31 Oct Fixing Credit Before You Make a Big Move
When it comes to retirement, we have to make a fair amount of big decisions in a fairly small amount of time. Some are trying to relocate, others are looking to travel, and some simply want to enjoy the luxuries of life. All of these things have the potential to become expensive. And when you are living off of your savings, pulling money out your accounts is most likely not the wisest option. So why not a small loan? I get it, piling on more debt in retirement is not an ideal situation, but if managed correctly, a loan could be just the solution to your retirement problem. I know what you’re thinking though, “I don’t have time to improve my credit, and these rates are not for me right now.” Well, you may not have the many years you used to in your youth to build better credit. But you do have a few tricks up your sleeve. Or, at least you will after reading this article. There are many ways you can fix your credit drastically in as little as six months. It isn’t easy, but it also isn’t hard. It’s just going to take a little time out of your day and some dedication.
Let’s start with the basics. The first thing you should do is check your report to figure out any errors that may have occurred, and then dispute them with your associated creditors. This also means speaking with past due accounts to work out how you can pay them back, and hopefully remove any negative remarks on your credit score. Just make sure that they agree to report your debt “satisfied in full” to the credit bureau. It is important to do this step first due to the fact that any checks you make on your credit score will last from sic to twelve months on your account, which can hurt your rates if a loan officer sees. This also includes credit applications. Another time sensitive approach is closing your accounts. If you close too many accounts suddenly you can have a temporary effect on your score. This is something else to watch out for up to six months out of an important date or loan.
Some other methods include getting your credit limit raised. This may sound irresponsible but not if you put that card away. A higher limit will improve the ratio of debt to credit, making you seem like a better borrower. Also consolidating your debt into one location can help drastically. About 10% of credit is based on the type of credit you have. Not to mention that these types of loans generally have much lower rates than your credit card providers. Outside of these few steps it is important to make sure that you stay on a budget and maintain good spending habbits, after all, who we are is simply a sum of our day to day habits. So make sure that those habits are responsible.
Retirement can be a challenge, but with the right people beside you, the right support behind you, and the right choices inside you, your golden years will be as breezy as the beach you will relaxing on. Plan Smarter Live Better.