Is it Possible to Get Your Credit Back on Track?
Throughout life there are various things that can happen—many of which are outside of your control—that can cause your credit to fall off track. Life events such as job loss, divorce, and illness can impact anyone and their financial circumstances. But, rest assured, it is entirely possible to get your credit back on track after filing bankruptcy or going through other credit challenges.
You Want to Rebuild Your Credit – Now What?
- Check out last week’s blog post on how your credit score is calculated. This will ensure that you know what factors are being considered in determining your credit score.
- Be sure that you are avoiding further actions that will negatively impact your credit score. Most importantly, work to make all scheduled payments on-time for your existing or new lines of credit. You can’t change the past, but you have the power to control the future.
- Work to obtain a new line of credit(s) so that you can demonstrate your credit worthiness. A secured credit card is an excellent first step in rebuilding credit. Check out our rebuilding credit blog post for more details on a secured credit card. Also, financing a vehicle can be helpful. Be sure to make all payments on-time for your new credit card and/or vehicle loan.
- Consider opening an account with Credit Karma . For no cost, Credit Karma will provide you with instant access to the information reported to the credit bureaus on your credit reports, give you regular updates on your credit score, and help you with monitoring your credit over time. Credit Karma can also be used as a resource for information on how your credit score is calculated and things that you can do to improve your credit score. Additionally, Credit Karma will provide you with recommendations on lenders to consider when you are ready to apply for a new line of credit. They will share with you information on your chances of obtaining approval for various lenders and lines of credit based on your current credit score.
- As you work to rebuild your credit, be sure to monitor the information being reported on your credit reports. Look out for inaccuracies or other derogatory reporting. You can access a copy of your free credit report from all three major credit bureaus (Equifax, Experian, and TransUnion) one time each year by visiting annualcreditreport.com. During the COVID-19 pandemic, annualcreditreport.com has increased availability to free credit reports, allowing you to access them online once per week through the end of 2023.
Learn More About Credit
For the entire month of March, Financial Freedom Legal will focus on credit awareness. Each week, we will share a new blog post with news you can use about credit.
You are also welcome to join us and mortgage loan officer, Lynn Bossi-Kinsel, on March 22nd at 6:00pm for a free event to get answers to your questions about how credit scores are calculated, how to build and rebuild credit, and what mortgage companies are looking for when reviewing your home loan application. For more information about this event visit https://fflegalva.com/event/behind-the-score-credit-building-homeownership-and-more/.
You can also reach Steve and Vee anytime at 804-FREEDOM for additional information.
