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Most people today realize that a good credit score is the best way to grab the attention of banks and other lenders. It makes it easier to get approved for mortgages and car loans and it can also help you with employment opportunities. Employers can use credit scores and other information as a basis to determine the reliability and trustworthiness of workers that may have access to sensitive information. In some cases, having a high credit score can mean the different in getting approved for an apartment and being denied access to it. On the other end of the spectrum, low scores are usually met with deep reservations from lenders. If loans are approved at all, they will have high fees, higher interest rates, shorter payment terms, and other stipulations. It is important to guard your credit score and do all that you can to keep it high. That can be difficult during hard economic times, and even harder if your current situation is less than desirable for finances such as being a single mom. Fortunately there are several smart financial moves that you can take if you find yourself in this or a similar situation where your credit may be a little rocky. The Emergency Fund Saving away for unforeseen emergencies can be hard as a couple and even harder when you are a single mom. Still, it is important that you try to divert what funds you can into savings. Even just taking a little from your paycheck, spousal support, government aid, or even child support and putting it into a savings account can help you get at least a small cushion built up. If you receive a larger lump sum, whether from divorce hearings or other income sources, be sure to put what you can into savings. Many people, when they get a large amount of money handed to them, tend to go on spending splurges and quickly run through the money. Whenever you get a large sum of money, you should put it into an account or savings as soon as possible so you can begin saving it before you decide run out and buy a new car, new wardrobe, or other ‘wants’ that may be on your wish list or your child’s wish list. It may be difficult to say no to those wants but remember that planning for your child’s future is what matters the most and this is the best way to do that. Create a Budget Creating a budget is not enough; you have to be willing to work to stick to it. Knowing what you have each month to spend after bills and other obligations are taken care of can help you know what you can and cannot afford. With a budget in hand, you can help keep your debt under control by not making purchases you cannot afford to pay off. When your children get mad when you say no to their request for a new toy, being able to tell then you can’t because it is not in the budget is a better response than the dreaded “because I said so” response kids hate to hear. It will also help teach your kids good spending habits now, which will help make things easier as they grow up. Pay Yourself Even if you do not have much money, it's important to save what you can. There are unforeseen emergencies to cover and also long-term goals to strive for, such as college tuition or retirement. The best way to make sure that you save for these important items is to add this in the "necessary" column rather than the “want” column of your budget. An automatic transfer to a savings account, 401K plan, or similar savings is a great example of how to set this up. Make a Will Even more than when you were married, now that you are single and have children; you really need to have an up-to-date will. This is important because it can be the key to your finances if something were to happen to you. It is where you can ensure your children are taken care of and your money goes to them and not to the bank or anyone else. It is a vital step to ensuring the safety and security of your credit, your money, and your children’s future. Order a Credit Check Checking your credit score is important for everyone, regardless of their situation. As a single mom, it is more important than ever to stay on top of your credit scores so that no one can access your hard earned money and sully your good name by stealing your identity. Most people today realize that a good credit score is the best way to gain positive attention from lenders. So protect your scores and check them often. Amy Johnson is an active blogger who is fond of writing articles on credit monitoring and educating people to monitor their monthly credit report to prevent you to be a victim of credit fraud. Follow her on Twitter to know more on credit management for a single mother.
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