Your credit score is more than just a number — it’s a reflection of your financial habits and a key to unlocking better financial opportunities. If your score is lower than you’d like, the good news is that with consistent effort, you can improve it over time.
1. Pay Bills on Time
Payment history makes up the largest portion of your credit score. Even a single late payment can have a negative impact. Set reminders or use automatic payments to stay on track.
2. Reduce Credit Card Balances
High credit utilization (the percentage of credit you’re using versus your total available limit) can hurt your score. Aim to keep utilization under 30%, and ideally closer to 10%.
3. Avoid Opening Too Many Accounts at Once
Each credit application triggers a hard inquiry, which can lower your score temporarily. Apply only when necessary.
4. Keep Old Accounts Open
The length of your credit history matters. Unless there’s a good reason to close an account, keeping older credit cards open can help maintain a longer average history.
5. Diversify Credit Types
Having a mix of credit — such as credit cards, a car loan, or a mortgage — shows lenders you can handle different types of debt responsibly.
Bottom Line: Improving your credit score is about consistent good habits. With time and discipline, you can build a stronger financial profile.
