As a millennial today, we do not understand how much your credit score matters. First of all, becoming an adult you are often careless about your credit score. As young adults, we are more excited to have the ability to do things on our own; like being able to buy a phone and having the opportunity to open an account on your own.
Today the way this generation is heading, obtaining a perfect credit score is a must. Not only are we seeking change within our lifestyles, we are seeking change within ourselves. Purchasing a car and investing in property all need an instant credit check.
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Ultimately there is real unpaid debt. From medical bills, student loans, credit card inquiries, and missed payments.
Here are a few steps to take towards building your credit:
- slowly pay off all the smaller debt first
- Larger collections should have a payment system, Invest in finding a payment that works for you
- Payments can be as little as $5.00
- Go to your bank and ask for a credit card to help rebuild your credit, you must keep a small balance and continue to pay that remaining balance
- Setting up auto pay not only saves you from forgetting to pay a bill, it also reduces your bill each month.
- Start investing
- Budget yourself
- Place your student loans on deferment
- Ask for a waiver
- Inquiries hit the hardest
- Make sure your collections are correct
Not only will these tips help transition your credit score, it’ll teach you how to budget efficiently. Focusing on your payment history is not only important, it is the one thing targets loans and credit card companies. In fact, when a payment cannot be made it is best to recommend the company of the shortage and the possibility of being able to make a payment.