5 New Year's Resolutions You Must Take to Improve Your Credit Score

January 15, 2022

The brand-new year is finally here, which means it’s time to make brand-new resolutions. Aside from going to the gym more often and eating healthier, maybe it’s time to get your financial life in order, too. Why not resolve to improve your credit score this year? Here are some credit solutions to better your credit score in 2022:

1. Check your credit score regularly

The best way to maintain good credit is to consistently stay on top of it. Fortunately, this is an easy resolution to commit to. You can check your credit score for free.

The major credit bureaus (Experian, Equifax, and TransUnion) provide free access to your credit report every 12 months; however, you can find platforms that allow you to view your scores in less time. For example, Credit Karma updates credit scores from TransUnion and Equifax weekly. Meanwhile, WalletHub provides a comprehensive view of your accounts and balances, sending alerts when your debt load is too high.

2. Avoid late payments

Did you know that 35% of your credit score is based on your payment history? This means that any late and missed payments will show up on your credit report, staying for up to 7.5 years. Fortunately, you can easily avoid this by setting up autopay for recurring bills. In addition, call your creditor immediately if you miss a payment by 30 days.

3. Dispute credit errors

Your credit score may be low due to errors and inaccuracies. If you spot mistakes such as duplicate accounts and incorrect dates, make sure to dispute them immediately.

4. Use a secured credit card

Secured credit cards are backed by cash deposits, allowing you to pay bills upfront. This is an excellent way to rebuild your credit, especially if you make payments on time.

5. Work with a credit solutions provider

If you’re not sure where to start with improving your credit score, a credit solutions company can help. They provide credit repair services, prevent late payments, recover lost employment opportunities, and give you access to reputable lenders and attorneys.