The end of 2013 is coming up fast, which means it is almost time to ring in the new year.
This is not only a great time to celebrate, but it’s also an opportunity to make resolutions to improve your life for the future.
Is your credit weaker than you’d like? Keep reading to learn how to make an effective New Year’s resolution to improve your score.
1. Order a copy of your credit report.
Before you can start fixing your credit score, you need to figure out what the problem is.
Order a copy of your credit report from one of the three major credit reporting agencies (Experian, Equifax and Transunion).
This document will list your score and an explanation of how the agency calculated your score.
If your score is less than ideal, the report will explain why you lost points so you know what you need to improve in the new year. You need this information to create an effective resolution.
2. Make your resolution specific and clear.
For your New Year’s Resolution to be helpful, it needs to be specific and clear. Something vague like “I want to fix my credit” does not tell you what you need to do, so you’ll be more likely to not take action and fall short of your goal.
Instead, set a clear goal that specifically tells you what you want to accomplish. For example, try something like, “This year I do not want to miss a monthly payment on my credit cards.”
3. Pick one area to improve in 2014.
When you pick a New Year’s resolution, it’s important not to take on more than you can handle.
Don’t try to address every single credit problem at once. Instead, pick the biggest problem listed on your credit report and make that your main resolution for 2014.
If you end up handling more, that’s great but make it main goal to at least accomplish your one credit resolution.
“You might feel overwhelmed
and give up after a few weeks.”
4. Work with an accountability partner.
It is easy to feel motivated about fixing your credit on New Year’s Eve while your resolution is fresh in your mind. It gets harder as life gets busy down the road.
To stay on track, you should consider working with an accountability partner. This is a friend or family member who you talk with regularly and give an update on your progress.
In exchange, you hold them accountable for their goals.
Most people are looking to improve their financial lives, so it won’t be hard to find someone else looking for help.
5. Always keep your goal in mind and stay motivated.
Improving your credit score will take time and you need to keep your focus throughout the year.
One way to keep your goal in mind is to have it written down somewhere you will see regularly like your bathroom mirror.
You also need to stay positive so you don’t get discouraged. If you make a mistake, don’t beat yourself up and just use it as motivation to hit your goal next month.
At the same time, if you hit a major milestone, plan a reward for all of your hard work. This will make your resolution seem like less of a grind.
The new year is the perfect time to take charge of your financial situation. Use this advice and 2014 will be a great year for your credit score.
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