It’s that time of year again – time to declare your New Year’s resolution. So why not make your New Year’s resolution something that will ultimately help you in the long run – like improving your credit score. Improving your credit score can have a number of benefits; however, it will take a lot of patience and self control. Here are six ways you can improve your credit score in 2015.
Pull Your Credit Reports
This should be your starting point in your journey of improving your credit report. Many people don’t pull their reports, but how will you know if you’ve improved your score without a starting point?
Making payments on time or paying off past due accounts are both super important when it comes to improving your credit score. This is because a lot of your credit score is based on your payment history.
Don’t Cancel Old Cards
You might think it will be beneficial to cancel all of the old cards you don’t use, but it’s actually better to keep them open and use it for recurring charges like your electric or cable bill. These are likely fixed costs that you will be prepared for each month so paying them off won’t be as overwhelming.
Improve Debt-to-Credit Ratio
Your debt-to-credit ratio is how much you owe versus how much credit you actually have, and can be a huge factor in improving your credit score. You can do this by asking for a credit increase, or paying down your revolving debt first.
Request Good Faith Adjustments
Not all banks will do this, but if you notice you had one or two late payments – for things like an oversight in due date or a one-time financial problem, ask for a good faith adjustment. In the event that your bank makes the adjustment, your score will automatically increase.
Go through your reports with a fine-toothed comb to make sure there are no errors. Enlist the help of a professional if it is necessary for your situation. Many people have their credit score negatively affected by a minor error with a simple fix – don’t be one of them.
To learn more about ways to boost your credit score in 2015, visit here.