Financial Tips: Did you know that around 67% of people in the United States have a “good” credit score?
Having a good credit score can save you from paying thousands of extra dollars in interest on purchases like a home or automobile. Unfortunately, bad credit has a lot of drawbacks and can come in a variety of ways.
Perhaps it is overdue student loans or credit card debt that has piled up over the years. Maybe it is even a foreclosure. The good news is that there are financial tips for fixing your credit and saving money.
Continue reading to learn about five tips for fixing your credit and improving finances.
1. Determine Your Credit
The best place to begin when fixing your credit and taking control of your personal finance is to determine what your credit score is. There are a couple of different ways to do this. The quickest is to use an online credit check service and get a free credit check through them.
A basic rule of thumb when it comes to credit scores is that anything under 700 is a credit score that needs improvement. Anything between 700 and 850 is considered good to great credit.
2. Dispute Any Errors
It isn’t common to find errors, but if you do, it is in your best interest to dispute them. Review your credit history and look for anything that looks like it might be an error. From there, write a letter to the credit reporting agency that made the error to try to get things cleared up.
The credit reporting agency then has 30 days to respond and process the claim. It is possible that there was an error that had a negative effect on your credit score.
3. Pay Bills on Time (Financial Tips)
Another great step that you can take to fix your credit is to start paying your bills on time. This is one of the best ways for managing finances.
If you’re behind on bills, then start getting caught up. Making payments on time is what impacts your credit score the most.
4. Pay Down Your Credit Card Balances
Another key to good financial management and fixing your credit score is paying your credit card balances. If you have credit card debt, then start saving a chunk of your money each pay period to put towards paying these debts down.
A good approach to take is knowing your credit limit and staying well below it. Try to avoid purchasing anything with your credit card that you can’t pay for in full with cash.
5. Hire a Credit Repair Company
Hiring a credit repair company is a wise step to take. They are experts on different types of accounts to open and can help you find paths to take care of the debts that are dragging down your credit score.
Put These Financial Tips to Good Use
Financial management is key to living a secure and comfortable life where money isn’t an issue, and following these financial tips is a great first step towards that future.
The biggest thing you can do to fix your credit score is to pay your bills on time and pay down your credit card debt. If you need guidance, then find a good credit repair company to help you make the right steps towards achieving your goal.
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