This 1 Thing Can Save You Thousands of Dollars!

Now that I have your attention, you are probably wondering one of two things: can I really save a boatload of cash, or was I just suckered into clickbait? Is it too good to be true if it’s this easy? I’ve said before and I will say it again; if it’s too good to be true, it probably is.” However, this is true. It’s so simple and requires little effort. Of course, I’m talking about monitoring your credit.

Now that you caught your breath from the big letdown (I’m sure you were expecting something lotteryesque), read on because it’s actually quite important. Most of us only check our credit report when making a major purchase, like a house or car. However, this is the worst thing you can do because if there is an issue, it’s too late at this point. It takes time to fix mistakes to your credit report, possibly several months. Why don’t people check their credit reports regularly? Perhaps they are afraid of what they’ll find, or they think it will affect their credit score. Checking your credit report will NOT adversely affect your credit score.

If you only take one thing from this post, make it this: Check your credit report at least once a year. It’s free. I recommend Annual Credit Report. You don’t have to sign up for anything and you won't be bombarded with junk e-mail offers. Remember, you can’t fix anything until you know where you stand.

What happens if you discover your credit score isn’t all that great? The best way to improve your score is to pay your bills on time. Next, don’t incur any new debt. In fact, create a plan to pay down the debt you already have. It takes time to improve your score. Consider delaying any major purchases until you do. See the graph below indicating credit score ranges.

It’s important to have great credit. Not only will you save thousands in interest, but employers also check your credit score as well when considering hiring you. Some credit card companies give you your score free. For example, I use Capital One, and get my credit score monthly. Finally, checking your credit regularly can help discover identity theft.

I hope that you are in the top two quadrants. Let me know of some ways you’ve improved your score.