A Kindergartener’s Guide to Credit Repair

Depending on your childhood, elementary school was either a wonderful experience or an assault on your miniature psyche. Either way, you likely retained some fundamental information about all the major subjects from your teachers. Lucky for you, some of those age-old lessons are just as applicable in your adult life. Follow your kindergarten teacher’s rules on the path to credit repair.

  • “Follow the rules.” Every consumer’s credit is graded on a scale of 300 to 850. There are five factors that determine your score: payment history, credit utilization, credit length, new credit and diversification. Learning the specifics or “rules” of these factors will help you understand how to raise your grade to an A+ standard. 

    • “Do your homework.” Motivation is key when it comes to maintaining good credit. That said, how will you know where you stand without doing some homework? Be sure to order free copies of your credit report each year from the major credit bureaus—Experian, TransUnion and Equifax—to ensure that your information is up-to-date and accurate. Failure to do your homework could result in a lower credit score. Don’t allow complacency to stand between you and the grade you deserve. 

      • “Eyes on your own paper.” Many types of credit damage result from overspending and failure to budget. Envying your best friend’s new car or recent raise could lead to bad decisions. Do yourself a favor and stick to your own goals. Comparing yourself to others will only end in damage.

        • “Challenge yourself.” Sure, you’re meeting the necessary goals of credit repair, but are you satisfied with adequate effort? Challenging yourself with a new credit repair goal is a perfect way to sharpen your skills and achieve creditworthiness at a faster pace. Whether it’s learning to create an effective budget, save for retirement or reduce your debt, there’s always something to strive for. Don’t rest on your laurels; challenge yourself to do more. 

        • “Learning is important.” You may have rolled your eyes in grade school, but you should understand the significance of this statement by now. Life is easier when education plays a role, especially in an area that defines your quality of life. A desire for knowledge is imperative. Better yourself by collecting new information on a weekly basis. Allow yourself to grow as your credit improves.

        • “Do your best.” This was the bottom line in every school environment, and the sentiment still rings true today. You don’t have to be perfect to seek better credit. Do your best and your life will improve. Every step counts.