Credit Repair Before Babies: Why It’s Important

Spring is in the air! So if you happen to be among those who are planning to start a family sooner than later, the time for credit repair is now. Your creditworthiness is essential to providing a growing family with the security it needs, regardless of your savings account or job security. So, why engage credit repair now?

• Babies cost money. A lot of money. At least $250,000 by age 18, some experts say. While your costs may vary, there’s no denying that adding an addition to your family can be financially taxing from the beginning. Doctor visits, food, clothing, shelter, and childcare are a few basic needs that don’t materialize for free. If your budget is already tight, expect to lose your savings to the impending Baby Project rather quickly. This leaves little room to pay down debt and improve your credit score.

• Families need options. Good credit opens doors, and bad credit shuts them. Consider the following scenario:

Your spouse was recently recruited for a new well-paying position in another state. You are both ecstatic since more money will likely afford a better life. You travel to your new city to look at real estate, but, unfortunately, your bad credit rating eliminates competitive interest rates, so you end up renting a high-priced apartment in the suburbs instead.

Bad credit usually guarantees less options and higher costs, so why not mitigate the problem now? Consider your family’s goals and overall life plan. Can your current credit score help you achieve those goals? If not, it’s time to take a detour to credit repair.

• Their future depends on it. Do you have high hopes for your little Mini-Me? Ivy League schools? Extracurricular activities? Big opportunities often require big investments, ones you cannot provide without adequate planning. Why not work on your credit repair today in order to invest in your children’s futures tomorrow? Handling credit issues now may afford less trouble later and allow you to focus on the important things when it counts.

• Your future depends on it. Planning for a family is exciting, and it’s not uncommon to develop tunnel vision along the way. Look beyond your focus of the moment and consider the big picture. Even if you are able to afford baby costs, a larger home, childcare, etc., what about retirement? You will need an average of 80 percent of your income to cover each post-workforce year. Investing as little as $300 a month could put you on the right track. The next time you lament a tight budget and lack of savings, consider what credit repair can do for you. A higher score may save you thousands, allowing you to enjoy the Golden Years without fear or stress.

Starting a family is a wonderful thing, but don’t let excitement cloud your good judgment. Delve into credit repair as your first act of parenthood. Enjoying your children will be much easier in the long run.