Happy 2008! Well, the holidays are over and we all know what that means: it's time to make our list of resolutions. From eating less to exercising more, everyone has different goals for the New Year. There is one, however, that should be on all our lists...
Make a resolution to manage your credit, every day.
Whether you have good credit that you want to maintain, or need to improve your credit score a bit, there are 5 things you can start doing right now to make your credit resolution a reality.
1. Review your credit report. Inaccurate information on your credit report can harm your credit health. So, one of the first things you should do is order your 3-in-1 Credit Report, read each section and make sure all the information is correct. If you do find errors, you can dispute the information and get it fixed.
It may surprise you, but your credit report can change on a daily basis. Ordering it once a year just isn't enough. You should check your credit report regularly (and remember, checking your own report does not negatively impact your score). The best way to stay on top of changes is by monitoring your credit reports & credit scores regularly.
2. Pay your bills on time, put big red circles on your calendar. Write yourself notes. Send reminder emails. Do whatever it takes to pay your bills on time every time. Late payments have one of the greatest negative effects on your credit scores, so know your due dates.
If you struggle with paying on time, consider paying your bills online or signing up for automatic payments. Many lenders and companies offer these services for free.
3. Don't let credit card debt pile up. It's easy to charge a little here, a little there, and the next thing you know your credit card is maxed out. While it's okay to have credit card balances, it's not okay to charge your cards to the max. If you do carry balances month to month, keep them below 35% of your credit limit. Have a limit of $1,000? Aim to stay below $350.
4. Apply for new credit in moderation. Every time you apply for credit, it shows up as an inquiry on your credit report. When you have a large number of inquiries within a short period of time, it makes you look desperate for credit. And that, in turn, can lower your credit score.
5. Establish yourself. When it comes to improving your credit score, time is on your side. Establishing a long history of paying your bills on time and continuing to be smart with your credit can add points to your score.
You can do it. Follow these fab five tips and you'll be on your way to a better credit score. Here's to an incredible year of credit!
------
Since 1999, TransUnion's TrueCredit.com has helped millions of consumers manage their own credit health. Through a suite of educational materials, free monthly newsletters and easy-to-use products, the company helps consumers understand personal credit management and empowers them to achieve greater financial well-being. TrueCredit.com's online products include
credit reports, credit and
insurance scores, credit monitoring, debt management tools and identity theft insurance services. TrueCredit.com is the direct-to-consumer arm of Chicago-based TransUnion Interactive, a subsidiary of TransUnion, a global leader in credit and information management. Manage your credit. Manage your life.(SM) http://www.truecredit.com. For more information or to schedule an interview with Lucy Duni, contact Steven Katz, TransUnion, at 312.985.2373 (skatz@transunion.com).
