Spring cleaning is a yearly tradition in many households. People are taking stock and taking charge of their clutter. The same concept can be applied to your finances. So, while you’re donating your old sweaters this spring, take a moment to spruce up your finances.
Here’s how, in four simple steps:
- Check your credit score
- Do some dusting
- Admit it—high interest rates just don’t fit anymore
Did you know it’s easy to check your credit score without affecting it? This is a great way to kick off spring cleaning your finances, like taking stock of your closet. Checking your credit score results in a soft credit inquiry, which is visible only to you, not to creditors or other users of your credit report. Check if your credit card or bank has that service, or go to Credit Karma to get your score and tips on boosting it for free.
Like little bits of dust, small, frequent purchases and subscription services on autopay can sneak up on you and create a financial mess. Do the math. That $3 morning coffee can easily exceed $1000 in annual spending! Put your annual savings toward something more worthy of your hard-earned money.
You deserve it.
Credit cards can be great tools, but high interest rates aren’t cute. And, if you can’t keep up with payments, that can lower your credit score. Securing lower interest rates on major purchases or consolidating debt to reduce the interest you owe could be a better fit.
Consider a personal loan if you need to:
- Consolidate your debt
- Pay off credit cards
- Make a major purchase
- Plan a special event
And don’t worry—checking your rates won’t impact your credit score. The same soft credit check mentioned above is used by Lending Club to see what rate you qualify for.
A lot of people set and forget retirement accounts, but it’s important to check up on them now and again. Maybe your risk tolerance has changed since you opted in, or you’re ready to increase your monthly contribution. Or maybe you’re getting closer to retirement and need to change your strategy. Regardless, it’s important to take a look and make sure things are tailored to your needs.
Whether you’re doing some light dusting or an overhaul of your accounts, spring cleaning your finances can have tremendous effects on your financial future. You might just feel a little lighter, too.
from Lending Club Blog http://blog.lendingclub.com/4-steps-spring-clean-your-finances/