It may take some time and effort, but you could improve your credit score by following these tips:

• Make on-time payments: Your payment history is the single-biggest factor in determining your credit score. Late payments can ding your score significantly, so focus on making on-time payments when working to improve your score.
• Pay down credit card balances: It’s recommended that you keep your credit card balances below 30% of your credit limit. If you’re carrying high balances on your credit cards, try making more than the minimum monthly payment to pay them down.
• Avoid opening multiple new accounts at the same time: FICO considers borrowers who open multiple accounts within a short timeframe to be riskier to lend to, which could lead to a decrease in credit score. For this reason, it’s wise to only open new accounts when necessary.
• Keep unused credit card accounts open: Part of your credit score is determined by the average age of your credit accounts. The longer the average age, the better for your score – so it helps to keep older accounts open, even if you don’t use them regularly.
• Diversify your credit mix: Lenders like to see that you have experience with different types of credit like revolving credit accounts and installment loans. While it’s not worth opening a new account just to improve your credit mix, it’s something to keep in mind when you’re working to improve your credit score.

For more tips and in-depth information on how to improve your credit score, take a look at our article Credit Score Needed for a Personal Loan.

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