A higher credit score can mean lower interest rates on cars, mortgages, and credit cards. The good news is that the factors are well known and mostly within your control.
The essentials
- Pay every bill on time. Payment history is the biggest factor.
- Keep your credit utilization below 30%, and lower is better.
- Do not close your oldest credit card, since account age matters.
- Limit new credit applications to when you really need them.
Check your reports
You can get free credit reports from each of the three major bureaus. Look for errors such as accounts you do not recognize, and dispute them.
Use autopay
Set autopay for at least the minimum on every card so a busy month never turns into a late payment.
Ask for a higher limit
If your income has grown, a higher limit lowers your utilization, as long as you do not spend more.
Credit building is slow and steady. Expect to see changes over months, not days.
Jordan ReyesMoney Editor, Femeri
Jordan writes about money with a focus on practical, realistic advice you can use today.
