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If you have stepped into the new year and want to improve your personal finances, then you’re not alone. People might be looking at their credit card bills after the holidays and wondering where all the money went? If you have some credit card debt and have a less than stellar credit rating, then it can feel like an impossible mess to get out of. But there are some good things that you can be doing to get your finances in order and to improve your credit rating. So if 2018 is going to be your year to sort out your money, then this is the post for you.
Check Your Credit Report
Your credit score is made up from information that is held about you, about the payments and transactions that you have or haven’t made. But sometimes, the information that is held isn’t going to be correct information. So being able to check the report is a good place to start. If there is information on there that isn’t right, then it can be adjusted. If it says that you didn’t make a credit card payment when you actually did, then that kind of thing can be corrected. So look online and check your report to start with.
Don’t Apply For New Credit
In many cases, having bank loans or credit cards can be advantageous, especially when you are making the repayments each month. But if the latter is what you have been struggling with, then it makes sense to avoid getting any more debt or lines of credit. Plus, if you have a low credit score you are likely to be declined during the application process. And guess what; when your application for credit is declined, then it is recorded and it does have an impact on your credit score. So until things are better, you shouldn’t be applying for new credit.
Rethink Your Budget
If you haven’t been making payments on your debt, then could it be because you need to tackle your finances better? Sitting down, and checking your incoming and outgoing money is a great way see what you can and can’t afford. It could mean that you spend a little less on groceries for a couple of months until you get your repayments back on track, for example. But you won’t know unless you are on top of your finances and monitoring how things are going.
Close Empty Cards
If you have a couple of credit or store cards that are cleared and you no longer use, then it is a good idea to call to cancel the cards, rather than just cut them up. If they aren’t cancelled, then it looks like you have a certain amount of credit available to you, which isn’t what you want when are looking to improve your credit score.
It can feel like a long and daunting process, but being proactive is the key thing to it all really. Stay on top of it and your finances will improve. Good luck!