The New Year is right around the corner. Millions of people around the world will ring in 2020 with commitments for the next 12 months. If your credit history could use a boost, then why not make a resolution to repair your credit score? It’s not easy, but it’s certainly a lot easier than most people think it is. Here are some of the steps you can take to improve your credit score for 2020.
1. Review Your Reports
The first step is always to figure out what you’re working with. To do this, get a copy of your credit report. The three main credit bureaus owe you an updated copy of your return once per year. You can also rely on free services from your banks, NerdWallet and CreditKarma to provide you with a snapshot of your credit history and score. Many of these apps provide regular tips on how to improve your credit.
2. Dispute Discrepancies
The FTC reports that 20% of Americans have errors on their credit reports. To add to this, 5% of Americans have errors so bad that it weighs down their credit scores and worsens their treatment from lenders. If you find errors on your report, dispute them. Note that those errors could also signal identity theft, so the sooner you handle this, the better. Credit monitoring apps usually alert you when there is new activity. Always verify these.
3. Create a Budget
Living above their means is one way people tend to mess up their credit. Sometimes this is unavoidable, such as when you lose a job. Other times, even people making six-figure salaries struggle to keep up with bills. Making a budget and sticking to it can help. Use that budget to keep track of your bills, improve your payment history and save. If you’re great with creating budgets but terrible at maintaining them, consider using an app to automate the process.
4. Save More Money
This year, CNBC reported that most Americans could not come up with $1,000 to pay for an unexpected expense if one arose. Emergencies often cost much more than this, forcing people to rely on credit cards and fall behind on payments. Building up your emergency funds helps to prevent this from happening. You can also use apps or make arrangements with your bank to automate the saving process.
5. Add More AU Tradelines
Authorized user tradelines is the collective term for all the accounts on your credit history that are used to calculate your score. People most often use the term when individuals open the account specifically for the purpose of improving their score. There are several ways tradelines can do this:
- Increase your available and unused credit.
- Add more accounts in good standing.
- Improve your credit mix.
Boost Your Credit Score for 2020
Adding authorized accounts to your credit history is one of the most common ways people try to boost their score. While you may experience a temporary drop in your score, it rises beyond where it initially stood before. The trick is keeping the accounts active without using the opportunity to spend more. Contact us today for more information.