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101 Powerful Tips for
Legally
Improving Your Credit Score
Credit Repair and Your
Emotions
It is a subject that few
people discuss, but more and more therapists are talking about
it - the key link between our emotions and our money. We may
think that money is all about our rational selves, but in fact
our emotions are often very much invested in our pocket books.
If we want to repair our
credit, we have to deal with the emotional as well as the
numerical side of money. There are a few tips that financial
experts now believe can help you harness your emotions in a way
that can actually help you improve your credit score:
Tip #94: Give Yourself a
Break
There is no point in beating
yourself up over your credit score - whatever it is. Instead,
promise yourself that you will do better in the future and then
work to repair your credit rather than working on berating
yourself. Taking action to improve your credit rating will
improve your outlook as well as your credit.
Tip #95: Don’t make
excuses
If you have been the object
of identity theft or have genuinely been mistreated by a
company, then by all means include an explanatory note in your
credit report. However, most lenders do not want to hear a lot
of excuses. Whatever your problems have been in the past, you
will seem like a much more reliable lender if you focus on what
you are doing to get out of problems.
You will feel better and get
better responses from lenders if your focus on current action
rather than past mistakes. Instead of wallowing in pity and
explaining in great detail the personal and financial problems
that led to a bad credit rating, give yourself and lenders the
condensed version and then move on to a detailed review of what
you are doing to repair your credit.
Tip #96: Give Yourself a
Treat - without affecting your credit rating
Reestablishing good credit
is hard work and daunting as well. Once in a while, as you
reach a milestone, you need to reward yourself. You should do
this through some means that do not involve debt or money. If
you repay your credit card bill, there is no sense in running up
that bill again on a shopping trip.
Instead, you should list
some inexpensive and fun treats you could give yourself. Keep
this list wherever you keep your financial file. As you reach a
big milestone, take out your list and immediately reward
yourself with one of the items on the list. This will not only
keep you motivated, but it will inexpensively keep you from
feeling too deprived while you work on your credit score.
Tip #97: Work on your
emotional response to debt and money
Most of us carry a lot of
emotional baggage with us when it comes to money. We see money
as a marker of success, or we see money as a way of making
ourselves feel better, and these attitudes lead us to much of
our financial and credit problems. If we rely on money to make
us feel successful, then we are apt to overspend. If we fear
money - or the lack of it - we are unlikely to save it or make
investments with it.
We need to be aware of the
ways we respond to money and the ways that those responses shape
the ways we deal with money. Some financial experts recommend
that clients keep money journals, in which they record their
money hopes, their money fears, and their responses to spending
and money. A money journal can help you by showing you how
feel about spending and about money. If you can isolate the
emotions that influence how you spend money and how you make
your money decisions, you will be well on your way towards
fixing your financial problems.
Tip #98: Don’t mix debt
with emotion and stay aware of your emotions
It pays to separate your
feelings of worth and your emotions from your finances,
especially when you are trying to repair your credit. Feeling
self-pity, shame, fear, or sadness as you try to repair your
credit score won’t help you. Staying calm and professional as
you deal with credit bureaus and financial professionals will
help you. If you need to, keep telling yourself that your credit
score is just an important number. Keep it separate from
yourself and your emotional state as far as possible.
Bad credit can be
emotionally trying, and boosting your credit can be daunting and
difficult as well. It is important that you keep track of your
emotions during the process. If you find yourself dwelling on
your credit too much or if you find yourself severely depressed,
seek help at once. A credit problem is a fixable solution - do
not let it become an emotional disaster for
you.
Tip #99: Get help if you
need it
Do not be afraid to ask for
help - financial or emotional - if you need it. There are a
number of wonderful organizations that can help you if a problem
is causing your credit problems. If you have credit problems
due to compulsive overspending, for example, Overspenders
Anonymous can be a great help.
If you suffer from a
gambling problem, there are a number of charitable organizations
that can help you overcome the addiction. If you have
accumulated debt as a result of these sorts of specific
problems, you will not really be able to fix your credit rating
unless you deal with the problems behind the bad credit. Many
good groups and therapists out there can help you.
Find a recommendation for a
good one from your family doctor or a trusted friend or family
member. You will be glad that you did.
>>>
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