The start of a new year is the perfect opportunity to set fresh financial goals. Improving your credit score is a smart place to start! A strong credit score opens doors to better loan rates and greater financial flexibility. If building a better credit score is part of your New Year’s resolutions, here are a few strategies to help you achieve it:
Commit to Paying on Time
Make paying your bills on time one of your primary financial goals this year. Your payment history is the most important factor in determining your credit score, and consistency is key. A single missed payment, especially one that’s more than 30 days late, can hurt your score. To stick to this resolution, set up automatic payments or calendar reminders. As you build a track record of on-time payments throughout the year, your credit history will strengthen and reflect your dedication.
Resolve to Check Your Credit Report Regularly
A new year is a great time to review your credit report. Errors such as incorrect late payments or accounts that don’t belong to you can unfairly lower your score. By checking your report, you can catch and address these inaccuracies quickly. Make it a goal to check your credit report at each of the major credit bureaus quarterly. You can get your reports for free every week at www.annualcreditreport.com — and dispute any errors you find.
Set a Plan to Pay Down Debts
This year, prioritize reducing your outstanding balances, especially on credit cards. A lower credit utilization ratio—the percentage of available credit you’re using—can significantly boost your score. Aim to pay off your credit cards in full each month or focus on paying down high-interest balances first. You can also consider requesting a credit limit increase to improve your utilization ratio. Make debt reduction a clear goal and track your progress as the year goes on.
Leverage Credit Score Manager for Ongoing Improvement
As part of your New Year’s financial strategy, take advantage of Heartland Credit Union’s Credit Score Manager available in HCU Digital Banking. This powerful tool gives you instant access to your credit score and credit report. It also provides personalized tips to help you achieve your goals. With insights into your open loans, accounts, and credit inquiries, you’ll have everything you need to make informed decisions and stay on track—all without impacting your score.
By committing to these goals and using tools like Credit Score Manager, you can make 2025 the year you take control of your financial future. Let’s make this the year of financial growth and success!
