Credit health is a cornerstone of financial stability, both personally and for your business. With credit card delinquencies at their highest in 12 years, it’s more important than ever to stay on top of your credit. This month, we’re diving into practical steps for improving your credit.

By seeking professional guidance and analyzing your financial habits, you can strengthen your credit and build a solid foundation for the future.

Improve Your Credit: Practical Tips

• Seek Professional Guidance: Consulting with a financial advisor can provide personalized strategies to boost your credit. A professional can help you understand the nuances of credit scoring and develop a tailored plan to improve your score.
• Analyze Your Credit and Spending: Regularly review your credit report to identify any inaccuracies or areas for improvement. Tools like credit monitoring services can help you stay informed about your credit status.
• Manage Your Debt-to-Income Ratio: A healthy debt-to-income ratio is crucial for credit improvement. Aim to keep your debt-to-income ratio below 30%. This shows lenders that you manage your debt responsibly, which can positively impact your credit score.
• Avoid Over-Spending: It’s essential to maintain a balanced budget. Studies show that Americans are spending beyond their means more than ever; which can lead to a cycle of debt that’s hard to break. Be mindful of your purchases and avoid the temptation to lean on buy-now-pay-later schemes.

Steps You Can Take Today:

• Get Your Credit Report: Ensure you have an accurate picture of your credit You can obtain a free credit report from various resources, like this guide from Ascendus: How to Get a Copy of Your Credit Report.
• Limit Third-Party Tracking: Protect your privacy and credit by opting out of third-party data removing services like OnStar if you don’t want your driving history tracked and not opting in to other tracking services, can help maintain your financial privacy.
• Reference Expert Insights: Drawing from a recent Bloomberg article, it’s clear that managing debt wisely is To hedge against economic headwinds, ensure a strong debt service coverage ratio. This New York Times article also provides valuable insights into maintaining financial health in turbulent times.

Improving your credit is a key step towards financial stability and success. By following these tips and leveraging expert advice, you can take control of your credit and build a stronger financial future. Stay proactive, seek guidance, and make informed decisions to navigate the complexities of credit management.

Interview from Vice President of Lending, Andrea Ierace:

When we speak about Credit Building, I think it’s extremely important to remind our customers that incorporate 5 simple actions in our routine could make a huge difference in terms of credit building.

1. Establish and maintain open at least 3 active tradelines showing a positive payment history. Remember, make sure you ask to your Lender if they will report your loan to at least one of the 3 major credit bureaus.
2. Work on creating a mix of the credit type used showing a proficient use of these different kind of debt as such loans (installments) that typically imply fixed payments and credit cards or lines of credit (revolving) that could be considered more flexible as the monthly payment will fluctuate based on the balance used.
3. A minimum of 6 months of history is required to demonstrate that you have a regular and on time credit usage. Remember to make at least one payment within 6 months, otherwise the Lender is likely to close your account. A closed account in bad standing will falls off your credit report after 7 years, on the other hand a closed account in good standing will be removed from your credit report after 10 years.
4. Inform yourself tracking your credit progresses and spending trends. I recommend using this free recourse to monitor your credit: https://www.annualcreditreport.com/index.action
5. Avoid Misleading and Fraudulent Advice when it comes to Credit Pay to Delete, dispute any negative information on your credit report or Claiming Identity Theft to have derogatory information removed violate the Fair Credit Reporting Act accuracy requirement. Nevertheless, you can dispute errors on your credit report without incurring in any charge using the Consumer Financial Protection Bureau: https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/

LOOKING AHEAD

Stay tuned for next month’s newsletter: Marketing & Customer Experience, how to incorporate AI tools, and an interview with our very own Senior Customer Experience Manager, Gustavo!

FEATURED CLIENT

“All the skills I learned from Ascendus in three months, I can take and apply to the next ten years. Not only did I get better credit, but I learned to keep that credit up.”

– Myesha Radney, Easton’s Virtual Consulting

Myesha Improves Her Credit in Under Three Months Through the Ascendus Get Ready Program

Click to watch, and learn more about the incredible small businesses that are focusing on providing an impact, making a difference in their communities, and the journey up.

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