Tips for Improving Your Credit Score at the Start of the New Year
Though the holiday season is a great time to enjoy the company of family, it can cause untold damage to your pocketbook. Fortunately, the New Year is a good time to start fresh and recover. If boosting your credit score is your New Year’s resolution this year, consider this guide to doing so efficiently and effectively with the help of your credit union.
Start Paying Down Your Debt
- Many people with high debt loads struggle with the temptation to keep adding charges. If this is you, don’t give in. Use the New Year to take a hard look at your finances—what’s coming in and what’s going out—and making the tough choices needed to balance your books. Designate a set amount of money each month to paying down your debts. Over time, your interest payments will go down, and your credit score will go up.
Get a Credit Card, but Don’t Keep a Running Balance
- Regularly charging and paying off a credit card is a good way to increase your credit rating . Contrary to popular opinion, however, you don’t need to keep a running balance. Charge your credit card for small-ticket items, paying it off on time at the end of every month. If you stick with it, this method could pay off in dividends later on.
Consider an Installment Loan
- While credit cards can present a good way to establish credit, credit rating agencies will be further impressed by regular payments on a small installment loan. If you’re embarking on a small home improvement project or buying a used car, consider taking out a loan whether or not you have the balance to cover the expenses. By making payments on time every month, you’ll do much to provide a solid foundation for your credit rating.
At GCS Credit Union in O’Fallon, we care about the financial health of our members. That’s why we offer a variety of services designed to help you boost your credit score and get on solid financial footing. For more information on our membership services , call us at (618) 797-7993.