5 Money Moves To Start 2026 With Better Credit
With the holidays in the rearview mirror, you’re looking ahead to the new year. This is the year you get yourself together — physically, emotionally, spiritually and financially. While you may not end up on the cover of a fitness magazine or leading a meditation retreat by year’s end, you can make meaningful progress in improving your money management, starting with your credit.
Building better credit takes time and consistency, but the sooner you start, the better positioned you’ll be to end next year with a score you can be proud of. These steps may seem small, but they can have a big long-term impact. Whether you’re repairing a poor score or trying to push a fair one even higher, MoneyLion compiled these tips to help you strengthen your credit heading into the new year.
1. Pay Down Your Credit Card Balances
While credit bureaus don’t judge what you buy — no one is rolling their eyes at your DoorDash habit — they do care about your credit utilization ratio. This measures how much you owe compared with your total available credit. Aim to keep utilization below 30 percent; lower is even better.
As you work to consciously uncouple your credit card from your favorite retailers, focus on paying down existing balances. If you have multiple cards, prioritize those closest to their limits, since maxed-out cards hurt your score more than those with moderate balances.
To reduce debt, consider the snowball or avalanche method. You may also benefit from making multiple payments throughout the month rather than one large payment. Credit bureaus typically see the balance listed at statement closing date, so paying down balances before the statement closes can help lower your reported utilization.
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2. Set Up Automatic Payments
Payment history accounts for about 35 percent of your credit score, and even one missed payment can cause lasting damage. Avoid falling behind — even due to forgetfulness — by automating at least the minimum payment on your bills.
Set calendar reminders ahead of automatic payment dates to ensure sufficient funds are available. Once the minimum is covered, you can make additional manual payments to reduce interest charges and balances more quickly.
3. Check Your Credit Report for Errors
Mistakes happen, even at the major credit bureaus: Equifax, Experian and TransUnion. Errors can range from simple data mismatches to accounts that don’t belong to you or even fraudulent activity — all of which can unfairly drag down your score.
Review reports from all three bureaus carefully. By visiting AnnualCreditReport.com, you can access free reports from each agency once a year. Rather than pulling all three at once, consider staggering your requests every four months to keep tabs on changes throughout the year.
Common errors to watch for include:
Duplicate accounts
Incorrect credit limits
Closed accounts listed as open
Late payments that were made on time
Accounts tied to identity theft or fraud
If you find an error, dispute it directly with the credit bureau, usually online or in writing. The bureau must investigate within 30 days and remove or correct the item if it cannot be verified.
4. Become an Authorized User
If you’re new to credit or rebuilding after financial hardship, becoming an authorized user on a loved one’s credit card can help — provided they manage credit responsibly.
As an authorized user, the account’s age and payment history may be added to your credit file, helping strengthen your profile or offset negative marks. Choose the primary cardholder carefully, since their habits can directly affect your score.
You don’t need to use the card — or even possess it — to benefit. Be sure to discuss expectations and boundaries clearly with the primary cardholder upfront.
5. Don’t Open Too Many Accounts at Once
Each credit application triggers a hard inquiry, which can temporarily lower your score and remain on your report for up to two years. Multiple inquiries in a short period may signal financial stress to lenders, making you appear riskier. An exception is rate shopping for certain loans, such as mortgages or auto loans, within a short window.
Opening new accounts also lowers the average age of your credit history, which makes up about 15 percent of your score. Older accounts are valuable, so keep them open and active when possible. Fewer well-managed accounts are generally better than juggling many at once.
The Bottom Line
“New year, new you” goes beyond a gym membership — it also means taking control of your credit. By following a few simple steps, you can improve your credit score over time and lay the groundwork for a stronger financial future in 2026.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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