New Years Financial Fitness: Boost Your Credit Score

As you embark on a new year filled with possibilities, consider making a resolution that can have a lasting impact on your financial well-being: improving your credit score. A healthy credit score opens doors to better interest rates, increased financial opportunities, and improved overall financial stability. Explore some practical steps you can take to boost your credit score and set the stage for a brighter financial future in this brief guide. 

7 tips to boost your credit score in the new year

1. Check your credit report

Start your credit journey by obtaining a copy of your credit report from each of the major credit bureaus – Equifax®, Experian®, and TransUnion®. Review the reports for inaccuracies, such as errors in personal information or accounts you don't recognize. Dispute any discrepancies you find to ensure the accuracy of your credit history.

2. Set realistic goals

Define specific and achievable credit goals for the year. Whether it's paying off outstanding debts, reducing credit card balances, or making timely payments, setting clear objectives will help guide your efforts and keep you focused on improving your credit score.

3. Pay bills on time

Consistently paying your bills on time is one of the most impactful ways to boost your credit score. Set up automatic payments or use reminders to ensure that you never miss a due date. Timely payments demonstrate financial responsibility and positively influence your creditworthiness.

• General Electric Credit Union (GECU) members can use Bill Pay,¹ available in Online Banking or our mobile app,² to consolidate eBills under one dashboard and set up automatic payments with ease. 

4. Reduce credit card balances

High credit card balances relative to your credit limit can negatively impact your credit score. Aim to reduce your credit card balances to below 30% of your credit limit. This not only improves your credit utilization ratio but also demonstrates responsible credit management.

5. Create a budget

Developing a realistic budget is instrumental in managing your finances effectively. Allocate funds to cover essential expenses, prioritize debt repayment, and set aside savings. A well-managed budget not only helps you meet financial goals but also ensures you have the means to make timely debt payments.

6. Diversify your credit mix

Having a mix of credit types, such as credit cards and installment loans, can positively impact your credit score. However, only pursue new credit when necessary and avoid opening multiple accounts within a short time frame, as this can have the opposite effect.

7. Seek professional advice

If you're facing challenges in managing your debts or improving your credit score, consider seeking guidance from a credit counselor. These professionals can provide personalized advice and strategies to help you navigate your specific financial situation.

GECU members have a wealth of resources and tools to better their credit score. Our team will sit down with you to review your current situation and match you with the accounts and tools that will best serve your needs. Some of the options you’ll have access to include: 

• Their FICO® Score through Online Banking or our mobile app, available with eligible accounts. 
• A Debt Management Assistance program to analyze their unique financial situation and develop a personalized budget. 
• Money Management to create a budget, track goals, and much more through one intuitive dashboard.