One part of my 3-step plan is definitely on track; and I dare say complete! I’ve finally increased my credit score to a whopping 758 and that’s put me in the ‘Excellent’ category. Of course, I should probably slow down and back track a bit since this is really just my Transunion score.
If I look back at the beginning of last year, my score was a pitiful 581. Yikes! I was not at all considered a good credit risk. Luckily, many of my negative items from yesteryear dropped off (with some help by me filling out forms and disputing old items) and my payment history began to kick in. Almost 20 months later, my score reflects my diligence of keeping my bills paid on time and reducing my debt.
I think I can cross this step off my list and now focus on my other two goals: pay down the remainder of my debt and save for a house. I really like to think in 3’s, so adding retirement savings is now coming to the front and center of my goals for this year.
- Pay down debt: total to date $21,843 (including a line of credit from a few years ago: $3,500, car loan: $8,000, and student loan: $10,000 -rounded amounts)
- Save for down payment on a house: Goal $25,000 (over 3 years or $700 a month approx.)
- Put 5-8% away for retirement: Realistically I think I’ll be able to start with 5% and work my way up to 8% once my line of credit is paid to $0 and the car loan is paid down a bit more.
Obviously, I still need to work on paying down my debt. However, I’m close to paying off the line of credit and am shooting for having it paid in full by July or August of 2011. I’d like to pay down the car loan a little more, then tackle the student loan debt last. The student loan interest rate is low, so once I get all of my other debt paid off, I can begin focusing on these loans and get it paid down faster.
Have you pulled your score lately? Are you making progress toward your annual goals?