10 Ways to Get Your Finances in Order Before You Move
Moving can be stressful, especially when you’re dealing with financial troubles. Fortunately, you can start your new life off on the right foot with these simple tips:
1. Get Current
If you’re behind on credit accounts or bills, start paying on time, and get rid of overdue debts. It’s fine if you can’t bring all of your accounts current right away. Start by paying off the smallest delinquencies and go from there.
2. Clear Up Bad History
Were you delinquent in the past? If you’ve been working on fixing your credit since then by paying on time, your creditor might be willing to help you out. Try sending a good faith letter asking to remove old negative entries from your report.
3. Close Accounts
Managing multiple lending or credit card accounts is hard. Figure out which ones you use for essential items most, and close the others to make your situation easier to control.
4. Prove Your Worth
Landlords may be more willing to accept you with bad credit when you show that you’re improving. Provide documents like your checking and savings account statements, tax returns and other information without being asked.
5. Make Better Purchases
Smart spending is all about picking investments that pay off. For instance, do you really need a new outfit or video game when you could spend the money on a home improvement project or home security system? If you’re moving from a place that you own or lease, these kinds of purchases might even make it easier to sell.
6. Get Your Full Credit Report
Each year, you’re entitled to one free copy of your credit report from all three of the major reporting agencies. Take advantage of this by getting a report from each. Space out the reports so that you can track your score and deal with issues as they arise.
7. Clear Up Errors
Your credit report isn’t always accurate. Errors like incorrectly reported overdue payments can really hurt your score, so investigate each item in detail. If you find mistakes, you have a right to file disputes.
8. Know Which Accounts to Close
Closing credit card accounts won’t always help your score. Paying off loans and other debts, on the other hand, can lead to big jumps. Of course, you may want to close some accounts just to avoid temptation, but be smart about which ones you eliminate.
9. Seek Help
Free counseling services might help you identify effective credit repair tricks. Your lenders may also offer hardship relief programs that let you lower your payments, so investigate all of your options.
10. Plan Your Move Wisely
Applying for a mortgage can lower your score for up to a year. If you’re moving, make a detailed budget ahead of time to ensure that you don’t need to seek lending in the middle of the move.
Credit repair takes time, and moving shouldn’t be rushed either. There are plenty of ways to get your credit situation and life back in order, so check out some of these offers.