It’s the New Year, which means there are some different credit moves that should be taken. There is never a bad time to start taking these steps to help improve the credit scores, but if you haven’t already started, now is the best time.
First off, make sure that you know the limits of each credit card. This is important because you never know when the credit card companies might have given you a raise, so make sure that you know what the limit is. This is important because you want to keep your minimum balance to below 30% of the limit.
If required, get a better card. If you had bad credit and you had to start out with horrible interest rates or terms attempt to get a better one. This will mean that you can get a better card with a lower interest rate and fees, even if you have a bad credit card score.
Pay off some cards. Even if you can only pay off a single top credit cards, then do because the lower your balance on the cards the better. Not only will you have more money in your bank account, but you will also incur a lower amount of fees.
Use all cards during the year. Don’t let your credit cards stay inactive for too long because if they do, then the companies might close the accounts. Make sure to use the cards, especially the oldest ones in your wallet at least a few times during the year to avoid closure.
Start saving for an emergency. You never know when an emergency is going to hit and you don’t want to have to pile the money on the credit cards. Make sure that you start saving, especially if you have a lot of debt because if you lose your job you will still have to make payments.
Continuously change your budget. If your income changes or if you get more top credit cards, then you should make sure to re-do your budget. This will ensure that all of your bills are being paid on time and that you have enough to cover everything that is needed. You can also change your budget around to fix the due dates and other important items.
Work on improving your credit score. Your credit score is extremely important and not just so that you can get better interest rates and terms on the cards, but also because it is used for other factors. Many other loans use your credit score when they are looking at making the final determination, so ensure that you have a good one.
Pay all bills in a timely manner. Don’t wait until the last minute to pay all of your bills and don’t allow any of them to be late, even your utility bills. If the payments are late, not only will you incur a late fee, but you will also incur some charges, which will just add to the debt over time. Also, if you don’t pay on time the accounts might end up going to a collection agency.