6 Simple Ways to Crush Your 2020 Credit Goals
FACT: Having good credit can help to shape your financial future and make a massive difference in your ability to get a reasonable interest rate on borrowed money.
Securing a lower interest rate means you’ll be able to pocket some of your hard-earned cash instead of handing it over to your creditors. Or, it can mean paying off your bills faster and paving the way toward financial freedom.
Does that sound incredible to you? Well, check out these 6 easy ways to crush your 2020 credit goals in no time!
Way #1: Never Pay Late
Paying late can destroy your credit score. Set up automatic payments on your credit cards and loans. It’s the surefire way to make sure you never miss a payment.
If you have trouble determining how much you can pay because you have inconsistent self-employment income, try putting the minimum amount due on autopay each month and then remember to schedule an additional payment later. That way, you’ll never miss your due date.
Way #2: Get Smart About Your Income-to-Credit-Limit Ratio
Creditors continuously look at your income-to-credit-limit ratio to determine your creditworthiness. In other words, how much of your credit are you using?
You can raise your credit score by paying down credit card debt to 30% or less of the total credit limit. Oh, and it’s never a good idea to max out your credit card.
Way #3: Don’t Be Scared to Dispute Items on Credit Report
With all the computer technology available today, you’d think credit reporting would be 100% accurate, buuut … it just isn’t. So don’t be afraid to examine your report regularly.
Listen, your creditors and the people who work at the credit bureaus are human, and because of that, errors can and do often occur. Now, if you spot an inaccuracy on 1 or even all of your credit reports, you can dispute each mistake, which could potentially boost your score.
Way #4: Get a Better Credit Card
Credit cards come jam-packed with benefits these days. You can score free/low priced flights and hotels, get free car rental insurance and cashback on everyday purchases.
Does your credit card match up? If your card doesn’t offer enough benefits, try applying for a high-reward card.
Way #5 Earn More Money from Credit Cards
Want to make money from your credit cards? Make a pact with yourself to only shop with your high-reward cards and to always pay them off each month.
Use them for your monthly expenses like utilities, gas and grocery shopping and sit back to watch the rewards rack up!
Way #6: Use Your Credit Card Benefits
QUESTION: When was the last time you read your benefits pamphlet? I ask because many cards offer rewards such as price-matching, free travel insurance and bonus points for buying certain things.
Credit card benefits are often not a direct way of making an income, but certain benefits could potentially save you thousands of dollars if you know how to use them. The key is to familiarize yourself with the benefits your credit cards offer and then be sure to use the right cards to get the most from the perks.
Ready to crush your credit goals in 2020? You can achieve top credit scores and take advantage of your credit by making on-time payments, keeping your debt-to-credit-limit under 30% usage, disputing items on your credit report and taking full advantage of benefits to save you money in 2020. But that’s only the beginning. Contact us today to find out more ways to hit your credit goals fast: Schedule a FREE Consultation
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There are folks out there who talk down about credit cards, but really, if you use credit cards responsibly, especially rewards cards, you can reap so many benefits. Travel cards come to mind, as my wife and I like to travel. Our travel card gives us great rewards to save us on our bigger trips.