Credit is one of the most important financial factors for a typical adult in the united states, and yet there is a huge lack of understanding of credit principles given the average debt for a single consumer has now increased to $6,028. With increasing average debt, millions of Americans are being forced into bankruptcy, or just ruining their credit score through payment delinquency, so how can we stop this? I spoke to a credit expert who has helped thousands of people fix their credit as well as educate them on how to use credit correctly. Meet Umesh Agarwal,
internationally recognized credit expert, these are his tips on fixing your credit instantly.
New To Credit
If you’re new to the world of credit and don’t know where to start. Begin by adding yourself as an authorized user on friends/family old aged credit cards in good standing who use their credit cards responsibly. You can also begin building credit by signing up for secured / basic credit cards instead of premium if required to start building your credit history. Set-up reminders / create an excel sheet to pay off credit cards on time. Setting up automatic ACH payment for credit cards helps to avoid late payment
Use Your Resources
One of the best ways to keep a constant eye on your credit is a simple download away. Sign up for Credit Karma and Experian which will cover all 3 big credit bureaus (Experian / TransUnion / Equifax) reports. Identify and dispute all negative items affecting your credit score by sending letters to credit bureaus (collections / late payments/inquiries). If you can’t do it yourself, hire Legit services that can get you results (not Lexington Law).
The biggest issue younger adults run into with credit would be running up a balance and paying it off by only paying the monthly minimum payment. Not only is that going to increase the total interest you pay the banks, but it’s going to inhibit irresponsible spending habits. Change your mindset, don’t spend more than what you can afford. Use Credit cards like Debit cards; pay off balances before the statement cut off date.
By following the simple steps outlined within this article not only are you on route to creating a great credit score, but also great credit management habits. Credit can be a great tool when utilized responsibly.