Repairing Your Credit 

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Repairing your credit might sound overwhelming, but it’s easier than you think. Credit scores aren’t set in stone, they’re like a report card you can improve over time. Whether you’re trying to buy your first rental property or just want better loan options, taking steps to repair your credit today can open doors tomorrow.

Example: Sarah had a score of 580 and kept getting stuck with high loan rates. After paying down a few small debts and disputing an error on her report, her score jumped to 640 in just a few months. That small change saved her thousands on her next loan.

The first step? Check your credit report. Look for mistakes, missed payments, or old debts you can pay off or negotiate. Even small wins, like reducing a credit card balance, can make a big difference.

Credit repair isn’t magic, but with focus and consistency, you can make real progress. Start small, stay steady, and watch how it changes your financial future. 

Contact Us Today! 

Do you need more information on repairing your credit? Contact us today to learn some tips that can help you level up quickly and easily! 

Free Tools For You! 

We also have free tools available! Accelerate Debt Payments Calculator to see which debt option is best for you! 

Learn more!

Visit our YouTube channel to learn more about using debt instead of letting debt use you! 

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The Impact of Having a Good Credit Score

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Today we are discussing the impact of having a good credit score. Credit scores are like a report card in school. Take a moment to consider whether or not you are getting good grades. Remember, in the lending world, banks and lenders use these scores figure out if they can trust you with a loan. Therefore, a good credit score means you’ve done well handling debt in the past. As a result, you will have better loan options, lower interest rates, and greater financial flexibility. However those with lower scores are at risk of being denied or having higher interest rates. Are you struggling with a low score? No worries! It just means there’s room to improve! Simple habits like paying off small debts, using credit wisely, and keeping balances low can make a big difference. Some people even see big jumps in just a few months.

Contact Us Today! 

Do you need to boost score? Contact us today to learn more about the impact of having a good credit score.

Free Tools For You! 

We also have free tools available! Accelerate Debt Payments Calculator to see which debt option is best for you! 

Learn more!

Visit our YouTube channel to learn more about using debt instead of letting debt use you! 

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What Credit Score Do You Need for a HELOC?

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Today we are going to discuss what credit score you need for a HELOC. To clarify, getting a Home Equity Line of Credit (HELOC) can help you tap into your home’s value. But what credit score do you need? Let’s break it down!

Understanding HELOC

A HELOC is like a credit card. However, instead of borrowing from a bank, you borrow against your home’s equity. You can use this money for repairs, investments, or anything else.

The Credit Score Sweet Spot

Good Credit Score

  • Score Range: 700+
  • Why It’s Good: Lenders see you as low risk.
  • Benefits: Lower interest rates and better terms.

Fair Credit Score

  • Score Range: 640-699
  • Why It’s Okay: You’re still eligible, but terms might not be as good.
  • Benefits: You can still get a HELOC, but interest rates may be higher.

Poor Credit Score

  • Score Range: Below 640
  • Why It’s Hard: Lenders see you as high risk.
  • Options: It’s tough, but not impossible. You may need to improve your score first.

Tips to Boost Your Credit Score

  1. Pay Bills on Time: Consistency is key.
  2. Reduce Debt: Keep your credit card balances low.
  3. Check Your Credit Report: Look for mistakes and fix them.
  4. Avoid New Debt: Don’t open new credit lines if you don’t need to.

Other HELOC Requirements

Besides credit scores, lenders look at other things:

  • Home Equity: How much is your home worth compared to your mortgage?
  • Income: Do you have a steady income?
  • Debt-to-Income Ratio: How much debt do you have compared to your income?

Why Your Credit Score Matters

A good credit score shows lenders that you’re reliable. It can make the process of getting a HELOC smoother and cheaper.

Conclusion

Getting a HELOC depends on more than just your credit score, however, having a good score helps. Remember to keep an eye on your credit and make improvements where you can. In doing so, you’ll be in a better position to get the HELOC you need.

Contact Us Today!

Do you need help navigating your financial future? Contact us today!

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How a HELOC Works

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Today we are going to discuss how a HELOC works. First and foremost, a Home Equity Line of Credit (HELOC) is like having a credit card tied to your house. Let’s break it down!

First, What is a HELOC?

To say it another way, a HELOC is a loan where your home acts as the collateral. Therefore, you borrow money against the equity you have built in your home.

Second, How Does It Work?

  1. Equity Check: First, you need equity in your home. To clarify, equity is the difference between what your home is worth and what you owe on your mortgage.
  2. Apply for a HELOC: You apply for a HELOC with a lender. They not only look at your home’s value, but your mortgage balance, and your credit score as well.
  3. Get Approved: Once approved, you get a credit limit. However, this is the maximum amount you can borrow.
  4. Draw Period: More importantly, you can borrow from your HELOC during the draw period, usually 5-10 years. During this time you only pay interest on what you borrow.
  5. Repayment Period: After the draw period, you enter the repayment period, usually 10-20 years. You pay back what you borrowed plus interest.

Third, Why Use a HELOC?

  • Flexibility: Borrow what you need, when you need it.
  • Lower Interest Rates: HELOCs often have lower interest rates than credit cards.
  • Tax Benefits: Interest may be tax-deductible.

Finally, Things to Remember

  • Variable Interest Rates: HELOCs usually have variable rates, which means they can go up or down.
  • Fees: There can be fees for setting up a HELOC, annual fees, and closing costs.
  • Risk: If you can’t pay back the HELOC, you risk losing your home.

HELOC vs. Home Equity Loan

  • HELOC: Works like a credit card with a limit you can borrow against.
  • Home Equity Loan: You get a lump sum of money and repay it over a fixed term.

Example

Imagine you have a home worth $200,000 and owe $100,000 on your mortgage. Your equity is $100,000. A lender might offer you a HELOC with a limit of $80,000. You can borrow against this limit as needed, pay it back, and borrow again.

Final Thoughts

A HELOC can be a great tool for homeowners needing extra funds. It offers both flexibility and lower rates, however, it’s important to understand the risks. Always read the fine print and consider talking to a financial advisor.

Contact Us Today!

Do you need help navigating your financial future? Contact us today!

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90 Day Challenge: Do What You Love

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Today, we’re kicking off our 90-Day Challenge!

What is the 90-Day Challenge? Simply put, it’s when we pick an activity we love to do and stick with it for 30, 60, or 90 days.

The key is choosing an activity that’s fun, fast, and CHEAP. Reading, hiking, swimming, biking, writing—it can be just about anything as long as it doesn’t cost too much.

By focusing on activities we enjoy, we stay focused and busy—which leads to spending less on random things out of sheer boredom. Boredom is one of the main reasons we hop online and shop, or go out for expensive meals, or find other ways to spend our hard-earned cash on things we don’t really need.

Give yourself a specific (and fun) purpose this coming month, and you’ll quickly (and easily) break free of bad financial habits!

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