This week we’re beginning to look at condos. While we love the mansion, I want to either be closer to Fort Lauderdale or move back up north. While there are a glut of short sales and foreclosures on the market, we have to remember how they got there and consider our credit score as we’re not only shopping for a new HOME, but also a new mortgage.
According to Steve Kramer, VP of Electronic Payment at Western Union here are seven ways that you can improve your credit score over the next year.
1. Evaluate a purchase: If an item is on sale but takes two years with interest to pay it off, it is a ‘deal’ worth passing on.
2. Do not max out credit cards: Credit scores take into account just how much credit you have available, so it’s important not to max out your credit card balances; make an effort to keep balances low.
3. Pay bills on time: This is crucial to maintaining good credit for the long-term. Take advantage of a same-day payment option to ensure just-in-time payments to billers and creditors.
4. Do not apply for new credit cards: It’s tempting to open up a new credit card while out shopping but avoid it. New open credit may decrease your credit score. Also, every credit inquiry from a finance company decreases your score by points.
5. Thaw your frozen cards every spring: Many people put their credit cards in the freezer to keep from using them all the time. Don’t forget about those old credit cards. When you stop using a card, issuers may stop updating the account with credit bureaus, or worse, close down the account altogether. It’s good to use those accounts, at least occasionally, for a small necessary purchase – then they go back in the freezer for another year.
6. Check your credit report: Check your report regularly and take steps, immediately, to dispute discrepancies. Make corrections a top priority. Consumers are entitled to one free report a year, under federal law, at AnnualCreditReport.com. Don’t sign up for a credit monitoring service.
7. Stay knowledgeable: knowledge is your credit power. Stay informed about the interest rates on your cards and remember the key components you control that influence your credit score, including – number of open credit accounts, balances on those accounts, timely payment record, how many cards are ‘maxed out’, whether you rent or own your home, how long you have been using credit.
Stefani @ MommyEnterprises.com says
Be sure to check all three of your credit reports. Many do not know that there are three major credit bureaus. It is a good idea to order a 3 in 1 report.