Right now, in Illinois and the rest of the U.S., the economy is strong. This is great news for job seekers and investors. But this is potentially bad news for credit card holders and individuals shopping for loans. Why? When the country’s economy improves, the Federal Reserve bumps up interest rates in order to make the economy even better. Of course, this means that Illinois consumers will pay more for loans and revolving credit card balances. However, if you approach the situation in the right way, you can make rising interest rates work in your favor. In fact, right now is a good time for consumers in Illinois to improve their finances and strengthen their credit scores.
Why Higher Interest Rates are Great for Savers in Illinois
Building an emergency fund is a great way for Illinois consumers to protect their finances and credit scores. With money saved, you can pay unexpected expenses without relying on credit cards or – even worse – payday loans. This reduces your risk of building debt, which, in turn, helps your credit score by keeping your credit utilization ratio down.
Typically, consumers in Illinois have the greatest success with saving money when they treat it as a necessary expense. For an easy way to incorporate a “savings expense” into your budget, eliminate at least one unnecessary expense. Then, take the money that you would have spent on expensive coffee, lunches out, etc., and put it into your savings account. Luckily, not that interest rates are rising, the money in your savings account will grow a little faster. This is one of the benefits of a sound economy and higher interest rates.
Why Rising Interest Rates Should Inspire Illinois Consumers to Pay Down Credit Card Debt Right Now
Paying interest charges on revolving credit card balances is never a good idea, but this habit is about to become more expensive as interest rates rise. Knowing this, Illinois consumers should make plans to pay down high credit card balances as quickly as possible. Sure, it is always a good idea to eliminate credit card debt. Yet, sometimes, indebted Illinoisans need a little extra motivation to put a plan into motion. Why not use rising interest rates as inspiration for finally getting those balances under control?
Consumers in Illinois with good credit scores may qualify for balance transfer credit cards. These cards normally offer 0% interest rates for an introductory period. This allows consumers to pay off high balances a little faster. Or, if your credit score is less than perfect, you can opt for a debt management program or credit counseling.
Finally, Illinois consumers who don’t want third-party assistance can pay off credit card debt on their own as long as they have a good strategy. For example, credit experts recommend using either the “snowball method” or the “avalanche method.” The snowball method involves paying off the smallest credit card balances first in order to build momentum. On the other hand, those who choose the avalanche method pay off credit cards with the highest interest rates first. Ideally, this strategy saves cardholders money and gets the hard work out of the way first.
Why Money Savers and Debt Eliminators in Illinois Should Regularly Check their Credit Reports
If you have financial and credit score goals, make sure to check your credit reports at least once every 12 months. This gives you the opportunity to look for signs of identity theft and credit reports errors that might bring your credit score down. Just remember to check your credit reports from all three major credit bureaus because creditors don’t always report information to every credit bureau.
The easiest way to request your free annual credit reports from TransUnion, Equifax, and Experian is to visit www.annualcreditreport.com. This secure website is authorized by the federal government, and save you the hassle of going to each credit bureau’s website individually. Then, once you have access to your credit reports, go over them carefully.
If you spot signs of identity theft, such as fraudulent transactions or bogus accounts, file a police report immediately. Next, contact Credit Repair Lawyers of America in Illinois. Or, if you find credit score damaging errors on one, two, or all three of your credit reports, call us right away.
Our in-house credit pros help Illinois consumers with credit issues of all types every day by handling the entire dispute process from start to finish. In addition, you’ll get access to an experienced credit attorney who will get fraudulent items and errors removed from your credit reports – legally and for free.
The Free and Legal Way to Get Better Credit in Illinois
Don’t let identity theft damage or errors on your credit reports bring your credit score down. At Credit Repair Lawyers of America, we’ve been cleaning up credit reports for consumers since 2008 for free. How do we do it? All of our fees come from the defendants in settled cases. This is why our clients pay nothing for the work we do.
Let’s start the conversation about what we can do for your credit. Set up your free consultation today by calling Attorney Gary Nitzkin at (773) 360-0665 or sending him a message through our contact page.
For more information about Free Credit Repair, please visit https://www.creditrepairlawyersam.com/illinois/credit-repair/. Or, to learn more about Free Credit Repair After Identity Theft, check out https://creditrepairlawyersam.com/illinois/identity-theft-repair/.