How to Improve Your Credit
Here’s a surprising fact: only 10% of Americans know their credit score.
That’s according to a survey commissioned by TrueCredit.com, a subsidiary of the credit bureau TransUnion.
“It is shocking how little Americans know about their credit,” says John Danaher, former president of TrueCredit.com. “Good credit is a cornerstone of your financial profile, enabling you to finance major purchases—like a home, education, or car. Not knowing about your credit can expose you to higher interest rates, which means less money in your pocket at the end of the day.”
Why Your Credit Score Matters
Whenever you apply for credit—whether it’s a mortgage, car loan, or credit card—lenders look at your credit score to help determine your ability to repay the loan. Your past financial behavior is a strong indicator of how you might handle future debt.
The higher your score, the more likely you are to get:
- Better interest rates
- Higher credit limits
- Access to more types of credit
Your score reflects how you use credit. There’s no quick trick to improving it, but over time you can raise your score by showing that you can manage credit responsibly.
10 Ways to Improve Your Credit Score
1. Pay Your Bills on Time
A solid payment history is one of the biggest factors in your score. Even if you’ve had late payments in the past, a consistent 24-month track record of paying on time will work in your favor.
2. Keep Credit Card Balances Low
High debt levels can hurt your score. Aim to use only a small portion of your available credit.
3. Check Your Credit Report for Errors
Mistakes happen—and they can cost you. Review your credit reports regularly and dispute any inaccuracies with both the creditor and the credit bureaus.
4. Pay Down Debt
The best way to improve your score isn’t by shifting debt around—it’s by reducing it. Steady, consistent payments will make a bigger impact than quick fixes.
5. Use Credit Responsibly
Having credit accounts (and paying them on time) can boost your score. A person who has never used credit may have a lower score than someone who has shown they can handle it well.
6. Avoid Opening Too Many New Accounts at Once
Multiple new accounts—especially if your credit history is short—can make you look risky to lenders and lower your score.
7. Don’t Close Old Accounts Just to “Clean Up” Your Report
Closed accounts still appear on your report, and shutting down older accounts can shorten your credit history—potentially lowering your score.
8. Shop for Loans in a Short Time Frame
When you’re rate shopping, try to do it within a focused period. Scoring models often treat multiple inquiries for the same type of loan as one if they occur close together.
9. Don’t Open Credit You Don’t Need
New accounts you don’t plan to use can actually lower your score and make you look like you’re seeking too much credit.
10. Seek Help If You’re Struggling
If you’re falling behind, reach out to creditors or a reputable credit counselor. It may not boost your score overnight, but getting on track sooner will pay off in the long run.
Bottom Line
Improving your credit score takes time, but it’s worth the effort. A strong credit profile can make it easier to get approved for loans and secure better interest rates—saving you money over your lifetime.
So, if you’re one of the 90% of Americans who doesn’t know their credit score, start by checking it today. Then, take small, consistent steps to improve it. Your future self (and your wallet) will thank you.
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