Don’t sabotage your credit score! Make a budget and stick to it

Man using a computer and holding up a past due bill.

Creating a monthly budget can provide a realistic outlook of how well you can reach any financial obligation. (Photo: Thinkstock)

Your credit score is affected by many factors, including missed bill payments. In fact, missed payments can hurt you more than other bad financial moves. To prevent late bill payments, plan how you will spend your money carefully by creating a personal budget.

Protect your credit score

Your credit score follows you wherever you go. It is consulted for information about what type of a credit risk you are and helps lenders decide if they should give you a loan and what interest rate you qualify for. Keeping your credit score healthy should be a key concern as you plan how you can pay bills each month and meet your financial obligations.

Pay your bills on time with a simple budget

Lenders want to see that you pay your bills and that you pay them on time. To avoid coming up short of money when bills are due, make a budget.

Use an excel spreadsheet, computer budget software or just a piece of paper. Make several columns with the first listing the name of each bill. The next columns should list the due dates and amounts owed. Break each set of bills up according to paydays. Group the ones due on or before the next payday and total them up and make sure that total is less than what you’re earning on that payday. Remember that any money left over after the bills are paid may need to be applied to larger bills due later in the month, such as mortgage and tax payments. Completing a budget that includes all the bills and paychecks you earn will quickly show how well you can meet all your bill payments each and every month.

Don’t miss payments — how a payday loan can help

If situations arise that aren’t built into my budget, I know that not paying those bills is a bad decision. Maintaining my good credit is vital to my financial health, so during times of need, I have used a payday loan from an online payday loan company to help pay bills on time. I have found the application to be fast, simple and completely secure. I’ve had up to $1,500 deposited into my account in just hours of applying. I didn’t have to fax anything, my credit was not checked and the payday loan was not reported to the credit bureaus. My credit score was not affected and since I chose to pay back the loan using a short term installment loan, I was able to stretch out the effect it had on my budget. A payday loan allowed me to pay bills on time and stick to my budget.

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