Have you ever heard anyone say that your credit score isn’t all that important? Lies. If you want to invest in real estate, or even get a good rate on a car loan, you’re going to need to take control of your credit score. As someone who has been on the brink of bankruptcy, I know the hardships of life that can force you into desperate situations. But if you can try your hardest to get a plan and stick to it, I promise you that ultimately repairing your credit will be so worth it.
Small Changes Add Up
Something as simple as making sure all your minimum payments are set up on auto-pay can go a long way in building your credit back up. Late payments are one of the worst offenders when it comes to things that can ding your credit score. Life is busy enough, so why don’t you give yourself a break and ensure your payments are being made on time. This will quickly demonstrate to banks and other lenders that you are responsible and timely and can balance your finances well even when things get busy.
Other Credit Strategies to Use: The Bottomline
A few other tips I cover in more detail on the podcast episode include addressing past due bills. I know it’s easy to build this up in your head as something to dread, and avoidance is tempting, but the only way to get yourself out of the mess is to take back control. Trust me, no one is going to judge you as hard as you judge yourself. You’re not a bad person. You’re not terribly irresponsible. You’re a human, and you’re trying to be better. I’d say that’s admirable.
You should also try your best to avoid applying for additional lines of credit unless you know that you’ll be approved; denied inquiries lower your score. Maintain low balances, and try to keep accounts open. I know this is tempting, but open and well-managed accounts go a long way in demonstrating your fiscal responsibility. Lastly, to the best of your ability you should try and make sure you only charge what you can pay off at the end of the month. I know it seems like an uphill battle right now, but if you take the time to get a plan and repair your credit little by little, you’ll be in a better place before you know it.
To learn more about how to improve your credit score listen to Episode 5 of The Women, Wealth, Impact Podcast, out now!
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