Spring Clean Your Credit!

Spring cleaning is the practice of cleaning your home during the spring season, but it’s also a good time to clean up your credit score! Here are some great ways to help improve your credit:

1. Check your credit report annually

The most common complaint I see from clients is when unexpected records are found on their credit reports. Checking your bills routinely would help you to avoid any late payments and ensure your credit is in good standing.

2. Make sure negative information falls off after the 7-year period

Most negative information on your credit report falls off after 7 years, but occasionally it won’t. By checking and making sure that unnecessary information doesn’t stay on longer than it should, you can improve your credit score.

3. Don’t open new credit lines for the sole purpose of receiving cash back

Many companies offer the encouraging tactic of getting cash back when you open a new credit card. Instead of looking only at the cash back portion which is a one-time event, you should look into the long-term aspects of the card itself. Will there be extended benefits in the future on top of the cash back?

4. Try to use credit lines that you haven’t used in a while

People think that credit lines will just sit there even if they don’t use them. That’s true for the most part, but only for a certain period of time. Lenders/creditors will often close credit lines that are dormant for a long period of time in order to be able to recycle that credit for another borrower. Not knowing when credit lines might close could result in an unexpected impact on your credit score.


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Tawnee Dinh - Loan Officer

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