- Pay off outstanding debts
- Keep credit card balances low
- Make payments on time
- Regularly check your credit report for errors
- Consider credit utilization and diversify credit mix
Pay off outstanding debts
Paying off outstanding debts can have a significant impact on your credit score. Focus on high-interest debts first and work towards paying off all outstanding balances.
Keep credit card balances low
Maintaining low credit card balances in relation to your credit limit can positively impact your credit score. Aim to keep your credit utilization ratio below 30%.
Make payments on time
Consistently making on-time payments is crucial for boosting your credit score. Set up automatic payments or reminders to ensure you never miss a due date.
Regularly check your credit report for errors
Review your credit report regularly to identify any errors or inaccuracies. Dispute any discrepancies with the credit bureaus to ensure your report is accurate.
Consider credit utilization and diversify credit mix
Be mindful of your credit utilization ratio and aim to diversify your credit mix by having a combination of installment and revolving credit accounts. This can positively impact your credit score.