With the US heading into a recession, consumers face potential issues such as higher interest rates, inflation, job loss, and increased debt.
This combination of conditions historically also leads to credit problems!
You can protect yourself by taking a few steps to “recession proof” your credit scores. Here are 7 things to start doing now, if you aren’t already…
1. Keep Accounts Active
If you have credit card accounts that are old, but still active, don’t close them. Instead, use them every few months and keep them open. This credit history helps to boost your scores.
2. Keep Balances Low
You don’t have to pay those cards off in full every month, but keep the balances low. Don’t exceed 20-25% of your total credit limit of the card.
3. Request Credit Limit Increases When You Don’t Need Them
Don’t wait until you are desperate for money to request a credit increase. If you think you might need it in the future, request it now, when it isn’t necessarily needed.
4. Don’t Over Spend
This might seem like common sense advice, and it is! Bottom line is that if you can’t afford the cost or the payments, don’t buy it. It’s a recipe for a financial and credit disaster.
5. Monitor Your Credit Monthly
Fraud is common these days and the best way to detect mistakes or fraud on your credit report is to monitor it regularly.
6. Track Charges and Fees Carefully
Mind your finances diligently. Review the charges and fees on your statement each month and make sure they are accurate. Report any discrepancies to your bank or card issuer immediately.
7. Focus on Your FICOs Before You Need Them
Address credit issues and/or negative credit items before you are looking to buy a house or a car. Don’t wait until you apply for financing to discover a problem. Failure to think ahead often costs consumers THOUSANDS of dollars in fees and interest payments.
Call Us If You Need Help
Are your credit scores “less than perfect?” Give us a call and we’ll explain the credit repair process and tell you exactly how we can assist you in removing negative credit items and getting your scores up where they belong!