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Do you know anyone that pays cash for a house? Nope, I certainly don’t. When you repair your credit score, you are actually saving yourself money long-term. Finances don’t have to be boring, this is how I fixed my credit using free resources! With these free credit tips, you will see an immediate difference in your finances.
Our lives are intertwined with debt and as a savvy individual, you need to make sure that you are aware of rates, fees, and deductions. The danger to your pocket-book is that you’ll probably end up overpaying in fees simply because you didn’t do your due diligence when it comes to your credit score.
You have the legal right to dispute inaccurate items on your credit reports. That’s true of credit bureaus and each creditor. That means whatever financial trouble you have gotten yourself into there is steps to heal the wounds.
I’m here to help steer you in a safe direction. Use these great tips on how to repair your credit score and secure lower loan rates in the future.
When Is It Time To Consider Credit Repair?
Do you know what your credit score is?
Anything below 560 is considered to be a bad credit score. Unfortunately, when you fall below 560 you’re categorized as a high-risk consumer. A bad score means your interest rates are probably worse and the system is less forgiving. That means our 25% scenario from above could be even worse with bad credit.
It doesn’t matter how good of a person you are, or how hard you work. That number is your new reported trust value.
Many of us should have a higher score than we do and that’s why credit repair companies are so important in this day and age.
What Free Things Can I Do Now to Start My Credit Repair Journey?
- Start to pay down the balance of your card, not just the revolving monthly debt accrual.
- Open a credit card that you treat like the prized diamonds of Penzance. Use it and pay it off monthly. If you don’t pay this off monthly it completely negates the practice and as a result, you will be stuck with another credit card balance.
- Ask for a higher limit on your cards. When your credit is evaluated for things like a home loan, your credit utilization ratio is looked at. Meaning… how much of your available credit are you using. If you have borrowed 100% of what your limit is on all your accounts that reflects poorly on your credit. An increased limit will give you a better ratio.
Free Credit Score Tips and Interest Rates
An interest rate is a percentage you owe back to the company based on how much you borrowed. To put it simply, the higher your interest rate, the more you are paying to rent an item till it’s fully paid off.
Example: If your interest rate is 25% and you owe $100 dollars on a pair of shoes, you are responsible for paying an extra $25 dollars a month for those shoes till they are paid off.
In this scenario, in 4 months’ time, it will cost you an extra 100$ in interest to have bought those shoes. That’s the cost of the original item. You just paid double by putting it on your credit card due to the interest rate.
When you pay your bill late or miss a payment completely, this is a sign to the company that you are not as creditworthy as someone who always pays on time. Loaning your money becomes more of a risk to the company.
It’s bad enough when it’s your credit card but what about your mortgage?
Help From Credit Repair Companies
There is no shame in bringing in the calvary. If you are looking to secure a loan in the future you want your credit in TOP SHAPE YESTERDAY!! Your credit directly affects that loan rate and credit repair companies are here to get your credit fixed fast!
Trained professionals are ready to dive into your credit history and offer immediate relief.
You are not going to drown in an ocean of debt, I’m here to doggy paddle with you, and these are the companies that have made a difference to my credit.
It’s no wonder that smart business savvy companies are stepping up to the plate in regards to credit repair.
I use National Debt Relief. Part of stress relief is having a good handle on your finances. As a recruiter who has worked for multiple Fortune 500 Companies, your credit has become an important part of the background check process. Companies are no longer accepting candidates with poor credit. As the recruiter I am who delivers the terribly sad news and I see it declinations based on credit more now than ever.
Be aware of your credit and debt history. Being
proactive is important and there are companies like National Debt Relief that provide free estimates on debt relief. Don’t be caught unaware.
If you know you have negative or incorrect information on your credit report, it is costing you money, plain and simple. You will reap the rewards many times over with lower interest rates on your current and future debt.
Once your credit is repaired they want to make sure you have gained the skills and knowledge to live a financially stable life in the future.
Why credit repair is so important
The better your credit score, the more trust is bestowed.
It’s important to remember that debt is part of life. Through no fault of our own, we need to borrow money from the banks for things like mortgages and car payments.
A low credit score can hold people back from low-interest rates – in fact, it can even prevent people from being approved for a mortgage, car, credit card or even a loan…. according to Lexington Law. Higher interest rates leave less money in your pocket at the end of the month and more of your hard-earned paycheck is going to interest payments.
Consequently, a bad credit score can seriously hold you back in all aspects of your financial life.
Be Patient and Diligent
Your credit is absolutely worth fixing, don’t get discouraged.
Credit.com has put together this list of important credit repair times to be aware of:
- Late Payments: 7 years from the late payment date
- Foreclosures: 7 years
- Collection Accounts: 7 years and 180 days from the date of delinquency on the original debt
- Short Sales: 7 years
- Bankruptcies: 10 years from the filing date; 7 years for Chapter 13 cases
- Repossessions: 7 years
- Judgments: If the judgment has been paid, 7 If unpaid, potentially longer
- Tax Liens: 7 years after they are paid
- Charge-Offs: 7 years from the date the account was charged off
Top 7 Free Tips for Credit Repair
- Review your credit reports
- Dispute negative claims
- Budget more money for high-interest bills
- Ask for increased limits from credit companies
- Work with a reputable credit repair company when you need help
- Set up automatic payments or reminders for when your bills are due
- Payoff and close unnecessary credit cards as soon as possible
What Else Can You Do To Make a Difference To Your Finances?
Live a Minimalist Lifestyle
You might be surprised to learn that you are throwing away $100’s per month on miscellaneous unnecessary items! This can range from lattes to wasted groceries to lunches at work. When you plan you are bringing more balance to your life and you will save more money.
Living a thrifty conservative life doesn’t mean eating bread and drinking water. You can cut back on little things and save huge amounts of money. Don’t be a victim of greed by constantly comparing yourself to others, you can’t buy satisfaction or confidence. There’s always going to be someone with netter stuff, the real trick is being happy with yourself.
For 100 Unique Ways to Keep that Jingle in Your Pocket and Save More Money Click Here. It’s loaded with secret ways to hang onto more money.
Create an Outlet to Earn More Money
The easiest way to get rid of debt and repair your credit is to pay it off quickly. If money is too tight to spare any extra, think of creative ways to earn extra money on the side.
Making an extra $50 a month is an extra $600 a year and that’s easily an extra paycheck. Never discredit your small earnings. My blog that started as a side hustle is now my full-time gig, with dedication anyone can succeed with a blog.
I was desperate when I started to host with Bluehost. Blogging provided me with the perfect outlet to earn money and express myself.
You need to have the passion and a plan of attack to succeed. I will help you discover the best of both so you can start earning a passive income sooner. To get started with blogging check out my post Beginner’s Guide to Starting a Money Earning Blog.
Practice Self Restraint and Be Prepared to Turn People Down
Stop needlessly handing that money over to people, places, and stores that don’t deserve your hard-earned cash!
It’s your right to turn down a happy hour or a clothing trunk show, you don’t have to go to the movies. Your friends and family should respect and support your decision to save without question.
Good friends will come up with new fun ways to hang out that don’t always involve money. It might take some adjustment but once you get used to saying no, it’s empowering!
Once you start freeing up space on your credit cards don’t feel tempted to load them back up. One day of shopping can ruin months of diligent savings.
Set aside treat money for yourself. You are worth it, so don’t feel guilty about your desires. You are making a difference to your finances and a worthy splurge is worth more than 10 frivolous ones.
What steps have you or your family taken to improve your credit? Were your rates lowered? I would love to hear your success stories!
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