credittips1. Track your account balances and spending

Keeping better track of  your expenses can allow you to make better buying choices, understand the amount of money you’ve got at any certain time, and identify regions where you did not realize you are overspending.  Additionally, as shown lately, even if you are super careful and diligent in safeguarding your private information, occasionally companies who you’ve given your info to can get hacked. But do not despair– routinely watching your account balances and spending transactions are able to keep you educated and help prevent significant credit tragedies from happening. –by taking preemptive actions now, you might be in a position to prevent financial catastrophes in the near future

2. Don’t max out those credit cards

If you have a habit of maxing out your credit cards, STOP!  It tells lenders you are distressed for credit and so are not as likely to want to pay your debts back. This could have a negative impact on your score, so try and hold your bank card utilization rate between 1 and 20%.

3. Start using an old credit card again

Were you aware that when your card is inactive for long periods of time, the card company might discontinue reporting it to the credit agencies? This may have a negative impact on your credit utilization rate, so even though your very first credit card likely has an unreasonably high APR with no benefit motivators, try to make a few small purchases with it each month (and paying it off each month, needless to say) to make sure it stays active.

4. Review your credit file for mistakes

Mistakes and errors in your reports may be damaging to your credit, as credit scores are computed based off of what’s listed in your credit history. If you haven’t done this yet, pull your credit reports from all 3 bureaus and dispute any mistakes to make sure your credit score precisely signifies your creditworthiness.

5. Set up the same credit card due dates

If you are having problem managing several credit cards and it is negatively influencing your ability to keep on time payments, which we know is super important, try calling the credit card company direct. In most instances they will be happy to change your monthly due date in order to synchronize your cards and minimize your odds of forgetting to send a payment.

6. Stop paying the minimum payment on your credit cards

Paying off more in relation to the minimum (or even better, paying in full) can save you thousands of dollars in interest as well as save you a bundle of future tension and head ache. As a hypothetical instance, in the event that you have a $2,000 current balance on a credit card with 15% APR today and just paid $40 every month, it’d take over 6.5 years to pay it away and could run you another $1,158 in interest (based on prevailing rates). Therefore, next time you are tempted to cover the lowest amount possible, contemplate your interest rate and reconsider that which you pay monthly.

7. Diversify your credit portfolio

If you’re doing everything you can to try and boost your credit score without success, and you’re wanting to open up a new credit account?  Consider diversifying your credit portfolio by applying for loans that aren’t credit cards.  Some lenders want to see that you are able to manage several different types of credit lines and multiple accounts simultaneously.  This mix of account variety could help.

8. Save!

If you are already saving for emergencies and retirement, wonderful job! Keep up the great work, and if it’s possible to do so, save even more this year. If you do not have anything saved up, now’s the ideal time to start a new, healthy saving habit. To push yourself to save, when you get a pay check, pay yourself first. This includes getting a fixed sum of cash or percent of your earnings and placing it directly into a savings account to work with for emergencies. Shortly, you will fix your financial plan to live on the somewhat smaller quantity of money while building up a good crisis pillow or retirement account. Trust me, your future self will thank you.

9. Build a strategy to pay down your debt

Being a prisoner to debt is no fun, which explains why we have written widely concerning the subject. Yet, there is an abundance of tools that can help you get rid of that debt once and for all. Develop a monthly strategy to pay down your debt, targeting the loans with the highest interest rates first.  Consider working with a professional financial planner or debt management provider, who can analyze the levels of your debt and put together a plan to pay off what you owe.  The key is to start working on it now.  Putting it off will only mean you’re paying more interest and getting further in the hole.

10. Track your score

If you aren’t tracking your credit score and monitoring your credit, then you’re just asking for trouble? We can not underscore the significance of tracking your credit rating enough. We see countless examples of how individuals who routinely monitor their credit reports and scores are able to stop a small credit fraud issue from growing into a massive problem. So the solution is, track your credit.  We recommend Identity Guard for a full service monitoring solution.