Plastk Blog: Credit Tips & More

Credit Tip Tuesday #55 Rebuild Credit Score in 2022 | 7 Rules To Follow | Plastk

Written by Plastk #CTT | Feb 1, 2022 4:25:42 PM

Things You Can Do To Rebuild Your Credit Score in 2022 | Start Now! 

Image Credits: Freepik 

We all wish for some magical boosters to take our bad credit from grounds to the sky of all the good score benefits. 

However, it is easier said than done. 

 

It can be tricky to quickly improve it by even 100 points if you don’t know the secret tips. In fact, most people find it impossible with their bad credit history full of negative marks and debt points. 

But how are you supposed to improve your history if you can’t get enough score points?  

By getting a secured credit card, simple! Nah, not just any secured credit card but the one that accepts you even with no credit history or worst possible score.  

And, secondly, follow the below-mentioned tips and tricks to see what works best for your credit. You’ll get to find: 

  • Game-changer credit boosters to help rebuild your credit 
  • Premium rules to quickly improve your credit score 

 So, let’s get right into it! 

Credit Boosters To Repair Your Poor Credit Score 

If you want to spend less, save more, clear your debts, and live a good financial life in 2022, you have to have a consistent good credit history. 

Of course, the magic won’t happen overnight, but you have to take the initiative to build a ground for it. 

And, that’s why we are here; To Help You Do Exactly That! 

#1 Budgeting 

Image Credits: Freepik 

Efficient budgeting leads To effective credit rebuilding! 

Budgeting and financial planning go hand in hand. Both terms might sound similar but are a bit different. 

Budgeting can be considered as a small step in the broader light of financial planning. It’s more like spending and managing your finances regularly while the latter deals with money flow over time.  

To summarize following are the reasons why you should start budgeting:   

  • Control what you spend 
  • Track your payments 
  • Manage your debts 
  • Save for emergency funds 
  • Prepare for long-term financial goals 
  • Pay from a set spending limit 

Your set financial goals will lead you to no missed payments that will eventually work as a booster for your credit score.  

How to ‘budget’ for a credit score boost? 

Start with a thorough comparative analysis of your income and expenses (To know where you stand financially) 

Jot down the necessary payments for installments, insurance, taxes, bills, etc. (To avoid any late payments)  

Set aside some money for your debt clearances (To clear the negative marks) 

Also, save some to add to your emergency fund (To have some financial security for future problems) 

Lastly, don’t forget to create a piggy bank section to put some money; even a few pennies could work. 

Use this to spend for your surprise get-togethers, birthday gifts, or treat yourself to a deserving treat. 

# 2 Paying Down Debts 

Image Credits: Freepik 

 

Paying down debts helps gain the lender’s trust!  

Unpaid debts and a long list of late or missed payments are probably the worst things for your credit score. So if you want to improve your credit score quickly, your debts are the first thing you should fix. 

And, once you have cleared everything from your unpaid stuff list, only then can you move forward towards the road of a good credit score

Your debt can be either the one you have currently or from your past mistakes.  

But, whatever it is, you have to clear it up from your credit report first to boost your Equifax credit score. Then, it will show your lenders that you are worth lending money to, and you can pay back everything on time as promised. 

Tips for paying down debt payment for better credit score: 

  • Apply for a Visa credit card with low-interest rates 
  • Maintain a low card balance every month 
  • Pay off your debt with a high APR 
  • Clear your small debts quickly to shorten the debt list 
  • Start by paying a minimum first on all of your cards 
  • Keep a low credit-to-debt ratio to avoid it negatively affecting your credit score 

The low the debt ratio, the high your loan approval chances are. Because sometimes the high ratio warns lenders and companies not to trust you with their credit. 

# 3 Manage Credit Reports 

 Image Credits: Freepik 

To know whether you’re improving your credit score or only making it worse, you have to keep checking it regularly.  

And, the most convenient way of doing so is by benefiting from the free Equifax credit report service. Then, study your credit report thoroughly to look for the errors or mistakes that could be harming your overall Equifax credit score. 

Regular monitoring of the credit report leaves no room for any issue. 

In fact, it allows eradicating financial ways that are going bad for your score. In addition, it helps find the credit steps that benefit your financial growth.  

Myth About Checking Credit Reports:  

“Checking Reports Regularly Affects The Score” 

Fact: Yes, it does! But only in a positive way.  

Just because you track and monitor your Equifax credit report, you won’t harm your credit score. In fact, it will allow you to look for clerical or technical errors and dispute your credit report

# 4 Premium Rules To Help Your Bad Credit 

Image Credits: Freepik 

Are you looking for the fastest way to rebuild your credit from 0? 

Are you among those with a credit history but want to quickly improve their credit by 40, 100, or even 200 points? 

Ditch the hassle of reading long and comprehensive blogs and have a look at these experts picked golden rules to transform your credit history:  

  • Try “New Year, New Me” credit resolution: Set your financial goals to improve your financial condition this year. Start with the small things and move towards the major changes. 
  • Create your credit file with the credit bureaus: Make sure you have several; open and active accounts under your name. It will help your credit file and credit record. 
  • Set payment reminders: Subscribe for automatic payments or daily alerts so, you don’t miss the due date of any bill. 
  • Sign up for debt management plans: Get help from credit experts or debt relief counseling to clear your past accounts. 
  • Avoid hard inquiries for a soft future: Don’t apply continuously for new accounts in order to build your credit file. Instead, take a three to four months gap in between applications to avoid any hard inquiries. 
  • Maintain a 10% credit utilization ratio: Start with balancing the 30% ratio and gradually take it to 10% as it is the best to improve your credit score. 
  • Get a secured credit card: A good visa card with low-interest rates can be the best to rebuild your bad credit into good credit. 

Bottom line  

Undoubtedly, thinking and planning something to improve your bad financial condition always fuels you up with stress and frustration because you don’t know if it will work for the better or worse.  

However, a lot can get better depending on how you have prepared yourself for the change. 

And that is possible only if you follow a few working tricks and apply some boosters to ensure the outcome will be in your favor. Only this way, you can have a sense of financial freedom and security without feeling anxious, frustrated, or stressed about it.  

With that being said, we hope all the game-changing rules and credit booster tips listed above will turn out to be your best financial resolutions every year