If a poor credit score is getting in the way of what you want to achieve, be aware that there are organizations out there ready to help. You can get a better handle on your score (and your money) by working with the right financial institutions, building good financial habits and conquering your debt.
Check Your Fees
If bank statements fall into your junk mail pile, open them up and review the fees you’re paying. For-profit banks have shareholders to answer to and maybe making money every time you use the ATM or get below a particular deposit amount. You can keep more money in your account by banking at a credit union. Joining a credit union is easy.
Get A Handle on Interest
If you’re spending a lot of money on interest payments for your credit cards or payday loans, open an account at a credit union. Many credit unions have programs to help you save interest, and if you need a loan to cover a high-interest debt, you will certainly pay less interest on a credit union loan than one from a card or payday lender.
Watch Your Borrowing Limit
One of the activities that can seriously impact your credit score is to top out the borrowing limit or utilization ratio on your cards. If you choose to roll over credit card debt to reduce the interest rate,
- don’t max out the new card. Try to stay under 50% of available credit
- keep the old card at a zero balance
- pay down the new debt.
Have More Money At The End Of The Month
There are many ways to save money, but one of the simplest is to make good use of everything you currently have access to and then put the money you save to work for you. Remember, you don’t have to personally own something to get great value from it.
1) Get a library card. You can borrow videos, books, and music CD’s. Some libraries lend out wall art, so you can figure out your tastes and preferences. You may even start picking out colors for the house you want to buy when your credit is good!
2) Shopping is a terrible hobby. Take a walk in the park instead of strolling through the mall. Study a blog to learn to cook instead of shopping online.
3) Use your gym membership and watch TV there instead of at home so you can reduce your cable package. Double bonus of fitness and frugality!
4) If you can read, you can cook. Eating out may be leading you into debt (and overeating.)
With the money you save, you can build an emergency fund.
Build An Emergency Fund
Even if you’re trying not to use your credit cards, things happen and you need some extra cash to deal with a crisis. This is where an emergency fund can be a lifesaver. In fact, you may want to set up your emergency fund at a different credit union so it’s harder to get to the money.
You Can Do This!
You are not in this alone, professionals at Eastex Credit Union are happy to help you improve your finances, build a great credit score and handle your money successfully. Contact us to learn just how easy it is to become a member today.
