Four New Year’s Resolutions for Improving Your Credit Score in 2018

If you’re struggling with a poor credit score, then the best New Year’s resolution that you can make for 2018 is to improve it, even if only by a small amount. A poor credit score can impact your life negatively in several different ways, making it impossible to get a mortgage and buy your own home, and even cause you difficulty when it comes to getting products such as credit cards, loans, hire purchase agreements, vehicle finance, or even a cell phone contract. Because of this, improving your credit rating as much as possible is certainly in your best interests. Here are some of the best financial resolutions to make for the New Year that will lead to a new and improved credit score for you in 2018.

#1. Don’t Borrow Any More Money:

One of the best things that you can do to improve your credit score is avoid borrowing any further money and instead focus on repaying the amount that you already owe. If your credit score is poor due to having a high amount of credit, then adding to this won’t do you any favors – that is, if you’re even able to in the first place! So, tell yourself that 2018 is going to be the year that you motivate yourself to save for what you want instead of borrowing – it’s far more satisfying!

#2. Cut up Your Credit Card:

Whilst having a credit card can actually be a good thing for your credit rating, spending on it too often can quickly send your score plummeting in the opposite direction. Unless you plan to pay off anything that you spend on your credit card in full each month, then it’s worth trying not to use it at all. If your credit card balance is already quite high, then you should definitely cut it up and focus on reducing or clearing the balance before thinking about using it again.

#3. Go Over Your Credit Report:

If you’re wondering, ‘what can I do to help fix my credit that doesn’t involve repaying debts?’ then you’ll be glad to hear that simply accessing and checking over your credit report can make a difference. Although it may not always be the case, you may come across errors on your credit file that are bringing your score down unnecessarily, for example, a payment coming up as missed when you’re sure that you paid it, or creditors having the wrong address on file for you. Rectifying these errors can provide your credit score with an instant boost.

#4. Set Up Automatic Payments:

Lastly, the best thing that you can do is set up automatic payments for all your lines of credit, to ensure that no payments are missed which could bring your credit rating plummeting. It’s best to schedule these payments for the same day that your wages are paid into your account, so that they are taken as a priority, leaving you with the remainder of your wage to budget with.

Here’s to a debt free 2018!