Credit 101: The importance of how student loans can help your credit

Thank you Lexington Law Firm for sponsoring this post. A high service partner and consumer advocate that will help you fight for the credit you deserve!

Have you thought about your credit?

For all the mid-late generation of Millennials, (as I know most of you are!) The ones that grew up during the age of the internet, new careers have come about, and some have even become electronic – and yet we get scrutinized for being lazy Millennials. That’s why topics like credit and student loans are what I’ll be sharing about today.

Things have become different when it comes to school and what you do once you’re done! Growing up, you are taught to graduate, get a car, buy a house, get married, have a family, etc. But what about when you have massive student debt and other responsibilities? What if you went the non-conventional way and had a child first? A lot of the pre and early Millennials graduated, started their careers, bought houses, and had kids. Whereas much of my generation hasn’t. We started our life before finishing school.

Officially becoming a college graduate in March 2018 was the highlight of my year. Then the student loans started rolling in. That’s an extra bill you aren’t really expecting (even though you know it’s coming). Before having A, I worked two jobs and felt like I was so busy. Then he was born and I literally had no time. 

After struggling financially and giving birth to my son, I still wanted to finish school. I was 3/4 of the way finished, but it’s hard to find affordable childcare. I decided to become a stay at home mom once he got to nursery school age. That’s when I realized I would be one who finished their degree later than the normal 21-22 years old.

Paying off your loans while having a home or other bills can feel impossible, but paying them off slowly can increase your credit score in the long run. Starting a new career can also mean making less money than what you have originally been making. That’s why I’m excited to talk about Lexington Law Firm, the trusted leaders in credit repair, and bring you some useful tips. They believe you have a right to a fair, accurate, and substantiated credit report. Here are some of my favorite tips for managing debt:

• Pay The Minimum On Your Student Loans: Sometimes, you are still that broke college student for the first 3-5 years after graduating. Especially when you have kids, life gets in the way, as do other bills. By paying the minimum, you are still making on-time payments. This can help boost your credit score. Over the last three years, my credit score has boosted 48 points just for paying the minimum on time.
• Check your credit score: Nowadays, a lot of banks offer free credit checks and scores. Getting your FICO® Score is important. They use a proprietary algorithm that takes into account one’s credit files across the three main credit bureaus Equifax, Experian, and TransUnion to calculate one’s lending risk. Lexington Law Firm has long-standing relationships with all three of those credit bureaus, and they know how to get errors removed from your history! 
• While you are in school, pay a small amount: One thing I didn’t do, but I wish I had done, is to pay a small number of my loans each month while still in school. Even paying $25 per month can lower your balance. That adds up to $300 per year!
• Apply for income-based payments: Apply for income-based payments: Oftentimes, you can qualify for $0 payments. That means you can make payments or not make payments without being penalized.
• Start a side hustle: Before blogging fulltime, I worked and blogged. I used the extra money I earned from my blog towards my student loans. I also have separate ways I earn income to solely use towards my loans.
• Seek Professional Advice: As I mentioned before, Lexington Law Firm is there to help their clients fight for their right to good credit! My favorite feature is that they have a cutting-edge app that allows you to easily access their services from your phone. They put real-time solutions in the hands of their customers. Lexington Law Firm offers packages that meets everyone’s budget. They start at $24.95 per month.
• Create a side hustle: It’s hard to work 1 job than 2-3 when you have kids. So it just makes it work. Before blogging fulltime I worked and blogged. The extra money I earned from my blog I use to pay towards my student loans. I also use separate ways I earn income to soley use towards my loans.

These are great ways to start paying your student loans without going broke.

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