Let's talk improving your credit score!
Dated: April 10 2020
Monitoring your credit report and credit rating is important, especially given how much credit card fraud is taking place. Here are five tips for improving your credit. It’s not about quick fixes, but responsible financial activity over time. Don't let Amazon Prime purchases while you are stuck at home cost you possibilities in the future!
1. Get a credit card: OK, this may seem counterintuitive, but let me explain. When used correctly, a credit card can be an effective tool for building credit. Charge a few budget-conscious purchases each month, and pay the balance off before your due date. You could use it to auto pay your cell phone, gym membership, car insurance, etc.
2. Keep your balance low: This is the other side of the coin with credit cards. Try to only charge for items you could pay for out-of-pocket. Also, try to stick to a balance of only 10 percent of your credit limit. You don't want to max out a credit card! The goal is to use the credit card instead of the cash in your pocket. That doesn't mean you should use the credit card to buy things that cost more than the amount of cash in your pocket.
3. Food: At this time when going grocery shopping may be your only outing you may be tempted to stock up on items you don't really need. Before you go out, make a list of what items are actually needed and be careful to stick to your list as much as possible. Now is not the time to blow through a month's food budget in a week.
4. Leave paid debts on your report: Paid off debts like car loans show that you have a history of paying your debt on time.
5. Ask! If you’re looking to pay off a debt quickly, it can’t hurt to ask the lender to lower your interest rate. You can’t get what you don’t ask for! This includes asking for payment extensions. It is better to ask permission than forgiveness in this case. Many companies are allowing for payment extensions given the hardships put on people and businesses during this time. Check out the Experian’s website with a list of creditors offering forbearance and other loan payment assistance options. https://www.experian.com/bl…/ask-experian/covid-19-resource/
If you have any questions or would like to discuss other projects you can work on to be prepared to buy or sell your home in the future please let me know. We are here to help if we can.
As a fourth generation native New Mexican and lifelong Albuquerque resident, Jeff Rose has a unique vision for the Albuquerque Real Estate market. He earned a BBA in Human Resources and Marketing fro....
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