4 Credit Resolutions for 2023
It’s 2023 and we couldn’t be more excited to see what the New Year brings. One of the most important parts of self-improvement is setting goals. If you already have a Grow Credit account, you’re well on your way to building a brighter financial future. If not, what are you waiting for?! Sign up already!
Here are 4 credit resolutions for 2023.
Set your target. Envision it.
Why did you decide to go on this journey to build your credit score? Was it a car? Your dream home? Or are you just laying a foundation for the future?
Create a visual reminder for yourself. Print out a picture that represents your credit goal, and write your target score beside it. You can tape it up to your wall as a reminder.
2. Get on top of your taxes.
Over a million Americans fail to file their taxes each year. With an average refund of over $3,000, many of them are leaving behind serious cash!
Rather than trying to fill out your tax return by hand, use filing software. TurboTax Free Edition walks you through possible deductions and credits you might not have thought of to make sure you’re getting the maximum refund. You can use your refund as a starting point to build your emergency fund.
3. Build an emergency fund.
Many people who experience issues with their credit score get there because of an unexpected expense that causes them to go into debt. To prevent that from happening, build an emergency fund. Put it in a high-yield savings account that you can’t withdraw from easily. There are currently free savings accounts offering interest rates as high as 3.5%.
If you start with your tax refund, you’ll have a big head start. Then set up an auto deposit and work your way up. Just starting the account and getting yourself into the habit of saving will go a long way, even if it’s only $5/week.
4. Lower your ratio.
One way to raise your credit score is to lower your credit utilization ratio, which is the amount of credit you are using relative to your limit. You should use less than 30% of your limit on any account.
You can read more about credit utilization ratios on our crash course, Grow & Learn: Credit 101.
