Know Your Rights

Resolve This Year to Improve your Credit Score

The New Year for so many is about resolutions and setting new goals for yourself, so why not put repairing your credit score at the top of your list?  A good credit report can open many doors and provide new opportunities for you.  If you are ready to take action and repair your credit, follow these steps for success and check this resolution off your list.

1. Have Open, Active Accounts

First and foremost, good credit begins with accounts in good standing.  Your credit score is determined by maintaining good credit so make sure to have open, active accounts.  If you find the majority of your accounts are negative, try opening a secured line of credit that will improve your score.  A secured line of credit, like a secured credit card, means you pay up front, so there is no risk of falling behind on payments.

2. Pay Your Bills On Time

Second, make sure to pay all of your bills on time.  If you are notoriously late on making payment, start today.  Moving forward make a commitment to pay your bills in a timely fashion.  Try setting up auto pay or a reminder on your calendar so you don’t forget.

3. Avoid Debt Collection Accounts

Third, don’t let your accounts be sent to collections.  Debt collection accounts are extremely damaging to your credit standing. If you know you are falling far behind on payment and collection is the next step, reach out to your creditors and work out a payment plan before the debt is sent to collections.  Creditors are much easier to work with than a collection agency and are usually happy to accept payment from a consumer directly before sending a debt to collection from a third party.

4. Pay Off Your Balances

Fourth, try to pay off your balances, especially ones that exceed your credit limit. The amount of debt you have impacts your credit score.  Try to pay off as much of your debt as possible.  Begin by paying debts with the largest balances first and then make your way to smaller ones.

5. Maintain a Variety of Credit

Fifth, variety is also a key to success.  You can improve your credit score by maintaining a variety of credit.  Try to diversify yourself, meaning maintain credit cards, installment loans and a mortgage if possible.

6. Apply for Credit in Moderation

The sixth and final key to improving your credit is to apply for credit in moderation.  Every time you apply for credit, the creditor can access your credit file which will affect your score.  Try to only open accounts as necessary.


Improving your credit in the New Year is a realistic resolution if you put your mind to it.  Changes won’t happen overnight but by following these steps, an improved credit report and credit standing in 2018 will be your reward.

If you are in need of advice or assistance regarding your credit, contact SmithMarco P.C. for a completely free case review.  

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