3 Key Tips to Improve Your FICO Score in 2022
Set yourself up for financial success
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A FICO Score is a three-digit number based on information from your credit reports. It helps lenders determine how likely you are to repay a loan. Approximately 90% of lenders in the U.S. use FICO Scores. When it comes to improving your FICO Score in 2022, the following three key tips will help:
1. Pay Your Full Statement Balance Monthly
2. Check Your Credit Report for Errors
3. Improve Your Credit Utilization
1. Pay Your Full Statement Balance Monthly
Your payment history makes up 35% of your FICO Score. In making sure you pay your full statement balance monthly and on time on your credit cards, you will put yourself on the right path of improving your FICO Score.
2. Check Your Credit Report for Errors
You can check your credit report and FICO Score for free via Experian. Once you are there, go through your credit report and look for any potential errors such as a credit card or loan you never signed up for, public records that do not belong to you, and addresses you never lived at. You can use Experian’s online Dispute Center to dispute errors on your credit report.
3. Improve Your Credit Utilization
When it comes to your credit utilization, the golden rule is to use 10% or less of your available credit limit monthly. For example, if your total credit limit is $20,000, you should not be spending more than $2,000 per month on your credit cards. Your amounts owed make up 30% of your FICO Score.
By considering these three key tips, you will be setting yourself up for financial success in 2022 and beyond. You will be in a position for that low-interest business loan, car loan, or mortgage that you have been eyeing. Let me know what other tips you all have in the comments!
