We are halfway in to into 2023 and you may still have time to meet your credit goals. Your credit score will be a key contributor to whether you qualify for that new vehicle you wanted or new house. Having good to excellent credit is a score 700-850 using the FICO credit scale, the higher your score the less interest rates and more discounts. Excellent credit will give you access to the most favorable, least expensive loan and better credit card options. Here are 4 steps that can help you get started in buying your dream home.

STEP 1) Set Up Automatic Bill Payments

The easiest way to avoid missing a monthly loan or credit card payment is to put your bills on autopay. Make sure you budget accordingly to have enough money in your checking account to cover each bill to avoid an overdraft. Most banks may offer services to cover overdraft fees, but this could get expensive.

Step 2) Pay Down Balances

Try your best to reduce any high-interest credit card debt first. Always try to give more than the minimum payment to help lower that total balance faster. Remember the less you owe the less interest you pay the next month. You may have to budget and sacrifice that 5-dollar daily coffee and similar expenses like eating out all the time. Decreasing your credit card balances also shows potential lenders that you are responsible with credit. Experts suggest always keeping your credit utilization below 10% of your credit limit; those with the highest credit scores have a rate in the single digits.

Step 3) Handle Debt in Collections

If you currently have an unpaid debt like Charge offs or Collections, consider negotiating it down or disputing the debt if you think it’s an error. When a debt is more than three months past due, and either the original creditor or a debt collector may be contacting you very frequently to get its payment this is a good time to negotiate and attempt to pay les with the condition that they remove the Charge off or collection from the credit report. Always get that in writing before you make the payment.

Step 4) Good payment history is necessary use Secured Credit Card

Another option for building credit is to get a secured credit card. This is your own cash deposit, typically starts around $200, and this becomes your credit limit. You can then use the credit card as you would any other, and the deposit protects the issuer from the possibility that you won’t pay off your balance. It is important that you use the secured card responsibly, your card issuer could upgrade you to a traditional unsecured card in the future. However if you make a late payment on this secure card it will drop your score we recommend you set it on autopay.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalized plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for more details and to discuss your own individual situation.