Smart Strategies for a Better Credit Score

Blog | April 23rd, 2025

A strong credit score can open doors to better loan rates, easier approvals, and even lower insurance premiums. Whether you’re eyeing a new home, planning a dream vacation, or just want peace of mind, improving your credit score is a smart move. Here are five straightforward strategies to help you elevate your credit score:

picture of woman circling dates on a calendar with a calculator and bills in front of her

1. Pay Your Bills on Time

Your payment history is the most significant factor in your credit score, accounting for 35% of it. Consistently paying your bills on time demonstrates reliability to lenders. Even a single late payment can negatively impact your score.

Tip: Set up automatic payments or calendar reminders to ensure you never miss a due date.

2. Keep Your Credit Utilization Low

Credit utilization refers to the percentage of your available credit that you’re using. It’s recommended to keep this ratio below 30%. For example, if your credit limit is $10,000, try to keep your balance under $3,000. Lower utilization indicates to lenders that you’re not overextending yourself financially. If you have good standing with the issuer of your credit cards, you can also ask for a credit increase (even if you don’t need it) to change the ratio in your favor.

Tip: Paying off your credit card balances in full each month can help maintain a low utilization rate.

3. Avoid Opening Multiple New Credit Accounts Simultaneously

Each time you apply for new credit, a hard inquiry is made on your credit report, which can slightly lower your score. Opening several new accounts in a short period can signal to lenders that you’re a higher risk.

Tip: Only apply for new credit when necessary, and space out your applications over time.

4. Keep Old Credit Accounts Open

The length of your credit history makes up about 15% of your credit score. Older accounts contribute positively by showing a longer track record of credit management. Closing old accounts can shorten your credit history and increase your credit utilization ratio.

Tip: If you have old credit cards with no annual fees, consider keeping them open, even if you use them infrequently.

A form for disputing something on a credit report

5. Regularly Check Your Credit Reports for Errors

Mistakes on your credit report, such as incorrect account information or fraudulent activity, can harm your credit score. You’re entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once every 12 months.

Tip: Visit AnnualCreditReport.com to request your free reports and dispute any inaccuracies you find.

Final Thoughts

Improving your credit score doesn’t happen overnight, but with consistent effort and smart financial habits, you can see positive changes over time. Remember, your credit score is a reflection of your financial responsibility, and taking these steps can lead to greater financial opportunities in the future.