Many single mothers face the challenging task of being the sole provider for their family. You may also have a hard time paying bills on time and maintaining your cars and appliances. You can also be recovering from a divorce or in debt.
Most of you might need credit at some point or the other. You might need it for a car loan, for mortgage, for home. Even while you apply for a job, a good credit history is required. If you are burdened with debt, then it’s important to learn few tips to build your credit for a secure future. It might sound daunting, but it’s all about research and hard work. Below are the few most effective credit repair tips for single moms:
1. Review your credit reports
It’s essential to grab a copy of your credit report and review all the details mentioned there. You should focus on finding out the reasons why your credit score is significantly low. You also should figure out if there is any incorrect information in the report. If you find errors, you should immediately report it to the credit bureaus. This will help you in discarding such errors while also raising your score.
2. Know where you stand financially
You must be aware of the amount of debt you owe to your creditors. This is the most important thing if you really want to repair your credit. It’s crucial to note down the creditors name and debts against them. You’ll then get a fair idea of how much debt you owe in total.
3. Create a budget
You need to calculate your total monthly expenses, excluding the luxurious spendings, of course. You must be having a monthly income and child support coming every month. You need to calculate the amount that you are left with after your basic expenditures and chose where you want it to go. You need to be sure you’ve extra money left for emergencies as well as to pay off your debts.
4. Use credit card when you can pay the bills in full
Most of you have credit cards, and tempt to use it for buying items you love, but which are not necessary. This is how we manage to acquire debt, which is actually a poor sign for your credit score. Instead, you can select one necessary item to buy from your credit card on a regular basis. Each time you buy it, swipe the card for it and pay the billing amount in full before the due date. By following this strategy, you’ll establish a perfect borrowing and repayment pattern that will reflect on your credit reports. As time passes, this number will only rise.
5. Keep low balance in your credit card
It is one of the top credit repair tips single moms need. While you try to fix your credit score, you have to be sure that your credit cards carry balances that are thirty percent or below of the limits. This will have a good impact on your credit report and this can definitely help in raising your score.
6. Stay balanced
While you built credit, you need to be aware of the responsibilities that tag along with it. You need to be careful of making further payments on time and your balances are just right. You should make it a routine of checking your bank statements atleast once a week. Take out time for it.
Being a single mom and managing house, work and kids can be chaotic and very difficult at the same time. Ultimately, organizing is the key to success. A lady is capable of doing everything once she is headstrong. If you need help to create a budget for yourself, you can contact a credit counseling agency in your locality. Over time, your credit score will start looking better and better.