12 things you can do to raise your credit score in 2024

  • Dec 27, 2023, 11:36 AM

 

The start of a new year is a good time to make positive changes in your financial life. Getting a handle on your credit score is a great starting point.

Here are 12 things that you can do to improve your credit score in 2024.

Build credit fast by playing the Credit Score Challenge 

1: Create payment reminders in your calendar. Set reminders on your phone or computer calendar to go off before a payment is due. This will ensure that you make your payments on time. Set any reminders to go off when you have time to sit down and make your payments, such as when you get home from work or over the weekend. If you use a tool like Bill Pay, make sure to leave enough business days for a check to be mailed from your financial institution and received by the payee. Setting your reminder for 7 to 10 business days in advance of a due date is a good rule of thumb.

2: Pay off debt right away. If you use your credit card for a purchase and have the money to pay it off available in another account, do it ASAP! The sooner you pay off any of your debts the better. As part of this, make it a personal rule to avoid carrying credit card balances.

3: Schedule a one-on-one financial counseling session. CAFCU has a great team of Certified Credit Union Financial Counselors (CCUFCs) available to provide you with tools, insight, and guidance on your financial journey. 

Schedule your FREE session with one of CAFCU’s CCUFCs today. 

4: Become an authorized user on someone else’s card. Being added as an authorized user on someone else’s card can help you establish a credit history. Be aware, though, that all on-time, late, or missed payments are included on BOTH parties’ credit reports. Keep an open line of communication if you choose to become an authorized user on someone else’s card. 

5: Be a co-signer. When you co-sign for someone, it means that you are willing to take responsibility for a loan, lease, or other contract if the original borrower is unable to pay. Anything that you cosign will show up on your credit report as if it were your own loan, which can impact your credit score. If you choose to cosign for someone, be sure that person is someone you trust.

6: Use a co-signer. Having someone else cosign for you allows you to build both your credit score and your cosigner's credit score so long as both parties remain responsible in making on-time payments. This is a great way to add a sense of security to any contract you sign.  

7: Consolidate your debt. With debt consolidation, you take out a single low-rate signature loan or credit card to pay off multiple debts. There are a variety of benefits from taking this course of action, but the main benefit is paying less interest on a single loan with one lower monthly payment. This can save you a lot of money depending on how much debt you need to pay off.

8: Use a credit monitoring app. Many credit monitoring apps can help you manage your credit health and overall financial wellness. Click HERE to learn about some of your options.

9: Pay utility bills and other noncredit bills like rent and medical expenses on time. Paying your utility bills on time can sometimes help your credit score. Not all companies report to credit bureaus, but some do. Additionally, even if a company does not report to the credit bureaus, if someone’s payment is very late or in collections, they will likely get reported, which can have a negative effect on your credit score. Staying on top of your payments is always a good idea. 

10. Look into secured credit cards. A secured card is a special type of credit card that requires you to make a cash deposit equal to your credit limit when you open the account. Having a secured card is a great way to build credit; however, it is not an ideal long-term option since you must deposit money to receive a credit limit.  

11. Keep old accounts open. The age of your credit is a factor that can have a major positive impact on your credit score. If you've had an account open for a long time, keep it open even if you don’t use it to increase your amount of available credit. 

12. Consider a credit builder loan. A credit builder loan allows you to take on a small amount of debt and demonstrate that you are a reliable borrower by making regular, on-time payments. This helps you to establish a history of positive credit behavior and can open doors to more and better credit opportunities in the future.

There are so many ways that you can improve your credit health in 2024. Get even more ideas by playing the Credit Score Challenge and have a little fun while improving your financial health!