To increase your credit score, follow these expert-backed strategies:
Key Actions to Improve Your Credit Score
- Pay Bills On Time: Your payment history is the most significant factor affecting your credit score. Always make at least the minimum payment by the due date. Setting up automatic payments or reminders helps avoid missed or late payments, which can stay on your report for up to seven years and severely lower your score
- Keep Credit Utilization Low: Try to use less than 30% of your available credit limit. High balances relative to your credit limit can signal risk to lenders. Paying down revolving account balances and keeping credit card balances low helps improve your score
- Maintain Older Accounts: Keeping your oldest credit accounts open improves the average age of your credit history, which positively impacts your score. Avoid closing old accounts even if you don’t use them frequently
- Diversify Credit Types: Having a mix of credit accounts, such as credit cards, loans, and mortgages, can help your credit profile by showing you can manage different types of credit responsibly
- Check Your Credit Report for Errors: Regularly review your credit reports from major credit bureaus. Dispute any incorrect or outdated information to ensure your score reflects accurate data
- Register on the Electoral Roll: Being on the electoral register confirms your identity and address, which can help improve your credit score
- Limit Hard Credit Inquiries: Multiple credit applications in a short period can lower your score. Use soft credit checks when possible to check eligibility without impacting your score
- Use Credit Responsibly: Avoid maxing out your credit cards and manage any overdrafts carefully. Regular, responsible use of credit accounts, including smaller ones like store cards or utility bills, contributes positively
- Consider Secured Credit Cards or Rent Reporting: For those building or rebuilding credit, secured credit cards backed by a deposit can help establish positive payment history. Some services also report rent and utility payments to credit bureaus, which may boost your score if payments are on time
Summary
Improving your credit score takes time and consistent financial habits. The most impactful steps are paying bills on time, reducing debt relative to your credit limits, maintaining older accounts, and regularly checking your credit report for accuracy. These steps can lead to noticeable improvements in as little as 30 days, especially if your current score is low or fair
. By following these practices, you can build a stronger credit profile that helps you access credit more easily and at better rates in the future.
