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Building Your Credit Score Doesn’t Happen Overnight
Building your credit score is tough work! The earlier you start, the easier it is. And there’s no day like the present, right? Sharing some tips on how to build your credit score, credit errors that might be impacting your score, how I built my credit score and all about Lexington Law Firm and the credit repair industry.
Because both Austin and I have made cautious efforts to build our credit scores, we were able to close on a home in May 2018! But building your credit score doesn’t happen overnight.
Why Do You Need A Good Credit Score?
Every year millions of Americans are denied loans to purchase homes and vehicles because of a poor credit score. It takes upwards of four months for people to turn their score around to get approved.
A good credit score will help you with quite a few things in your adult life. Loans are a necessary part of life for most of us, and a good credit score can dramatically effect the loan process. If you are trying to buy a house or a car, or start your own business, you’ll probably have to apply for a loan. The better your credit score, the lower your interest rates. It will also be easier to get approved for what you need.
We started house hunting in spring 2018. One of the first steps we took as to get pre-approved for a loan. This process helped us get an idea for what we ballpark our budget should be in. Of course we also took into account many other budgeting steps along the way, but this was a big factor for us. Having healthy credit scores helped us secure a low interest rate on the mortgage we eventually took out to purchase our first home.
If you’re thinking “Casey, slow down. I’m not making any big purchases right now, this doesn’t matter to me.” you’re wrong. When you apply to live in a new apartment building, get a new cell phone plan or set up utilities, they can check your credit. Your history also matters. The sooner you can turn start building your credit score, the better your overall credit history is. Start building your credit score today.
Tips to Building Your Credit Score
There are lots of ways to build your credit score. A few key things to keep in mind include always paying your bills on time and not spending more than you can afford on your credit card. It’s so easy to find yourself in credit card debt, so make a cautious effort to not overspend to fit in. Of course loans are inevitable, but make sure you can pay your monthly payment on time each month… if not more than your payment. The sooner you can pay off a car, house and student loan, the better.
Factors That Can Negatively Impact Your Credit Score
Late payments might not seem like a big deal, but they can have long-standing consequences. Each time you’re late, it adds up. Some instances these late payments will stay on your credit report for seven years. A few things that affect your credit score and you might not realize it include overdue library books, requesting a credit limit increase and closing credit cards. A few more obvious include amount of debt, unpaid medical or utility bills, student loans and not paying your taxes.
How I Built My Credit Score
At a young age, my parents helped me to start building up my credit score. My first credit card was strictly for emergency purchases. I wasn’t just handed over the card as a teenager, I had to learn how to properly use it. My parents taught me how to pay off my card every month and not spend more than I could afford. I treated it like a debit card. Before making a purchase I had to check my journal where I tracked my babysitting income. Did I have enough to pay my card? I learned to make smart choice at a young age and believe that is why I have been able to remain credit card debt-free (I have had debt through student loans and now I own a home which we took out a loan for).
When I went to school I took out student loans in my name and began making payments while still in school. Although the loans also hurt my score because I was in debt, they also were a way to build my score by paying off the loans in a timely manner.
Once I was able to live off campus, I put utility bills in my name. By paying monthly bills, I was able to work on a healthy credit score at a young age. I have never (knock on wood) made a late payment.
Some of this might not seem like a big deal, but everything accumulated to helping me build my credit score at a young age. If it weren’t for our strong credit scores, we might not have been able to have purchased our first home in Richardson in May 2018.
The Credit Repair Industry
The credit repair industry has grown dramatically over the years. There are dozens of claims for tricks to quickly build your credit score. Many clients aren’t educated on what is fact vs fiction. Lexington Law Firm is a company that believes everyone has a right to an accurate, fair and substantiated credit report. They help clients navigate the credit repair process withe their knowledge of the industry and the laws. They will fight for their clients’ rights to good credit.
There are many laws in favor of clients who are building their credit score, including The Fair Credit Reporting Act (FCRA), Fair Credit Billing Act (FCBA), Fair Debt Collections Practices Act (FDCPA), The Servicemembers Civil Relief Act (SCRA), The Truth in Lending Act (TILA) and Health Insurance Portability and Accountability Act (HIPAA).
Who Is Lexington Law Firm
Great question, glad you asked! Lexington Law Firm is one of the oldest and most respected businesses in the credit repair industry with legal experience and technology to both advocate and drive results for consumers. They have long-standing relationships with the three credit bureaus: Experian, Equifax and TransUnion, which is a huge benefit to their clients. The relationships they have built paired with the deep expertise in knowing how getting errors removed works, helps the Lexington Law Firm team efficiently communicate with their clients and achieve credit repair goals. Packages to work with Lexington Law Firm start at $24.95 per month, depending on the level of services a client chooses.
If you have any questions, or want to set up a free consultation with Lexington Law Firm, you can reach out to them at: 1-866-713-1930.