Browsing Category: "finance"

How to Repair Your Credit Score

If you have ever been denied credit then you know just how humiliating the experience can be. Of course, everybody else around you has been through the same situation and doesn’t pay you any mind, however to you, it seems like the world is watching and you never want to leave the house or apply for credit again. Instead of hiding under the blankets, below are some great tips to help you improve your financial situation and creditworthiness.

Get It All Together!

The first thing that you will want to do is to take note of all of the individual debts which you have and consolidate them into one larger debt. While seeing one larger sum of debt can seem overwhelming, it comes with the benefit of only requiring one monthly payment.

In addition to making this much more easier for you to manage your debt, it can also drastically reduce the amount of interest you will pay.

Stop Spending Your Money!

The worst thing that you can do is to live month-to-month, paying your bills in small amounts. Instead, put a stop on all of your spendings. Create a budget which can show you all of your income streams matched your monthly expenses. Once you have this, you will be in a better position to know where your money is going and to plug the leaks!

If You Must Buy Something, Don’t Pay Retail

Of course, there will be items that you simply need to buy. For these, the tip is to look for vouchers and coupons. For example, if you enjoy a cigar every once in awhile then instead of going to your local store, take advantage of the Groupon Coupons page for J.R Cigar. This tip isn’t limited to cigars, it can be applied to any item which you need to buy that isn’t budgeted for.

On the Subject of Budgets

Speaking of budgets, it’s important that you create a realistic one. It can be easy to get excited about improving your financial situation that you forget items like entertainment and general expenses. When this happens and you break your budget, you can become disheartened and give up.

Additionally, it also affects the amount of money that you can consistently save, which can also affect your creditworthiness. Instead, be sure that you can realistically stick to your budget and then DO!

Direct Debit

How often you pay your bills late has a tremendous impact on your credit score and report. Even if it only happens once or twice and is only for a few days.

The quickest and the rest is easy to avoid this is to establish a separate account which you only deposit the money for your bills each pay. Then, provide these bank details to your utility providers and have them switch on direct debits. With this enabled, you can improve your credit score without having to do anything more than transfer money each time you receive your salary.

When taking steps to repair your credit score it’s important to remember that it isn’t a process which happens overnight. If you feel like it is taking too long, keep thinking about the goal of financial freedom you will soon feel and how great it will be to go back to the cashier counter for an approved application!

[ Tagged In ] , ,