Are you someone who would like to make the purchase of a home or a vehicle but have discovered your credit rating is low because of debt? You can take the right steps toward correct those items and still work towards making that purchase. There might be times when we make a larger purchase and see our credit score it is intimidating; it’s okay to look at your credit score which is the very first thing to start our list.
- Do look at your credit score monthly. There is a myth which says looking at your credit score will decrease it, that myth is false. The only persons who decrease your credit score are when you were to go for a credit card for example or there is an investigation on your credit. You can keep up with your credit score for free by visiting the Credit Karma website www.creditkarma.com
- Do contact creditors directly to arrange monthly payment plan. This is the best thing that can be done for your benefit. What you will notice over time is the more you pay on this bill, or these bills the credit score will increase.
- Don’t stop paying creditors on monthly basis. The only time this should take place is when the bill has been paid in full and you have an invoice showing it has been paid in full. You can request this information from the creditor.
- Do keep track of who your creditors are. These bills will be coming through the three major credit locations: Equifax, Experian, and TransUnion. When you pay them off you can request to have them removed through Credit Karma.
- Don’t be hard on yourself because everyone needs to pay monthly bills. There is a way you can manage payment entry by using the software Microsoft Excel or Google Sheets. You can be setup a month-to-month payment plan and watch where the money is going so it is always clear. This type of action will keep watch when money is removed, or a deposit made you are always on top of everything.
It might take a little bit of time to lower that debt but by following your own specific structure you will see debt can be paid off and there is a benefit of credit rating increase that comes with it. Stay positive, you can do this!