Are you consumed by fear of financial insecurity? Do you dread getting the mail or answering the phone when that call comes in from an unrecognized number? Looking for a way out but do not know where to begin?
Regardless of how “bad” your current financial position appears to be, there is a solution. As with most situations in life, the recognition of a problem is the first step towards a solution. Help is available for those who seek a way out of the fear of this insecurity.
Get a Baseline
Did you know that the Fair Credit Reporting Act (FCRA) entitles you to a free copy of your credit report, when you ask, once every 12 months? Better yet, everyone can attain a copy of their credit report from each of the 3 nationwide credit reporting companies – TransUnion, Experian, and Equifax.
This should be the first step in the process of determining your current financial position. A credit report generally provides the following:
- Information that identifies you
- Credit accounts
- Inquiries into your credit
- Any public records and debts in collections
What if there is an obvious error on my credit report? The Federal Trade Commission (FTC) provides all of us with a simple 2-step process to report the inaccuracy and work to its resolution.
Then, you can begin the process of getting your credit score where it should be. Remember, there is no overnight fix. A patient and persistent effort will bring about the best results.
Crunch Time
We all have been there when the car breaks down or the home air conditioning unit fails to cool us off. When the savings account is low and you do not have enough room on the credit cards to pay for these unfortunate circumstances, panic can override rational thinking.
If you have great, good, fair, or bad credit it’s still possible to apply for and receive a personal loan. There are many companies that can help you, and personalloan.co is an option.
Research your options. Use careful thought and consideration before accepting the terms of a lender, as this will ensure you have made the right decision long-term.
Building Blocks for the Future
How to best protect what you have worked so hard to accomplish is imperative for long-term financial security. Remember that fear you experienced early on as the rebuilding process began, and use that as motivation to “stay the course”.
The Financial Literacy and Education Commission suggests 5 guiding principles to managing and growing your money:
- Earn. This principle is centered on knowing the fine details of your paycheck, ensuring that you know where every dollar is going
- Save and Invest. The key to being prepared is to start saving now, regardless how little you may be able to set aside
- Protect. Do you have adequate insurance coverages in the unfortunate case that it will be needed?
- Spend. Ensuring you are getting the best deal possible, especially on large purchases, is worth the time and effort
- Borrow. Now is the time to establish a great credit history, so pay those bills on time
Rebuild Your Finances
How those of us who end up in a tough credit situation got there is important to understand, as these mistakes can be the guiding force towards a life lived with better financial decisions. Ultimately, it may be that you fell victim to sets of unfortunate luck.
Regardless, the actions necessary to repair and rebuild your credit score remain simple, but not easy.
Start off with where you stand with a copy of your credit report from each of the 3 nationwide credit reporting companies. If any errors exist, follow the simple aforementioned 2-step process as provided by the Federal Trade Commission to report and correct these mistakes.
When we are in “that spot”, and an urgent need arises for cash, it can seem almost impossible to receive some financial assistance. Thankfully, lenders are aplenty who offer personal loans to people whose credit ranges from great to poor.
Finally, once your credit is on its way to being rebuilt, ensure that you follow the guiding principles to better manage, grow, and protect the money you have worked so hard to earn.
Hopefully, this article has provided you with some of the basics that can build a solid foundation towards a credit rebuild and a financially secure future.
