Ano Novo, Novo Credit Score

If one of your New Year’s resolutions is to boost your credit score you are in good company! Many people use the start of a new year as the time to get a fresh start on their finances. We’ve got a few suggestions on how to get started January 1 and keep it going for the 366 days (leap year) of 2020.

Get Your Credit Reports

A great place to start is by obtaining your credit report as well as scores from the three major credit bureaus. This is a crucial first step because it gives you the chance to see where you are at as well as identify any fraud or errors in reporting. You can do this easily yourself by going to annualcreditreport.com. You are entitled to a free copy of your credit report from all three bureaus once per year!

Make On-Time Payments Every Month

One of the biggest factors in your credit score is making on-time payments. If you have had trouble with that in the past this is the year to start anew! Setup alerts and calendar events to make sure you never miss a payment. Even if you can only pay the minimum, pay it! Some of your accounts may also allow you to change your due date online or over the phone, which can make it easier to remember multiple payments.

Ask For A Limit Increase But NEVER Use It

Aside from on-time payments the other big factor in your score is your credit utilization ratio. Ideally you want to be using less than 30% of your allowed credit. If you are over number your score probably reflects that. One way to lower the ratio is to increase your limit but NOT your spending.

This isn’t a great option for everyone but if you can be certain you won’t increase your spending this can be a pretty fast way to boost your score (so long as the limit increase is approved).

Consolidate Your Debt

If you have a lot of debt in many places it may be worth it to consolidate. You can do this by moving balances from several cards to one with a low interest rate and making only one payment or you can apply for a lower interest personal loan to cover your credit card debt. These options aren’t right for everyone but can be very useful for those with certain credit situations. Your best bet is to talk to a professional to determine which is the best option for your specific kinds of debt.

Consertar o seu crédito pode ser tão simples como fazer uma chamada! Estamos aqui para o ajudar a reconstruir e a compreender o seu crédito. Ligue-nos para começar ou saiba mais sobre o que podemos fazer por si 1-800-431-0449.