- Pay off outstanding debts
- Keep credit card balances low
- Monitor your credit report regularly
- Use credit responsibly
Pay off outstanding debts
Paying off outstanding debts can have a significant impact on your credit score. Focus on paying off high-interest debts first and then work on paying off other debts.
Keep credit card balances low
Keeping credit card balances low in relation to your credit limit can help improve your credit score. Aim to keep your credit utilization ratio below 30%.
Monitor your credit report regularly
Regularly monitoring your credit report can help you identify any errors or fraudulent activity that could be negatively impacting your credit score. You can request a free credit report from each of the three major credit bureaus once a year.
Use credit responsibly
Using credit responsibly by making on-time payments and avoiding opening multiple new accounts within a short period of time can help improve your credit score over time. Be mindful of how your credit behavior can impact your overall credit score.