- Posted March 22, 2022
What You Can Do to Navigate Credit Troubles When Financial Planning
Credit troubles can leave you with financial troubles. It can mean that you pay higher interest rates, and you are less able to make big purchases that need financing. To navigate credit troubles, you can take steps to improve your score, check your credit report, and pay your bills as part of a sound financial plan.
Take Steps to Improve Your Score
There are many ways to improve your score. It will take some time to do so, but you can come back from a low score. Making sure payments aren’t late is a big factor in your credit score. Contact the creditors and set up payment plans and solve any problems quickly. Don’t be quick to apply for new credit as this can lower your score if you open new accounts in a short amount of time. Don’t close any old accounts as a longer history looks better. Consider a debt consolidation program, which can drop your credit at first, but can help you eliminate some of your debts according to our certified financial planner.
Check Your Credit Report
Checking your credit report is important so you can better understand your credit as a regular financial plan checkup. Checking your credit also helps in making sure that all your information is accurate. This also helps you to be aware of any unfamiliar accounts. Unfamiliar accounts can be a sign your identity has been compromised. There could be errors on the report, which would be important to get cleared up as soon as possible.
Pay Your Bills
Paying your bills on time helps to build your credit. Your payment history is a big piece of your credit score, so as you pay your bills, the score will increase. If things are tight, know which bills contribute to your credit. These are bills like credit cards, mortgages, and loans. These will be the most important to pay first if you don’t have enough money right away to take care of the bills. If you can, paying more than once in a billing cycle can help to improve your score. Paying every two weeks lowers your credit utilization. Financial planning basic dictate to continue to keep up on your bills and make sure you don’t take on more debts can help you stay out of trouble.
Credit troubles can have a big impact on your life. It can affect your finances and what you are able to do. To navigate credit troubles, you can take steps to improve your score, check your credit report, and pay your bills.
Check out this article on how financial planners can help you avoid trouble when dealing with insurance companies!