Six Habits to Improve Your Credit Score

Maintaining a good credit score is essential for financial health, impacting everything from loan approvals to interest rates. Building and sustaining a high credit score requires consistent and mindful financial habits.

Here are six key practices, over some time can help boost your credit score and keep it in excellent shape. Start or continue on the path to achieving and maintaining a strong credit profile.

Habit	Description
1. Pay Bills on Time	Only 6% of people with a credit score above 800 have missed or have a late payment on their credit report, according to Experian.
2. Reduce Credit Card Balances	Keep credit utilization lower than 30%. Members of the 800 score club say they keep it below 10%.
3. Keep Old Accounts Open	Keeping old accounts open helps increase your available credit, which increases your utilization ratio and adds to the average credit age.
4. Selectively Apply for New Credit	Too many credit inquiries or multiple credit inquiries within a short time frame can damage your credit score.
5. Ask for Credit Limit Increases	Instead of opening new accounts, ask your existing accounts for credit increases. It helps lower your utilization without lowering your credit age.
6. Diversify Your Credit Mix	Having a variety of credit types (credit cards, installment loans, mortgages) can be beneficial, showing you can manage different types of credit responsibly.