Never To Early Or Late For Credit Salvage

Whether you have reached the bad credit zone or not - this is the best time of the year to spring clean your credit score with zest and resolve; even if ideally this should be an all-season concern.

There's something about the season that re-ignites the flame of wanting to pursue the resolutions made at the onset of a brand new year. There can be nothing more worthwhile than working towards your own credit salvage. According to the experts, here's how to do it.

1. Get a Copy of Your Credit and Evaluate Each Account

You can get a copy of your credit report at the website since you are entitled to one free report every year from each of the 3 credit bureaus - Experian, Equifax, and TransUnion. Examine each item or account on your report for possible errors that may have pulled down your score. Pay particular attention to strange accounts that may indicate identity theft.

2. Evaluate Your Credit Card Debts and Prioritize Payments

Make a spreadsheet of how much you owe each of your credit cards and at what APR or interest rate these are. This will let you know which credit cards are more expensive. Either plan to pay in full or as much as you can the card with the highest interest rate while making at least minimum payments on the lower-interest cards.

You may also transfer the balances to the card with a lowest APR. If all the APRs are high, you can apply for a credit card with a lower APR, no annual fees, and other features that will benefit you. Applying for a new credit card will temporarily stain your credit score but the savings from lowered APRs and fees can be added to the payment of your credit cards.

Minimize the use of your cards altogether; but if you have no choice because you live 'paycheck to paycheck' that never seems to be enough - use only the one with the lowest APR. Always do the mathematics.

3. Pay Your Credit Card Bills On Time

Note that 35% of your credit score is based on whether you pay your bills on time. Doing so is a grand way for credit salvage. Be organized and make a schedule of the bills to be paid and their due dates. A checking account with online bill payment can also help you clean up your financial life by letting you see and pay all of your bills in one place.

In addition to wounding your credit score, late payments cost you money in fees and other charges which you could have saved. Again, do the mathematics.

4. Budget your Finances and Sick to It

The best way for continuing credit salvage is to have a budget or spending plan and strictly stick to it as much as you can. This will inspire you to not to go on an unnecessary spending binge or simply live within your means. More importantly, it will get you on the habit of lifelong financial responsibility.

There is truth to the saying that change comes first from within - and so it goes with credit salvage. Improving your credit score should be a never-ending endeavor because by doing so, your financial life becomes healthy, and so does your life in general.


Source: Credit Cards For People With Bad Credit Rating

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