- Pay bills on time
- Reduce credit card balances
- Check credit report regularly
- Limit new credit applications
- Consider credit-building tools
Pay bills on time
Paying bills on time is crucial for improving your credit score. Set up automatic payments or reminders to ensure you never miss a due date.
Reduce credit card balances
Lowering credit card balances can significantly improve your credit utilization ratio, which is a key factor in determining your credit score. Aim to keep your balances below 30% of your credit limit.
Check credit report regularly
Regularly monitoring your credit report can help you identify and dispute any errors or inaccuracies that may be negatively impacting your score. You can access a free credit report from each of the three major credit bureaus once a year.
Limit new credit applications
Applying for multiple new credit accounts within a short period can lower your credit score. Be selective about new credit applications and only apply for credit when necessary.
Consider credit-building tools
If you have a limited credit history or a low credit score, consider using credit-building tools such as secured credit cards or becoming an authorized user on someone else's credit card. These tools can help establish or improve your credit history over time.