Small Steps to Improve Your Credit Before Year-End

As the year winds down, it’s a great time to take stock of your finances — and your credit score is one of the most important pieces. A healthy credit score can open doors to better loan rates, lower insurance premiums, and more financial opportunities. The good news? Even small steps between now and December can make a meaningful difference.

1. Pay On Time, Every Time

Payment history makes up the biggest part of your credit score.

• Set up automatic payments or reminders.
• Even one missed payment can hurt, so staying consistent is key.

2. Chip Away at Balances

High credit card balances can drag down your score.

• Aim to keep balances below 30% of your limit.
• If possible, make an extra payment this fall to reduce debt before the holidays.

3. Hold Off on New Credit Applications

Every time you apply for credit, a “hard inquiry” shows up on your report. Too many in a short period can lower your score. Unless it’s necessary, wait until the new year to apply for new cards or loans.

4. Check Your Credit Reports

You’re entitled to a free report from each bureau at AnnualCreditReport.com. Reviewing your reports helps you:

• Spot errors or suspicious activity.
• Dispute inaccuracies that may be hurting your score.

5. Keep Old Accounts Open

Closing older accounts can shorten your credit history, which may lower your score. Instead, keep them open and active with small, manageable purchases.

Final Thought: Improving your credit doesn’t happen overnight — but steady, intentional steps now can set you up for success in the new year. And remember, Old Ocean Federal Credit Union is here with tools, resources, and guidance to help you strengthen your financial future.