Understanding Credit – Part 2: The 7 Year Rule

Jul 22, 2022 | Blog

In my first blog, Understanding Credit Part 1, I will give you the terms you need to know that are related to credit. Additionally, I will educate you about what creditors look for when they determine what your credit score should be. Click on the link to learn more: https://www.thefinanciallady.com/understanding-credit-part-1/.

In this blog, I want to give you a better understanding of the seven-year rule.  Specifically, you may have been told that after seven years, any debt you have accumulated will fall off your credit report.  Fortunately, I can confirm this rule is accurate.  Before the days of me caring about my credit and what happened to it, I waited seven years to see if it would automatically come off.

Even though the seven-year rule is true, do you really want to wait seven years to get your financial life in order? At the end of the day, you owe the money.  Therefore, you should create a plan to pay the debt off.

My dad used to tell me not to take short cuts to fix my problems. Specifically, he educated me into always taking responsibility and making it right!

Based on my experience, the minute you decide to do what is right, the more likely things in your life will change for the better.   Specifically, when I am helping my clients, I help them face their fears and insecurities when it comes to their money issues.

Unfortunately, most of my clients feel like I am going to judge them for the mistakes they have made.  However, I always tell them about how I have made some of the same mistakes they have made.  Just as how I got help fixing my financial life, I believe I should do the same for others!

Take the following steps to get your credit healthy and at a 700:

  1. Get a free copy of your credit report by visiting: https://www.annualcreditreport.com/index.action.  Knowing what is on your credit will help you get closer to accomplishing your goals
  2. Download the Experian app so you can monitor your credit and get tips on how to increase your score: https://www.experian.com/consumer-products/experian-app.html
  3. Download, print, and write down all your debt. Click the link to get a FREE copy of the Debt Elimination worksheet: https://www.thefinanciallady.com/wp-content/uploads/Dept-Elimination-Worksheet.pdf
  4. Get HELP! Get the support you need to help you achieve your goals. Doing it on your own is not enough.  Click on the link to schedule a time to meet with me: https://calendly.com/bridgett-thefinanciallady.

Be aware, be informed!

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