Whether you’re looking to establish credit for the first time or improve your existing credit score, there are a number of things you can do to build credit in 2022.
1. Get a secured credit card.
A secured credit card is a type of credit card that is backed by a security deposit. The security deposit serves as collateral in case you default on your payments. This makes it easier to get approved for a secured card, even if you have bad credit.
2. Use a credit-builder loan.
A credit-builder loan is a type of loan specifically designed to help people build credit. With a credit-builder loan, you’ll make small monthly payments over a set period of time. As you make on-time payments, you’ll gradually improve your credit score.
3. Become an authorized user on someone else’s credit card.
If you’re not yet ready to get your own credit card, you can become an authorized user on someone else’s account. This means you’ll be able to use their credit card and will be responsible for making payments. As long as the primary cardholder makes their payments on time, you’ll also improve your credit score.
4. Use a credit card responsibly.
If you already have a credit card, make sure you’re using it responsibly. This means paying your bill on time and keeping your debt levels low. If you can show that you’re a responsible credit user, you’ll improve your credit score over time.
5. Keep old credit accounts open.
One factor that goes into your credit score is the length of your credit history. So, even if you’re no longer using an old credit card, it’s important to keep the account open. This will help improve your credit score in the long run.
6. Sign up for credit monitoring.
Credit monitoring can help you keep track of your credit score and credit report. This way, you can catch any errors or negative information and take steps to correct it. As a result, you’ll be able to improve your credit score over time.
7. Use a personal loan to consolidate debt.
If you have multiple debts, you can use a personal loan to consolidate them into one monthly payment. This can help you get out of debt faster and improve your credit score.
8. Get a co-signer.
If you’re having trouble getting approved for a loan or credit card, you can get a co-signer. A co-signer agrees to make payments if you default on the loan. This can help you get approved for a loan and improve your credit score.
9. Pay off your debts.
One of the best things you can do to improve your credit score is to pay off your debts. As you pay off your debts, your credit score will gradually improve.
10. Wait for negative information to fall off your credit report.
If you have negative information on your credit report, it will eventually fall off. Seven years is typically the amount of time it takes for negative information to fall off your credit report. So, if you have old debts that are no longer being reported, your credit score will gradually improve.
11. Use a credit repair service.
If you have negative information on your credit report, you can use a credit repair service to help you remove it. This can be an effective way to improve your credit score.