- Pay your bills on time
- Reduce credit card balances
- Check your credit report regularly
- Limit new credit applications
- Consider a credit builder loan or secured credit card
Pay your bills on time
Paying bills on time is one of the most important factors in determining your credit score. Set up automatic payments or reminders to ensure you never miss a due date.
Reduce credit card balances
High credit card balances can negatively impact your credit score. Aim to keep your credit utilization ratio below 30% by paying down balances or requesting a credit limit increase.
Check your credit report regularly
Monitoring your credit report can help you identify errors or fraudulent activity that could be dragging down your score. Dispute any inaccuracies with the credit bureaus to have them corrected.
Limit new credit applications
Each new credit application can result in a hard inquiry on your credit report, which can temporarily lower your score. Be selective about applying for new credit and only do so when necessary.
Consider a credit builder loan or secured credit card
If you have limited credit history or a low score, a credit builder loan or secured credit card can help you establish or rebuild credit. Make timely payments to demonstrate responsible credit management.