Setting Credit and Fico Goals
It is important to be able to take charge of your credit. I want to go over a few ideas on how to do that. Remember that having good credit means that you are able to take advantage of good opportunities. I want to give you some ideas on how to take advantage of these opportunities and to be able to use the power of credit to your advantage.
One of the conveniences of having good credit is being able to borrow when it suits your needs without paying outrageous interest rates. When you have good credit you are able to take advantage of worthwhile lending offers. I’m sure you have heard tons of ads from various stores offering you deals such as same as cash and no money down offers. For the most part these offers only apply to people with a great credit history.
This is when financial goals come into play. Your financial goals should serve as a guide to you and keep you on course. You have to have clear objectives when it comes to how you want to spend and save your money, you risk falling off course and into bad credit if you don’t have clear targets. No matter how big or small your goals are they will help you keep your eye on the finish line. These goals will be your guide. Make sure your list of goals that include short and long term. They can be anything from buying a new appliance in the near future to purchasing a home or starting a business in the far off future.
A budget is a very important part of this plan too. Make sure to see your budget in a positive light. Think of it as a tool that will empower you to reach your bigger goals, instead of a barrier. It is not meant to restrict you, just to keep you on course. Always remember that the purpose of the budget is to get you to arrive at your goal.
When setting your budget make sure and start with knowing of how much income you have to work with, and then designate it as necessary for living expenses. If you have debt, set aside part of your income to get rid of that debt just as quickly as you can.
Another very important part of your budget that’s just as important as your expenses and debt commitment is your savings plan. Be sure you assign money to your own savings plans. You should have two parts to this savings plan. First part is an emergency fund (in case of job loss or illness). The second part is for your goals (your kids, your retirement). Make saving as automatic as possible, the money can come right out of your paycheck. Use payroll deduction as an easy way to do this too. Getting started is the hardest part, but once you make it automatic you won’t have to even think about it.