Easy LifeStyle Changes for a Higher Credit Score

The methods that are recommended in order to improve a credit score are long term, results oriented methods that should result in a higher credit score when done consistently.   There are other, every day techniques you can use to help improve your financial situation and financial responsibilities that are often overlooked in the big "financial picture".

Cut Out Coupons

Yes, that's right.  Cut out coupons from your newspaper or print them out from websites, and use them.  The money you save with coupons can help you reduce your monthly expenses.  A reduction in monthly expenses can result in better use of your income, which may result in having to use less credit.

Return Cans & Bottles

For every can or bottle you return, you get about five cents.  Doesn't seem like much, does it?  If you are a family that drinks a lot of soda, beer, or other bottles and cans with deposits, you can return these items to the store and use the deposits to rebuy your favorite drinks.  It may seem like a pain to wash out and return these items for such little money, but if you just throw them away it's a waste and another unnecessary expense coming out of your wallet that can be better used elsewhere.

SnowBall Payments

If your goal is to reduce the monthly payments you are required to make each month, you can use the snowball method of making payments to quickly pay off some accounts to free up additional money to pay on the remaining accounts.  It's one of the fastest methods of reducing debt without an increase in income, and will substantially improve your credit score each time you pay off one of your credit accounts.

Start with the account you owe the least amount of money on.  Make as large of a payment on that account that is possible while still making minimum payments on each of your other accounts.  When that account is paid off, you take the entire amount that you had been paying to the paid off account previously and apply it to the account with the next lowest balance.  Each time you pay off an account you "snowball" that payment onto your next account and before you know it, you will have greatly reduced your debt and therefore increased your credit score.

Start a Change Jar

So many people laugh at change jars, while other families understand their value and use the money from a change jar to take vacation, buy a few Christmas gifts or to pay for entertainment costs.  You would be surprised at how much a change jar can add up, and in a relatively short period of time, too.  When you save your change on a regular basis, you can plan to use that money for things you might otherwise charge to a credit card- it's a mini savings account that's easy to use since no one really thinks about the change in their pocket at the end of each day as "available money".

Every day when you return home, empty out your pocket, wallet or purse of loose change.  Just make it part of your "returning home" routine.  Within a few months, you'll probably find you have enough money in your change jar to make one of your monthly payments!  If you continue to let it grow throughout the course of a year, for example, you can take your change to the bank and use it for a mini weekend vacation or to purchase a gift or two, or maybe to buy a new tire or give your vehicle an oil change.  A change jar collects money that would otherwise get spent on little things here and there.