CHARLOTTE, N.C. — For many people, the new year brings money goals with the intent of boosting their credit score and paying down debt.
Let's start with the basic understanding of how credit works. Each time you use a credit card, that transaction is reported to at least one of the three major credit bureaus. They track what you buy, when you pay and how you use those cards overall and it's factored into your credit report.
Once you have a good understanding of what's monitored, you can strategically use your credit cards to improve your score quickly. Here are some simple tips from Money.com that could boost your financial health in 2024.
One of the numbers you should keep an eye on most is your credit utilization. Spending about 30% or less of your credit card balance and paying the balance down to zero every month is one of the fastest ways to bring up your score. If your limit is $1,000, try to keep your balance no higher than $350 and always pay it off, experts say.
Another fix is to remove as many negative items as possible from your credit report. These can be missed or late payments, unpaid debts or bills that have been handed over to collection agencies. These things can sometimes haunt you for years, staying on your credit report longer than they're supposed to.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to WCNC Charlotte by emailing money@wcnc.com.
About 20% of Americans have these kinds of inaccuracies on their credit report, data shows. That's why experts suggest getting a copy of your credit report by going to the website for any of the major credit bureaus. You get a free one each year.
From there, you can send a letter or fill out an online dispute form to contact the bureau. Make sure to include all relevant documents supporting your claim, such as receipts or balance statements, and explain why you believe the disputed information is inaccurate.
After that it's a waiting game. If the bureau finds the information on your report to be wrong, they will remove or update those details. You should also receive a copy of your updated credit report reflecting any changes.
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