How you can impact your score
Different formulas are used to calculate credit scores, but six actions on this list will improve it and five will hurt it. Drag each item.
Consistently pay your bills on time
Keep credit cards balances that are 70% or less of your spending limit
Only apply for and open new credit accounts when you need them
Have high income relative to how much you owe
Have a good credit history for a long period of time
Have a mix of revolving credit (e.g., credit cards) and installment credit (e.g., a car loan)
Pay some bills late
Have credit cards balances near your maximum spending limit
Apply for new credit cards frequently, whether you need them or not
Have a very brief credit history
Exceed your credit card spending limit
Improve your score:
Keep trying. There are six actions that will improve your credit score and five that will hurt it.
If you never use credit cards, you’re not establishing a credit history. To improve your score, it’s actually better to use credit cards in moderation, keep your balances low, and pay on time.
In the next section, you will learn about your credit report.