- Pay your bills on time
- Reduce your 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 your 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 Your 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 your balances.
Check Your Credit Report Regularly
Mistakes on your credit report can drag down your score. Regularly review your credit report for errors and dispute any inaccuracies you find.
Limit New Credit Applications
Each new credit application can result in a hard inquiry on your credit report, which can lower your score. Be selective about applying for new credit.
Consider a Credit-Builder Loan or Secured Credit Card
If you have a thin credit file or a history of credit problems, a credit-builder loan or secured credit card can help you establish or rebuild your credit. These products are designed for individuals with limited or poor credit history.