- Pay your bills on time
- Reduce credit card balances
- Check your credit report regularly
- Limit new credit applications
- Diversify your credit mix
Pay Your Bills on Time
Paying your bills on time is crucial for boosting 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.
Check Your Credit Report Regularly
Monitoring your credit report allows you to identify and dispute any errors that could be dragging down your score. You can access your report for free from each of the three major credit bureaus once a year.
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.
Diversify Your Credit Mix
Having a mix of credit types, such as credit cards, installment loans, and a mortgage, can demonstrate responsible credit management and positively impact your score. Consider diversifying your credit portfolio if it makes sense for your financial situation.