car loan, and two credit cards in good standing will in return provide a good credit score. Whereas too much extended credit from many sources, along with maxed credit cards and late payments, will give you a poor score.