- Pay your bills on time
- Reduce credit card balances
- Check your credit report regularly
- Limit new credit applications
- Consider credit-building tools
Pay Your Bills on Time
Paying your bills on time is crucial for a good 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.
Check Your Credit Report Regularly
Monitoring your credit report allows you to spot errors or fraudulent activity that could harm your score. Dispute any inaccuracies to keep your report clean.
Limit New Credit Applications
Each new credit application can result in a hard inquiry, which may lower your score. Be selective about applying for new credit to avoid unnecessary dings to your credit report.
Consider Credit-Building Tools
If you have a limited credit history, consider using tools like secured credit cards or credit-builder loans to establish and improve your creditworthiness.