When you get married at an early age there are a lot of things you have to learn and learn fast, for us the importance of having great credit was and still is one of them!
From moving to your very own apartment to buying a car, to buying your first home, good credit will make all those transactions very smooth.
In my experience, my first relationship with credit was not the best. As a young adult, I took out my first credit card from one of my favorite clothing stores and started buying.
In my head, there was one equation and this was it.
Income + Knowledge = Good Credit
Income: having the funds to begin with.
Knowledge: know my numbers. How much I owed, interest, and most importantly, due dates.
I knew the equation and thankfully had the money to pay it and made sure to make my monthly payments, yet I failed at one of them.
Little did I know the store had decided to change the payment due date and I never received the letter, hence I was paying late every single month, which meant that after 6 months of making payments I had not advanced at all! I had paid a total of $30 to the account.
Here is the breakdown: I was paying $30/month with a late fee of $27 and $3 dollars went to the balance. Yup, you read right, and I did that for 6 months guys!
When Lester and I started exploring the idea of getting our first home and checked our credit, this little mistake popped up faster than you could imagine. Thankfully we had the time and had started exploring our options early and we were able to take care of the card and pay it off. When applying for our first home it still appeared, but my credit had improved so it didn’t hold us back.
The truth is that this happens to many of us in our lives as adults. Whether it’s student debt or just regular everyday debt, this happens more than we would like to admit. Especially after a year like the one, we all had, but I’m here to tell you about a program that I wished I had known about when we had our “little” problem: Lexington Law. Lexington Law is a company that helps people like you and me, and here is how it works:
They get an analysis of your credit report, dispute unfair charges, make those stressful calls for you and mentor you to improve your overall score and credit plan all in hopes to help you succeed.
In our case, we learned our lesson and from then on, we focused on growing our credit wisely.
-We only use credit for big items, like our home and our cars, and always make sure we know the full equation.
-We don’t have multiple credit cards and try our best to live within or below our means.
-We pay our debt as soon as we can, making 2-5x the payment amount.
For us, this has worked amazingly and it has helped us make great purchases and maintain our high score!
Just this month we made a big purchase, and I’m happy to say that as soon as the dealer saw our credit, we got exactly what we wanted and were blessed a little more on top, and we hope to maintain this as we look for our forever home in the years to come!
Here are some ways you can take control of your credit and expand your options/goals.
- Know your numbers. Your income, bills, and debt.
- Write this all down and create a budget that works for you.
- Don’t pay the minimum on your bills. Always pay a little extra if possible.
- Don’t have more credit cards than necessary. Don’t base your budget or life on a credit card. Only use your card if extremely necessary.
- Do whatever you can to fix your credit. Contact Lexington Law to get more information and help!