Thank you Lexington Law Firm for sponsoring this post. A high service partner and consumer advocate that will help you fight for the credit you deserve!
I can vividly remember being in my first year of pharmacy school and realizing that I literally had no credit score or history. I didn’t have a credit card at the time, no car payments, no student loans- nada! My friends at the time were mentioning to me about their credit cards and balances that I figured I should be more proactive with building up my credit. So I did what any college student would do, I went home that night and applied to the first student credit card that looked promising, which I was very quickly denied for. Thankfully after that incident, my mom sat down with me and went over the basics of what credit is, how to use it properly, and all the nitty-gritty details that are super important to know.
Now I’m four years in and I’m proud to say that I’m almost at the 800+ club (I’m so close it hurts!). Most college students aren’t privileged enough to learn about credit before they enter college or graduate, which can lead to large debts and unpaid balances throughout the years. Today I am working with Lexington Law Firm to share some tips on how to manage your credit in college and after graduation as well as what you can do if you need your credit repaired.
So What is Credit?
Credit is a numerical score that defines how likely you are to repay back your debts and how good you are at managing your responsibilities. Having a good or bad credit score will ultimately decide whether a bank or lender will give you a loan and what interest rate you will pay for that loan. Your credit score will range from 300-850 and is based on your credit history.
Why You Should Care About Your Credit Score
Unless you’re rich or have buckets of cashing laying around, you will eventually either now or in the future want to make a big purchase that you won’t be paying for immediately. If you ever plan on buying a big-ticket item or applying for any kind of loan, then you’re going to need a good credit score! Our financial market is driven by credit, which is why it’s so important to start building and managing your finances now in college.
My Credit Goals
One of my biggest financial goals this year/next year is to pay off my student loans in full. I was lucky enough to only have about 35k in student loan debt for 6 years of college, which is definitely more manageable than what some of my fellow classmates are coming out with. I’m hoping that as soon I land my first job, I can create an emergency fund, go on a vacation, and get right to work on paying off my student loans. I know for a fact that I will be putting more than the minimum balance so that I can pay off my debt as soon as possible and be free from Sallie Mae.
Tips on Managing Your Credit
When I got my first credit card, I had no idea what I was doing (besides what my mom had previously told me about). I only knew that I shouldn’t make a late payment and that it takes time for your credit score to grow. So as you start managing your credit, don’t be discouraged if it takes longer than what you think it should take. Good credit takes time.
Tip #1: Pay your balance on time every month
One of the easiest ways to increase your credit score is to make all of your payments on time. A late payment or derogatory mark from a lender may seem harmless (especially if it’s only once or twice), but those marks can have long term effects on your credit score and even stay on your report for up to 7 years! If you have a terrible memory like me, set your accounts on auto-payment so that you never miss a payment or write the date into your planner.
Tip #2: Fix any errors on your credit report right away
Just like everything else in this world, errors and mistakes can be reported and ultimately affect your credit score. With Lexington Law, they believe that everyone has the right to a fair, accurate credit report and are willing to help you fix errors that may be reported on your report. I didn’t even know this was a thing until I started looking into Lexington Law Firm’s services. Some errors that may be reported are closed accounts that are reported as open, having old debts you’ve already paid off listed, and so much more.
Tip #3: Spend wisely
If you’re looking to build up your credit, then make sure to only utilize your credit cards for small or regular purchases that you can easily pay off. One of the easiest ways that people get themselves into trouble is by racking up a ton of credit card debt and not being able to pay it off right away. Treat your credit card like a debit card so that way you don’t overspend on your credit card.
How Lexington Law Firm Can Help You Reach Your Credit Goals
If you’re in a situation where your credit has taken a major hit, you should definitely reach out to Lexington Law Firm and allow them to see where they can help you repair your credit. I love Lexington Law Firm because they are not only the oldest and most respected name in the credit repair business, but they also have a long-standing relationship with the three major credit bureaus: EquiFax, TransUnion, and Experian. Each of the bureaus calculate your credit score differently, which is why it’s so important your credit repair company is familiar with each of the bureaus.
Another reason why I love Lexington Law Firm (and highly recommend them) is because the professionals that work there will work with you and go through your credit report with a fine-tooth comb. They will find different solutions to repair your credit and do most of the heavy lifting for you, such as contacting financial institutions and challenging errors on your behalf.. And if you’re like me, a woman on the go, they also have an easy-to-use app that allows you to quickly monitor and work on your credit from anywhere in the world.
Anything financial-related can be super stressful especially in your twenties. Don’t stress about it, but definitely take the time to become more educated and take any problem head on! If you’re interested in using Lexington Law Firm but you’re worried about the cost, they do offer different packages that can meet your needs now and in the future.
