New Years is fast approaching, and many people will undoubtedly gear up to make changes to their life starting January 1st. One of the more common resolutions people tend to make is to get their finances in order – specifically improving their management of credit card spending. If that describes you, know that there is no reason to wait for an arbitrary date in time. The sooner you begin making changes, the sooner you will begin to see results. Pushing off making important money-saving decisions is detrimental to your finances. Additionally, the sooner you begin seeing results, the quicker you will feel rewarded for your hard work.
Credit problems can sometimes feel vast and difficult to tackle. We broke down some easy-to-manage resolutions anyone can try sticking to. If any of these seem basic to you, feel free to attempt more than one.
Begin tracking your credit score.
In 2016 there was a continued surge of online services allowing people to view their credit score and report. This will likely carry forward to 2017. Most of these service are free of charge and require little more than an internet connection to sign-up. Not only is registering and checking your report online a good resolution, it’s something everyone should get in the habit of doing. Frequently checking one’s credit score is one of the only ways to preemptively catch identity theft, or notice that something we’re doing is having a negative impact on our creditworthiness. Search “free credit scores” on Google, and you’re bound to find a handful of good options.
Start using a rewards credit card.
If you haven’t put much thought behind the card you carry around in your wallet, now is the perfect time to do so. Anyone who is actively paying off all their credit card bills in full should be using a rewards credit card. There are currently dozens of fantastic options out on the market. They come with bonuses worth hundreds, if not thousands, of dollars. Take the time to look through comparison sites and try to find an offer that lines up well with how you spend your money. It can have a significant impact on your overall finances.
Get more out of your current credit card.
You don’t have to apply for a new credit card to start getting more out of your cards in general. Sometimes, all that can help is getting to know your existing cards better. Most people don’t realize the full potential of their existing cards. Make it your resolution to actually go through and read up on your credit cards. You can also call your bank and ask about any new promotions you may qualify for as an existing cardmember. These are all tasks that will take out just a few minutes from your day, but have the potential to add a lot of overall value. Even if you don't find anything the first time around, make it your resolution to regularly check for new promotions.
Eliminate debt on at least one credit card.
If you’re one of the millions of Americans struggling with credit card debt, this one will almost certainly make your list. However, there is an important distinction between “eliminate credit card debt” and “eliminate debt on one credit card”. Making a single card your goal can be a good way to get more accomplished. If you, like many others, carry debt across multiple cards, it is easy to feel overwhelmed trying to tackle them all at once. Pick your highest-interest-charging card, and focus your payments on that one. This doesn't mean you should neglect your other cards. Make sure to put as much towards those bills as you can. Focusing on one credit card will give you an easier-to-reach goal. Once you accomplish this, you may be more likely to rinse and repeat the process with the next card on your list. Be sure to utilize balance transfer credit cards. They can help you defer interest to help focus on paying down the principal balance.
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