A new year generally means a fresh start filled with opportunities and forgiveness. Unfortunately, financial forgiveness can be hard to find, especially when it comes to your credit score. A new year won’t erase all the history on your credit report, but you can use the fresh start to help revive your credit. Luckily, there are credit boosters tips that will help your credit score in the new year.
The majority of Americans struggle with their credit reports. The FICO, which created the credit score model, reports that only one million Americans have a perfect credit score of 850, that’s less than one percent of the American population.
Here are a few credit boosters tips:
- Get a credit checkup. One way to improve your credit is to checkup on your credit report. By law Americans can request one free credit report from nationwide consumer reporting companies. Sadly, not enough people take advantage of this so remember to check your report.
- Erase errors. Report credit score errors immediately! These errors can greatly hurt your score and your eligibility for insurance, lower interest rates or even employment. A credit report dispute could fix the mistake.
- Getting in the habit. The FICO says that 35 percent of your credit history depends on your payment history. To prevent late payment set up reminders for your debt using finance apps or text or email reminders from your bank.
- Don’t believe the myth. Having a credit card can actually boost your credit score. So, if you do not have one you may want reconsider. But remember to use your credit card wisely.
- Keep your balance low. MSN Money says that having a high credit card balance can hurt your score, even if you pay the balances. Charging less than 30 percent of your credit card’s limit at a time can actually increase your credit score.
- Longevity. If you have an old credit card that you have stopped using consider circulating it again. If you have thought about closing an old account reconsider. Longevity is a great sign on a credit report and can boost your credit score.