We are in Tax season, many of you are going to get some things you dont need and cant afford and mess up your credit. But I have good news for you, there are some steps you can take right now to help mitigate that damage.
Get a copy of your credit report and look for errors. Truth is 1 in 4 people have errors on their credit report and don’t even know it. Most people never even check their credit report. One thing you could do is get a Credit Audit. A Credit Audit is a detailed report explaining what’s going on with your credit.
Write out a budget. Some of you have never wrote a budget before so I will briefly go over a strategy I personally use. I get a Microsoft Excel spread sheet and on the left-hand side I write down all my bills. Then going across the top, I write down each month. Every month I write down and track my bills. I then look at how much spending money I have left over. Use this strategy it has helped me my entire adult life without fail. It’s different when you see it on paper.
Keep your credit cards around 30%. Here is the formula, whatever your limit is on the card multiplied by .3 that’s how much you should be spending. When you go over 30% the credit card companies look down on that. It puts you in a higher risk factor and it will lower your credit score. If you max out a card you can expect to lose 30 to 50 points. The best thing you can do is avoid overspending at all cost.
Start disputing items now don’t wait until the last minute. If you don’t have time hire a company to do it for you. The sooner you get started the sooner your score will increase. You cannot win a game if you don’t get in the game. Meaning your credit won’t fix itself, it will take some effort from you whether you do it yourself or hire a professional to do it for you.
During your life, never stop dreaming. No one can take away your dreams.