Even with two committed partners contributing to the household, running a home and maintaining a steady financial base is a challenging endeavor. As a parent, it can be overwhelming and, often times a burden. The responsibilities that accompany motherhood go beyond finances and into time management as well. However, all are manageable if you’re making good financial decisions. The key to a strong financial foundation is your credit.
Easing the strain of parenthood is a necessity. Exhibiting financial savvy is critical, especially in times of such economic uncertainty. For parent, it is important to avoid debt as much as possible. If loans and credit cards become necessary, you must maintain a good credit score. It is imperative you know the status of your credit, and the ways to improve your score.
For anyone with bad credit, attaining a home loan or credit card becomes increasingly difficult. Bad credit leads to only having high interest rate options, which only further hinders your ability to repay a debt. The best way to avoid the hassle of high interest rates is to stay on top of your bills and their scheduled payments. Even if you’re not trying to get a home loan, a poor credit score can affect the rental properties you can consider. Often landlords deem bad credit as a sign of an inability to make monthly payments and financial irresponsibility. This fact also applies to future employment.
Always paying your loans and credit card bills on time is the most basic way to ensure your credit score’s vitality. Credit agencies favor consumers who are consistently punctual with their payments over an extended period of time. Keeping up with payments on a monthly basis is crucial in the process of maintaining a strong credit score. With the unpredictable nature of being a parent, a sound financial platform serves as a safety net for you and your children. The best way to ensure such a platform is having good credit.
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While establishing good credit is important, do yourself a favor and eliminate the unnecessary credit cards. Keep only one or two of the cards you’ve had the longest. Store cards, for starters, should be closed first as they only add to your bill-paying responsibilities and increase the likelihood of missing a payment. Remember: the less debt, the better.
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Pauline M says
This is great, but keep in mind that formally closing your revolving credit can reduce your credit score, however, practicality dictates that only a few cards are a much more manageable endeavor.