Credit scores are a tricky topic for many people, and if you’re like most, you might be confused when you look at your FICO report to find that your credit score has taken a turn for the worst. Maybe you missed a credit card payment or overdrew your account. Whatever the case, once your credit score is in the tank, you need to take steps to repair your credit.
Along with coming to the best credit repair specialist in Los Angeles, here are the five things you can do to help repair your credit score and set you up for financial success.
Create a Budget
One of the best ways to stay on top of your finances is to make sure your spending doesn’t get out of control. If you haven’t already, you should create a budget for you and your family. From groceries, bills, entertainment, and dining out, you must make sure that you are carefully monitoring where you spend your money.
Stick to Your Budget!
A budget is useless if you don’t follow it to a tee! There are plenty of mobile apps and online platforms to help you keep track of your spending. See where your money is going and determine which areas need to be tightened down. Once you have your spending under control, you can start repairing your credit.
Reduce Your Debt
Whenever you get paid, besides paying your bills, you should make paying down debts your top priority. Avoid only paying the minimum on your credit card bills and start chipping away at your balance whenever you can. This will significantly benefit your credit score and lenders will see as a more trustworthy borrower.
Don’t Close Unused Credit Accounts
It might seem like a quick and easy fix, but even if you don’t use a credit card, you should still keep it open. The longer your credit history, the better your FICO score will be. As long as you don’t have a balance and the card doesn’t charge a yearly fee, if you already have the account, keep it open as long as you can.
Think About the Future
Boosting your credit score may be your short-term financial goal, but you shouldn’t forget about your financial plans decades down the road. If you aren’t saving for retirement, you must start as soon as you can. After paying your bills, chipping away at your debt, and following your budget, you should set aside money each month into a 401K or similar long-term savings account.
The sooner you put this money aside, the sooner it can start earning interest for you. Credit scores can be improved in a relatively short period, but saving for retirement takes decades so make sure you are getting a head start.
If you’ve followed these tips and your credit score is still not where you would like it to be, it’s time to call in the professionals to repair your credit score.
Contact the credit repair experts at Oakmont Credit Services today and find out how you can claim your free credit consultation!
