Financial Tips for February: Smart Ways to Boost Your Credit Score

Improving your credit score may be one of your key financial goals. A good credit score opens doors to better loan rates, more favorable credit card terms, and even job opportunities. If you’re looking to give your score a boost this February, here are three smart ways to take charge of your credit and make positive changes that can pay off in the long run. Plus, we'll touch on recent changes from the Trump administration that might affect your strategy.

1. Check Your Credit Report for Errors

One of the most straightforward ways to improve your credit score is by ensuring the information on your credit report is accurate. Errors on your credit report can negatively affect your score, but they’re surprisingly common. A report by the Federal Trade Commission found that 1 in 5 consumers had an error on at least one of their credit reports.

What to look for:

• Incorrect personal information (name, address, Social Security number)

• Accounts that aren’t yours (fraudulent activity)

• Incorrect account status (such as closed accounts listed as open)

You’re entitled to one free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every 12 months. Take advantage of this by visiting AnnualCreditReport.com to pull your reports, review them carefully, and dispute any errors you find.

Trump Administration’s Changes: During the Trump administration, some significant changes were made that impact how errors and disputes are handled. The administration focused on strengthening consumer protections, including improved access to credit data. One of the key provisions was the expansion of the use of credit report freezes, which allow consumers to restrict access to their credit reports in the event of fraud. This can protect your credit from identity theft and make it easier to dispute inaccuracies.

2. Pay Down High-Interest Debt

High-interest debt—like credit card balances—can be one of the biggest obstacles to improving your credit score. This is because your credit score is partly determined by your credit utilization rate (the amount of credit you're using compared to your credit limit). Carrying high balances, especially on revolving accounts like credit cards, can lower your score and make it harder to secure favorable loan terms.

Smart Strategies:

• Pay more than the minimum: If possible, pay off more than just the minimum payment to reduce your overall debt faster.

• Focus on high-interest debt first: Pay down the credit card with the highest interest rate to minimize the amount you're paying in interest over time.

Trump Administration’s Changes: The Tax Cuts and Jobs Act (2017), under the Trump administration, led to changes in tax codes that impacted individual finances. One notable shift was the increase in standard deductions, which could free up more money for paying off debts. While these changes were not specifically designed with credit scores in mind, the extra tax savings for many households could help provide the breathing room needed to tackle high-interest debts.

3. Set Up Automatic Payments to Avoid Late Fees

Late payments can significantly harm your credit score, as payment history is the most important factor in determining your credit score. One simple way to avoid missing payments is by setting up automatic payments for your bills. Automating payments ensures that you’re never late and helps you stay on top of due dates without any extra effort.

Why Automatic Payments Work:

• Prevents missed or late payments: Automatic payments are especially helpful for recurring bills like credit cards, utility bills, and loans.

• Improves payment history: Consistently making on-time payments improves your credit history, which accounts for 35% of your credit score.

Trump Administration’s Changes: During the Trump administration, there was an emphasis on reducing regulatory burdens, and some changes impacted the financial services industry’s handling of late payments. For instance, the Consumer Financial Protection Bureau (CFPB) under Trump rolled back some of the regulations that aimed to make credit reporting more transparent. While these changes didn’t necessarily make it easier to avoid late fees, they did shift some power back to creditors in how they report missed payments.

However, regardless of regulatory changes, setting up automatic payments is still one of the most foolproof ways to protect your credit score.

This February, focus on these three smart strategies to boost your credit score. Checking your credit report for errors, paying down high-interest debt, and setting up automatic payments are all proactive steps you can take to get closer to your financial goals. Keep in mind the Trump administration’s regulatory changes, which continue to shape how consumers interact with their credit and manage disputes.

Staying informed, reviewing your financial habits, and taking consistent action will help you build a strong credit score that lasts.

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Note: This information is for educational purposes and should not be considered financial advice. Consult with a financial advisor for personalized guidance.

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