2020 wrecked a lot of credit scores – and 2021 didn’t help. But 2022 can be a lot better for you.
Luckily, we have found some great tips, which can help you improve your score, all on your own.
1. Start by getting a copy of your full credit report – from Experian, TransUnion, and Equifax. You can get them for free, once per year, at AnnualCreditReport.com.
2. Comb your reports for errors. That includes everything, from spelling mistakes to outstanding debts, you may not even be aware of. Then, dispute any issues with the credit bureaus.
3. Make a budget and stick to it. Easier said than done; but it’s tough to improve your credit when you’re not doing this.
4. Try to pay bills on time. Paying the minimum is better than paying late. And if you’re behind on anything, get caught up as quickly as you can. On-time payments are the single most important factor in your credit score.
5. Prioritize paying down your credit cards first. They tend to have the highest interest rates. But once you pay them down, don’t cancel them. Your debt ratio, and having credit available, increases your credit score.
6. Don’t apply for any new credit cards. Every time you do, it’s listed as a “hard inquiry.” And if you have too many of those, within two years, your credit score drops.
It gets even better, here: (MoneyUnder30)
If you want to fix your credit, start by getting a copy of your credit report. Then comb for errors – make a budget and stick to it – do your best to pay bills on time, and prioritize credit cards – and don’t apply for a bunch of new cards, because it drops your score.