Spring has sprung and when it comes to spring cleaning, we think reorganizing and refreshing our closets, dusting in areas we neglected all winter, washing windows and getting rid of any clutter around the home. But spring cleaning shouldn’t end there! Bring the cleaning to your credit and get your financials in shape this season.
Here are 5 tips on how to spring clean your credit this season.
1. Clear the Clutter
Think the Marie Kondo treatment is just for your closets? Think again. Go through your finances and get rid of what no longer brings you joy. Look at subscriptions you rarely use, paid apps you don’t get much use out of and anything else that no longer fits into your life. Keep the decluttering going and sort out your filing cabinet. If your records and receipts are more than 6 years old, it’s time to shred.
2. Evaluate your Spending
To reach your financial goals, you need to take a good look at your current spending habits. What worked last year, may not work for you and your family now. Look at your spending habits and see how you can re-evaluate them to align with your short- and long-term goals.
Try putting a ban on buying anything that is not a necessity for one month. Or turn your weekly date-night into a home-cooked meal and save dining out for special occasions. Even reassess your household bills. See if you can save money by switching to a better package for your cell phone, TV, or internet, and maybe even cancel your home phone if you have a landline.
3. Check Out your Credit Report
Your credit report is a document that reveals important information about your financial history and can give you insight into your overall financial health. The more you know, the better! This report will provide context for why your credit score is what it is. And, you’ll be able to see all your trades and accounts, any inquiries about your credit, and your debts on your report all in one place!
The best part? You can now get your free credit report from Borrowell. Sign up for free to see your credit report, along with your credit score, to help you get the full picture when it comes to your finances.
4. Take Advantage of Technology
Monthly credit card payments and other bills can be hard to keep track of. Let technology do everything you know you won’t do yourself. Try these tips:
- Set reminders to let you know when your bills are due. Paying bills on time makes up 35% of your credit score!
- Set alerts to tell you when you are approaching your limit on credit. Tip: try to keep your credit utilization ratio (the amount of credit you’ve used out of the total amount available to you) under 30% to improve your credit score.
- Put your savings on autopilot with bi-weekly or monthly deposits. Even if it’s just $20 a month, you’ll be surprised at how your savings can add up over time when you’re not thinking about it.
- Set up pre-authorized payments so you never miss a payment on your bills.
5. Improve your Credit Score
So, you got your Equifax credit report from Borrowell – yay! It’s a great way to stay informed and be proactive when it comes to your financial health. Now that you have your report and score, look at ways on how you can improve your credit score.
Interestingly enough, a recent study from Borrowell found a correlation between checking your credit score and credit improvement, with Borrowell’s most engaged members improving their credit score by 30 points! So, by checking your credit score and report, you’re taking the first step towards improving your financial well-being.
Check your credit report for errors that can be fixed. If it’s regarding a specific item, we recommend contacting the credit granter or collections agency. If it’s regarding incorrect personal information, such as your date of birth or your address, please contact Equifax directly.
Making sure you fix any errors or update information you feel is incorrect is important as errors on your credit file can affect your score, which in turn affects your overall creditworthiness.