With Christmastime upon us and a new year approaching, your credit card may have been pushed to the brink the last couple of months. If you want to start the New Year off with a fresh start and your finances in order, here’s some tips to improve your credit rating for 2015:
Pay down credit cards/debts: The number one way to increase your credit score is to pay down your credit cards. Using only 30% of your limits is a good guideline.
Limit the use of your credit cards: Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. Use these cards only when you really need to, and pay them off quickly.
Know your credit limits: Make sure you know your credit limits for all of your cards, and don’t surpass them. Some financial institutions can be a little slower on reporting and it’s your responsibility at the end of the day to know what you owe.
Don’t let mistakes build up: If you notice an error on your bills, dispute them right away as they may harm your credit score. If there’s an error with a bill, whether it’s credit or utility, repair it right away so the credit bureau doesn’t take it into account.
You may also want to read this blog on recovering from your ‘holiday debt hangover’ as well. House Logic also has a number of free guides online for improving credit scores. Looking for some more tips on boosting your credit score? Feel free to contact me anytime with questions or comments.
