Okay. So, some of us made some questionable decisions before we really knew (or even cared) what credit was. Now, as adults and business owners, we understand the importance of our credit scores. But is it too late and perhaps too difficult to change that now?
Well, the short answer is no. It's never too late to do better. There's always time to have better. If you want better...go get it! And that's in every area of the life you're creating for yourself with every decision you make.
So, let's take a look at a few easy ways to start your journey to better credit!
1) Get familiar with your credit score & report. You can't improve something if you don't know what's wrong with it. Sign up with an affordable credit monitoring program. Be sure to check your credit report for errors and dispute any errors you find. If you're looking for a free way to keep an eye on your credit score open your CHIME account. This is one of the reason's CHIME is one of my top recommendations for freelance banking. They make your FICO score available right in the app and as easily accessible as your balances.
2) Speaking of CHIME and why I absolutely love them for freelancers. I always thought it was unfair that our credit was negatively impacted by the delinquency of household bills, but no one cared when we paid them on time. Well, CHIME has a credit builder feature which helps you increase your credit over time for just paying your bills and making other necessary purchases. You don't have to borrow any money or risk more debt and the payments are reported to the credit bureaus. Set a fraction of your income to be transferred to the credit builder card when deposited, set your bills up on autopay, and watch your credit score increase. This is one of the best secured credit card offers out there.
3) Consolidate! Consolidation positively impacts your credit score because it takes several negatively impacting items and turns it into one possible cheaper and definitely more manageable item. When done correctly, you'll see a positive change in your credit within months of starting the process.
4) Set up payment plans and make those payments! We all hang up on creditors. Nobody has time for that. But maybe they have a website where you can manage your debt at your own convenience. Maybe they're willing to send it snail mail so that you can review it when you have time. Don't let the annoyance of a bill collection call or the lack of allotted time stop you from staying on top of your financial future. Even small payments will be reported to credit bureaus and will show a positive trend on your credit report.
5) Last but not least, pay your bills on time. This one is a no brainer, but also...not the easiest thing to do for some of us. Whether we're accustomed to penny pinching bills and paying minimums or we just forget what's due and when. It's important to your credit health that you start better habits when it comes to paying your bills. Set up autopay! I beg of you. Atleast, set an alarm or reminder for the day before the due date. If you're forgetful - set two.
In conclusion, the way to improve your credit score it to get organized, get educated on your options, and serious about your financial future. It's possible and you're capable! Good luck!
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