5 Easy Ways to Clean Up Your Credit
One of the main reasons why many people continually struggle to get ahead is their lack of financially intelligent. This lack of knowledge is directly correlated with an individual’s credit and financial situation. You do not need to be a millionaire or have thousands of dollars in a bank account to live comfortably financially or have great credit. In fact, if you plan on amassing a significant amount of wealth and fortune, you should not waste any more time and begin cleaning up your credit. Credit can either be a hindrance or deliverance factor towards your future. If you have poor credit right now, that’s only one measure of where your current stability is. There are numerous ways to begin cleaning up your credit and creating a new reality and reflection right before your eyes. How does it begin?
1. Get Educated
The majority of people who have opened up credit cards are completely unaware of all of the financial jargon and hidden terms. Due to this, millions are set up on a path of failure, poverty, debt and years of unnecessary stress. If this sounds like you, the first step to clean up your credit is starting with getting educated. Given all of the technological advances in the 21st century, all of the answers and education you are seeking are readily available at the tips of your fingers. There are hundreds of thousands of financial gurus and teachers that provide free content on all the basics of credit cards, financial institutions, and money in America and the World. Getting educated and knowledge is a power that is worth more than one can fathom. From leaders like Tony Robbins or Randy Gage to books like Think and Grow Rich or Personal Finance For Dummies to even Google – the classroom is open and waiting for you to take a seat.
2. Learn Your Credit Situation and Take a Stand
Another vital step and way to clean up your credit is learning your credit situation and taking a stand. This is all about reviewing your credit history and figuring out what has made the most impact. For many people, there are errors and situations that are hindering and lowering their credit. Those who are unaware don’t realize that through learning your credit situation, you can actually dispute and remove the majority of those errors and situations. This is one of the easiest methods! So how do you do it? Easy! First and foremost, by law, Equifax, Experian and TransUnion are required to share your credit report with you for free – once per year. In that, from reviewing your credit report, you can act by writing a dispute letter. Each credit reporting agency is required to then review your claim within 30 days of filing. All it takes is time, knowledge and the dedication to clean up your credit. Figure out what is worth disputing and begin making the changes today to clean up your credit. For more information on properly disputing your credit report, check out https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports
3. Set up Payment Plans
Organization is one of the most imperative tools of anyone successful in the world. If you are behind on your credit card payments or any bills and the interest and penalties continues to build every month, then it is time to make the phone call and set up a payment plan. If you are beginning to make an effort to pay your bills on time, companies will appreciate and begin to work with you. Set up payment plans and begin getting organized with your bills and debt. Just like you can attract the money to you, you can also attract the best of situations when it comes to your current credit-state. In some cases, if you can stay dedicated to the payment plan, you may be offered an opportunity of reduce rates and even a reduction in principle! Don’t look at agencies or banks as an enemy, make them a friend!
4. Pay More
If you are currently paying your minimum balance each month and you recognize the interest accumulated is more per period then your payment, then it’s time to make a change. The Credit Bureaus are monitoring the change in your balance – is your balance really changing? One of the best ways to clean up your credit and begin a transformation is create a pattern of paying more each month or increase your frequency on payments. If you can begin to create a pattern of paying more by making bi-weekly payments, not only will you notice a major difference in your credit over-time but the debt you once had, will be just that – what you once had. Due to Consumer Protections legislation credit card companies are required to include a credit utilization rate which lays out how increased payments can reduce your debt and this one of the biggest factors you need to minimize to clean your credit up.
5. Your Perception of “Debt”
Out of all the conventional ways to clean up your debt, this is the most unconventional, per societal conditioning. I can tell you that if you are experiencing undesirable financial reality it may be due to your current perception of financial situations. For an example, ask yourself, “What do I believe about debt?” Do you have a negative perception of debt? It’s likely that you do. Why? Society has absurdly created a mentality of acceptance that debt can only lead to pain and financial disempowerment. Now, you are not directly guilty for doing so – unless from this moment forward you choose to keep this mentality. Instead of looking at debt as a burden begin thinking of it as a service and can prove beneficial when the time is right.
When you take out a loan, you are paying for a service that allows you to make a bet on yourself and your future financial prosperity. For an example, each month when you pay your cell phone bill, you are sending them the cell phone companies a check for allowing you to communicate with family, friends, workers and other services you are using. Thinking of debt as a service you begin to create a new perception of it and may even get excited to pay every month, and being grateful for the service you utilize – you will begin to notice a massive transformation that will clean your credit up more than you would ever imagine.
From Debt to Service to Liberation
The vision of a squeaky-clean credit-line is on its way for you only if you are willing and dedicated to making changes. With numerous conventional and unconventional ways, one can begin making a complete financial transformation. It will feel as if one has gone from debt to service to liberation. Everyone at the core is seeking a form of financial freedom and for those who are stuck in the mucks of poor-credit ratings, the time is now. Not tomorrow, or next week – otherwise, your procrastination will only prolong and further your liberation, your freedom, your squeaky-clean credit line. How much longer are you willing to wait?