2021 has flown by. If you are like many of us, you have not had time to finish your 2021 to-do list. If repairing your credit was on that list, you may think you are out of time. However, there is still enough time in 2021 to fix your credit.
Good Credit Is Important
Want 2022 to be a better year? Start out with better credit. A good credit score can help you qualify for purchases like cars and homes. It reduces the amount of interest you pay on loans. It also impacts everything from your ability to get a job to how much you pay for insurance. Leave bad credit behind you by taking the steps to improve your credit right now.
Before you start spending, get your credit report. Is everything on it accurate? Do you see any unusual purchases? While you may not have time to repair errors on your credit report before you do your holiday shopping, it will be easier to spot errors now before all of your holiday spending. If you notice any errors, go ahead and report them. While they may not be resolved in time to help you get a better credit score for the holidays, it will be a great way to start out the New Year.
Look for Errors on Your Credit Report
This should always be your first step when trying to fix your credit score. Get a copy of your credit report and make sure it is accurate. Report any mistakes to the credit bureau. Any incorrect detail is a mistake, so make sure you check the report very carefully!
Give Yourself a Holiday Present
At the holidays, there is pressure to spend, spend, spend. You may even have saved up money to buy people expensive presents. Pare down your holiday list and use some of that money to pay off a chunk of credit card debt.
Why? Your credit utilization score is a huge part of your credit score. The greater the percentage of credit you are using, the lower your credit score. You want to aim for using 30% or
less of your credit.
Ask for a Credit Limit Increase
Another way to lower your credit utilization is to get an increase in your credit limit. Many credit card companies are eager to increase your credit limit around the holidays. Ask for an increase now, but do not charge up those cards. The result will be a lower credit utilization percentage, and a higher credit score.
Apply for a New Credit Card
Another way to increase your available credit is to apply for a new credit card. This can be tricky, because the number of inquiries into your credit also impacts your credit score. That is why you want to apply for one additional credit card, not a slew of them.