Restoring Your Credit

Good credit...some people do not realize how important it is to have good credit until it is needed. By the time you get to that point, if your credit it bad, repairing your credit may take a lot longer than you expect. While you are waiting to improve your credit you may see things pass you by like the new house, the new car, and maybe even that new job. Yes, now employers are running credit checks more now than ever before.

Here are some lessons I learned (some of them the hard way) about restoring and maintaining good credit.

• Pay Your Bills On Time!: This may seem like common sense but there are individuals that think as long as they pay the bill eventually that it's "all good" WRONG! Those late payments will show up on your report and may require you to have to put down deposits on future utilities, that is unnecessary money spent.
• Just Say NO to free gifts/discounts When you APPLY NOW: When I was in college we would get free t-shirts, cups, stationary, etc when we would complete an application for a credit card. If your parents (or other adult) did not instill money management skills in your before you went out into the world, you are now a target. Companies know that people LOVE free stuff and the cost of that t-shirt is NOTHING compared to the hit your credit will take with unpaid credit card bills. A balance of $200 can easily become $1000 after the company adds on late fees.
• Spend Wisely: Sure, that Gucci purse looks good on your shoulder but if you can use that money to pay off 2-3 bills - do that instead. THEN save up and get the purse. You probably won't even want it anymore and you would have saved your self some financial strain. Good credit is the flyest accessory.
• Live Within Your Means: Once I got out into the working world, I noticed something that is really common. People with [old] money don't show it off. They will wear plain but neat clothes, drive inexpensive cars, and bring their lunch to work daily. People that are new to money are more flashy and as a result, the money doesn't last long. I would rather go home to a 3,000+ sq ft house than spend my entire paycheck at the mall. Walking into a 700 sq ft apartment wearing $500 shoes is not what I want for myself. I'll pass.
• Beware Of Scams: You DO NOT have to pay someone to fix your credit. With a little math and discipline you can do it yourself. I did and I HATE math.

I can go on and on with tips (maybe I will do a part 2) but for now I am just going to list some resources below. It always pays to do your own research. Don't wait...get your credit straight now! Do you know your credit score?

Get a FREE copy of your credit report here → Annual Credit Report

Resources You Can Use
How To Restore Your Credit
6 Steps To Restoring Your Credit
The Importance of Good Credit
Raise Your Credit Score
Repair Your Credit