Getting back a good credit standing is similar with putting yourself back into shape. Like most of us who wants to stay in shape, we are getting into the habit of exercising and eating right. We exercise the same principle with our credit standing, we have to make it positive and boost up the score.
In putting your credit standing back in shape, try doing the following suggestion:
1. Find out your financial goals. What`s your plan? You have to set your plans, daily, weekly, monthly, yearly or for longer term. Be specific. Your plans start from simple stuff like a vacation trip next spring. This plan need for you to save up and not depend on your credit card for car rentals or hotel bookings. Prioritize your goals, especially the short-terms ones. Allow yourself to be flexible with your goals as there may be unavoidable circumstances, but always be prepared.
2. Detail your spending plan. Although going into details maybe tedious, but it`s really helpful in monitoring your expenses and savings. Determine how much income is coming in. Identify your expenses. Start off with your daily expenses. Make a grocery list and allot a budget for it. Set aside your daily lunch money. On a monthly basis you can reserve your rent or mortgage payments. Always save for your emergency funds. You may cut down your daily trip to Starbucks. Your daily routine will change but remember you have learned to save. Include taxes in your planning. Although some taxes like income tax have been directly deducted from salary, you still to prepare for other taxes.
3. Make a tally of your expenses and keep it in record. This will help you check if you`re spending too much and what expenses you will need to cut down in order to increase your savings. Devise a system that would allow you to easily monitor financial transactions. Write it on a small white board or make an updatable form that you can post on your refrigerator or office table or record it on your planner; any way will do so as long as it helps you keep track of your expenses and savings.
4. Pay attention to your credit report and credit score. Read your credit reports and make sure that all information is correct. When you`ve kept your previous payment records, you have way to compare which among your credits have been settled. You can request for a quarterly report for you to monitor your progress.
5. Pay your student loans. As most bad credits started from unpaid students loans, this matter should be the first to be resolved. Consolidate your loans after graduating. If you`re still in college, you can try looking for a part-time job so you can offset a little of the cost. That is also one way of trying to earn to pay up the student loans they have.
You have to start simple, though may take a lot of time but once you get into the habit, everything will be easier.