Another New Year’s Resolution
For many Americans, losing weight and improving one’s health seems to be a prominent New Year’s Resolution. However, one’s financial health is quite important too. Much like improving one’s blood pressure or cholesterol, you should work to improve your credit score too. Although much like a diet, you won’t see improvements right away, and it will take a little time for your credit score to improve. But, you must do your best to get active and productive when it comes to becoming financially healthy.
To improve your credit score, the first step is to plan on receiving your credit report once every four months. The three major credit reporting agencies must by law give you a free copy of your credit report at least once a year but plan on doing quarterly updates to stay on track.
Next, take a closer look at your credit report. If you find any errors or issues, dispute them. After disputing such errors, you might want to try to negotiate with companies to minimize any unpaid debts or hard feelings. For instance, you know that you were not able to pay your credit card bill for a few months because your spouse lost their job, but write a letter offering to pay the remaining balance on an account so the creditor will report the incident as “paid as agreed.” However, only pay the remaining balance if you have the creditor’s agreement in writing. You might also ask for a “goodwill adjustment” which asks your credit card company to look at how great you were as a customer before a hard-hitting financial situation arose.
These tips among others can help your credit score reach new heights and assist you in reaching a happier, healthier, financial goal during this new year.
