How to Maintain Your Credit in the New Year

What’s your New Year’s resolution?

To go to the gym more? To eat healthier? To be more patient?
The aforementioned are all great ideas, but we’d like to propose one additional resolution that’s worth considering: repairing and maintaining your credit score. That’s right, while many focus their New Year’s resolutions on their bodily health, we’d propose you put some focus on your financial health. And there’s arguably no more important number to your financial future than that little three-digit credit score. If your credit is less than stellar, make sure that you take the necessary steps to repair it. And if your credit is in good or excellent condition, then just as important is making sure that you stay in this range. Here’s a look at some tips and tricks for maintaining your credit score:

Tips for Maintaining Your Credit Score in 2019

Maintaining and/or repairing your credit score is all about knowing where your money is going. Between bill auto-pay and the convenience of just swiping a credit card when you need items, it can be very easy to lose track of where your money is going. And too free of spending can quickly undo any credit repair you made and cause those credit card bills to escalate. That’s why one great tip is to track all of your expenses for a month to get a better idea of where your money is going and what you’re spending it on.

This will allow you to analyze said expenses, eliminate ones that are unnecessary (or not in the budget any longer), and move on from there. Simply knowing where your money is going can help you prevent overspending and allocate additional funds that could go to repay certain debt. Here’s a look at some other credit maintenance tips:

Consider a money management tool: If you want to keep a closer eye on your spending – and thereby your financial health – it’s never a bad idea to consider a money management tool.

If you’re self-disciplined, a great one is Mint, which can be downloaded as an app. However, you may also choose to check with your bank to see what – if any – tools it offers.

Shop credit cards: Think your interest rate is too high on your current credit card? Don’t be afraid to shop around and see if someone is willing to give you a lower one. You could also circle back with your current credit card company and ask for a better rate. Studies show that most people who do are successful.

Budget for occasional expenses: The water bill that’s due quarterly. Your taxes twice a year. Some occasional expenses have a tendency to sneak up on you, potentially leaving you scrambling for a way to pay them. That’s why we suggest opening an additional account and allocating a certain amount of money per month toward any of these occasional expenses. You’ll be glad you did when you can pay these bills without having to get creative.