Credit scores have rapidly become the metric for determining how much of a spendthrift people are. Their uses have grown from what kinds of loans banks will extend you to whether someone will give you a job and even if you’re worthy of obtaining a professional license. While the score is created by for-profit companies for commercial purposes, improving your credit score won’t hurt. There are many suggestions for maintaining and improving one’s credit score. Here are some good ones:
(1) Obtain your credit report. By federal law, you’re allowed to do this three times per twelve month period. Unless you plan on moving or going on a sustained job hunt anytime soon, now would be a good time to obtain one. Just note that many commercial Web sites, like freecreditreport.com, aren’t always as free as you might think they are. Your credit report should list all your debts and the amounts you owe your creditors. If it lists some that you didn’t take on, you can report the error.
(2) Deal with collection agencies promptly. This might require contacting a bankruptcy attorney.
(3) Weigh your credit card debts. If you have multiple credit cards with different balances, chances are the interest rates on them differ too. If this is the case, then using lower rate cards is better in the long run than using others.
(4) Play the interest rates. You may even wish to consider moving some of your higher-interest debt to your lower-interest credit cards. This might involve applying for a new card, but it can be worth it. Contacting the creditor and asking for a lower interest rate can work, as can asking for a waiver of the annual fee. Before doing this, though, make sure that the “balance transfer” fees incurred are still worth the benefits of the lower interest rates.
(5) Otherwise, pay off the high interest debt first. This is common sense: less high-interest debt today means more savings tomorrow.
(6) Don’t buy any large ticket items that offer you “no money down!” and other promotions. You’ll probably end up paying higher interest later.
(7) Pay bills on time. This is another common sense suggestion, but much of a credit score is just many timely payments over a long period of time. Tracking when these payments are due will help you with…
(8) …Keeping a budget. It’s not too hard for people to cut out extraneous discretionary spending, like dining out frequently. It’s not necessarily fun, but it is easy. On the other hand, budgeting groceries takes more effort, but the savings can also be substantial. Research purchases online before committing.
Credit scores might be numbers for companies to use to their advantages, but controlling your own debt is worthwhile for its own sake. If you’re having debt problems though, consulting with an experienced Las Vegas bankruptcy lawyer can help immensely.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 702-880-5554 to set up your free consultation.