Life as a U.S. citizen or business owner is precarious at the moment, as discussion concerning the federal government’s fiscal cliff continues to intensify. With fears that more than $600 billion may be slashed from the spending budget during 2013, and further suggestions that taxes will soar nationwide, there is a genuine threat that the nation will enter a prolonged period of austerity. There is particular concern for those who are hoping to reduce their burden of debt and develop an improved credit score, as substantial cut-backs could ultimately force them to incur more debt.
Three Ways of Improving your Credit Score during a Recession
With this in mind, how can you strive to improve your credit score when the economy enters a significant decline? Consider the following options: –
- Negotiate with your Creditors: Far from ignoring your creditors during difficult financial periods, you should be making regular contact with them and attempting to negotiate a repayment plan. Financial firms and lenders are as uneasy about the impending crisis as anyone, and are therefore far more likely to negotiate an amicable arrangement. If you are fortunate enough to have a source of income and can invest some in repaying debts, then this can deliver excellent rewards in the current economic climate.
- Enter into Positive Financial Transactions: There is a school of thought which suggests that avoiding credit is the best way to boost your score, but this logic is decidedly flawed. In fact, positive transactions have a far more positive impact on your credit rating, so you should strive to remain active and use credit in a responsible and carefully considered manner. So if you do have any credit cards with a zero balance that are valid, then be sure to utilize them rather than cancelling them completely.
- Strive to Boost your Earnings: It stands to reasons that boosting your earnings would allow you to reduce your debts and improve your credit score, but how is this possible during a recession? While it is not easy, it is certainly attainable if you are willing to work hard and market a score skill that you possess as a freelancer. Businesses are always looking to reduce their costs by outsourcing work to independent contractors, and offering this service can provide a much needed boost to your monthly income.
This article was written by Lewis on behalf of Complex Search. To understand more about credit number ranges and how they impact your score, visit the organizations website today.