Smart Budgeting – The Key to Success

Smart budgeting, along with disciplined spending, is the key to improving your credit rating.   Most people don’t get themselves into a bad place credit-wise in one day.  Saving and spending, whether smartly or not, is a habit and a lifestyle, and a credit history is meant to demonstrate just that:  your history in this area.

We’re here to tell you that you can climb out of a negative rating.  Maybe not in a few days, and maybe not in a few months, but people do it every year.  The key is outlining a budget that will leave room for all of your expenses and payments, and then sticking to it for the long run.

Creating a monthly budget might not sound like fun, but it’s an absolute MUST.  And you’ll be surprised how much better you’ll feel when with your credit-improvement plan neatly outlined.

To start, we recommend this quick article from Carmen Wong Ulrich of CNBC’s On the Money, where she breaks down monthly costs on a percentage basis:  How to Budget Your Money.  She suggests 18% for transportation, so this is a good place to start when deciding how much to spend on a new car, and what size loan to apply for.  We’ve included her pie chart of monthly expenditures on of the page.

When putting together the specific dollar amounts in your budget, spreadsheets are really the way to go.  We recommend this free monthly budget spreadsheet from Vertex42, and a wealth of others are available via an easy google search.  A lot of people post theirs on the refrigerator, and that sounds like a pretty good idea.

Getting a car loan is actually a very good way to start improving your credit, as it will give you something “to prove” your good credit to banks and lending institutions.  Check out our article on this subject:  A Bad Credit Car Loan Can Improve your Credit.

When you are ready to compare interest rates and apply for your loan, venture over to our secure quote form.  We’ll recommend the best lender in your area given your credit rating, as well as some alternatives:  Click to apply for a car loan, bad credit ok.