There are all kinds of tips, tricks, and recommendations out there for ways to improve your credit score. Now, I’m not going to sit here and pretend to be an expert, but what I WILL say is that not many of them are going to prove too helpful unless you do one thing properly… and that is to keep a monthly budget. Why is that a key ingredient in the recipe for a good credit score, you ask? Well, just consider the ways towards a decent score: chipping away at debt, keeping credit card spending low, laying off of unnecessary purchases. All these things will help give your score a boost, but they are also much easier said than done, and MUCH easier when done with the help of a budget. How can you know which spending to trim if you don’t have a good overall view of what you’re spending each month and where? How can you cut down on credit card spending unless you’re tracking it? How can you put more money towards paying off your debt if you are spending every penny each month? This is where a good budget comes in. With that in mind, you can start off by reading Adam Dachis of Lifehacker’s article on the things you can start doing next weekend to improve your credit score:
“Your credit score isn’t everything, but it’s a very important factor in determining whether or not you’re approved for loans, credit cards, and more. Set aside some time this weekend and take some concrete steps to improve it. You may not need a high score right now, but in the future you’ll be glad to have it.
1. Curb Unnecessary Spending and Pay Off Your Debt: “
Click here to read the rest of Dachis’ article with some admittedly great advice on how to beef up your credit score.
If you want to get cracking on a really good looking credit score, the above-mentioned article is a great place to start. But once you’re ready to REALLY get started, find yourself a good budget and start keeping track of every penny. Bought an impromptu coffee on Sunday morning? Log it. Purchased that new HD TV on sale? Track it. Spent 99 cents on gum? Put it in the budget. It won’t be truly effective unless you are honest, and you might be shocked at what you see at the end of the month… but either way, it’ll put you in touch with your finances and make you very aware about where your hard-earned dough is going. Happy budgeting!