- Pay your bills on time
- Keep your credit card balances low
- Limit new credit applications
- Regularly check your credit report
- Consider a credit-builder loan or secured credit card
- Become an authorized user on someone else's credit card
- Diversify your credit mix
- Keep old accounts open
- Negotiate with creditors
- Seek professional help if needed
1. Pay your bills on time
One of the most important factors in determining your credit score is your payment history. Make sure to pay all your bills on time to avoid negative marks on your credit report.
2. Keep your credit card balances low
High credit card balances can negatively impact your credit score. Aim to keep your credit utilization ratio below 30% to improve your score.
3. Limit new credit applications
Applying for multiple new credit accounts within a short period can lower your score. Be selective about new credit applications and only apply for credit when necessary.
4. Regularly check your credit report
Monitoring your credit report can help you identify errors or fraudulent activity that may be dragging down your score. Dispute any inaccuracies to have them removed from your report.
5. Consider a credit-builder loan or secured credit card
If you have a limited credit history or poor credit, a credit-builder loan or secured credit card can help you establish or rebuild your credit.
6. Become an authorized user on someone else's credit card
Being added as an authorized user on a family member or friend's credit card can help you benefit from their positive credit history and improve your own score.
7. Diversify your credit mix
Having a mix of credit types, such as credit cards, installment loans, and a mortgage, can positively impact your credit score.
8. Keep old accounts open
Length of credit history is a factor in your credit score, so keeping old accounts open can help boost your score.
9. Negotiate with creditors
If you're struggling to make payments, consider negotiating with your creditors to work out a payment plan that can prevent negative marks on your credit report.
10. Seek professional help if needed
If you're overwhelmed by debt or struggling to improve your credit, consider seeking help from a credit counseling agency or financial advisor to get back on track.