4 Simple Tips to Boost Your Credit Score in 2022

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Sponsored by: Wise Marketing Team

Edited by: Shatoyia Jones, FLP Founder, Wealth Building Educational Consultant; Business Development Specialist

     ​January is over, and now is usually about the time when your commitment to
your New Year's resolution wanes. If [one of your resolution's this year was] to build savings or wealth this year, you may want to rethink letting this resolution go. After all, financial health is a crucial investment for your future, especially credit.

     Many people do not pay attention to the role of the credit score system until they want to make major purchases like buying a home or applying for a business loan, only to find out that their goals have to be put on hold because they never took the time to prepare their credit for their future. 

     Below is a refresher on the basics of the credit score, as well as a deeper dive into what credit scores are and how you can improve it by listing some simple things you can do to boost your own.

     In a previous episode of FLP First Generation Wealth Builders: The Benefits of Good Credit, Shatoyia, the Founder / CEO of First Ladies of Poverty Foundation, mentioned that a good credit score is an effective way to save money — and for good reason. With good credit, you can qualify for lower interest rates on loans, get more value out of your credit card rewards, and save more on insurance.
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​Understanding Your Credit Score

     Financial resource, AskMoney, defines a credit score as a financial report card that tells moneylenders how punctual you are with your financial commitments. This payment history can determine everything from credit card, housing, and insurance applications to even how your utilities are set up. With the tips below, you can fast-track your journey to improving your credit score, save money and ultimately build wealth.
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Tips for Improving  Your Credit Score

1} Pay Your Dues on Time

     Given the definition of a credit score above, it's clear that simply paying
everything from bills to loans on time is one of the most effective things you
can do. Pay in full as early as you can each month when possible. Modern
tech can help you out here — you can either subscribe to any autopay plans
offered by your credit card provider or use mobile apps like Prism, which
alerts you to bill deadlines and facilitates your payments.

2} Use Less Credit
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     Credit utilization is another major component of your credit score that refers to
the ratio of the credit you have versus how much you have used and now owe.
The ideal rate is about 10%, such as spending $100 with a $1000 credit limit.
This will also make it easier to regularly pay your credit card bills in full.
Tracking your spending with apps like Mint and You Need A Budget may help,
as would requesting your provider for an increased limit to lower your
utilization rate.

3} Monitor Your Credit Report

     Unbelievable as it may seem, the current state of your credit score may not
actually be your doing. CNBC reports that 34% of Americans find errors in
their credit reports — including mistakes in their account information. That's 
why simply doing a thorough read-through of your credit report can help you
spot any damning errors and report them to the corresponding credit bureau.
You can request free copies from all 3 of America's major bureaus until April
20, 2022.

3} Maintain Old Credit Accounts

     The last simple thing you can do is to keep your old credit cards open — even
if you rarely use them. That's because lengthier credit histories work towards
building a better credit score. It can also help lower your overall credit
utilization rate. Try buying something cheap with your old cards every 6
months or so, which will prevent their credit limits from being lowered due to
non-use. However, this strategy isn't recommended if the cards in question
require you to pay significantly hefty annual fees.

     Working towards goals like a better credit score, more savings, and more
wealth can be easy if you start with realistic and actionable steps. If you're
encountering more complex problems with your credit score, though, don't
hesitate to consult a credit counselor.
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     Ready to take your financial game to the next level by working with a mentor to improve your credit score? Book a your free virtual consultation to get matched to financial mentor who specializes in credit repair or enroll in First Ladies of Poverty Foundation's credit repair educational program today!

Schedule Your Virtual Appointment