So, you’ve messed up your credit and now you’re desperate to fix it, right? Don’t make the same mistake millions of other people have made by choosing the wrong way to fix your credit. This article will tell you exactly what to do and what not to do so that you can achieve your financial goals while staying on the right path to fixing your credit. If you follow this advice, you will be successful! So, how do you repair bad credit? You follow these steps...
1) Get Financial Literacy
Financial literacy—being knowledgeable and informed about money matters—is an important step toward financial success. By gaining a thorough understanding of personal finance, people are better able to make good decisions that impact their finances for years. For many, starting on a path toward financial literacy begins with learning more about home buying .
2) Understand your score
How can you know if your credit is good or bad? Your credit score. This three-digit number represents a numerical summary of how good (or bad) you are at managing debt. It can help you make big financial decisions, like getting a mortgage or car loan, and even determine what interest rate you qualify for.
3) Follow Some Credit Repair Tips
If you’re new to personal finance, there are a lot of ways to make bad financial decisions that will hurt your credit. As our credit scores are increasingly important in today’s world—from qualifying for loans or renting an apartment to getting a job or buying insurance—it pays off in terms of both time and money (literally) to make some basic financial literacy moves now. To repair your credit, it helps first learn how not to ruin it in the first place. For example, don’t open a bunch of store credit cards that you can barely afford each month; doing so will lead you down an inevitable path toward maxing out those cards and potentially damaging your score.
4) Build Credit
Yes, we know. Building credit can be confusing and frustrating. But it doesn’t have to be. There are a few small things you can do each month that will build your credit score and put you on a path towards achieving financial literacy.
5) Credit My Rent
If you’re trying to boost your credit fast or repair credit to buy a home, it may seem like an arduous task but reporting your current rent will help boost your credit. Credit My Rent will report up to 24 months back and while that might take up to 24-48 hours, this is a great way to boost credit score and trust. Home-buying can be tricky and proof of paying on time is the most important part in order to buy a home.
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