Whether you’re feeling confident or anxious about your finances heading into 2022, your credit score will be a key contributor to whether you’ll be able to meet your goal. Great credit means having a Fico credit score of 670 or higher, and the closer your score is to the maximum of 850, the better. That will give you access to the most favorable, least expensive loan and credit card options, and can help you in other ways‚ÄĒlike buying your dream home.

  1. Set Up Automatic Bill Payments

The best way to avoid missing a monthly loan or credit card payment is to put your bills on autopay. Make sure you have enough money in your checking account to cover each bill to avoid an overdraft.

  1. Pay Down Balances

Make it a goal to reduce any high-interest credit card debt first, since that likely costs you more money in interest than an auto loan. Decreasing your credit card balances also shows potential lenders that you’re responsible with credit. Experts suggest always keeping your credit utilization below 10% of your credit limit; those with the highest credit scores have a rate in the single digits.

  1. Handle Debt in Collections

If you currently have an unpaid debt that’s gone to collections, consider negotiating it down or disputing the debt if you think it’s an error. A¬†debt in collections¬†is likely more than three months past due, and either the original creditor or a debt collector may be contacting you very frequently to get its payment.

  1. Seek Out a Secured Credit Card

Another option for building credit is to get a¬†secured credit card. It requires a cash deposit, typically around $200, which becomes your credit limit. You can then use the credit card as you would any other, and the deposit protects the issuer from the possibility that you won’t pay off your balance. If you use a secured card responsibly, your card issuer could upgrade you to a traditional unsecured card in the future.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!