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:

Setting your Goals to improve your credit:

1. Check your credit report 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.
   
   
2. Improve your credit score 50 points or to above 650: A credit score above 650 will help qualify you for most credit and loan terms. The higher your score, the better the interest rates available to you.
   
   
3. Reduce your debt balances to below 35% of the available credit limit: Reducing your balances while maintaining active credit use makes you more appealing to prospective lenders and can help improve your credit score.
   
   
4. Create a monthly budget 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:
   
   
5. Dispute negative inaccuracies on your credit report: Don’t let your credit standing suffer because of inaccurate information.
   
   
6. 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.
   
   
7. 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:
   
   
8. 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.
   
   
9. Contribute to your 401(k): See if your company offers matching funds and try to add the maximum amount allowable for your budget.
   
   
10. 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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