Cleaning Up Credit

    Regardless of whether you plan to buy or sell real estate in 2015, resolving to clean up your financial situation is a great step in the right direction for all of us to take in order to accomplish our goals.

    Of course, if you are going to be purchasing a home in the near future – watching your spending habits and squaring away any financial issues that you might have is an absolute MUST.

    Many people are far from financial freedom, but moving towards fiscal responsibility is critical to making life easier and it allows for a simpler mortgage process if and when we choose to buy a home.

    In a recent blog on Trulia, the author came up with “5 Credit Habits to Break in 2015.” I would like to share these with you because they can help us all become more cognizant of what our financial situation is and can help us attain future goals.

    The five credit habits to break were:

    1. Not checking credit reports.  Credit reports are the report cards of our financial health.  These reports show lenders how safe or how risky we are for a loan.  Checking credit reports occasionally allow us to see if we are in good standing, if we need to make changes and if there are any mistakes that need to be cleared up.

    2. Running up or maxing out credit cards. Having credit cards can be a great asset to one’s financial portfolio.  However, carrying huge balances on credit cards is a disadvantage and will be seen as a problem to lenders looking at your credit history.

    3. Paying only the minimum balances due on credit card/store accounts.  Again, having credit cards can be very beneficial, but the downside is that many people get stuck in a pool of debt that they never seem to be able to get out of.  Paying only the minimum will never actually pay off the balance, it will only pay the interest due.

    4. Applying for credit indiscriminately.  Having too many credit accounts is problematic because it allows for the possibility of running up huge debt, which lenders will see as a drawback.

    5. Making late payments on accounts.  Most creditors charge for a late payment, which ultimately means you are paying more for the debt you’ve accrued, therefore, making it more difficult to pay off the balance.

    Don’t let your financial situation get away from you.  Make it a priority to be aware of where you stand with creditors and what is needed to get you in tip-top shape.  Your goals depend on it!

    If you or someone you know is interested in buying or selling real estate in the Austin area, please contact Kathleen Bucher at 512.794.6644 or KathleenBucher@mac.com.  It would be an honor to earn your business!

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