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In February of last year, our lives were turned upside down when my husband lost his job after fifteen years of service.
Almost two years prior, we had sold our home, packed up our lives, and moved our family across the country for this company. We were almost out of debt and had started the home search in Colorado. We were just starting to make friends and loved the school district.
And now this.
After months of applying for jobs with no answer, and the severance money dwindling away to nothing, we started using our credit cards again to live on.
How Job Loss Affects Your Credit Score
Your credit score is based on five key areas:
- payment history (whether or not you pay on time)
- level of debt (how much debt you are walking around with)
- the age of credit history (how long your credit accounts have been open)
- types of credit accounts (credit cards, student loans, car loans, mortgage, etc.)
- inquiries to your credit report (how many times businesses have inquired about your credit score).
As you can see, it’s not the job loss that affects your credit score. It’s what happens after you lose your job.
Late payments. Credit cards with an increasing balance on their way to being maxed out. Little to no money coming in to help offset the money going out. Inquiries to your credit score as you apply for loans to help pay the bills you’re behind on.
While a late payment from a creditor seems harmless, it can have long-standing consequences, staying on your credit report for at least seven years.
A season of job loss is stressful. You do what you have to do to survive knowing that one day you’ll see light at the end of the tunnel.
It doesn’t end there though.
When that new job finally comes and you find yourself on the other side, it’s time to start the process of repairing your credit after a job loss. Then the process of rebuilding your credit can begin.
The Hard Work of Repairing Your Credit
I wish I could tell you it’s easy. I would love to tell you that once you have a job, everything will turn itself around and you’ll be golden. You’ll be able to buy the car, the house, get the loan.
I wish I could, but that’s not the reality of repairing credit after a job loss.
Once you’re on the other side of a job loss, you’ll have to put in the hard work to repair your credit. Repairing your credit will take time. You have the right to good credit and the law is on your side to help you fix mistakes. It won’t be easy, but it can be done.
That’s where we are.
We are working towards repairing our credit. Slowly but surely, each month our level of debt goes down. Paying off debt is a marathon, not a sprint. Although I wish it was. I know that the financial decisions we are making will pay off in the long run.
Running without a goal is HARD. While the goals of paying off debt and increasing my credit score are good, I need tangible goals.
So what is my goal?
Increasing our credit scores so we can position ourselves to get a better mortgage rate for our house. A place for our family to thrive. A yard for the kids to play, run around in, where they can plant pollinator gardens.
Not just any house.
The floor plan and neighborhood have already been decided. So has the Lot. If not that Lot, it won’t be that neighboorhood.
We have a specific, tangible goal for our family.
But we can’t do this on our own.
Hope For Those Who Want to Repair Their Credit Score
There is hope.
There are people who can help you reach your financial goals and dreams even after job loss as you try and rebuild your credit.
The credit repair industry has grown tenfold in recent years. This has created a lot of misinformation regarding what to fix and how in regards to rebuilding credit.
The professionals at Lexington Law Services are there to help. Educating you about what errors there might be and how to fix them.
Lexington Law Services believes that every person has the right to a fair, accurate, and substantiated credit report. They help their clients navigate the credit repair process by harnessing the power of knowledge and law to fight for their clients’ right to good credit.
Who is Lexington Law
Lexington Law Services is the oldest and most respected name in the credit repair industry.
They are the only team in the industry with the legal experience and technology to both advocate and drive results for their customers. Their team of lawyers has transformed the credit repair market by bringing their credit repair knowledge and expertise to the everyday consumer with packages starting at $24.95 per month.
Lexington Law has long-standing relationships with Equifax, Experian, and Transunion. These relationships, coupled with their deep expertise in knowing how to get errors removed, enables their team to communicate more efficiently for the benefit of their clients. They give their clients a foundation of trust and offers them peace of mind knowing legal experts are going to fight for their rights when it comes to repairing their credit.
If you have found yourself in a season of unemployment and are trying to repair your credit after a job loss, know that you are not alone. Many people have walked this same path.
There is hope. The team at Lexington Law Services would love to help you reach your credit goals.