Once the 4th of July holiday rolls around the year is half over. But since I'm a glass-half-full-gal, I see it as a great time of the year to take stock and check in on how I'm doing with goal progress. I would encourage you to do the same. How are you doing on your financial goals for the year? How are you doing with rehabilitating or raising your credit score? Will your credit score be ready this year to help you buy that home or help your kids with college next year? You can do this!
Right now is a great time to start improving your credit. Here's how to get started:
1. Refresh your goals -- Did you start the year with grand plans to pay down your credit cards, save some money, etc but then the water heater blew up, you had to have your car worked on and now you feel like you have nothing to show for your efforts? That's okay. It's time to course correct, adjust your goals and get fired up again. Re-write what you would like to accomplish for the remaining half of the year and get started today!
2. Check your credit -- The first step in building new or better credit is to know what your credit report says about you. Visit Annualcreditreport.com and get free reports from each of the three major credit bureaus. Examine each of them, get any errors corrected and do what you can to pay down your debts.
3. Make a plan -- Next, make a plan for how you will accomplish your financial goals. For example, if you need to pay down revolving credit balances to below 20 percent of the limit crunch the numbers to determine how much needs to be paid down and divide it by the number of months you're giving yourself to pay it down. Then adjust your budget or find more income for the extra payments.
4. Have accountability -- Studies show that if you share your goals with others you are much more likely to achieve them. Share your story with people you trust and entrust them to check back with you to make sure you are on track.
5. Get excited! Good credit and money do not bring happiness but they are tools to help us achieve the home we may want to purchase, car we need , loan for college and any other credit needs you might have. Keep those goals front and center in your life and keep your focus on them rather than the short term sacrifices you are making now. Doing this will help you get excited and stay committed!
So, as we celebrate our nation's independence this July 4th, let this day also signify for you your personal independence from bad credit or no credit! Happy 4th!