We’ve already discussed raising your credit score by paying down your debt – and we talked about ways to bring in more income.
The other “best practice” is to simply quit spending so much. You may think you’re already spending as little as possible – that there’s simply no place to make another cut. There’s a slim possibility that you’re right – but it’s very slim. Most of us spend on things we don’t really need.
Adopt a new habit – when considering any purchase that requires use of your credit card, set it aside for a day, or at least for a few hours. A good way to force yourself to do this is to hide your credit cards in a block of ice, so there’s no temptation to just grab the card and go.
Then take a conscious vacation from spending. Set a time frame of say, 30 days, during which you won’t buy anything but groceries and the absolute essentials – like toothpaste.
Now look for “leaks” in your expenses – ways that you spend money without giving it much thought. For instance:
• Lunch. If you work in an office and routinely go out for lunch, you’re wasting as much as $250 per month. Begin “brown-bagging” it and get the double benefit of eating healthier foods while saving money.
• Snacks – if you stop for a soft drink and candy bar or chips on the way home – stop it! They’re bad for your body and your finances both.
• Espresso – do you really need a $5 cup of coffee on your way to work?? If so, get a machine and make it at home before you leave.
• Services you don’t really need: Like 400 channels on your cable TV when you really only watch about 3 of them. See if you can get your plan changed – or just drop it entirely and begin using the library to borrow books or movies.
• More airtime on your cell phone plan than you actually use.
• Gasoline. This is such a huge expense now that eliminating a few trips will save you big money. If it’s possible, carpool or take public transport to work. If not, always bundle your errands to do before or after work so you don’t make a special trip out for them.
• Magazines you don’t read. Next time you get a renewal notice, take the money you would have sent for the magazine and send it to your credit card account instead.
If you try, you’ll find even more places where you can cut $1 here, $5 there, and even $100 somewhere else. Stop those financial leaks and you’ll be well on your way to a beautiful credit report.
CreditScoreQuick.com
