How to Improve Your Credit Score: 7 Actions That Work

Why Your Credit Score Matters

A higher score unlocks better rates on loans, credit cards, and even insurance. Lenders use it to assess risk – the lower the score, the higher the interest you pay.

7 Actions That Improve Your Score

1. Pay Bills on Time

Payment history is the largest factor. Set up automatic payments for at least the minimum due on all accounts.

2. Keep Utilization Below 30%

Use less than 30% of your total credit limit. If you have a $10,000 limit, try to keep balances under $3,000.

3. Don't Close Old Cards

Length of credit history matters. Keep old accounts open even if you rarely use them.

4. Limit New Applications

Each hard inquiry can lower your score slightly. Space out applications and only apply when necessary.

5. Dispute Errors

Check your report regularly. Errors are common – dispute them with the credit bureau.

6. Become an Authorized User

If a family member has a long, positive history, becoming an authorized user can help your profile.

7. Consider a Secured Card

If you're rebuilding, a secured card can help establish positive payment history.

For more on debt and credit, see our guide on refinancing credit card debt.