By the end of winter, most people cannot wait for springtime and warmer weather. However, for many Americans who are in debt and with poor credit scores, the idea of collecting and reviewing tax documents, unpaid bills, and credit reports could leave them praying for January again. While tax season can cause a great deal of anxiety, we at Quality Credit Repair know that this “season,” provides excellent opportunities for credit repair and debt relief.
High credit scores are hard-won, but they are achievable, even to those with poor credit. By paying bills on time, keeping credit card usage below 30 percent, and diligently managing checking and savings accounts, credit score can start to increase. Unfortunately, when the bills start piling up, and credit cards are nearing their limits, high scores can seem like pipe dreams. But, with the tips below and the support of one of the best credit repair services in Philadelphia, you could use tax season to your advantage and get your credit trending upward.
How to Use Tax Season to Your Advantage
- Gather & Organize Relevant Documents
The act of compiling tax documents can be a challenge, especially if you do not have an organizational system in place. But, there is no better time like the present to collect the papers, bills, and other documents and implement a filing system that works for you. While this may not have a direct effect on your credit score, the fact is that you are already working with your finances, evaluating your debts, income, and mortgage. This process can help you become more educated on your credit position and even locate your weak points (overspending, procrastination on bill payments, etc.) for the next year.
- Utilize Your Tax Returns
Everybody wants a sizable tax refund, mostly because it usually feels like a bonus. So, why not treat your tax return like a windfall and use it to pay down your debts or increase your savings? Punctual bill payments alone can significantly improve your scores, and if you pay over the minimum requirements, those debts can start decreasing quicker. Additionally, putting some or all of your tax refund into your savings account can help improve your readiness for unanticipated spending, including car repairs, hospital bills, and more. When you have a rainy-day fund, you can make those payments without dipping into your checking account!
- Invest in the Services of Credit Repair Experts
Some of your tax return could be used to pay for affordable services from a trusted credit repair company in Philadelphia. At Quality Credit Repair, we provide credit counseling, repairs, and more to help you contact creditors, dispute mistakes with credit bureaus, and get your credit scores back on track.
Tax season is a time of heightened stress for millions of Americans each year, but it should not stop you from improving the health of your credit. In fact, taxes can help move the needle in your favor if you use the opportunities it provides correctly. For more information on credit repair or to enlist the support of credit experts, call us at Quality Credit Repair today!