Doing the same thing and expecting different results is the definition of insanity. As you begin to clean up your credit report, it is always a good idea to begin taking the proper measures to avoid the same mistakes in the future. Request your free annual credit report every year. Using your birthday, an anniversary, or some other important milestone date as a reminder may help you stay on track. It’s also a great idea to use automated bill payment services as well as credit monitoring services to proactively manage your credit and financial reputation.
The world we live in relies on credit. Having poor credit can quickly make life unnecessarily difficult. High profile and high paying employers commonly refuse candidates who fail to meet credit screening requirements. Banks avoid offering loans and financing to individuals with poor credit history. Even getting a credit card is difficult without a favorable financial background. These are the true and hard facts as it relates to your credit. However, if you are not in the financial position that you would like to be in, all hope is not lost. Keep reading to discover how a few proactive measures can go a far to protect your credit and your future.
Most adults take advantage of loans and financing at one point or another. Since financing is virtually a fact of adult life, you will benefit from taking the time to plan to set aside cash when you can. Avoid being your own enemy and instead be your best advocate by being realistic with yourself about your spending and financial needs. Plan for them in advance, and when planning is not possible, consider minimizing spending or cutting it eliminating it if possible. Once your credit rating has been damaged, banks and financing companies ultimately decide what level of economic freedom you will operate in. Maintain control of your own life and future by maintaining control of your finances first.
With so many influences and self-proclaimed authorities on the subject of credit, finance, and economics constantly pumping out so much information via the web, social media, traditional media, and even word of mouth, making wise and sound financial decisions can be overwhelming. Unfortunately, many of these individuals do not have your best interest in mind. The challenge for every responsible consumer is to do your own research. After determining your own financial needs and goals, carefully consider your options and select those that you determine are best for you and your circumstance.
You "Think" Therefore You Are
In spite of what banks and lenders may want to you believe, there is no such thing as pain free cash. Financial resources are costly and valuable for a reason. There is a cost associated with establish it and nobody is going to just GIVE it away because you asked nicely. There are numerous individuals all over the world who owe thousands of dollars to credit card companies, banks, and other lenders. Some of the items they genuinely need. Others, they simply wanted. Lenders and financing companies are in the business of making you feel good about poor financial decisions while they make tremendous profits. The ideal approach for escaping debt and preventing poor credit is to escape the way you see yourself and your situation. Your value is not correlated with your possessions or net worth. Ultimately, only you can take the steps to get out and stay out of debt.
Lead the Charge!
Deciding whether or not to purchase a home, a new car, that new bag, those new boots are all decisions that can be influenced by what we see others doing around us. When you are making a decision about possibly purchasing a home, consider your family size and specific needs, proximity to work, school, and other close family and friends, as well as what you can comfortably afford. Likewise, when purchasing a vehicle, consider your family size and transportation needs. The home, car, or latest fashion trends that a friend or associate recently purchased should not be a part of your consideration not should it inform your financial decision making process.