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7 Ways to Improve Your Credit Score

7 Ways to Improve Your Credit Score

Having a good credit score pays off. The better it is, the better interest rate you can get on a mortgage loan. That could ultimately save you thousands every year.

There are five primary factors that determine your score: payment history, the amount you owe, length of history, new credit, and types of credit use.

Does your score need a little lift? Here are seven tips to boost it.

One: Fix any errors. Most errors are small, like an incorrect address, and it won’t make a huge impact. Try to check your credit report at least once a year.

The FTC recommends getting free copies at

Two: Always pay on time. This is an obvious one, but a big one. Set up automatic payments to stay on track.

Three: Don’t borrow too much. How much you owe is one of the biggest influences on your credit score.

Four: Keep your card with the longer history of on-time payments open.

Five: Remember “soft” inquiries don’t affect your score as much. This includes when you check your own score or if an employer does a background check.

Six: Have a solid mix. Your credit score is likely to be higher if you responsibly manage several credit types, like a mortgage, a credit card, and an auto loan.

Seven: Make up for your missteps. Getting a secured credit card, paying your rent on time in full, and having an auto loan are all ways to help build up your credit score.

Keep these seven tips in mind to help you establish a solid track record.

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About the Author

Carole Hodorowicz

Audience Engagement Editor
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Carole Hodorowicz is a former audience engagement editor for Focusing on the individual investor audience, she managed content, created explainer videos, and wrote articles about different topics in finance for beginners.

Hodorowicz joined Morningstar in 2015 as a customer support representative for Morningstar Office before moving into an editorial role.

Hodorowicz holds a bachelor’s degree in journalism from Eastern Illinois University.

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