It is so easy to rack up the credit cards during the summer while you’re out on the restaurant patio enjoying a craft beer or gear food. It can be easy to be careless during the summer when money does not seem as real when using a card, and you feel you can pick up the tab on dinner or shots. Just because it is summer does not mean you should go on a spending spree. With a little discipline you can get your credit score on track now.
Review Your Credit Report
You may just assume that your report is fine but you need to check it often, and with the offer of receiving a copy of your credit report free of charge at least once a year from any of the three major credit bureaus, why not take advantage. The actual score will cost you extra, but with most credit card companies revealing your score online at each statement, you can see the increase/decrease at least once a month.
Report Any Errors
If there are any outstanding errors they will not fix by it so it is important to review your score often and report any errors as you see. Keep in mind that credit reporting is a month behind so if you know you have updated an account within the past month, you will need to wait until next month to see the progress. It will not be corrected on its own so it is up to you to review and make any corrections as needed.
Start to Pay Down Balances
Once of the largest factors in your credit score has to do with the total balance compared to the total balance, so start to pay down the highest balances first, so you can increase your credit availability and increase your credit score. If you have not stopped charging on the accounts then this is the opportune time as you do not want to sink yourself deeper into debt that will take years to climb out of.
Typically, the largest amount of debt on your report is mortgage related. The first question you want to keep in mind, how long does a foreclosure stay on your credit report? The answer, far too long! This can impede your ability to credit for many years to come, so make sure that your mortgage and/or student loans are very first payments you make each month.
No Late Payments!
In order to prove to lenders that you are a responsible borrower you need to ensure that you are making on-time payments to every lender that you are required to. Although you may receive a grace period for some, for the majority as long as you are thirty days late it will be an impact to credit that will take years to remove.