How to Bump Up Your Credit Score

First off, your credit score is important to lenders when you get or renew a mortgage.

Between buying gifts, throwing parties and travelling, it’s no secret that most people’s wallets get a bit of a workout throughout the year. And it’s not uncommon to notice that your credit score has taken a bit of a hit, as well. The good news? You’re not alone! Here are some tips for boosting it back up again.

Get back on a budget. As soon as possible, return to smart spending habits. If you need help, draft a budget that helps you make monthly payments, as well as any extra payments you may need to pay off credit cards. If you’re feeling up to it, you can crunch the numbers yourself, but there are plenty of apps that will help you create a budget easily, and even send you reminders when you are close to going over.

Pay off the cards with the highest interest rate. If you’re paying down debt on more than one credit card, try paying down the one with the highest interest rate first. Over time, high interest will mount, and it can seem like you’re in a losing battle. Focus on getting the high interest cards down first before you tackle the rest.

Consider a line of credit. If you’re stressing about the amount of debt you owe on a credit card, consider applying for a line of credit. This will allow you to transfer your credit balance to the line of credit so that you can pay it back over time. Typically, the interest payments on loans are not as high, so you have a better chance of paying down your debt sooner.

At the end of the day, don’t stress about a short-term credit slump or a credit score that dips a bit after a spending splurge. You’re far from alone, and all it takes is a bit of discipline and a few sacrifices.