If your credit score isn’t where you want it to be, getting to a better score can seem like a daunting and impossible goal.
The way to reach big goals is to break them up into manageable, daily accomplishments.
There are a few small changes you can make every day that will slowly and steadily improve your credit.
1. Set a daily savings goal for card payments.
A large part of your credit score comes down to your outstanding account balances versus your total credit limit.
If your cards are nearly maxed out, this will drag down your score. The sooner you can start paying down these accounts, the sooner your score will improve.
Look at your household budget and figure out how much you can save per month. Break this down into a daily savings goal. This will make it seem easier to save money.
By putting aside a little money every day for your debts, you’ll be putting yourself on track to get debt-free.
2. Stop yourself each time you go to pay by credit.
Another daily habit to get into is to think long and hard before ever using your credit cards. This also addresses your credit utilization rate.
A couple careless purchases can wipe out weeks of disciplined savings. Before you pay for something on your credit card, you need to ask yourself if it’s necessary and something you can afford.
“With the Internet, it is so easy to
keep an eye on your accounts.”
3. Throw away all your credit card offers.
How many credit card offers do you get a week? It seems like they never stop coming in and many cards offer tempting sign-up bonuses, including free flights, cash or hotel stays.
If you’re going to fix your credit, you should throw away these offers as soon as they come in.
Don’t apply for new cards. Every time you apply for a new card, it counts as an inquiry against your credit, which hurts your score.
Get in the habit of throwing away card offers every day so they don’t pile up and tempt you.
4. Check your credit accounts regularly.
If you aren’t reviewing your accounts regularly, it’s easy to forget about them. When this happens, you might start spending too much or forget about a monthly payment.
Missing a monthly payment is one of the worst things you can do for your credit score.
With the Internet, it’s so easy to keep an eye on your accounts, so you should check in every few days.
This will also help you notice fraudulent spending on your account so you can report a problem before it turns into a serious problem.
Don’t let your credit score discourage you. By picking up these daily habits, you’ll soon have a great credit score before you know it.
Photo source: kootation.com.