How To Increase Your Credit Score:
Payment history (35%)
Credit usage (30%)
Age of credit accounts (15%)
Credit mix (10%)
New credit inquiries (10%)
As you can see, payment history has the biggest impact on your credit score. That is why, for example, it’s better to have paid-off debts, such as your old student loans, remain on your record. If you paid your debts responsibly and on time, it works in your favor.
So a simple way to improve your credit score is to avoid late payments at all costs. Some tips for doing that include:
Creating a filing system, either paper or digital, for keeping track of monthly bills
Setting due-date alerts, so you know when a bill is coming up
Automating bill payments from your bank account
Another option is charging all (or as many as possible) of your monthly bill payments to a credit card. This strategy assumes that you’ll pay the balance in full each month to avoid interest charges. Going this route could simplify bill payments and improve your credit score if it results in a history of on-time payments.
Many of the best credit monitoring services can also help you prevent identity theft and fraud. For example, if you get an alert that a new credit card account that you don’t remember opening has been reported to your credit file, you can contact the credit card company to report suspected fraud.
