Yes, its that time of year again... Spring is right around the
corner. And while many people use this time of year to motivate
themselves to clean out the garage or the attic, why not take
this time and clean up some credit issues?
Right about now, most people are expecting Uncle Sam to drop
them a check in the mail. You may have already received yours.
Instead of running out to buy the next great thing to collect
dust in your home, why not invest at least part of that money
back into your financial future?
Ok, I know saving money isn't sexy. So I am not going to tell
you to put all that money away... I do live in the real world
here! But I would suggest you put some of it away.. maybe 10%
for a rainy day.
Here's a great idea for those with bruised credit... How about
taking part of that cash and obtaining a secured credit card?
Think about it... a secured credit card accomplishes two
things... savings and healthy credit.
To obtain a secured credit card, you must put some money into a
savings account (min $300 for most cards.) This money typically
will earn interest while there. Of course, as long as you keep
the secured card, then the cash must stay in the account. But
since your credit limit will match the savings amount, you
virtually have access to your cash!
To build that healthy credit just follow a simple plan. Each
month use your new card once to buy a tank of gas. Then put the
card away until your bill arrives. Pay the bill off completely
and then use the card for another tank of gas. The reason for
this is to allow a small balance to report to the credit bureaus
(thereby increasing your score) and then pay if off each month
with no finance charges! In short order, you have begun to build
a healthy credit history for yourself.
One last tip... take a small part of the tax return and buy
something fun... Otherwise, this will seem like torture. You can
reward yourself for doing a good thing for your future!
Make this spring cleaning count for something long term... you.
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