Money Moves to make before you fix your credit

When I started my personal finance journey (for the fourth time), I had no idea what I was doing. I just knew I was tired of living paycheck to paycheck, over drafting my account, borrowing money, and maxing out my credit cards.

I didn’t know where to start, but I knew I wanted to repair my credit. My low credit score has negatively impacted my entire life. Having a low credit score held me back from getting an apartment, getting approved for a loan and getting a high paying job.

After “googling” about credit repair and asking questions to the personal finance community on Instagram, I got a few tips that helped me start my credit repair journey.

I made a few mistakes, but I learned a lot along the way.

The main thing I learned is there are steps that need to happen before you repair your credit. Having a high credit score is not more important than being prepared for an emergency or being able to meet your basic needs.

Here is a list of money moves that you should take…

Before you fix your credit

Assess your spending

You need a clear understanding of how much you’re currently spending to decide what you can comfortably afford to spend on credit repair. Use the spending tracker to take a realistic look at your current spending patterns. When you get a clear picture of your spending habits, you can develop a budget for how you will spend your money and repair your credit.

Invest in your future

After you assess your spending, make necessary adjustments to pay yourself. Having good credit is important but it is not more important than preparing for your future. Invest in your job’s 401k/ 403b, open an IRA or explore other investment options. Start small and realistic. Make adjustments as you become educated in investing.

Review your credit report

They say “knowing is half the battle”. Knowing exactly what’s on each of your credit reports is really half the battle. Get your credits reports and use the credit report review checklist to review each report.

Save $1000

Having a stash of at least $1,000 is an absolute must. Follow these steps to save your first $1,000.