A Credit Repair Guide for Fresh Graduates

Here’s an excellent guide you can use to gradually pay off your student loans and to build an excellent credit profile.

 

Step 1: Determine how much you owe.

Contact your lender and request for information regarding your outstanding debt, as well as the rate of interest imposed on your credit account. Then, figure out a way by which you can gradually pay it off, especially if you have recently landed in a good-paying job. Always remember that keeping up with your monthly loan repayments can have a positive effect in your credit history. In fact, such responsible payment habits will not just help jump-start your credit profile, but they can also assist you in maintaining a solid credit profile.

A gentle reminder though. Make sure that your debt repayment plan is in-sync with your personal budget. That way, you can submit on-time and complete payments to your creditors, without compromising your personal expenses as well as your other financial obligations, for the month.

Step 2: Manage your existing lines of credit responsibly.

Aside from your student loan, do you possess other credit accounts, like a secured or an unsecured credit card? If you do then, you should see to it that you won’t incur a huge debt on it. That way, you can avoid making matters even worse for you, especially in terms of your personal finances. How can you do this?

First and foremost, you should resolve to submit complete and prudent payments to your card issuer. Make sure that you will never max out your existing line of credit. And use the additional features of your card, such as the cash advance and balance transfer facility with caution. In so doing, you can avoid incurring pesky fees and charges. At the same time, you can safeguard, not just your credit history, but also your financial prospects.

Step 3: Trim down your budget.

Revisit your personal budget plan and try to consider whether or not you really need the items listed in it. Go over each product and service and assess if you can live without it. If you think you can then, it would be best to cut it down from your financial plan. By doing so, you can have more funds you can eventually allocate for paying off your student loan or your credit card charges, or for depositing to your personal savings account.

Step 4: Use tools that will help you manage your personal finances

For instance, have you heard of automatic payment? With this arrangement, you will authorize the employees of your bank to withdraw funds from your savings or checking account that they can use for settling your monthly financial obligations. By signing up for such service, for sure, you won’t have to worry about skipping or missing out on your credit payments, anymore.

You can also purchase or download budgeting software. After all, such computer programs can help you make the most out of your monthly income. In fact, some come with personal reminder systems that will help you remember when a bill or a financial obligation is due.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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