- Pay your bills on time
- Reduce your credit card balances
- Check your credit report regularly
- Keep old accounts open
- Limit new credit applications
- Use different types of credit
- Consider a credit-builder loan
- Become an authorized user
- 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. 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.
3. Check your credit report regularly
Monitoring your credit report can help you identify and dispute any errors that may be dragging down your score. You are entitled to a free credit report from each of the three major credit bureaus every year.
4. 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. However, make sure to use them occasionally to keep them active.
5. Limit new credit applications
Applying for multiple new credit accounts within a short period can lower your score. Be selective about applying for new credit and only do so when necessary.
6. Use different types of credit
Having a mix of credit types, such as credit cards, installment loans, and a mortgage, can demonstrate responsible credit management and improve your score.
7. Consider a credit-builder loan
If you have trouble qualifying for traditional credit, a credit-builder loan can help you establish a positive payment history and improve your credit score.
8. Become an authorized user
Becoming an authorized user on someone else's credit card account can help you benefit from their positive payment history and improve your own credit score.
9. Negotiate with creditors
If you're struggling with debt, consider negotiating with your creditors to work out a payment plan or settle for less than the full amount owed. This can help improve your credit over time.
10. Seek professional help if needed
If you're overwhelmed by debt or struggling to improve your credit on your own, consider seeking help from a credit counseling agency or a reputable credit repair company.