How exactly do you get your finances where you want them? Everyone’s situations and goals are a little bit different, but these two financial health to-dos are a great place to start.

 

1. Check up on your credit report

When was the last time you reviewed your credit report? A good credit score makes you eligible for lower interest rates, saving you money in the long run and reducing financial stress. A lower credit score typically means you’ll have to pay higher interest on a loan or could lead to denial of credit. Remember, credit is not the only way to measure financial health, but it is an important factor. There are many free resources such as AnnualCreditReport.com where you can pull a free credit report once a year.

 

What to look for

• Check your name, social security number and contact information
• Make sure all the accounts and credit inquiries on your report are truly yours
• Look to see if the payment histories, balances and account status are all correct
• If you find mistakes, file a correction with the credit reporting agency on their website

2. Make a plan

One of the most important steps toward strong credit and financial health is to make sure you pay your bills on time. A spending plan can help you stay on track.
 

• Add up all your income sources to find out how much money you have each month
• Write down all your bills and expenses
• Prioritize to decide what is non-negotiable
• Plan for how much money you will devote to your bills, living expenses and savings

By setting your spending plan in advance, it’s easier to manage your money to meet your goals. Commit to your spending plan and do your best to stick with it and you will most definitely see results and your financial future will be brighter.

Not sure where to get started? A great step towards financial health is finding out where you stand and where you might focus. Our financial health quiz takes 2-minutes and can help you answer those questions. Credit Human is here to help support you on your path to financial health –stop by your neighborhood Financial Health Center. We can help you determine the best way to start towards your goals whether it be building credit, paying down debt or working on a spending plan.

 

Interested in learning more?

• Webinar on 5 Tips to Improve your Credit Score: Watch a webinar by our partners at GreenPath that focuses specifically on the five factors on which a credit score is calculated, and provides practical advice you can use to make the most out of your credit score.

• Ways to Improve Credit: Check out our previous post which includes some additional information on options to consider to help your credit and manage debt obligations 

• How to Map Out Your Spending Habits: Check out our previous post which includes some additional information with  strategies on navigating your finances with a spending plan.