So, something my family has been dealing with lately is credit. We are working on paying off debt, raising our credit score, and putting money into savings. It seems hard, with so much debt and four children to provide for. But, it can be done, so long as we follow the budget that we’ve agreed on. So, while trying to better our credit score, and our savings, I have come across some information that could be very helpful for others.
First off is the credit score rating scale. This is VERY important to understand, so you know where your credit score falls. You can find out your credit score, for free, at www.creditkarma.com. You can also view your Vantage Score there. Here is the chart regarding credit scores:
EXCELLENT: 760-849
GREAT: 700-759
GOOD: 660-699
FAIR: 620-659
POOR: 580-619
VERY POOR: 500-579
It is also very important to review your credit report a few times throughout the year. It takes approximately 3 months for positive effects to hit your score. Go to www.annualcreditreport.com to receive your credit report for free from all 3 major credit reporting bureaus. If you check one every 4 months, you can keep up to date without having to pay for it. This will help you to see what debt you have.
If you have the money, pay off any debt that has gone into collections. If you don’t have the money, contact the collection agency requesting different options for payment. They will usually work with you so that they get their money. If you have any open accounts, be sure to make the minimum payment. Try to pay a little more than the minimum, though, because if you only pay the minimum, you can rack up thousands of dollars in interest! Any time you have extra, split it up between all of your accounts. Even if you pay off a card, keep it open, so that you can occassionaly use it and keep your credit good.
ALWAYS be sure to put some money into savings before putting additional extra towards debt, though. You will want to have some money in savings for emergencies. You can also use interest earned to help pay off your debt.
Organized Stay At Home Moms 