Too many credit cards can have a negative effect on credit, but three to five show credit bureaus that a consumer is trusted by lenders.
San Diego, Calif. (PRWEB) December 11, 2012
With 2013 on the horizon, many consumers will look to an improved credit score as a number one priority in the new year. And with stronger consumer confidence in the economy headlining the news - albeit with higher debt worry, according to myFico - the new year is the perfect time of year for consumers to begin building credit, according to Creditnet.com.
For consumers in need of a New Year's Resolution, Creditnet.com has released three ways to improve credit scores in 2013.
1.) Applying for a new credit card
According to Creditnet, one of the easiest ways to improve credit in the new year is by applying for a new credit card. This works in two ways: a.) lowers the amount of credit a consumer uses, which Creditnet says should never go above 30% of available credit and b.) improves a consumer's credit history.
While Creditnet says too many credit cards can have a negative effect on credit, three to five credit cards or loans show credit bureaus that a consumer is trusted by lenders. Consumers with just one credit card should look to add at least one more credit card for an improved credit score in 2013.
2.) Making on-time payments in 2013
According to Creditnet and numerous other credit authorities, late payments and default payments have the biggest negative impact on credit scores. An improved credit report in 2013 means making on-time payments each month and never defaulting on payments.
In regards to payments, Creditnet recommends paying balances in full each month to avoid interest. However, while snowballing interest fees can lead to credit debt down the line, making payments higher than the minimum will still have a positive impact on credit in the new year.
3.) Using credit actively
Finally, a dormant credit card account can only improve a credit score for so long. Consumers that actively use a credit card and make on-time payments each month will see a credit score improvement come 2013. According to Creditnet, simply using a credit card once and paying it off in full won't improve a credit score in the long run.
As long as the balance a consumer reports to the credit bureaus each month remains lower than 30% of total credit, active use of a credit card will have a strong positive impact on credit in 2013.
Consumers in search of even more credit rebuilding advice will find useful information on the web's oldest credit forum, the Credit Talk Discussion Forum on Creditnet.
Creditnet.com is a leading authority on credit card reviews, credit news and credit building advice. As the host of Credit Talk - the oldest and most comprehensive credit forum on the web today - Creditnet has been helping consumers rebuild their credit since 1995. Creditnet's credit card search tool matches up consumers with the perfect credit card for them, and their CreditCents blog includes credit card reviews, news and weekly tips.