Your credit score has great importance for a couple of reasons. First, it determines whether your application for a loan or credit card will be approved or rejected. Next, it also affects the interest rates of your loan, but beyond that, it affects insurance rates. 

Also, in some cases, it’s taken into consideration by landlords. So, it’s safe to say that it has an impact on different financial situations in your life, which is why it’s essential to have a good credit score. Here you will find great tips to help you improve your credit score.  

Credit Card Payments

The credit utilization ratio makes up 30% of your credit score. This is why you should try not to use your credit card too much on new purchases because this will raise your credit utilization ratio. It’s recommended to keep your credit utilization ratio below 30%. 

If you have a bad credit rating, then you can use a secured credit card wisely to improve your credit score. You can visit on how to rebuild your cc, as it offers detailed information about secured credit cards and how you can use one to rebuild your credit rating.  

Otherwise, make sure you use your credit account regularly, but stay within your limits and keep your credit utilization low. Even a zero balance could affect your credit score negatively if you stopped using your credit card for a longer period of time.  The main reason why would it could negatively influence your credit rating, it is because there’s no indication that you’re a responsible borrower to potential lenders. 

Pay Your Bills On Time

A history of on-time payments will boost your credit score. In fact, your payment history makes up 35% of your overall credit score. Thus, make sure to review your credit report and see if you’re late with your payments. A good way to pay your bills such as energy bills, phone bills, internet bills, on time is to use reminders, you can create reminders on your Google calendar, for example.  Also, you can also use a filing system to keep track of your bills. Another option is to automate your bill payments directly from your bank account.

Check Your Credit Reports 

An easy way to improve your credit score is by looking for mistakes on your credit reports. You have a right to an accurate credit report, so make sure to dispute any credit report errors. It can be even small mistakes like wrong birthday, address, and other errors that potentially have a negative impact on your credit score.  

Credit History

Your credit history makes up 15 % of your credit rating. This means if you need to close your credit accounts, it’s best to see if it will have an effect on your credit score. Especially if you’re planning to close any accounts that you’ve used for a longer period of time.  When you have an older average credit age, it shows that you’re a trustworthy and reliable borrower to lenders. 

But, also make sure to meet your monthly payments regularly as negative information about your account will stay on your credit history up to 7 years. 


In conclusion, a great credit score has many benefits, and it creates more opportunities for you. You might get lower interest rates on credit cards and loans, and it will be easier for you to rent an apartment, you’ll access better car insurance rates and other advantages. All in all, it’s definitely crucial to have a good credit rating for every aspect of your financial life.

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