How do I improve my credit score?

Improving your credit score is a great financial goal! Here are some simple steps you can take to boost your credit score over time:

1. Pay Your Bills on Time: Your payment history makes up a significant portion of your credit score. Make sure to pay your bills, loans, and credit card payments on time every month.

2. Keep Your Credit Card Balances Low: Aim to keep your credit card balances well below your credit limit. High credit card balances relative to your credit limit can negatively impact your score.

3. Limit New Credit Applications: Each time you apply for new credit, a hard inquiry is placed on your credit report, which can temporarily ding your score. Be mindful of applying for new credit too frequently.

4. Monitor Your Credit Report: Regularly check your credit report for errors or fraudulent activity that could be dragging your score down. You’re entitled to a free annual credit report from each of the three major credit bureaus.

5. Diversify Your Credit Mix: Having a mix of credit types (credit cards, loans, mortgages) can help improve your score. However, only take on credit that you actually need and can manage responsibly.

6. Consider a Secured Credit Card: If you’re rebuilding your credit, a secured credit card can be a good option. With a secured card, you’ll make a deposit that acts as your credit limit, helping you build positive payment history.

Improving your credit score takes time and consistent