How to Take Care of your Credit before the New Year
It’s quickly coming to an end: 2010! So, where does your credit stand?
If you’re like most consumers, you simply don’t know. However, what you don’t know or don’t acknowledge can hurt you, so take the time to get your credit in check so you can start out the New Year with a clean slate.
Here’s how:
- Order free copies of your annual credit reports – Every consumer is entitled to one free copy of their credit report from all three credit reporting agencies, including TransUnion, Experian and Equifax each year, so don’t let this year end without claiming your free copy. It is a great time to review your credit card activity from 2010 so you can clear up any discrepancies before the New Year rolls in. This is especially important in the upcoming year, as many individuals are now heading back into the home market, vehicle market and credit market after a rough last couple of years. It only makes sense to take care of any credit report problems before you apply for credit. Now is the time to take care of your financial housekeeping!
- Take an inventory of your current credit cards – Now may be a good time to close those credit cards that simply aren’t working for you. Is it worth lowering your credit score to cancel credit cards? It is if the rates are simply too high or the terms and conditions are not in line with your spending and budget, it may very well be worth it. If you opened up one too many retail credit cards during the holiday season, take them out of your wallet and resist spending on them until you have paid down your current balance.
- Make a financial game plan – Gather all your credit card bills (especially those that resulted from your holiday shopping) and line them up in order, from the highest interest rate to the lowest. Then, develop a game plan to pay them off in a reasonable amount of time. It just doesn’t make sense to carry high credit card balances into the New Year and beyond, so make it your New Year’s resolution to pay them down and kiss those high balances good-bye.
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