Even with many years of experience in the financial field, I still found it intimidating to deal with the issue of repairing my own credit. After being on the verge of entrusting the process to credit repair professionals, I decided to take some initiative and learn about the credit scoring systems on my own. Here are three reasons I thought it was worth repairing your own credit
Reason number 1) Repairing your own credit is an educational investment
One of the best investments you can make during your lifetime is in your own education. Educating yourself around the use and management of credit is supremely important. Credit usage permeates every segment of our lives, from student loans to personal loans, and from auto loans to mortgages. And yet, many school/college curriculums do not cover this issue or households for that matter. Investing time and energy in this endeavor will not only save you money, it will help you make wiser credit choices in the future. It will also pay dividends as you become more knowledgeable about the credit game.
Reason number 2) Repairing your own credit helps you avoid future mistakes
Not only is educating oneself empowering, but acquire new knowledge and practices which when applied can help prevent costly and repeated mistakes. The simplest way to break old negative habits is to formulate new positive ones. The beauty of learning new habits, is knowing that you would be less likely to recycle past errors. Stop going in circles. Take the time to understand the credit process and particularly how you can employ new positive practices to help rebuild your credit and credit score.
Reason number 3) Repairing your own credit can be financially rewarding
For families whom are be impacted by less than good credit, the financial cost to their households can be significant. For example, over the life of a 30-year mortgage, the cost can be tens of thousands more, versus borrowers with higher scores. Having bad credit can also cost you a great career opportunity or time and resources with credit repair services. That said, whether it’s applying for a job or not knowing how the usage of credit can be leveraged to build wealth, learning about credit affords you the opportunity to become better stewards of your financial life. Ultimately, we’re talking about taking back control of your financial life with respect to your credit. This intangible asset and proper understanding of its usage is a financial difference maker which can help you build a financial legacy if not greater levels of self-sufficiency.