Motivation & Repairing Your Credit

It's probably easier to start a workout routine or diet than it is to muster up the motivation to repair your credit. There should be no need to convince yourself that rebuilding your credit is a worthwhile goal. To try and get your mind frame where is needs to be, let's address three factors to peak your motivation.

  1. The benefits of credit repair
  2. Attainable goals
  3. Knowing the in's and out's

The Benefits of Credit Repair

Most people think of only two things when it comes to their credit, buying a house or car. Yes, these are the two largest purchases when using credit, but there is so much more. The impact of poor credit is severely damaging to you overall longterm financial strength. The obvious is higher interest rates on purchases, but having good credit will save you money on so much more. When setting up utilities you will pay larger deposits, your insurance premiums will be much higher due to poor credit and even the risk of a future employer running your hiring risk based on credit all put you at a disadvantage when it comes to longterm financial stability. The benefits of credit repair; usually, are not so transparent but will add up to tens of thousands of dollars in the longterm.

Attainable Goals

So you have made your mind up and decided to take action against bad credit. It seems like an insurmountable task, it's not. There were negative actions taken to get you in the predicament you are in, so on the flip side there are positive actions you can take to correct the errors. You just have to be reasonable about expectations and set attainable goals. These should consist of taking a narrowly targeted view of your finances and spending. Make a goal to cutout $150.00 of unnecessary monthly expenses and work on paying down your credit card debt $20 more dollars a month than usual. Is that daily Starbucks coffee really worth it in the long run? The first step with improving your credit is changing the way you view your finances. Know that you can fix your credit but it will take time, so don't think it will happen overnight. Set a realistic goal of 5-8 months.

Knowing the In's and Out's

You hear a million theories on the best solution to raise your credit scores. Theres companies that scream from the roof tops that your credit can be fixed in 60 days or the next big trick and bam, you are good. Know this, credit repair and disputing with the Credit Bureaus has legal timelines and leveraging your rights correctly to ensure the items do not come back takes time. Be sure you are focusing on all areas of your credit, negative items, history, on time payment history and credit utilization. Having a big picture view of how your scores are affected will help you make necessary changes even if you are not able to get all the deletions you were hoping for.

The Best Path for You

With so much information available online, should I try to fix my credit on my own or hire a company. This topic creates a varying responses, but it really comes down to a few items. Time, knowledge and your desire to follow through with the process. Just know there are many options available and fixing your credit will ultimately, not only better your financial future, but will have a huge impact on your overall mental wellbeing.