Here are three New Year’s resolutions that you should make to improve your Credit Score in 2023.
It’s that time of the year again when most of us try to take stock of our situation on various fronts, be it relationships, career or personal finances. At a time when credit plays an important role in our lives, here are three New Year’s resolutions that you should make to improve your Credit Score in 2023.
Additional Reading: Why Your Credit Score Isn’t Improving
Clear all your past-due bills
Let’s face it – no strategy is going to work unless you start making timely payments on your Loans and Credit Cards. A good payment history plays an important role in building your Credit Score. Any missed or late payment can stay on your credit report for quite some time and can lower your score.
So, it’s best to get cracking and focus on paying every bill on time from now on. Once you clear all your past-due bills, wait for it to reflect on your credit report. This will increase your chances of getting a loan or Credit Card in the future and make you financially responsible.
Stay under your credit limit
Your credit utilization, that is, the ratio of your outstanding Credit Card balances to your credit limit, has a big impact on your score. The rule of thumb says that your Credit Card balance should be above 30% of your credit limit.
We suggest you plan a monthly budget and stick to it to avoid making any impulse purchases. Also, you can request your bank to increase your credit limit to keep your credit utilisation in check.
Additional Reading: Is Your Credit Score Good Enough To Get You Your Dream Job?
There are chances that you may have incorrect information or errors in your credit report.
Mistakes such as misspellings of names, address, date of birth etc. are small mistakes that don’t necessarily affect your Credit Score. However, you may find errors like the addition of accounts that don’t belong to you, errors in date of payment, account status or amount overdue that is much higher than the loan taken etc. that can lower your score and hamper your chances of getting a loan or Credit Card.
It is, therefore, important to look at your credit score and history regularly and not only at the time of applying for a loan or Credit Card. In case you find any error, immediately register a complaint with the credit bureau or get in touch with the bank and get it rectified.
Psst…you can check your FREE Experian credit report with BankBazaar as often as you like and this won’t affect your Credit Score. Click here to get your FREE Experian credit report in less than three mins!
There you have it! Building your credit will not only increase your chances of qualifying for loans or Credit Cards but can also get you lower interest rates, better rewards and much more. Go check your Credit Score right away!