New Year’s Resolution: Improve Credit

// Posted on Feb 01, 2012 in Legacy Quarterly Journal | Legacy Journal Winter 2012

Insight

New Year's resolution: Improve Credit

The ball dropped in Times Square. Millions of couples embraced. And New Year’s resolutions outnumbered the confetti. Learn a musical instrument. Eat healthier. Quit smoking. The list of good intentions we make for the new year goes on and on. But what about improving our financial health?

If you’re one of the millions of Americans with less-than-ideal credit, improving your score in 2012 should rank right up there on your resolution list alongside hitting the gym more or reading a book a month.
While personal development is measurable, beefing up your credit score can prove much more elusive.

However, there are several steps you can take to boost your score in 2012:

  1. Avoid scams. Unfortunately, if it sounds too good to be true—it probably is. There are many companies out there offering easy fixes, and it’s a situation ripe for rip-off artists. If you hire a credit repair specialist, do your research and get a written contract before committing.
  2. Gather information. Check your credit score at annualcreditreport.com. Look at individual items negatively affecting your credit, and scan for inaccuracies.
  3. Launch an offensive. If you see a questionable item on your credit report, write a dispute letter to the corresponding credit bureau. They have 30 days to investigate and respond. In your dispute letter, clearly identify each item and state the facts.
  4. Keep your debt down. Easier said than done, we know. But for optimal credit scoring, keep your credit card balances at 30 percent or below the available balance. 
  5. Seek assistance. Contact us for access to a wide network of financial and mortgage experts.