Best Credit Resolutions for 2021

The start of a new year doesn't wipe slates clean,
but it's a perfect opportunity to forge a new path and become a better version
of yourself. One of the best resolutions is to improve credit and get your
personal finances in order. Money is a huge stressor for most people.

Setting long term and short term financial goals
can help you better your finances and possibly save more money.

Anyone can set credit resolutions whether they are in debt, living paycheck-to-paycheck or living comfortably. Here are the best credit resolutions you can make for 2021.

Pay Down Your Credit
Card Balances

This is one resolution that you don't need to make
again. If you make a plan to pay down your credit card debt, then odds are it
won’t be an issue the following year. There are many benefits to paying down
your credit card balances.

You will pay less interest which will save you
money, lower or eliminate debt and improve your credit score. To
save even more money, you can transfer your balance to a zero-interest credit
card if you can qualify for one.

Be Selective when
Applying for New Credit

Applying for new credit isn't a decision that should
be taken lightly. New credit cards are constantly being introduced that come
with enticing promotional offers. When applying for new credit, one of the most
important questions to ask yourself is if it will meet any particular financial
needs.

Applying for new credit affects your credit score. Every
time you apply, a hard inquiry shows up on your credit report and shaves a few
points off your credit score. You shouldn’t get a new card if you know you’ll
end up maxing it out. Don’t apply for a loan unless you need to and are sure
you can handle the monthly payments.

Review Your Credit
Reports

One thing that can hurt you is not paying attention
to your credit reports. A credit report is a document that shows your credit
history, including open and closed accounts, whether you’ve been late or on
time making payments, and other personal information. It is an important aspect
of your finances.

When you look over your credit report, you'll be
able to notice if there are any errors. Errors can have a negative impact on your
credit and you’ll want to resolve them as soon as possible. Errors include:

• Accounts
  being reported twice
• Former
  spouse's debt shows up on your report
• Unknown
  accounts and debts being reported
• Clerical
  errors from a hand-written application
• Closed
  accounts that are still reported as open
• The
  payment history is inaccurate such as reporting a payment missed if it wasn’t
• Outdated
  information

If you find errors on your credit reports, you can contact
the credit bureaus to challenge them. Or, you can use credit repair
services to help you.

Refinance

If you don't like your current interest rates and
your credit is in good shape, you can try refinancing for a lower
interest rate. Refinancing on a car loan or a home loan can save you money.
Remember that if your credit is in bad shape, you probably won’t qualify for a
better interest rate.

Make Payments on
Time

It's important to make your payments on time each
month. Even being a few days late can have repercussions including late fees
and penalty rate increases. If you’re over 30 days late on a payment, it can lower
your credit score. Late payments hurt your score and the
later you are, the more significant the impact to your credit score will be.

If you have a hard time remembering to make
payments on time, try automating them or setting an alarm to remind you that
they’re due.

Your credit is a vital part of your life. Good credit helps you find places to live, get a
car and save money. Starting a new year is the perfect opportunity to take a
good look at your finances.

If
you’re struggling with bad credit, call the credit experts at CreditRepair.com.
We’ll evaluate your credit
for free and come up with a plan to help you remove
negative information that is unfair and inaccurate so you can improve your
credit.