It is a subject that few people discuss, but more and more therapists are talking about it – the key link between our emotions and our money. We may think that money is all about our rational selves, but in fact our emotions are often very much invested in our pocket books.
If we want to repair our credit, we have to deal with the emotional as well as the numerical side of money. There are a few tips that financial experts now believe can help you harness your emotions in a way that can actually help you improve your credit score:
Give Yourself a Break
There is no point in beating yourself up over your credit score – whatever it is. Instead, promise yourself that you will do better in the future and then work to repair your credit rather than working on berating yourself. Taking action to improve your credit rating will improve your outlook as well as your credit.
Don’t make excuses
If you have been the object of identity theft or have genuinely been mistreated by a company, then by all means include an explanatory note in your credit report. However, most lenders do not want to hear a lot of excuses. Whatever your problems have been in the past, you will seem like a much more reliable lender if you focus on what you are doing to get out of problems.
You will feel better and get better responses from lenders if your focus on current action rather than past mistakes. Instead of wallowing in pity and explaining in great detail the personal and financial problems that led to a bad credit rating, give yourself and lenders the condensed version and then move on to a detailed review of what you are doing to repair your credit.
Work on your emotional response to debt and money
Most of us carry a lot of emotional baggage with us when it comes to money. We see money as a marker of success, or we see money as a way of making ourselves feel better, and these attitudes lead us to much of our financial and credit problems. If we rely on money to make us feel successful, then we are apt to overspend. If we fear money – or the lack of it – we are unlikely to save it or make investments with it.
We need to be aware of the ways we respond to money and the ways that those responses shape the ways we deal with money. Some financial experts recommend that clients keep money journals, in which they record their money hopes, their money fears, and their responses to spending and money. A money journal can help you by showing you how feel about spending and about money. If you can isolate the emotions that influence how you spend money and how you make your money decisions, you will be well on your way towards fixing your financial problems.
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Credit Clean Up: Dispute Incorrect Information from your Credit Report
When you are working to clean up your credit the job can seem overwhelming and too much to handle. To make it easier there are a few simple ways to go about the process that when used together form the best results and more peaceful you.
One of the steps to the process of credit clean up is to inspect each of your credit reports and dispute any incorrect information you find. This is vital to not only maintaining good credit, but is also important when cleaning up your bad credit and preventing and catching identity theft. Ideally, you should purchase your credit reports once a year and go over them with a fine tooth comb and dispute anything you find to be incorrect.
There are three major credit reporting agencies Experian, Equifax and TransUnion. They all have a web site with ordering instructions on how to pay for and download or print your credit report. There are also sites that offer all three of the reports at once and other services as well. Be careful when considering these sites as they can be a little shady and want you to join as a member to receive their services or special prices. It’s best to stick with ordering and printing your reports straight from the source.
Once you have your credit reports take a few minutes to print each one and staple them together to keep them from getting mixed up. While, you will be going through them separately, you will want to compare the information between them as well to check for discrepancies. Once you have everything in order, find a comfortable place you can concentrate with a highlighter and a pen to mark things of question you find.
Generally, the credit report is separated into different categories starting with your personal information, residential information and employment information. Though the focus of a credit report is one the accounts, you need to look through these areas to check for name, address and employment errors because these could be a sign of identity theft. Next, move on to the accounts, collections, judgments and other sections you need to look for accounts that you have paid that are not marked as paid. Incorrect balances, accounts and other information. Not only do you need to mark the items you feel are incorrect, but then you will need to go through your financial records to find receipts and other levels of proof to show the information is incorrect. This is your burden to prove the information on the reports are not correct and you may need to contact the companies the accounts are through to try and find out their side of it too, in order to get the information changed to reflect the right information.
At the end of all credit reports is the dispute information and procedures that each credit reporting agency uses. Make sure to following them down to the exact letter in order to keep your claim from getting thrown out. The creditors have a time frame to look over the dispute and have up to ninety days to make the change and then the credit reporting agency can make the change or take action for you. It does take some time to get wrong information corrected, but the time is well worth it and you could be saving your self money and interest rates in the future.
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