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6 ways to Increase your credit score

How to Increase Your Credit Score

Your credit score is a three-digit number that reflects your creditworthiness, based on your credit history. Lenders use your credit score to determine the risk of lending you money or extending your credit. A high credit score can make it easier to qualify for loans, credit cards, and other financial products, and may also result in lower interest rates and fees. Here are some steps you can take to increase your credit score:


  1. Pay your bills on time

    Payment history is one of the most important factors in your credit score. Late or missed payments can have a negative impact on your score. Make sure to pay your bills on time, every time.

  2. Keep your balances low

    Credit utilization, or the amount of credit you’re using compared to your credit limit, is another important factor in your credit score. Aim to keep your balances as low as possible, ideally below 30% of your credit limit. This means that if you have a credit card with a $1,000 limit, you should try to keep your balance below $300.

  3. Don’t apply for too much new credit

    Every time you apply for credit, the lender will do a hard inquiry on your credit report. This can temporarily lower your credit score. Avoid applying for too much new credit in a short period of time.

  4. Check your credit report for errors

    Your credit report is a detailed record of your credit history, including your payment history, credit accounts, and personal information. It’s important to check your credit report regularly for errors, as these can have a negative impact on your score.

  5. Use a credit-builder loan

    A credit-builder loan is a type of loan specifically designed to help people build or improve their credit. With a credit-builder loan, you borrow a small amount of money and make regular payments over a set period of time. As you make on-time payments, your credit score may improve.

  6. Use a secured credit card

    A secured credit card is a type of credit card that is backed by a cash deposit. By using a secured credit card responsibly, you can build or improve your credit over time. Just be sure to make timely payments and keep your balances low.


Increasing your credit score takes time and discipline, but it can be worth it. By following these steps and being mindful of your credit habits, you can improve your credit score and open up more financial opportunities for yourself.