How To Get A Higher Credit Score

A higher credit score doesn’t make you wealthy.

But it can make almost every major financial decision less expensive.

Whether you’re applying for a mortgage, financing a car, renting an apartment, or opening a new credit card, your credit score often influences the options available to you.

A stronger score can mean:

• Lower interest rates
• Higher credit limits
• Better credit card rewards
• Easier loan approvals
• More housing options
• Lower borrowing costs over your lifetime

The good news is that your credit score isn’t based on luck.

It’s based on financial habits.

And habits can change.

In this guide, you’ll learn how credit scores work, what affects them, and the practical steps you can take to improve yours over time.

What Is a Credit Score?

A credit score is a numerical estimate of how likely you are to repay borrowed money as agreed.

Lenders use it as one factor when deciding whether to extend credit and what terms to offer.

There isn’t just one credit score. Different scoring models exist, and lenders may use different versions depending on the type of loan. However, the principles for building good credit are largely the same across models.

Generally speaking:

• Excellent credit qualifies you for the best opportunities.
• Good credit gives you many solid options.
• Fair credit often results in higher interest rates.
• Poor credit can make borrowing more difficult and expensive.

The Consumer Financial Protection Bureau (CFPB) explains that payment history, amounts owed, length of credit history, new credit, and types of credit are among the factors commonly considered in credit scoring.

Why Your Credit Score Matters

Let’s imagine two people borrow the same amount to buy similar homes.

One has excellent credit.

The other has poor credit.

The person with excellent credit may qualify for a significantly lower interest rate, which can reduce the total cost of borrowing over many years.

The same principle often applies to:

• Auto loans
• Personal loans
• Credit cards

A higher credit score doesn’t just improve your approval chances.

It can reduce the overall cost of borrowing.

The Five Habits That Build Great Credit

You don’t improve your score by chasing shortcuts.

You improve it by consistently demonstrating responsible financial behavior.

1. Pay Every Bill on Time

If I could give only one piece of credit advice, it would be this:

Always pay on time.

Payment history is one of the most influential parts of most credit scoring models.

Late payments can remain on your credit reports for years.

The easiest solution?

Automate your payments whenever possible.

At a minimum:

• Pay at least the required minimum by the due date.
• Better yet, pay the full statement balance whenever you can.

One missed payment can undo months of progress.

2. Keep Credit Card Balances Low

Many people think carrying a balance helps their credit.

It doesn’t.

In fact, keeping your balances low relative to your available credit is generally much better.

This is commonly called credit utilization.

For example:

If you have:

• One credit card
• $10,000 credit limit
• $800 balance

Your utilization is 8%.

Lower utilization generally demonstrates that you are not heavily dependent on borrowed money.

As a general guideline:

• Under 30% is often considered healthier than higher utilization.
• Under 10% is frequently associated with very strong credit profiles, though there is no guaranteed threshold.

Paying your balance before the statement closes can sometimes reduce the utilization that gets reported.

3. Keep Older Accounts Open

Length of credit history matters.

Older accounts help establish a longer borrowing history.

Closing your oldest credit card isn’t always the best decision, especially if it has no annual fee and fits your financial situation.

Before closing any account, understand how it could affect your overall credit profile.

4. Apply for New Credit Carefully

Every new credit application may result in a hard inquiry on your credit report.

Opening several new accounts in a short period can signal increased borrowing risk.

That doesn’t mean you should never apply for credit.

It simply means applications should have a purpose.

Open accounts because they support your financial plan—not because you’re chasing every promotional offer.

5. Use Different Types of Credit Responsibly

Over time, responsibly managing different types of credit—such as revolving accounts (credit cards) and installment loans (like auto loans or mortgages)—can contribute to a well-rounded credit profile.

However, never take on debt simply to improve your credit score.

Borrow because it supports an important financial goal—not because you’re trying to manipulate your score.

Step-by-Step Plan to Improve Your Credit Score

Step 1: Check Your Credit Reports

Before making changes, know where you stand.

Review your credit reports from all three nationwide credit reporting companies.

Look for:

• Incorrect late payments
• Accounts that don’t belong to you
• Incorrect balances
• Duplicate accounts
• Signs of identity theft

Federal law allows consumers to obtain free credit reports through the federally authorized website:

AnnualCreditReport.com

Reviewing your reports regularly helps ensure the information being used to evaluate your credit is accurate.

Step 2: Make Every Payment On Time

Set up:

• Automatic payments
• Calendar reminders
• Banking alerts

Never rely on memory.

Consistency matters much more than perfection over a few weeks.

Step 3: Pay Down Credit Card Balances

If you’re carrying large balances:

Focus extra payments on the card with the highest interest rate while continuing to make at least the minimum payment on every account.

As balances decline, your utilization may improve.

You’ll also reduce the amount of interest you’re paying.

Step 4: Avoid Closing Old Accounts

Unless there is a compelling reason, keep older accounts open.

Older accounts can strengthen the average age of your credit history.

Step 5: Don’t Max Out Your Cards

Using most or all of your available credit can signal financial stress.

If possible, spread spending across multiple cards and pay balances frequently.

Step 6: Correct Errors

Mistakes happen.

If you find incorrect information on your credit reports, follow the dispute process provided by the credit reporting company and include supporting documentation when appropriate.

Correcting legitimate errors can improve the accuracy of your reports.

Step 7: Be Patient

Credit improvement takes time.

Responsible financial habits are rewarded gradually.

Avoid companies promising to “erase” negative information overnight.

If accurate negative information exists, it generally cannot simply be removed because someone charges a fee.

Common Credit Mistakes

Avoid these habits:

• Missing payment due dates
• Paying only because you received a collection notice
• Maxing out credit cards
• Opening several accounts at once
• Ignoring your credit reports
• Cosigning loans without understanding the risks
• Borrowing more than you can comfortably repay
• Treating available credit as extra income

If You’re Just Starting to Build Credit

If you have little or no credit history, start small.

Possible options include:

• A secured credit card
• Becoming an authorized user on a trusted family member’s account (when appropriate)
• A student credit card if you qualify
• A traditional starter credit card

Use the account for small planned purchases.

Pay the balance in full and on time.

Repeat.

That’s how strong credit is built.

If You’re Rebuilding Credit

Past mistakes don’t have to define your future.

Focus on:

• Bringing current accounts up to date
• Making every payment on time
• Reducing revolving balances
• Avoiding new unnecessary debt
• Monitoring your progress

Credit recovery is rarely instant.

But steady improvement is possible.

My Perspective

I don’t believe the goal should be to have a perfect credit score.

The goal should be to build financial habits that naturally lead to excellent credit.

If you consistently pay your bills on time, avoid unnecessary debt, keep your balances low, and borrow responsibly, your credit score often improves as a byproduct of those behaviors.

That’s a much healthier mindset than obsessing over a number.

Credit is simply a tool.

Your long-term wealth will come from earning more, saving consistently, investing wisely, and making intentional financial decisions.

A strong credit score just helps those decisions cost less.

Your 30-Day Credit Improvement Plan

This week:

• Review your credit reports.
• List every credit account.
• Verify payment due dates.

Next week:

• Set up automatic payments.
• Pay down one credit card balance.
• Create a debt repayment plan if needed.

Week three:

• Review your utilization.
• Correct any reporting errors.
• Organize your financial accounts.

Week four:

• Review your progress.
• Continue making every payment on time.
• Schedule a monthly credit check-in.

Then repeat those habits month after month.

Key Takeaways

• A higher credit score can reduce the cost of borrowing.
• Paying every bill on time is one of the most important habits for building excellent credit.
• Keep credit card balances low relative to your available credit.
• Review your credit reports regularly and dispute legitimate errors.
• Avoid unnecessary applications for new credit.
• Strong credit is built through consistent habits—not quick fixes.
• Think of credit as a financial tool, not extra income.

Building excellent credit isn’t complicated.

It requires consistency.

Pay on time.

Borrow responsibly.

Keep balances low.

Review your credit reports.

Be patient.

If you follow those habits year after year, you’ll not only build a stronger credit score—you’ll build a stronger financial foundation.

Remember, the goal isn’t simply to have an 800 credit score.

The goal is to create a financial life where your credit works for you instead of against you.

Your Next Step

Read Next: How Credit Scores Work

Now that you understand how to improve your credit, it’s helpful to take a deeper look at the individual factors that influence your score and how lenders evaluate your credit history.

Your Credit Roadmap

Foundation

✅ How to Get a Higher Credit Score

Learn the Basics

⬜ How Credit Scores Work

⬜ Understanding Your Credit Report

⬜ Payment History Explained

⬜ Credit Utilization

Using Credit Wisely

⬜ How to Choose Your First Credit Card

⬜ How to Use Credit Cards Responsibly

⬜ Auto Loans

⬜ Student Loans

⬜ Mortgages

⬜ Personal Loans

Protecting Your Credit

⬜ How to Dispute Credit Report Errors

⬜ Identity Theft Protection

⬜ Credit Freezes and Fraud Alerts

Helpful Tools

• AnnualCreditReport.com (free credit reports)
• Credit score monitoring through your bank or credit card issuer
• Debt payoff calculator
• Monthly financial snapshot worksheet