The entire process of rebuilding a credit score involves several tasks that need to be done as soon as possible. The best way to start this journey is to identify the problem, what is the cause behind your negative balance, what are the real motives behind your expenses and how can you face them appropriately.
Aside from the new tools that you can count like automatic payments, smart notifications, digital calendars, online credit monitoring platforms and so much more; it is extremely important to have good payment habits. We are not here to tell you the common knowledge that you can find elsewhere, because we collected some important insights through all these years that have helped us overcome most financial hurdles, read closely.
You Need to Check Your Available Credit
Commit to this principle every time before any purchase, you’ll never know how much is available for you since the last time you used that credit/debit card. We’ve talked to people who didn’t know at the time that their credit limit was lowered, this usually happens before any notification coming from the bank, so there is no need to make things more complex. Use your smartphone app or make a phone call and be sure of what you can or can’t do.
Always Read Your Card Statements
This task can seem very tedious and boring, but every missed detail will add up negatively at the end of your credit report. Check for billing errors or unauthorized charges, these two mentioned tend to be ignored by millions of Americans every year, that’s why it is very important to verify every step in your account activity. Remember, the worst mistake is not knowing where you are making them.
Use Less Credit
Your credit card must be used for racking up rewards that can be enjoyed at a certain time in the future. Aside from that, your credit card must be your go-to access for everyday spending like gas, food, services, etc. Let this sink in, for every purchase made with your credit card, your plan for repaying all of these debts increases in size, don’t let this become a monster. Repay these charges with the money you would normally use for these everyday items in the first place.
This is the first piece of a weekly bulletin that we will be posting in this blog, talking about every underrated method, habit or solution that can revamp your credit score from scratch. It’ll be surprising for you and me to find that most of these tools can be easily ignored by the vast majority of people.