August 3, 2023
Your credit score plays a huge role in your financial life — from buying a home or car to securing low-interest loans and credit cards. But understanding what affects your score and how to improve it can feel confusing.
The good news? Improving your score doesn’t happen overnight, but with consistent effort and smart habits, you can see steady progress. Here are seven proven methods to raise your score and build a stronger financial future.
Your credit card balances account for nearly 30% of your score. This factor, known as credit utilization, measures how much of your available credit you use.
To improve your score, keep your balances below 30% of your credit limit — and ideally closer to 10%. For instance, if your total credit limit is $10,000, try to keep your balance under $3,000 at any given time.
If your utilization is consistently high, consider requesting a credit limit increase — but only if you’re confident you won’t be tempted to spend more. Paying your balances in full each month shows lenders you’re responsible and directly improves your credit score over time.
Your payment history makes up the largest portion — about 35% of your credit score. Missing even one payment can cause a noticeable drop in your score and stay on your report for up to seven years.
The simplest way to improve your score is by making every payment on time. Set up automatic payments or calendar reminders to ensure you never miss due dates.
If you’ve already missed payments, don’t panic — consistency matters most. Resume making on-time payments, as your score will gradually recover. Paying down high-interest loans first can also reduce financial pressure while helping you stay current on all bills.
The age of your credit accounts contributes roughly 15% to your credit score. Lenders want to see that you’ve managed credit responsibly over a long period.
If you’re new to credit, you can improve your score by keeping old accounts open and active. Even if you no longer use a card frequently, maintaining it can lengthen your average credit history.
Another effective strategy is to become an authorized user on a family member’s long-standing account — provided they have a solid payment record. Their positive credit history can help boost your score by association.
Spending habits can influence your credit score in subtle ways. If you start maxing out your cards or only making minimum payments, your utilization ratio increases, which lowers your score.
One way to manage this is by making multiple payments each month. Instead of waiting until the due date, pay part of your balance right after your billing cycle closes. This helps lower your reported balance before the lender sends updates to the credit bureaus, making your score look healthier.
Also, avoid sudden spikes in spending. Consistency in how you manage credit signals to lenders that you are financially stable and trustworthy.
Having a variety of credit types can strengthen your score. Your credit mix — which counts for about 10% of your total score — shows how well you handle different forms of credit.
If you only have one credit card, consider diversifying with a small personal loan, auto loan, or secured card. While your score may dip slightly at first, your credit score will benefit long-term if you manage the new account responsibly.
However, don’t open unnecessary accounts just to improve your mix. Only borrow when it makes sense financially — and when you can comfortably make the payments.
Each time you apply for a new credit card, lenders perform a “hard inquiry” that can temporarily lower your score. Multiple applications in a short time can signal financial stress to lenders.
When improving your score, be selective about which credit cards or loans you apply for. Research offers that suit your needs and apply sparingly.
Closing old accounts can also hurt your credit score because it shortens your average credit history and increases your overall utilization ratio. Unless a card has high fees or encourages overspending, it’s often better to keep it open, even if you use it occasionally.
If you run a small business, mixing personal and business expenses can hurt your score. Business loans typically require more capital and larger credit limits — if you tie them to your personal credit, it increases your debt load and utilization.
To protect your score, open a separate business credit card or account. This not only builds a professional credit history but also ensures personal debts stay manageable.
Keeping business and personal finances separate can also make taxes and accounting simpler, while safeguarding your personal credit score from business-related risks.
Improving your score starts with awareness. Check your credit report regularly through free annual reports from major credit bureaus — Equifax, Experian, and TransUnion.
Look for errors such as incorrect balances, duplicate accounts, or outdated negative marks. Disputing and correcting these inaccuracies can quickly raise your score.
Some credit monitoring tools even provide alerts for suspicious activity, helping protect your identity and prevent fraudulent accounts from damaging your score.
A strong score opens doors to better financial opportunities. Whether you’re applying for a mortgage, car loan, or credit card, lenders use your score to determine your risk level.
A higher credit score can help you:
Your score is essentially your financial reputation — and maintaining it requires consistent effort. By paying on time, keeping balances low, and managing debt wisely, you’ll strengthen your profile and enjoy long-term rewards.
Raising your score is just the beginning — maintaining it is where lasting financial health begins. Here’s how to keep your score strong:
Building excellent credit takes time, but every positive step counts. Over months and years, these habits will help you achieve and maintain a high score, making your financial future brighter and more stable.
Improving your credit score doesn’t require complicated tricks — it’s about consistency, patience, and good financial habits. By focusing on timely payments, smart spending, and maintaining healthy credit utilization, you can steadily boost your score and unlock new financial opportunities.
A great score isn’t just a number — it’s a reflection of your reliability and discipline. Start today with these proven methods, and you’ll be well on your way to a stronger financial foundation and greater peace of mind.
