Before attempting to obtain and build credit you should make sure your financial house is in order. This involves maintaining both a positive life style and establishing positive banking habits.
To create a positive lifestyle you should first make sure you are living within your means. This means that you are not using credit to meet your living expenses. Try to make it a priority to pay your everyday living expenses on time and in full. Finally you should always be conscious of money coming into your house and where it must go. In other words, you need to create a budget based on your family income and then do your best to stick to it.
Remember to budget for and set aside money for expenses that occur on an irregular basis like insurance, back to school items and Christmas.
Adopting and maintaining a positive banking style involves keeping a positive balance in your bank account. An easy way to do this is to open a savings account in the same bank as your working account and automatically transfer into this account on a regular basis. Even a little amount saved on a regular basis can add up over time and provide you some security. As noted in previous articles, obtaining and correcting errors in your credit report is also key to improving your future credit standing.
We are pleased to offer a free consultation to discuss your options and help you get a Fresh Start!
Julie Molasky, CIRP, Licensed Insolvency Trustee
Licensed Insolvency Trustees
Fresh start…the road to financial freedom