“Thank you Lexington Law Firm for sponsoring this post. A high service partner and consumer advocate that will help you fight for the credit you deserve!”
Credit is one of the few things that effect us greatly throughout our lives. Credit makes decisions on whether you’re worthy of a house, car, credit card, loan, rental property, even some job positions. Something so small yet so significant is so overlooked when you first turn 18 and many, like myself, wish they would have learned important lessons before getting into debt. If you’re feeling lost, here is what you can do when your credit has hit rock bottom.
Change Financial Behaviors
This is one of the hardest yet simplest ways to start correcting your credit. When you have mountains of debt and choose to ignore it, it will only get worse. When I got divorced my credit took a huge hit. It was hard finding a place to live as a single mother so I took residence at any decent place that would take me when I got my own place. What I learned I couldn’t live the way I was previously, I had to change my financial behaviors.
For me, personally, it was eating out. I am not a fan of cooking and would rather have a personal chef than cook for myself. I was spending hundreds of dollars eating out which had to change. For you, maybe its memberships you pay for monthly but never used. This can be a magazine subscription, gym membership, tv streaming service, etc. Anywhere you can make a temporary cut will help get you back on track.
Get Your FICO Score Up
A FICO score is calculated by the by Fair Isaac Corporation which one of the companies that pioneered the credit scoring system. Almost 90% of financial institutions base their lending decisions on FICO therefore making sure your credit fares well in their proprietary algorithm is a must. They pull from all three credit bureaus as well so you want everything even keel. It may take time to improve your credit but it can be done over time.
Check Your Credit Report
Every year you can opt for a free credit report and review your scores. It is very important when reviewing your report that you pay attention to anything that seems off or not accurate. Millions of Americans are denied loans every year due to an error on their credit report. The sooner you can catch these mistakes the soon it can be corrected. On average it can take four months for the correct to be complete so if you’re looking to purchase a house, etc. you will want to stay on top of it. One easy error you can catch on your credit report is late payment or derogatory marks. A few late payments may not seem like a get deal but in some instances it can stay on your report for seven years.
Everyone has the right to good credit and there are lawful resources to help fix any mistakes you may find. For example, The Fair Credit Reporting Act (FCRA), Fair Credit Billing Act (FCBA), Fair Debt Collections Practices Act (FDCPA), The Servicemembers Civil Relief Act (SCRA), The Truth in Lending Act (TILA), and surprisingly enough, the Health Insurance Portability and Accountability Act (HIPAA) all give you the legal right to dispute inaccurate items on your credit.
Turn to the Professionals When Your Credit Has Hit Rock Bottom
With credit playing such a vital role in our lives, sometimes it is best to hand it over to the professionals. Lexington Law is the oldest name in credit repair. Being as respected as they are, they are also the only player in the credit industry with the technological and legal experience to drive results for consumers. Lexington Law understands the complexity of consumer laws and help us consumers understand our rates and have to use these laws to fix our credit. The best part is, they offer packages based on each client’s needs for as low as $24.95 per month.
Though there are many benefits of using Lexington Law, here are a few to help you better understand what they offer.
- Build a foundations of trust knowing legal professionals are fighting for your rights.
- Real-time app that puts information in your hands at the level you prefer.
- They have long-standing relationships with all three of the credit bureaus so they know how getting errors removed works.
- They are a Consumer Credit Protection Act (CROA) compliant organization which means they are extensively related with auditors.
A good credit score may seem far away at the moment but with the help of professionals, checking your report, and changing some habits, you can be well on your way to a better score.
Amber Myers says
Yikes, this wouldn’t be good. I’m glad there are solutions to help. I always check our credit report and make sure we’re good to go!
These are all great tips. We’ve worked really hard in the last year and a half and all of that hard work has paid off. We have a great credit score now.
Liz Mays says
This is great advice. I can see how it would be scary and discouraging having loans renting opportunities denied. It’s good to know where to start to get that score fixed.
these are great points to make especially for many of us that need a great credit score and just plain great credit to get a car, home or anything else. thanks for awesome tips!
Terri Steffes says
This is good advice. We are learning about all of this but one thing we never heard until now is… we don’t need a great credit score if we are going to use cash to buy things. So we have been using cash, and paying down our debt and that is working its magic!
These are all great tips and tricks for repairing bad credit scores. THere is nothing scarier than finding out you have bad credit!!
Melissa Dixon says
It can be really hard to get back on track when you get behind with credit. I struggled for years when I was a kid trying to fix an error on my report. I finally got great credit but it wasn’t easy, I wish I had these tips then.
These are all really good tips. I always try to stay on top of my credit. I don’t ever want it to hit the bottom. I’m pretty good at managing everything too.
Nancy L says
Great advice. It definitely takes discipline. My hubby is obsessed with keeping the highest credit score possible, lol. He started our kids with their own credit card at 18yo and now they can join dad with perfect scores.
Jenn @ EngineerMommy says
It’s so important to check one’s credit report on a regular basis. Finding any errors and getting them fixed is key!!
Ruth I says
Thank you for all of these helpful tips! It’s not easy to be in this situation, glad there are things that we can do.
We are in the credit rebuilding stage. It is such a long row to hoe, that is for sure.
emma iannarilli says
So many good tips. I think this is something that happens to us all at one time or another, but once you do reach rock bottom, the only way is up.
This is a great post! I have always wondered what to do when that happens. Thanks for the tips.
natasha d’anna says
This is a perfect mid-year check-in post for many of us! thanks for sharing such great tips
Good advice as credit scores are so important. Thanks for sharing these tips