When it comes to freeing up extra money each month, unless you are trying your hand at class action rebates to earn extra money, otherwise it’s your money expenses that need to improve. Getting the best interest rates on the market will greatly lower monthly payments on mortgages, loans, and credit card interest that you’re paying towards when trying to pay off the balance. Instead of focusing on losing weight this year, how about you get on top of your finances and improve your credit score.
Check Your Credit Report
If you are like most who don’t view their score or report you just assume you have excellent credit, so when you’re given a poor interest rate or are turned down altogether, it can be quite a shock. Since you are offered a free copy of your credit report from any of the major bureaus once a year, it’s worth reviewing in its entirety to make sure that all accounts are accurate and up to date. Just keep in mind that it can take a month or two for balances to catch up, and your score will not be visible, of which you can look on your monthly credit card statement and see your score.
Continue a Pattern of On-Time Payment
One of the largest portions of your credit score is payment history, of which making sure your payments are not more than thirty days late, otherwise will hit as a blemish on your credit report. The problem that is even if it was a mistake to go that long, it can still take up to seven years to come off. While missing even a day won’t affect your credit score, you can still be hit with a late payment or an interest rate increase, so it’s a good idea to schedule your payments to come out earlier than the due date.
Pay Down (Off) Debt
The other large piece of your credit score is the overall credit utilization, which is the balance versus the available credit, so that the closer you approach your overall credit limit the less your score will be, so it’s a good idea to keep those as far apart as possible, making sure you are paying off debt not only for your credit score, but so you will not continue to waste money away on interest. When you do get a card down to zero balance, still keep the account open, as closing will reduce that available credit and could affect your score, so just cut up the card if you don’t want to use it but keep the account open.
Minimize Credit Applications
Each time a lender pulls your credit report (they will ask for your consent) your score will be lowered a few points, and not that is terrible, but too many could cost you the best interest rates out there, so be sure that you are really serious about proceeding if you are offered good teams. A refinance, debt consolidation loan, or a credit card that has rewards is worth checking out.
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