FOR BREAKING NEWS VISIT WWW.QNS.COM MARСH 5, 2020 • THE QUEENS COURIER 23
How to improve your fi nancial health in 2020
It’s always a good time to reassess
fi nancial goals and work
toward improving your overall
fi nancial health. No matter what
your fi nancial goals may be, having
the right information and
tools in place is key to getting
you on track to take control of
your credit.
Taking the fi rst step towards
fi nancial wellness can provide a
sense of empowerment as you
get rid of everyday fi nancial
stressors, which is why many see
a positive connection between
fi nancial control and self-perception.
Th ough increasing your
credit score might seem daunting,
following these healthy
credit behaviors can help you
make positive changes to your
fi nancial health and even your
personal well-being.
Understand your credit: When
starting on your journey to better
fi nancial health, begin by
familiarizing yourself with your
current credit standing, as well
as understanding what factors
may be negatively impacting
your credit score. A great place
to start is with your Annual
Credit Report, which provides
one free credit report each year
from all three nationwide credit
reporting agencies. Th e information
in these reports directly
impacts credit scores, so it’s
important to carefully
review
for any factors
that
c o u l d
cause your score to be lower than
it should be. Th is TransUnion
Credit Score Overview is also a
helpful educational resource and
provides tips towards building a
healthier credit standing.
Review your report and take
action: While assessing your
credit report, carefully review
for any inaccuracies or problem
areas that may negatively aff ect
your credit score. For instance,
high accumulations of debt such
as maxed out credit cards and
unpaid bills will likely be refl ected
in your credit report. Unpaid
collections are also commonly
reported delinquencies that
can cause a big hit, even when
as low as $100 or less. Prioritize
addressing these smaller problem
areas fi rst before they get
worse. Inaccurate information
caused by identity theft can
also lower your credit score and
should be disputed online.
Create a plan for better credit:
Aft er resolving any outstanding
issues identifi ed while reviewing
your
credit
report, create a plan towards
improving your fi nancial health,
which should include:
1) On-time payments: Paying
your bills on time and in full
each month is key as it builds a
positive history of on-time payments
and responsible credit use.
2) Credit utilization: It is recommended
to maintain a low
credit utilization ratio, that is,
how much of your available
credit you’re using at any given
time. It is recommended that
you use no more than 30 percent
of the available credit, otherwise,
your score could be suff ering.
3) Evaluate
your credit
cards: Before opening or closing
any credit cards, do your
research on the diff erent types of
credit cards and the benefi ts they
have. Do one or more of your
cards have an annual fee that you
could live without? Strategize
which cards you use regularly
and keep daily spending concentrated
to one or two cards
total. However, don’t close an old
account just because you aren’t
using it. Longstanding credit
accounts are vital for building
credit as this demonstrates a
responsible credit history.
Remain vigilant about credit
monitoring and protection:
Once you’re in control of your
credit, the next step is to be
diligent about monitoring your
credit and cautious about your
personal information, which
includes fraud protection.
Fraudsters may take out loans,
lines of credit, or rent apartments
in your name, which can
negat ively
aff ect your credit if it results
in a non-payment. If you think
your information has been compromised,
you can protect your
credit by freezing it at all three
credit reporting agencies. With
TransUnion, you can simply
freeze and unfreeze your credit
with the touch of a button
through the myTransUnion app
at any time.
Understanding and managing
personal information is vital
to achieving life goals such as
owning a home, fi nancing your
education or having the convenience
of credit cards for everyday
purchases. With responsible
fi nancial behaviors, discipline
and consistency, you’ll be
on your way to improving your
credit, and in turn, feeling more
confi dent about your overall
fi nancial health.
For more information, visit
TransUnion.com.
— Courtesy BPT
tax guide
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/TransUnion.com
