Credit resolutions
Trying to improve your finances? Not sure where to start? Whether your goals involve credit clean-up, refinancing, or saving, you can make this year a personal best for your credit. Read on for TrueCredit's top credit targets: Set Goals:
- Check your credit reports every three months: The first step to robust credit health is to know which bad financial habits, such as late payments, are present in your credit report. Regular check-ups will also help you guard against identity theft.
- Know your score: A credit score above 700 will help qualify you for most credit and loan terms. The higher your score, the better the interest rates available to you.
- Create a monthly spending plan and stick to it: This simple commitment can help you start a savings plan and will keep you from building up unmanageable debt.
Clean Up Your Records:
- Dispute negative inaccuracies on your credit report: Don't let your credit standing suffer because of inaccurate information.
- Remove expired debts and collection accounts: Most negative records expire from your credit report after 7-10 years. These accounts have a significant negative effect on your credit rating, so make sure they are removed from your report at the right time.
- Consider Refinancing: See if refinancing your home or car could save you money. Would it make sense to refinance your mortgage? Investigate your options with a lender.
Plan Ahead:
- Start putting money into a savings account each month: No matter how much available credit you have, it can't beat cash in the bank. Setting aside a fixed amount each month will guarantee interest-free funds in the case of emergency while helping you develop financial discipline.
- Contribute to your 401(k): See if your company offers matching funds and try to add the maximum amount allowable for your budget.
- Guard against identity theft: To guard against this increasingly prevalent crime, sign up for a credit monitoring service that will quickly alert you to any changes in your report.
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