Credit-Rebuilding Resolutions for the New Year

By John Hayden

New Year’s Resolutions (and particularly credit-rebuilding resolutions) have a sad reputation, because most people give up before the second week of February. However, it’s quite possible to succeed in your financial restructuring this year, if you incorporate certain principles.

Avoid informal loans 

Most people with bad credit usually prefer informal loans like payday loans. These loans do not report to the credit agency and have no impact whatsoever on your credit score. As expensive as they can be, you get no benefit from paying them off in good time. You should avoid them if you want to build your credit.

Instead, choose lenders that will report to your credit agency, and then you must inculcate the habit of paying ultimately and promptly every time. Your credit agency will give you higher scores for good repayment habits, as an added reward for sticking to your credit rebuilding resolutions.

Remember to be SMART

  • Correctly identify the sources you will be borrowing from.
    Measure your progress with the help of the calendar. Mark, every day you make the right credit decision.
  • Analyze your credit habits to see why you made terrible credit decisions in the past. Then, decide never to follow the same path again.
  • Review the outcomes of your credit decisions by comparing the credit report to the year’s end with what you had at the beginning of the year.
  • Time is of the essence, so you should not take a loan that would not report to the credit agency between January 1 and December 31 of this year.

Apply for a secured credit card

This is good if you find yourself exceeding credit card limits, or you never pay bills in full. A secured credit card helps you check frivolous spending and prevents you from having too much debt that will negatively impact your credit score. It is, therefore, a cool way to rebuild your credit.

Remember to be SMART

  • Search to find out the kind of secured credit card you will apply for.
  • Mark every due date on your calendar and note how much money you need to set aside for payment.
  • Activate a secured credit card limit that won’t be difficult for you to pay.
  • Reach first for your secured credit card and use it instead of unsecured payment options.
  • Timeframes can be made to know when to use your secured credit card and when to pay off the bills.

Credit-Rebuilding Resolutions and Tricks to Pay Bills on Time

It is helpful to employ some tricks if you keep forgetting to pay bills on time.


  • Specify the bills to pay and when they are due
  • Mark the due dates on the calendar and set reminders on your devices.
  • Account (bank) may be dedicated to the payment of bills so that funds will always be available for that purpose.
  • Request that automatic payment is set up for you.
  • Train your mind. Start thinking of the payments about a week before the due date of bills.


Pay off Debts under your Credit-Rebuilding Resolutions

Much debt is one of the leading causes of poor credit scores. Hence, you will need to pay off what you owe if you are going to have a better credit score. People make these credit-rebuilding resolutions all the time, but find them hard to complete.

Pay Debts, SMART

  • Start by finding out exactly how much you owe, those you owe, and the interest rates.
  • Map out a scheme to pay up faster.
  • Attend to the higher interest loans first and work down to with lower interest.
  • Resolve to make debt payments as frequently as possible. This will also even help you watch your spending.
  • Tick dates on your calendar by which you want your debts to have been ultimately settled and work towards it.

Consult a credit counsellor

If you have been trying to build your credit on your own with little or no success, you might need to see a credit counselor or a financial advisor. Asking for help usually helps us find our way through the maze of life, so you would be better off if you have an experienced person to guide you through this credit-rebuilding process. It is even more helpful if your guide is a professional in that field.

Remember to be SMART

  • Seek the credit counselor or financial advisor you will contact.
  • Meditate on what things you will ask when you meet.
  • Acquaint a trusted friend or loved one with your plans. Accountability can make you more likely to stick to your goal.
  • Recall your past limitations, assess them, and state what you hope to achieve.

Try to choose a time and date that will be okay for you to contact the counselor.

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