I love this time of year! You can open the windows and let the warm air and sunlight wash through the house. Most people take this opportunity to break out the duster and the vacuum and the bucket of cleaning products to give the house a thorough going-over. I always find that my cleaning efforts extend to the car and the lawn as well.
So while you're in a spring cleaning mood, why not keep going and clean up your credit report. It's something I advise people do at least a couple of times a year – even as frequently as every quarter! Now is the perfect time to start that spring cleaning habit on your credit reports.
Here are four tips to help you scrub your credit reports this spring:
1.
Lower your balances. If you have clutter in one room, it won't make your house cleaner if you move that clutter somewhere else. The same thing with your credit balances. Your credit score is partially determined by your credit balances and transferring balances from one account to another won't help. You can only increase your score if you lower your balances. As I mention in my book The 90 Day Credit Challenge, "balances should be paid to 20% of the credit limit".
Lower your balances. If you have clutter in one room, it won't make your house cleaner if you move that clutter somewhere else. The same thing with your credit balances. Your credit score is partially determined by your credit balances and transferring balances from one account to another won't help. You can only increase your score if you lower your balances. As I mention in my book The 90 Day Credit Challenge, "balances should be paid to 20% of the credit limit".2.Check personal information. The worst kind of clutter in your house is the kind that makes you wonder: "Where did THIS come from?" because its mysterious origin makes it harder to put away. Unfortunately, the same thing can happen in your credit report, too. Incorrect information can appear on your reports, and that can have a detrimental effect on your credit score and your ability to borrow money when you need to. So carefully review the personal information given and dispute errors with the credit reporting agencies. Wrong contact information, wrong job information, and accounts that aren't yours are 3 types of common errors.
Check personal information. The worst kind of clutter in your house is the kind that makes you wonder: "Where did THIS come from?" because its mysterious origin makes it harder to put away. Unfortunately, the same thing can happen in your credit report, too. Incorrect information can appear on your reports, and that can have a detrimental effect on your credit score and your ability to borrow money when you need to. So carefully review the personal information given and dispute errors with the credit reporting agencies. Wrong contact information, wrong job information, and accounts that aren't yours are 3 types of common errors.3.Check for the most recent information. If you have family members or roommates, it's possible that they're messing things up right behind you as you clean from room to room so you have to go back and clean things up again. With your credit reports, your credit score is affected by the most recent information so make sure that all of your accounts are up to date! Make sure that they have reported your latest balances and that the payments you've made are all recorded.
Check for the most recent information. If you have family members or roommates, it's possible that they're messing things up right behind you as you clean from room to room so you have to go back and clean things up again. With your credit reports, your credit score is affected by the most recent information so make sure that all of your accounts are up to date! Make sure that they have reported your latest balances and that the payments you've made are all recorded.4.Watch for co-signed accounts. If you live with someone else, it would be nice if they pitched in to help you do your spring cleaning. Otherwise, you're cleaning up two (or more) people's messes. Likewise, your credit score is impacted by the actions of others if you co-signed a loan for them. Their late payments impact your credit score!
Watch for co-signed accounts. If you live with someone else, it would be nice if they pitched in to help you do your spring cleaning. Otherwise, you're cleaning up two (or more) people's messes. Likewise, your credit score is impacted by the actions of others if you co-signed a loan for them. Their late payments impact your credit score!Since you're cleaning everything else right now, it's a great time of year to also clean up your credit reports. With these four tips, you'll have a strong start to freshly scrubbed, clutter-free reports that help you get the highest credit score possible.
For other great tips, and for an easy-to-follow step-by-step plan to raise your credit score in just 90 days, check out my book The 90 Day Credit Challenge.
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Credit Smarts
Get smarter about managing your credit portfolio with tips form Jeanne Kelly.
Jeanne Kelly is a nationally recognized voice in credit consulting. Jeanne is President of The Kelly Group a firm that provides credit counseling to individuals, businesses and groups. Understanding that maintaining a strong credit report is a lifelong process, they also coach people on managing/monitoring their credit profile. Most recently Jeanne has appeared on the The Today Show, and has been a guest on the radio in which the current credit crisis was the topic. She has also been quoted in several newspapers, magazines and online financial sites such as CNN, Money, and the NY Times. Learn more at
Four Spring Cleaning Tips for Cleaner Credit Scores
