I love getting reader questions via my Contact Us Form, and the one I most often get is, “How do I fix my credit?” The answer is, it takes time, and hard work. This is a situation that doesn’t usually happen overnight (Though the loss of a job, loved one, illness, etc can happen instantly and be the cause of the delinquency). The fact of the matter is that hindsight is 20/20. You can look back and think things such as:
- I should’ve done a better job of saving for tough times
- I should’ve never used my credit card to purchase _________
- I should’ve paid cash for _________
- I should’ve taken more overtime when it was offered
- I should’ve ____________ (insert hindsight thought)
Should’ve is a haunting thought. We all should’ve, but didn’t always. What you CAN do is:
- Request a copy of your credit report, to see exactly where you stand.
- Create a Budget that is within your means, AND STICK TO IT.
- Contact creditors to work out an arrangement
- Stick to your arrangements
- Get updated credit reports throughout the year to keep an eye on your progress. (You can get 1 FREE from each agency each year. I suggest getting one from Agency 1 in Jan, Agency 2 in May, and Agency 3 in September.)
- Be diligent and mindful of all of you spending choices, paying as much as you can to pay off and get out of debt.
- Once debts are resolved, be proactive in saving, make smart purposeful credit choices, and pay on time!