Easy Credit-Rebuilding Solutions for the New Year

We all know how people get fired up at New Year,  determined to seek out credit-rebuilding solutions that bring multiple benefits in the months ahead. People set goals on almost everything they want to achieve for the year and resolve to make it happen, no matter what.

However, research has shown that most people’s new year resolution only lasts until the second week of February and begins a decline or dies.

Goals that stick often follows the acronym: SMART

S-specific

M-measurable

A-attainable

R-relevant

T-timely

 

Problem: Applying and taking out loans that do nothing to your credit score.

Resolution: Avoid loans that don’t get to the credit agency.

One of the best approaches to credit-rebuilding solutions is to opt for lenders who report to the credit agency and use good repayment habits. Choosing loans like payday loans that do nothing to credit score is what most people do, and that is people with bruised credit. As if not enough, these loans are expensive.

Applying The SMART Formula

S- Be specific about your lending sources

M- Make a note every day you make a right credit decision

A-Deliberate with yourself on what prompts your loan types and rethink of your credit habits. Plan to avoid scenarios where you are tempted.

R-Get your free credit report at the year’s start and end.

T-Know the timeframe, “I won’t take loans with no report to the credit agency between January 1, 2020, to December 31, 2020.”

Problem: Maxing out credit cards or can’t afford to pay your bills

Resolution: Get a secured credit card

One of the best credit-rebuilding solutions is through a secured credit card. Tied to collateral, you only get to spend money deposited in it. It does what a debit card does.

Applying The SMART Formula

S- Identify and do your research about the secured credit card to apply for.

M- Note your due dates and map out how much you will save for each.

A- Decide on a secured credit card limit you can meet monthly.

R- Opt for your secured credit card every time you need to make a payment.

T- Pick a timeframe for secured credit card usage and the date of repayment.

Problem: forgetting to pay credit-rebuilding solutions on time

Resolution: Apply tricks to help you pay on time, every time.

Applying The SMART Formula

S- Specify your bills due date

M- Keep track of your due dates and also use phone reminders.

A- Open a separate account for paying your bills.

R- Create automated payment systems.

T- Set up your reminder to remind you a week before the due date.

Problem: Carrying a boatload of debt

Resolution: Hatch a plan to pay them all off.

Too many debts harm your credit score; that is as straightforward as it can get. Paying off your debts is one of the best credit-rebuilding solutions. But simple as it sounds, many people find this challenging .

Applying The SMART Formula

S- Map out where you owe, who, and which ones have the highest interest rates.

M- Find out how much you will need to pay monthly to pay down the debts.

A- Focus on the high-interest debts at first and work your way down.

R- Decide to pay frequently.

T- Choose the date you want the debt paid off.

Problem: Credit-rebuilding solutions are hard by yourself

Resolution: Reach out to a credit counselor.

Part of the most challenging things in life is to ask for help as it reveals weakness/vulnerability, which people see as wrong. However, it can help you reach your destination quickly. A counselor can help you plan better and cut your journey short while trying to build your credit.

At Hayden auto agency, we can help bring your new year’s resolution to reality be it buying a car or getting a loan to finance a car for yourself. Our specialists will love to have you grace them with their presence and help develop a plan that shows when and what to do. Kindly get in touch with them now.