Just about everyone understands that having good credit is important.
I recently posted information explaining what a credit score is and how scores are determined. The next step is to understand what to do when you need to improve your credit.
6 Ways to Improve your Credit Score:
- Pay your bills on time: Late payments and bills that go to collection agencies really hurt your credit score.
- Keep balances low on credit cards: High balances on your credit cards can hurt your credit score.
- Pay off debt rather than moving it to a new credit card: The best way to improve your score is to pay down any revolving credit rather than moving it around.
- Limit new credit accounts: Only apply for and open accounts if you really need them.
- Make sure your credit reports don’t have errors: Take advantage of your annual free credit report from each of the 3 credit reporting agencies (Equifax, Experian, Transunion). If there are any mistakes, contact the creditor and the credit agencies to get the error removed.
- Don’t give up if you have missed some payments: Just because you have missed some payments, you shouldn’t assume your credit can’t be salvaged. Start paying on time and get caught up on the missed payments. The longer you have been paying your bills on time, the better your score will get.
Myths About Credit Scores:
Missing a payment won’t hurt your credit score very much.
Wrong. Missing just one mortgage payment can lower your credit score up to 100 points.
Employers don’t care about credit scores.
Wong again. Many employers have started looking at additional factors such as credit scores as they try to decide if a candidate will make a good employee.
Identity theft will permanently damage your credit.
Not true. Victims of identify theft need to report it to the police and the credit reporting agencies immediately. Once it has been confirmed that you are a victim of identify theft, steps can be taken to reverse the impact on your credit score. Getting your credit cleaned up after fraudulent activity won’t be fun, but is worth the effort.
There isn’t any way to improve a credit score enough in 6 months to qualify for a mortgage.
Another myth. Depending on how low your credit score was when you started working to improve it, 6 months to 1 year of paying your bills on time and doing everything right can improve your score enough to qualify you for a mortgage.
The information for this post was provided by Stifel Bank & Trust. For more information on if you can qualify for a mortgage, or what you need to do so you can qualify to buy in the next 6-12 months, contact Kerby Claney.
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I don’t consider myself an environmentalist.
I don’t believe that the suburbs are going to destroy our cities and that if we don’t switch to alternative fuels tomorrow that we will be causing the world as we know it to collapse. (But I do think that it is time to get started working on options instead of relying on oil for our major fuel needs).
I even used to think that people that carried their cloth tote bags into the grocery stores were being a bit melodramatic.
Over the course of the last year, my attitudes have slowly evolved.
I know that my actions may not change the world. But just because I can’t fix the world, doesn’t mean I need to contribute to the problems.
I’m still not a member of Greenpeace and I’m not ready to trade in my car for a Metro pass, but I am trying to do my part.
Changes I Made in 2008 to be a Better World Citizen:
- Avoid plastic bags whenever possible – I actually became one of those people carrying my own reusable bags into the grocery store. I bought two bags at Schnucks for a little over a dollar each, and find that the 2 bags can usually handle all of my purchases. If I forget them, or am buying too much, I opt for paper bags. I only get plastic now when I am shopping at places like the mall, Best Buy or Target.
- Recycle everything I can – I am fortunate to live in a municipality that believes in recycling. Earlier this year, University City swapped out the old plastic tubs that had to be dragged to the curb with new rolling carts that are almost as big as the regular trash cans. UCity expanded the list of items that can be recycled..all of it getting tossed into the cart with no need for sorting. I throw everything I can into my big blue trash can and find that about half of my ‘trash’ ends up in the recycle cart.
- Buy fair trade coffee – After watching this video on fair trade coffee and how it makes a difference in sustaining coffee farmers in developing nations, I switched from my beloved Cameron’s Toasted Southern Pecan to Kaldi’s Fair Trade coffee. The price tag went up a bit, but I feel better each time I toss the beans in my grinder knowing that the farmer that grew the coffee beans can feed his family.
- Shop local for produce – I really believe in supporting nearby farmers, and the best way to do that is to shop at the farmers’ markets that are scattered throughout the St. Louis region. With only a few locally grown seasonal items out at a time, I find myself buying a combination of ‘home grown’, nearby farm/pantry products, and out of state produce. Since I also believe in supporting small independent businesses, I’m happy to be able to buy my Chiquita bananas from Summit Farms rather than the grocery store chain.
- Donate money to worthy charities – For years I have done my part in helping the community through volunteer work. I am a co-chair of NCJW’s Back to School Store, and have volunteered in the past as a Make-A-Wish wish granter, financial literacy mentor, and Ronald McDonald house meal server. This year, I decided to expand my hands-on efforts by contributing money to some deserving charities. For years I have followed the good works of Backstoppers. This year I finally joined. I also became a life member of National Council of Jewish Women and became a member of KWMU, the St. Louis NPR radio station.

Resolutions for 2009:
In the next year, I want to do even more to improve my community and increase my efforts at being a good world citizen.
- Connect more with people of diverse backgrounds – I recently started meeting people through Meetup.com, Twitter and Bar Camp St. Louis. Living in a city that tends to be segregated by race, economics and religion, I want 2009 to the year that I make friends and connections with people of all backgrounds.
- Help connect people with jobs – During these difficult economic times, I want to use my connections through the blogging and Tweeting community to connect people that need a job with people that might hire them. Let me know if you know anyone that might have an opportunity for one of my job-hunting friends & relatives: 1) copywriter, 2) recent poly sci grad looking for business position, 3) marketing professional and 4) lawyer turned software architecture student. Through this blog and Twitter, I’ll share with you information about job hunters and positions…hoping to play matchmaker.
- Support independent restaurants and businesses – Over the next year, my monthly newsletter restaurant pick will all be independent restaurants affected by the Hwy 40 closure. Join me in helping our independent restaurant owners weather the economy and diverted traffic patterns. My prior recommended restaurants, including many in the construction zone, can be seen on this Google map.
- Use my reusable bags at more than just the grocery store – There is absolutely no reason that I can’t carry my bags into Target and Best Buy just like I do when I shop at Schnucks and Whole Foods. I will do better. Maybe I’ll even buy one of those bags that zips up into a small packet that I can toss into my purse so I’ll have it with me all the time.
- Donate money every month to a worthy charity – Funds are going to be very tight this year for so many charities. More people will asking for help, but fewer people will be donating. I’m fortunate to have built a successful business that is still thriving even in these economically challenging times. Each month, I will personally contribute to a local charity doing great work. I’ll give them some free publicity by highlighting the charity on my website and in my newsletter with an appeal to my readers to join me in supporting them. I’ll also make a contribution to charity for every closed home purchase or listing.

It’s time that all of us stop making New Year’s resolutions to lose weight and exercise more. This year, let’s resolve to do more to improve our communities.
What are your resolutions for 2009?
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