NMLS# 3151

Friday, January 3, 2014

5 easy ways to boost your credit in 2014

The start of a new year can only mean one thing, the start of new year's resolutions.  And if one of those for you is to do a little work on your credit score, than we've got some simple tips for you.

Building your credit score may seem like a daunting process but with  a few necessary steps, it can be achieved faster than you think.  Plus, having a good credit score could means qualifying for a lower interest rate on your mortgage or other loans, therefore, saving you quite a bit of money in the long run.

Maybe none of that matters to you but you're fighting yourself out of debt.  These tips will help better both situations.

Run a Credit Report and Find Out Where You Stand

If you haven't looked at your credit report before or maybe it's been a little while, you may want to check it and make sure there aren't any reported errors.  Just like anybody else, credit reporting companies and business aren't always perfect.  Sometimes collections or judgement are reported in error and could vastly be effecting your credit score.  If you do happen to see anything, contact both the credit reporting company and the source of the error right away.

Plan on How to Pay Down Your Debt

It's time to plan and prioritize any potential debt or collections on your credit report.  This includes outstanding loans, credit cards, medical bills, etc.  If you have an account in collections, you'll want to start by contacting the collection agency.  Request to settle the debt and ask if they would be willing to remove the delinquency from your report within a certain amount of time.

Apply for a Secured Credit Card

If you have a short credit history or haven't started to build one at all, a secured credit card is a safe and easy way to increase your credit score.  Typically, secured credit cards are easier to obtain than a normal credit card because they are backed by a certain amount of money that you agree with your creditor, usually $300 to $500 dollars.  While this may seem like a debit card, secured credit cards still report to the credit bureaus like a regular credit line.

Monitor and Maintain Your Balances

Once you've got your secured credit card and have started to pay down balances, make sure you don't go and rack them up again.  The golden rule with credit cards is never have a balance more than 30% of your total credit limit.  This will help you maximize your credit score and keep yourself from overcharging.

Keep On, Keepin' On

You've made a plan and taken the necessary steps of action, now you just have to keep the habit going.  At this point just make sure to keep making all your payments on time and keep your balances low and you should be well on your way to stellar credit.

If you have any other tips, please share them below with our other readers!  Also, for more credit advice and tips please read our other articles on the RANLife Blog or leave us a comment below and we will respond as fast as possible.

No comments:

Post a Comment