Cactus Credit knows that improving your credit score will take a careful period of planning and a grasp of the nature of credit and how your score is chosen. If you’re looking to improve your credit in 2022, it is crucial to understand what tips and steps make the most sense for you. The following simple credit-improvement options should make your score better and prevent any complications at the same time.

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Cactus Credit Can Help Improve Credit Scores

People looking to boost their credit score in 2022 need to start taking the steps the minute they finish reading this release, Cactus Credit says. Credit can take years to rebuild, and a long-term approach is required. For example, you’ll need to start paying off your debts to minimize your credit usage ratio. This rating indicates how much of your available credit that you have available to you.

So, if you have a credit card with a $15,000 credit limit and have only $5,000 available, your ratio would be 66% or two-thirds. Your credit will suffer if your ratio sits too close to 10% or so, so try to pay off your bills. If you can’t pay them off all at once, add a little more money to your monthly payments. Go over your minimum amount to avoid the long-term payment cycle that may otherwise occur, Cactus Credit says.

Just as importantly, set up automatic payments from a checking or savings account that has a steady supply of income. Regular monthly payments will slowly but surely improve your credit score. If you make your payments on time for an entire year, Cactus Credit says your score could jump by as much as 10-20 points. The longer you continue to pay your bills on time, the better your ultimate score.

Beyond these steps, there are a few tips that you can take that you might not hear elsewhere. First, don’t close an account just because you pay it off. You might be compelled to do so simply to get it off your credit report. Here’s the thing about that: your credit score is also impacted by the age of your credit sources. So if you close an old account, you immediately create a much younger overall credit account.

The irony here is that you likely won’t improve your credit score but lower it by closing older accounts. After all, if you close a 15-year credit card account with companies like Cactus Credit and only have a car loan with two years on it, you’ve cut off 13 years of your credit history. So keep these old accounts open, even if you rarely or never use them. They’ll give your credit that impressive age that it needs to stay strong and high.