Making Better Financial Decisions

Recovering From Ruin: How To Repair Your Credit Faster For A More Secure Financial Future

by Glen Hawkins

In life, some mistakes have more of a negative impact than others, especially when it comes to your finances. As discouraging as facing financial ruin is, you need to be able to pick yourself up, dust yourself off, and follow a plan of recovery.

Carefully Check Your Score On Different Sites

There are many sites and services that promise to show you your credit score and how to bring it back up; however, you should use only well-known and reputable sources to avoid having too many unnecessary inquiries into your report, as well as to protect your sensitive data. Research your options by checking with places like the Better Business Bureau and other consumer-centric entities.

Prioritize Your Budget

Rebuilding credit involves making certain sacrifices, like eating at home instead of restaurants and watching movies on your television rather than going out. Eliminate all unnecessary purchases and focus on paying down what you owe as quickly as possible. Make bills and debt your priority so that they come before anything else in your spending. You may not have much left over, but you'll be on the road to financial recovery.

Pay All Bills Before Their Due Date

Waiting until a due date may give you too much time with money you'd be tempted to spend elsewhere; plus, paying early looks good on your reports. Rather than waiting until a bill is due, pay it just as soon as you can afford to do so.

Incorporate Your Utility Bills Into Your Credit Score

Some credit reporting bureaus will help you boost your credit profile by incorporating payments to utility companies, such as your electric, gas, and even telephone. Ask about it so that credit is given where it's due and your due diligence in making regular payments is counted.

Watch Your Credit Utilization Percentage

Tracking the percentage of your overall credit limit usage is essential to balancing your entire budget, and it's a number that has a big impact on your credit score. Use less of your allowed limit, demonstrate good judgment, and keep yourself within your own financial limits. The credit utilization ratio adds up your balance(s) and divides that number by your total limit, meaning you need to exercise restraint to keep it low.

Find A Credit Coach In A Credit Repair Service

Sometimes having outside assistance can set you on the right path faster or even keep you there once you begin to make strides. A credit repair service is a business that advises consumers on ways to get a handle on their finances. If you think you might benefit from using one, don't hesitate, especially if your money situation is particularly complex and repairing it creates confusion.

Everyone makes mistakes, but if you make enough of them to ruin your credit score, your road to restitution may be long and difficult. It all starts with a plan, though, and having the discipline to follow through with it. Because your financial future is at stake, you must use everything at your disposal to repair your credit and rebuild the foundations of security. It's easier said than done, but it's doable just the same.