Thank you to Lexington Law for sponsoring this post. All opinions are my own. 

I can vividly remember being about 20 years old and realizing my credit was terrible. I had no idea really about basic things I know now. I didn’t realize credit cards needed to be paid in full monthly. I didn’t realize that paying ONLY the minimum was bad. I didn’t realize maxing a credit cards was bad. Basically I was not raised being taught much financial responsibility. No shade to my parents, but they just basically paid for stuff and I didn’t think about it. I had credit cards and the bills went to my dad. I was pretty financially inept. Today I want to share what you need to know about credit, what it is, why you need it, and what can impact it!

What You Need To Know About Credit (And How To Fix It)

• What is credit: Credit is essentially your financial power. This power can be used in good ways and in bad ways. Your credit score impacts interest rates and abilities to get loans for school, a mortgage, cars, and credit cards. It shows how well you keep your promises to pay later. For example if you have a great credit score that shows banks and financial institutions that you pay bills on time, pay them in full, and don’t abuse your financial power. A bad credit score shows that you abuse the power and don’t keep your promises. A credit score can range from 300-850.
• Why do you need credit: If you ever plan on buying a house, leasing or buying a car, having a credit cards, or needing to take out a school loan or personal loan you need credit and you need GOOD credit! Basically we live in a credit driven society. Most people don’t have cash readily available to pay for a house, or a car out right. That’s where credit comes in.
  
• How to build your credit: The best and easiest way to build credit is to have a credit card that you use for expenses and pay off each month. I have one for personal purchases and one for business. I use them for everything from food, manicures, gas, groceries, clothes, etc. Every month I pay the balance. So I am building good credit while also showing potential creditors that I am responsible by paying them off each month. Other ways to build credit: When I was in high school I was an authorized user of my dads credit card which he paid off each month. I have had car loans which I pay each month, student loans, which I pay each month, and of course our mortgage. All of these things contribute and build up credit. Paying your bills on time, not utilizing too much of your revolving credit, and not continually opening new accounts also help your credit score stay up.
• What to do if you have bad credit or no credit: If you find yourself in a situation where your credit has taken a major hit (I mentioned above that this happened to me in my very early 20’s) you can reach out to Lexington Law. I only wish I knew about Lexington Law then. Lexington Law is a law firm that focuses on credit repair. They will sit down with you and go through everything on your credit and things you may not have realized were impacting your credit. They will find the ways to help you repair your credit and do a lot of the leg work for you. Such as contacting financial institutions, having things removed from your credit report that are damaging it. One late payment on your credit report can ding you up to 110 points! That’s MAJOR! That can be a huge headache if you are trying to get a student loan, or a mortgage. Lexington Law can help you remove things that are inaccurate or unverified. This is not an overnight process but they will work with you until your credit is back up to where it needs to be and help guide you on the right path. If you think this is something you need (spoiler alert: we all do) you can have a free 1-on-1 consultation with Lexington Law RIGHT NOW! I know that in the future if I ever find myself in a situation where something is hurting my credit I will be using Lexington Law. Keep in mind that this is going to vary by individual and you can’t expect results overnight. 

Check out Lexington Law’s website for TONS of helpful information, hints, and ideas all about your credit and how to fix, repair, build, etc.

Don’t make the mistakes I made in my early 20’s and remember you don’t have to be in this alone. Lexington Law is here to help you get out of any bad credit dilemma you may find yourself in.