Mortgage Minute

by Michael Scharfe

The new year is just around the corner and with that begins a lot of New Year’s resolutions. What better time than now to add a resolution to clean up your credit? According to a poll found in Forbes, the #5 most common resolution in 2023 was to improve finances. While improved finances could be considered very broad, part of that likely encompasses credit. Considering that, here are some practical steps you can take to clean up and improve your credit score.

1. This first one may seem obvious, but it is making sure to pay your bills on time.

2. Secondly would be to visit http://www.annualcreditreport.com to check your credit report. You are allowed to do this once a year at no cost and it is an effective way to see what all is reporting on your credit report.

3. After pulling your report, review it carefully to ensure all the information is up to date and accurate. If you find anything that you believe to be an error, work with the creditors or the credit reporting agencies (Transunion, Equifax and Experian) to resolve any discrepancies.

4. Work on paying down debt, especially credit cards. One of the things that can have a negative effect on your credit score is the balance of your credit cards compared to what your credit limit is. For example, a credit card that has a balance of $4,900 with a credit limit of $5,000.

Regardless of what your New Year’s resolution is, taking steps to improve your credit or finances is one that can have many benefits both now and in the long term. Please visit http://www.annualcreditreport.com to start the process of reviewing your credit.

(Davis, Sarah. “New Year’s Resolutions Statistics 2023.” Forbes,

https://www.forbes.com/health/mind/new-years-resolutions-statistics/.)

Michael Scharfe has been a lender at First Security Bank for 10 years. Reach him at [email protected].