Repairing your credit may be easier than you think. - MissLJBeauty

Repairing your credit may be easier than you think.

 It's nearly the most spendy time of the year and while some people relish the fact that Christmas is coming, some people find the Christmas period another reason to worry. During the festive period, there are financial expectations that are put on everyone around this time. From Christmas parties to Christmas gifts to actually buying all the food. A lot of emphases is put on what you can and can't do but why. No matter what season it is we should all live within our means and this means within our financial means too. We should never end up in debt because Christmas is coming. Christmas is one day and if last year proves anything to all of us we can have a great time with a scaled-back more purse-friendly festive. 

Today I want to talk about finances and repairing your credit. It is so easy to neglect your credit or just not check what is going on with your credit. But as soon as you are looking at making a big financial decision like buying your first home or getting a car or even home renovation your credit becomes very important and you will wish you had put more effort into making sure you are on the best footing. 

Here is what you need to do or think about to give yourself the best chance of having the best credit rating or preparing the credit rating you already have. 

1. Find out what your credit score is?

This is super important you need to know where you are and this gives you a basis to start on your credit repair journey. You can do this for free so need to worry about having to pay. There are lots of options out there for you to check your credit score from Experian to Clearscore. There is a good range of places to check your credit score for free

When you have your free credit account go through it with a fine-tooth comb. Make sure you understand your score and make sure it is correct. This can be wrong. I personally had a discrepancy on my account and after a few phones called I had it removed. This can be anything from a phone contract that you didn't take out to a transaction you don't recognise. Get to know your file. It is after all your credit portfolio. It took about two months for my discrepancy to be removed from my account and my score when up. 

2. Pay your bills on time. 

This is one of the most important things you can do. Make sure if you have any utility bills, credit or store cards or phone bills these need to be paid on time every month. Just one missed payment can result in a dip in your credit score. This doesn't have to be your fault. 

This month I changed one of my direct debits and I was told it would all change automatically and I didn't need to do anything. Well, thankfully I am on the ball and noticed that my payment hadn't gone out. They didn't change the date in time and my payment didn't go through making me late. I called up straight away and was told I had a missed payment. Luckily this was the bank's fault for telling me it would be fine and they managed to take my payment and take the late payment note of my account but this could have impacted my credit score without my knowledge if I had not been so vigilant. 

3. Keep your credit utilization under 30%

This one is also important. If you keep your credit utilization under 30% your credit rating will be high. being able to show that you are a reasonable person and can keep up with your payment and not use too much of your credit actually looks really good on your credit file and will boost your rating. It can be that simple. 

4. Pay your debts. 

I know this can be a hard one if you are in debt it might seem never-ending but there are so many ways to get help in sorting your debts. You can consider debt consolidation. This will put all your debt in one place and you will repay it in one fixed monthly payment. You will know what this amount is and you can budget accordingly. It can really help in the long run to do this. Remember this is a marathon, not a sprint. For more information on this click here.  

 5. Don't take out more credit. 

This one should be common sense but if you are struggling or trying to raise your credit profile. Stop taking out credit. The more debt you get in the harder it is for you to get out of it if you can not afford to pay it back. Everyone's budget and priorities are different right but one thing is for sure. We should all live within our means. This included unnecessary credit. 

These tips will help you get in control of your finances. You might be looking at the long term goal of being a homeowner or you just want to take charge of your finances but first try to take on board these tips and see if you can get in control of your credit. 

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