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7 Tips to Improve Your Credit Score This Year

One of the best ways to do this is to improve your credit score. Start by pulling up a copy of all three of your credit reports. You can get 1 free credit report per year by going to Look over each report and if there are errors, write dispute letters to the bureaus concerning them. Also, pull up your credit score. Here are additional ways to improve your credit score in 2020.

1. Pay Bills Automatically

Timely bill payments help to improve your credit score. Set up your bills to be paid automatically on certain dates. Many creditors offer this option, so you want to take advantage of it. This saves you time and money on paying bills by avoiding late fees and not having to worry about forgetting certain

2. Obtain a Secured Credit Card

Another idea to improve your credit score would be to get a secured credit card. When you have this kind of card, you establish a regular habit of using credit and paying the bill on time. Also, you don’t need the best credit history to qualify for a secured credit card. If you travel often, having a secured credit card allows you to make reservations quickly at hotels or book rental cars without the hassle. These cards also come with the chance to earn rewards on a variety of purchases.

3. Don’t Open Multiple New Lines of Credit

This is extremely important why trying to improve your credit score. The reason you want to avoid opening new lines of credit is that it shows up as hard inquiries on your credit, and this will negatively affect your credit score. On the other hand, it is wise to keep your current credit accounts open even if you’re not using them. This is because it helps you maintain a decent credit score due to the steady credit history you maintained.

4. Get Aggressive with Paying Down Debt

If you’re able to, make extra payments on your bills throughout the month. If you have a recent inheritance, a holiday bonus, or an expected tax refund, then use this surplus money to make the extra payments. You can also find ways to boost your income so that you’ll increase the funds necessary to do this.

5. Contact Your Creditors

There are times when financial hardships happen, and this affects your ability to pay bills. Contact your creditors and explain your current situation. Then you and the creditors will work out a payment plan that is the best for you in tough circumstances. Most creditors would rather receive a little money than nothing at all. Long term this can really help improve your credit score.

6. Pay Your Cards Off Each Month 

Another thing that can help is using your cards for small purchases such as gasoline fill ups or snack at convenient store, lunches etc.. Then pay them off the card completely each month. 

7. Request a Higher Credit Limit

The benefit of this is that your credit utilization ratio increases, and it’s good news for increasing your credit score. Depending on your creditors, they might request certain paperwork for it to happen. The paperwork could include your current income and employment status. You want to explain why you want the increase.

These steps can help you improve your credit score. You will have peace of mind in knowing that you’re on your way to stronger financial stability in 2020.  If you would like to get connected to a Lender to see about qualifying for a mortgage click on "Speak with A Loan Agent" from our home page.


    Only close family and relatives, such as aunts and uncles can “gift” you money for a down payment.

    The failure rate for a home purchase is 20% on average.

    Many lenders have NO PMI loans, even if you have a down payment of less than 20%.

    Veterans may qualify for a home purchase with no down payment using a VA Loan for purchase.

    Many condominiums are not FHA approved and therefore you will not be able to purchase the condo with an FHA Loan.

    FHA Loans give you greater flexibility with your debt to income ratio. In short, you can qualify for more loan with less income.

    Student loans can throw your debt to income ratio out of whack and disqualify you from approval due to excessive debt.

    Bankruptcy does not disqualify you from getting an FHA Loan as long as it has been 2 years since the recorded discharge date, or 4 years for a Conventional Loan.

    Many lenders will not accept documents, such as bank statements, that have any portion that has been blacked out or tampered with.
  • PRO TIP:

    Be sure to understand exactly how much loan you can be approved for before you fall in love with a home and get into a contract!
  • PRO TIP:

    Don’t move around assets during the processing of your home purchase loan, as it will trigger the underwriters to ask repeatedly for updated bank statements.
  • PRO TIP:

    Not every Realtor can produce the same results, so be sure to check their credentials and experience.
  • PRO TIP:

    Don’t just trust a pre-qualification from a licensed lending officer. Get pre-approved by an actual underwriter before you get into a home purchase contract.

Speak with a loan agent now!