New Year's Resolution: Build Up Your Credit in 2025

Ring in 2025 with a plan to build up your credit. The start of a new year is a great time to create new financial goals and plans for how to achieve them.

Although you can't improve your score instantly, following these tips throughout the year will significantly enhance your credit score.

1. Review your credit report. Look closely for errors that show late payments or incorrect credit limits on cards. Report any errors immediately.

You can request a free credit report each year from the three major credit-reporting agencies: Equifax, Experian and Transunion. You may request all of them at once or spread the request over several months.

While these reports do not display your credit score, they provide essential insights into the categories that influence your score.

2. Pay your bills on time, every time. Late or missed payments will quickly drag down your credit score.

Take advantage of payment reminders or online bill payments through PACU’s Advantage Access Online and Mobile Banking or for debit card management and usage through the MyPACUCard app to ensure that utility bills, loan payments and credit card bills are paid on time.

If you have overdue bills, contact the biller and arrange to catch them up. Allowing an overdue account to go to a collection agency can hurt your score for up to seven years.

3. Keep your credit card balances in check. The less you owe, the better. A good guideline is to keep your balance below 30% of each card’s credit limit.

Also, don't automatically close unused or paid-off credit cards, especially if you've had them for a long time. A lengthy credit history can have a positive impact on your credit score.

Another tip is to avoid applying for multiple credit cards or charge accounts quickly. Each time a creditor checks your report after you use it, you may lose a few points.

4. Focus on your loan applications. When applying for a new auto loan or mortgage, aim to submit all your applications within two weeks.

Multiple inquiries for these types of loans made within this timeframe are considered a single inquiry, so they won't harm your credit score as several inquiries for credit cards might.

Having good credit is essential for many significant steps in life. What better way to start the New Year than with a plan to boost your credit?

These tips will foster a strong financial future for this year and many more to come.