Easy Solutions to Rebuilding your Credit this New Year – Hayden Auto

Easy Solutions to Rebuilding your Credit this New Year

smart ways to clean up credit report fast on your own
By Michael Dalton

We all know how people get all emotional and determined to make the best of the coming year. 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 sticks often follows the acronym: SMART

S-specific

M-measurable

A-attainable

R-relevant

T-timely

Having cleared that, let’s look at five New Year’s resolution, you might want to consider this year:

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 begin rebuilding your credit 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 do a 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: Constantly maxing your credit cards or can’t afford to pay your bills fully

Resolution: Get a secured credit card

One of the best ways to rebuild credit 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: You forget to pay 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 the best way to begin the rebuilding process. As simple as it sounds, people find it challenging to do this.

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: Little success trying to build your credit 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.

Applying The SMART Formula

S- Choose the counselor you would love to contact.

M- Make a list of questions you would love to have answered by the counselor.

A- Have a loved one know what you are doing and keep you accountable.

R- Determine what you want out of it and what stopped you from achieving it all this while.

T- Pick a time and date you will contact.

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.

    Looking For Quick & Easy Financing?

    We know how to find the best vehicle for your situation, and have you leave the lot with a smile on your face.

    Apply now!