We’ve resolved to setup an emergency fund and to stop throwing money at unnecessary fees. Now it’s time to work on credit – this one affects not only what you can do this year, but what you can do for years down the line. It’s a critical part of your financial life and shouldn’t be left for tomorrow.
3. Don’t pay extra because of bad credit. It can take time to rebuild your credit history but it’s worth the effort. A bad credit score can increase your interest rates at best and at worst can prohibit you from getting a credit card, a mortgage, and more.
But where to start? First, get to know your credit score and how it’s calculated. There are lots of options for finding out your FICO score, which is a close estimate of your credit score. Check this monthly not only to monitor your progress but also to check for identity theft and fraud! As an Emerge member we have options just for you – get a free monthly FICO score from CreditSesame or a 20% discount on your score and analytics from myFICO. It’s only takes a couple minutes – get started today!
Now that you know your credit score, focus on what you can do to improve it. This infographic breaks down the five components of credit and how much they’re weighted. Where do you struggle? What are some small ways you could change your behavior that could improve one or more of these areas and raise your score? Pick one or two and decide how you’ll start. Over the next 6 months or so you may already see your score improve.
Emerge Financial Wellness 