Best Practices: What You Can Do with Your Annual Credit Management
It’s the new Year, and now is a great time for you to review your credit. Here are six (6) ways we suggest so that you might be able to do better in the coming year:
1. Home Loan Mortgage:
If your Home Loan Mortgage payment is on an automatic payment schedule, change the payment to include any increases in property taxes and insurance (if impounded). This is significant since most servicers don’t post any “partial payments” which will result in a late payment being reported.
2. Free Credit Reports:
Check your credit report for free, at least three times a year. Each credit bureau is required to provide a free annual credit report at: AnnualCreditReport.com. Since there are three (3) credit bureaus, you can spread out when to acquire the free credit reports (for example, January/Experian, May/TransUnion & September/Equifax).
3. Payoff Your Monthly Payments:
If possible, consistently pay off 100% of your credit card balances on your monthly payments. Credit card companies will charge interest on the total balance if you only make a partial payment. For instance, have a $1,000 balance and you only pay off $999, the interest is calculated on the $1,000 balance.
Have a $1,000 balance and you only pay off $999, the interest is calculated on the $1,000 balance.
4. Keep Your Credit Balances Low:
Keep your credit balances below 30% of the available credit line, so as to not adversely affect your credit scores.
5. Automatic Payments:
Put your credit cards on auto payment, regardless of whether it is only the minimum installment. This will save you from missed payments and getting a disparaging rating on your credit report.
6. Take Me Off Your List:
Tired of getting unsolicited credit offers in the mail or by phone? You may be able to reduce their frequency by opting out of the pre-screened service that the credit bureaus make available to credit vendors. Here is the link to opt out: optoutprescreen.com.
We at Morris + D’Angleo strongly recommend good Credit Management practices. In the long run, consistent efforts will pay you dividends at the end of the year.
If you have questions, need clarity, or need help understanding mortgage or credit questions to further help retain or maximize your financial gains, please contact us at Morris + D’Angelo. This is our Expertise! Yes, we have Crypto Experts available for you.
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Parts of this article are publishedfrom American Loan Advisors, © 2021 Daniel Morris, Morris + D’Angelo
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