diff --git a/CUSTOMIZE.md b/CUSTOMIZE.md
index ba9b502..5098563 100644
--- a/CUSTOMIZE.md
+++ b/CUSTOMIZE.md
@@ -8,9 +8,11 @@ VIT provides a user directory that allows for configuring basic settings *(via `
 
 VIT searches for the user directory in this order of priority:
 
-1. The ```VIT_DIR``` environment variable
-2. ```~/.vit``` (the default location)
-3. A ```vit``` directory in any valid [XDG base directory](https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html)
+1. The `VIT_DIR` environment variable
+2. `~/.vit` (the old default location)
+3. `$XDG_CONFIG_HOME/vit`, following the [XDG base directory](https://specifications.freedesktop.org/basedir-spec/basedir-spec-latest.html)
+
+If no config exists, you'll be prompted to create one (in `$XDG_CONFIG_HOME/vit`).
 
 #### Taskwarrior configuration
 
diff --git a/requirements.txt b/requirements.txt
index b898f91..35525cb 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,3 +1,4 @@
 tasklib>=2.4.3
 urwid>=2.1.2
 backports.zoneinfo;python_version<"3.9"
+xdg-base-dirs>=6.0.0
diff --git a/vit/config_parser.py b/vit/config_parser.py
index dcc3afc..1fb5f18 100644
--- a/vit/config_parser.py
+++ b/vit/config_parser.py
@@ -17,7 +17,6 @@
 
 SORT_ORDER_CHARACTERS = ['+', '-']
 SORT_COLLATE_CHARACTERS = ['/']
-VIT_CONFIG_FILE = 'config.ini'
 FILTER_EXCLUSION_REGEX = re.compile(r'^limit:')
 FILTER_PARENS_REGEX = re.compile(r'([\(\)])')
 CONFIG_BOOLEAN_TRUE_REGEX = re.compile(r'1|yes|true', re.IGNORECASE)
@@ -102,16 +101,16 @@ def __init__(self, loader):
         self.loader = loader
         self.config = configparser.SafeConfigParser()
         self.config.optionxform = str
-        self.user_config_dir = self.loader.user_config_dir
-        self.user_config_filepath = '%s/%s' % (self.user_config_dir, VIT_CONFIG_FILE)
-        if not self.config_file_exists(self.user_config_filepath):
-            self.optional_create_config_file(self.user_config_filepath)
-        self.config.read(self.user_config_filepath)
+        self.vit_config = self.loader.user_config_file
+        if not self.config_file_exists(self.vit_config):
+            self.optional_create_config_file(self.vit_config)
+        self.config.read(self.vit_config)
         self.taskrc_path = self.get_taskrc_path()
         self.validate_taskrc()
         self.defaults = DEFAULTS
         self.set_config_data()
 
+
     def set_config_data(self):
         self.subproject_indentable = self.is_subproject_indentable()
         self.row_striping_enabled = self.is_row_striping_enabled()
@@ -203,7 +202,7 @@ def get_taskrc_path(self):
         taskrc_path = os.path.expanduser('TASKRC' in env.user and env.user['TASKRC'] or self.get('taskwarrior', 'taskrc'))
 
         if not os.path.exists(taskrc_path):
-            xdg_dir = xdg.get_xdg_config_dir(taskrc_path, "task")
+            xdg_dir = xdg.check_for_existing_xdg_configs("task")
             if xdg_dir:
                 taskrc_path = os.path.join(xdg_dir, "taskrc")
 
diff --git a/vit/loader.py b/vit/loader.py
index 42fe3e6..da01175 100644
--- a/vit/loader.py
+++ b/vit/loader.py
@@ -1,21 +1,34 @@
 import os
-try:
-    import importlib.util
-except:
-    import imp
+import importlib.util
+from pathlib import Path
+from xdg_base_dirs import xdg_config_home
 
-from vit import env, xdg
-
-DEFAULT_VIT_DIR = '~/.vit'
 
 class Loader:
+
     def __init__(self):
-        self.user_config_dir = os.path.expanduser('VIT_DIR' in env.user and env.user['VIT_DIR'] or DEFAULT_VIT_DIR)
+        VIT_CONFIG_FILE = "config.ini"
+        # Set the correct vit config file location.
+        # VIT searches for the user directory in this order of priority:
+        # 1. The VIT_DIR environment variable
+        # 2. ~/.vit (the old default location)
+        # 3.  A vit directory in any valid XDG base directory (the new default location)
+        old_default_vit_config = os.path.join(os.path.expanduser("~/.vit"), VIT_CONFIG_FILE)
+        if os.getenv("VIT_DIR"):
+            default_vit_dir = os.getenv("VIT_DIR")
+            config_path = os.path.join(default_vit_dir, VIT_CONFIG_FILE)
+            os.makedirs(default_vit_dir, exist_ok=True)
+            self.user_config_file = config_path
+        elif os.path.exists(old_default_vit_config):
+            self.user_config_file = old_default_vit_config
+        else:
+            vit_xdg_config_home = os.path.join(xdg_config_home(), 'vit')
+            xdg_config_file = os.path.join(vit_xdg_config_home, VIT_CONFIG_FILE)
+            os.makedirs(vit_xdg_config_home, exist_ok=True)
+            self.user_config_file = xdg_config_file
+
+        self.user_config_dir = os.path.dirname(self.user_config_file)
 
-        if not os.path.exists(self.user_config_dir):
-            xdg_dir = xdg.get_xdg_config_dir(self.user_config_dir, "vit")
-            if xdg_dir:
-                self.user_config_dir = xdg_dir
 
     def load_user_class(self, module_type, module_name, class_name):
         module = '%s.%s' % (module_type, module_name)
diff --git a/vit/xdg.py b/vit/xdg.py
index 7494cbc..b7e9f99 100644
--- a/vit/xdg.py
+++ b/vit/xdg.py
@@ -3,7 +3,7 @@
 from vit import env
 
 
-def get_xdg_config_dir(user_config_dir, resource):
+def check_for_existing_xdg_configs(resource):
     xdg_config_home = env.user.get("XDG_CONFIG_HOME") or os.path.join(
         os.path.expanduser("~"), ".config"
     )