FinancingFirst Time Buyers February 9, 2023

Improving Your Credit Score

How to Improve Your Credit


The first thing to know about your credit score is that it’s not actually a score. It’s a number between 300 and 850 that describes the likelihood you will pay back what you owe. The higher your score, the better your chances of getting approved for loans or credit cards at a good interest rate. You can improve your score by paying bills on time, reducing debt and keeping open lines of credit—but be careful: applying for too much credit can make it worse!

Pay bills on time.

Paying your bills on time is the best way to improve your credit score. You can pay bills online or by phone, but if you don’t have access to a computer or cell phone, there are other options. You can mail in a check or drop it off at the bank in person. If you’re worried about forgetting when a payment is due, sign up for automatic bill payment through your bank or credit union so they will withdraw money from an account every month without fail–this is especially helpful if multiple payments need to be made at different times throughout the month (for example: mortgage payment every month; utility bill every two weeks).

If something happens and you cannot make your payment on time, contact them immediately! The creditor might be willing work out an agreement with you that allows some leeway when it comes down making those payments such as extending the due date by two days so there isn’t any late fees added onto those amounts owed because of being late already once before! If something like this does happen though then contact us here at Consumer Financial Protection Bureau because we may be able to help them resolve issues faster than going through normal channels alone.”

Don’t apply for too much credit.

You should also avoid applying for too much credit. This can hurt your score, as it makes it look like you are overextended and unable to manage your finances. It’s better to have a lower credit limit than a higher one because it shows that you’re responsible with money, but not so irresponsible that you want to over commit yourself.

Pay off debt.

The best way to improve your credit score is by paying down debt. Your credit utilization ratio, or how much of your available credit you are using, is one of the most important factors in determining a FICO score. A lower percentage means that you’re using less of what’s available and therefore have more room for future borrowing.

To improve this ratio, pay off as much debt as possible until it reaches 30 percent or less. The higher up on this scale you go (from 0% to 100%), the better; however, don’t forget that paying off balances below 30% can still be beneficial because it reduces them from their original amount and helps keep them from growing further into bigger bills later on down the road–especially if those balances aren’t being reported regularly or at all!

Check your credit report for errors and inaccuracies.

  • Check your credit report for errors and inaccuracies.
  • You can get a free copy of your credit report once a year from each of the three major credit bureaus, Equifax, Experian and TransUnion. The reports contain information about where you live, how long you’ve been there and whether or not you have any outstanding debts that need to be paid off before applying for new loans or lines of credit (credit cards).
  • If you find an error on any one of these reports–say someone else’s name is listed instead of yours in the address field–you can dispute it by sending an online form to the bureau in question along with supporting documentation such as utility bills that show where the correct address should appear on the report only after 30 days go by following receipt by both parties involved (i.e., whoever owns up first).

Don’t close accounts or cancel credit cards if you can help it.

Don’t close accounts or cancel credit cards if you can help it.

Credit card companies often offer rewards programs to entice customers to keep their cards, so closing an account could mean losing out on valuable perks. Additionally, closing an account will lower your overall available credit limit and make it harder for lenders to evaluate your financial situation when they’re deciding whether or not to approve new loans or lines of credit in the future.

You can improve your credit score by paying bills on time, reducing your debt and keeping open lines of credit

  • Pay your bills on time. This is the number one factor in determining your credit score, and it’s a habit that can be developed over time. The longer you’ve been paying your bills on time, the more weight this positive information will have in raising your score.
  • Don’t apply for too much credit at once. Applying for multiple lines of credit (like new credit cards) within a short period of time may indicate financial distress or an inability to manage money well–both of which are bad news for lenders who want to extend you more loans than they already do!
  • Pay off debt as soon as possible if possible; this doesn’t mean never buying anything unless it’s fully paid off before purchase day arrives (that would be pretty boring). But if there are any large debts hanging around from college expenses or whatever else might have gotten us into trouble financially before we knew better…it’s probably best just pay them off ASAP instead of keeping them around forever because “what happens if I need some extra cash?”


The best way to improve your credit score is by paying bills on time, reducing your debt and keeping open lines of credit. You can also check your report for errors or inaccuracies that might be hindering your progress towards financial healthiness.