January 17, 2024
This is the biggest factor impacting your credit score. Aim to keep your credit utilization ratio (amount owed divided by credit limit) below 30%, and even lower is better. Pay down high-interest cards first and consider making multiple payments throughout the month.
Missed or late payments can significantly damage your score. Set up automatic payments or reminders to ensure timely payments for all your bills, not just credit cards.
Review your credit reports (one from each bureau) regularly and dispute any errors you find. Fixing these errors can instantly improve your score.
Increasing your credit limit without increasing your spending lowers your credit utilization ratio, which can boost your score. Negotiate with your credit card issuer for a higher limit or consider opening a new card with a higher limit.
Secured credit cards, authorized user status on someone else's card, or credit-reporting rent payments can help build or improve your credit history, especially if it's thin.
Be patient! Building or improving your credit score takes time. While these tips can offer a quick boost, stick to good credit habits consistently for long-term improvement.