This post is sponsored by Lexington Law Firm. All opinions expressed are my own.
Let’s have an adult conversation. Credit. This little six letter word carries such a heavy weight when it comes to financial freedom and creating a better life for our families. As mothers, it is important for us to learn the path to financial freedom and in turn, teach our children how they can grow into financially responsible humans.
In Black households, credit is just now becoming a real topic of conversation. Just last year, I made the commitment to clear my debt and in just one year’s time, I paid off all of my credit cards, any past due bills, and put my student loans in good standing. Here are 5 Ways You Can Work Towards Better Credit.
- Change Your Mindset On How You Look At Credit
Before making the conscious decision to fix your credit, you must understand what credit is and how it works. Because of not understanding your credit score, you can be denied loans on homes or cars. According to Lexington Law Firm, “credit by itself simply refers to a situation where something of value such as cash, a home, or a vehicle is given in exchange for a promise of payment”. There are three credit bureaus: Equifax, Experian, and TransUnion, that determine whether or not a lender sees you as a good candidate. Even though the three bureaus may seem the same, all of your credit is not reported to all three which can result in different scores. Becoming comfortable in your knowledge with credit can lesson the anxiety when it comes to tackling your score.
2. Talk To A Professional To See How You Can Fix Your Credit
It may seem easy to face your credit alone, but in order to maximize your best results, consulting with a company like Lexington Law Firm can greatly increase your odds at clearing debt and raising your credit score. The credit repair industry has grown so much in the last ten years, that it has become relatively easy to find out the truths from the myths when it comes to raising your score. With Lexington Law Firm being one of the oldest and most reputable law firms in the business, they work with their clients by offering credit repair packages for as low as $24.95 a month. A simple conversation can go a long way! One of the most tech savvy benefits of Lexington Law Firm is their proprietary app that puts credit repair right on your phone with up to date information and best in class services.
3. Create A Realistic View At Lowering Your Debt
All debt can be paid off in time with a realistic plan. Instead of paying off debt in full which can be intimidating, set up a payment plan with your debtors where you are only using a manageable percentage of your monthly income to tackle your debt. It also does much better for your credit score if you pay off your debt on a month to month plan versus paying it all off at once. It shows that you are consistent and can be depended on to make payments versus only paying when you have the funds to do so.
4. Once Your Debt Is Paid, Make Sure It Is Removed From Your Credit Report
Sometimes debtors can overlook removing negative credit marks off of your credit report which can result in a score that stays the same. Once you pay off your debt, make sure you are checking your credit report to ensure that the debt shows as settled or paid. Lexington Law Firm takes the hard work out of this step by offering credit monitoring for you when you sign up for services.
5. Involve Your Children To Help Them Learn Credit Early
The best way to teach your children about better money management is by getting them involved in understanding credit early. Create systems in your household which allows them to apply credit knowledge early. Instead of just giving them toys, allow them to use their allowance to make “payments” on things they may want. Even if you substitute money for something like chores, for example, you can teach them that building good credit will benefit them in the future.
Try this: Create a chart system that includes a prize at the end of the month. If your children complete their tasks for the week, use that as a payment system towards a goal.
How are you working towards better credit in your household?