As we roll into the new year, it's only natural to start
thinking about how you'd like to do things differently over the
next 12 months. Even if you don't make formal resolutions, chances
are there is something in the back of your mind that you hope and
dream for in 2013.
Unfortunately, by the end of the year, our good intentions often
remain just that…good intentions. After all, losing those last 10
pounds is hard. Getting up at 6am to exercise is hard. Finding a
way to organize all that paperwork is hard.
You know what isn't hard? Getting your credit cards in order. In
fact, here are five resolutions you can easily have done before the
end of the month.
1. Shop for a better rate
When is the last time you compared
credit card rates
? While the days of having offers for zero APR credit cards filling
your mailbox have slowed down, that doesn't mean you have to settle
for a card that keeps inching up your interest. It doesn't take
long to compare credit cards online and find out if you are
eligible for one of today's low interest credit cards.
Love your current card? Don't be shy about calling and asking if
they can lower your rate. You may be surprised how many times
credit card companies say yes.
2. Reevaluate your rewards
Do you have an airline credit card but never fly? Does your
rewards credit card offer double points for online shopping but you
rarely buy from websites?
The best rewards credit card isn't the one that offers the
biggest bonus or the most points. It is the one that fits your
shopping style and offers rewards you'll actually use. There are so
many cash back credit cards and rewards credit cards available that
a quick search is bound to turn up the card that is right for
you.
3. Prioritize your payments
If you carry a balance on multiple cards, it is time to consider
consolidating and paying down your debt. Depending on how much you
owe, it may be overwhelming to consider paying everything off.
However, an easy first step is to create a payment plan that puts
you on a path to becoming debt free.
Review your cards' terms and list them in order of balances from
smallest to largest. Focus your payment efforts on the card with
the smallest balance while making minimum payments on your other
cards. Once the first card is paid off, add the payment you were
making on that card to the minimum payment of the card with the
next smallest balance.
To save money while paying down your debt, consolidate to one or
two cards or look for a
balance transfer offer
that offers better terms than your current cards.
4. Cut out pesky recurring charges
Little monthly charges on your credit card bill can add up to
big bucks over the course of the year. Businesses are counting on
you not wanting to hassle with tracking them down and cancelling
that $9.99 recurring fee. Prove them wrong this year and review
your card statement for charges for services you no longer want or
need.
5. Monitor your credit report
Finally, according to a
recent study
from the federal Consumer Financial Protection Bureau, only about
20 percent of consumers requested their free annual credit report
in 2011. It's hard to keep fraud and inaccurate information from
bringing down your credit score if you never look at your reports.
The government has guaranteed your right to a free report from the
three major bureaus - TransUnion, Exifax and Experian - each year.
Take them up on the offer!