This post is sponsored by Lexington Law but the content and opinions expressed here are my own.
When I was in college, there were so many credit card companies on campus the first day of classes. I didn’t know much about credit cards, but I got one anyway. My young self didn’t have a clue that this one credit card would end up staying with me for over a decade.
I always paid my bill, but it seemed like my credit card balance wasn’t going down. I would pay the minimum payment every month, but I would still use it without any knowledge how credit really worked. It was over 15 years later when I truly understood the importance of credit.
Credit Matters
What is credit? Credit is when you borrow money with the expectation to pay it back—in most cases with interest. Interest is a percentage of a loan (or borrowed money) paid to the lender for the usage of their money. This matters when you want to purchase a home, a car, etc.
Preparing for the Future
I’ll share my experience in hopes that it will help you on your journey.
One of my biggest fears was the homebuying process. For years, I already had in my mind that I was disqualified before even trying. I didn’t even want to check my credit score. Not because I was out there spending frivolously, but perhaps one too many purchases could have caused me to be turned down. The thought of credit being a factor of not being able to buy a home was terrifying. My husband felt the same way. We decided to get over that fear and take the steps to get pre-qualified.
Keep a Budget Log of All Expenses
We had a checklist of things we needed to take care of before moving to the next step. You already know what was on the list—credit cards. We sat down and made a spreadsheet of all of our credit card expenses from the least amount owed to most expensive. Our goal was to pay off the balance of all expenses to avoid late fees and interest—because interest sucks. Keeping a log of all of our cards really helped us a lot. And still does.
Be Wise with Credit Cards
We started paying off the least expensive card and once that card was paid off we moved to the next. We used the amount we would have put on the previous credit card payment and added it to the next card until that one was paid off. We kept that system going until our cards were paid off.
Credit Repair
Life Happens, but Anything is Possible
I understand that life happens, but what is bad credit costing you? If anyone has gone through a major life change understands this. Don’t get discouraged if you take the steps to prequalify for a home, car, credit card, etc. and get denied—especially due to a not-so-good credit report. Don’t let denied turn into defeated. Same thing for paying off all of your credit cards and having to use one again. Just be wise going forward until you reach your goal. For me when I knew better, I did better. I was able to make wiser decisions that benefited me in the long run…including homeownership!
Do you want to know what is really helpful? Repairing your credit.
Credit Repair and How Lexington Law Can Help
Credit repair is the process of identifying and addressing unfair, inaccurate or unsubstantiated negative items on a consumer’s credit report. With Lexington Law’s proven process, it helps hundreds of thousands of people work to repair their credit every year. Credit repair from an actual law firm!
How It Works
Lexington Law analyzes and identifies any questionable negatives hurting a consumer’s score. They address challenges and negative items with the bureaus and creditors monthly,which keeps the process going helping clients reach their credit goals. Lexington Law provided over 2 million FREE credit consultations in 2019 alone. These skilled leaders will leverage the law for your credit!
With your credit not being written in stone, I encourage you to:
- Know your credit.
- Repair your reports.
- Live your life.
You can kickstart your credit repair efforts early with Lexington Law! Call now for a FREE credit report consultation.
You can also sign up to stay on top of your credit with the help from Lexington Law!
Like I said before…when you know better, you do better. I’ve learned so much over the years (and I’m still learning). I can now teach my family and children how to be financially responsible. Again…don’t let denied turn into defeated. The Lexington Law team will be able to help you along your credit repair journey!
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