Make 2016 the Year of Good Credit

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Coming out of the holidays, many of us are aware of the pending debt we have from overspending on holiday gifts. So if it’s time to look at new vehicles, the looming credit issue might have you thinking twice. But there may be more to consider when you are thinking about purchasing a new Ford vehicle. Here are some ways to re-examine your finances to make 2016 the year of good credit!

Building Credit

Understanding what’s behind your credit score can be a great way to help you on your journey to good credit. Learn the contributing factors behind your score, and how to check your credit report along the way. And of course the old age quote, it takes credit to get credit, stands true. Apply for a credit card and use it for essentials, but pay it off each month. It will help you earn credit and paying it off will influence your score positively.

Bankruptcy Recovery

If you’ve experienced bankruptcy recently, you’re not alone. More than 1.5 million Americans file for bankruptcy every year. Typically a bankruptcy will remain on your credit report for around 7 to 10 years, but it doesn’t have to be a life sentence, you can get past it.

First off, start going forward on a positive note; set a monthly budget and stick to it. Keep a closer eye on your spending and make sure to pay your bills before they are due.

Next, report any errors that might appear on your credit report. Ensure that the records on your TransUnion, Equifax and Experian are correct and that the reports show your pre-bankruptcy debts as “Included in BK.”

Finally, it’s time to build your credit again. When you feel ready, apply for a home loan or secured credit card to get back on your feet.

Pay Down Debt

Get started on eliminating your debt by getting your payments in order. Come up with a schedule depending on when your bills are due and make sure you pay on time. Committing yourself and holding yourself accountable can go a long way. If you have the option to do a balance transfer to 0% APR, it can be a good way to save yourself the interest fees while you work on paying down the debt.

Lastly, if you can add an additional means of income by doing side projects or work, go for it! Being able to put more towards your debt is a great way to chip away at it faster.

It’s never too late to better your credit. We hope these tips are helpful for you as you put a new foot forward this year!