The end of 2015 was a bitter-sweet moment for many of us. As we entered the New Year, we left behind a bunch of new memories. Some of us shifted homes, some graduated from colleges, and some found their dream job while others lost it. However, leaving all that behind, it is now time to focus on what’s in store for us in 2016. If you are like the thousands of people who are not completely satisfied with their credit scores, maybe now is the time to turn a new leaf and start afresh on building your credit score all over again. How to Improve Your Credit this Year. While you may wish your credit report would forget all about 2015 and become a blank slate again, that is sadly not realistic, nor possible. Luckily, all is not lost. Even if you messed up a couple of times in the previous year, now is your chance to fix all of that. It may, however, take some time to reverse the damage but with hard work and dedication, nothing is impossible to achieve. Hence, here are some easy ways to improve your credit score in 2016:
- Check Your Credit Score
Before we begin to make any amends, we need to know where we stand right now. The best way to gauge that is to ask for a free estimate of your credit score. You can request a copy of your credit report from each of the three major credit reporting agencies, Equifax, Experian, or TransUnion. But remember, this service is free only once a year.
- Establish Responsible Credit Behavior
With the New Year should come a new “you” in terms of financial reliability. In order to start building good credit behavior, try remembering all the due dates for your payments. Paying bills on time can help improve your credit score. A missing payment can reflect very adversely on your score. If you are using any kind of long-term debt, make sure to pay more than the minimum payment when paying off this long-term debt. Such behavior will build up your credit and make you look good to any future lenders.
- Manage Credit Cards Better
Similarly, if you are in possession of one or more credit cards, build the habit of paying off credit card debt. Many people keep moving their balances on to new cards, which is not a great way of building your credit score. On the contrary, if you have unused credit cards, try not to close those accounts. That is because it increases the overall credit available to you, while keeping relative utilization low, which improves your credit score.
- Spend Wisely
It may be overwhelming to fight off the urge to buy whatever our heart desires without thinking about our financial position first. However, no matter how hard it may be, it is extremely important to spend wisely. Credit experts believe that people who keep their utilization low, end up with better credit.