What Is\u00a0a Credit Score and\u00a0Why\u00a0Does\u00a0It Matter?<\/h2>\n\n\n\n
The credit score was first created in 1956, but it\u00a0wasn\u2019t\u00a0used universally with a modern credit score \u2014 also known as the FICO score \u2014 until 1989.\u00a0The scale goes from Very Poor to Excellent, which is usually between a range of 300 to 850 points.\u00a0It\u2019s\u00a0based off the following factors:<\/p>\n\n\n\n
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- Payment history<\/li>\n\n\n\n
- Amounts owed<\/li>\n\n\n\n
- Length of credit history<\/li>\n<\/ul>\n<\/div>\n\n\n\n\n
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- Credit mix<\/li>\n\n\n\n
- New credit<\/li>\n\n\n\n
- Among other factors<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n
Your\u00a0credit score<\/a>\u00a0matters because it can have long-term consequences for your future. Your credit score can\u00a0determine\u00a0what kind of loan you can get when\u00a0purchasing\u00a0a house, for example.\u00a0Additionally, it can\u00a0determine\u00a0how high or low your interest rate will be for your\u00a0mortgage<\/a>\u00a0when\u00a0purchasing\u00a0a home.<\/p>\n\n\n\n
Note:\u00a0<\/strong>Housing mortgage rates\u00a0also are\u00a0determined\u00a0during the Federal Reserve\u2019s meetings. You can read about the\u00a0January\u00a02026\u00a0Meeting<\/a>\u00a0and the\u00a0March\u00a02026\u00a0Meeting<\/a>.<\/p>\n\n\n\n
1. Review Your Credit History<\/h2>\n\n\n\n
Before you can even begin improving your credit score, you should review your credit history. You should know everything about your credit score up to this point.<\/p>\n\n\n\n
Check for Mistakes<\/h3>\n\n\n\n
Just because credit scores are serious, it\u00a0doesn\u2019t\u00a0mean mistakes\u00a0won\u2019t\u00a0happen. Sometimes situations slip through the cracks, and mistakes are reported to\u00a0the credit bureaus.\u00a0If you find any mistakes,\u00a0make sure you take the steps to get them corrected.<\/p>\n\n\n\n
Handle Debt Collectors<\/h3>\n\n\n\n
If you have any debt that collectors are calling you\u00a0to receive payment, make sure you take care of it. While debt collectors\u00a0can\u2019t\u00a0call\u00a0you endlessly,\u00a0you\u00a0can\u2019t\u00a0ignore them forever either.<\/p>\n\n\n\n
Additionally, you should always negotiate with your debt collector because you\u00a0can usually pay less than the total amount.<\/p>\n\n\n\n
2. Payment History and Paying on Time<\/h2>\n\n\n\n
One of the largest factors that\u00a0determine\u00a0your credit score is your payment history. Along with your payment history,\u00a0paying on time\u00a0is crucial.\u00a0If you pay on time each month,\u00a0you\u2019ll\u00a0have a perfect payment history. If you miss a payment, it can hurt your credit score depending on how late the payment is\u00a0submitted.<\/p>\n\n\n\n
Set up Automatic Payments<\/h3>\n\n\n\n
To help with paying on time,\u00a0it\u2019s\u00a0recommended to turn on\/set up automatic payments. This way, you\u00a0don\u2019t\u00a0have to remember each\u00a0month when\u00a0to make your payments.<\/p>\n\n\n\n
If\u00a0you\u2019re\u00a0a forgetful person, this is an especially\u00a0important tool\u00a0for you.\u00a0Just make sure you have enough money in your account\u00a0when your automatic payment withdraws your money to make the payment.<\/p>\n\n\n\n
3. Keep Credit Utilization Low<\/h2>\n\n\n\n
![\"A](\"https:\/\/www.movinghelp.com\/move\/wp-content\/uploads\/2026\/02\/Bad-credit-with-apartment-2.jpg\")
<\/figure>\nOne way on how to improve credit scores is to keep your credit utilization low. It\u2019s recommended to keep your credit utilization below 30 percent. If you can keep it below 10 percent, that\u2019s the best-case scenario.<\/p>\n\n\n\n
Ask for Higher Credit Limits<\/h3>\n\n\n\n
If you\u2019re in good standing with your credit card, you could ask for a higher credit limit. Since the more money you have available with a higher credit limit, it\u2019ll help decrease your total credit utilization.<\/p>\n\n\n\n
If you update your annual income, credit\u00a0card companies\u00a0will sometimes increase your limit.<\/p>\n<\/div><\/div>\n\n\n\n
<\/p>\n\n\n\n
Pay More Than Once a Month<\/h3>\n\n\n\n
Most people just\u00a0pay\u00a0their credit cards and debt once a month.\u00a0They\u2019ll\u00a0pay when their monthly statement is due. If you have a higher\u00a0utilization\u00a0percentage, you might consider paying\u00a0more than once in during the month.\u00a0If you consistently pay\u00a0your credit,\u00a0you\u2019ll\u00a0create a lower credit\u00a0utilization\u00a0percentage.<\/p>\n\n\n\n
4. Have an Older Age Credit History<\/h2>\n\n\n\n
While\u00a0it\u2019s\u00a0not a huge factor when trying to figure out how to improve credit scores, having older accounts can\u00a0help you with\u00a0your odds.\u00a0Lenders\u00a0like to see\u00a0that\u00a0you\u2019ve\u00a0been handling credit, loans, and debt responsibly\u00a0throughout the years.\u00a0It makes you more trustworthy to lenders.<\/p>\n\n\n\n
Don’t Close Old Accounts<\/h3>\n\n\n\n
Never close out old accounts, especially when it comes to credit cards. Even though you might\u00a0not\u00a0spend much money with an account,\u00a0it\u2019s\u00a0better to leave it open than to close it. Once you close an account, you lose all that history associated with it, which can have a negative difference for your credit score.<\/p>\n\n\n\n
Keep using your account even if you only spend $100 or less with that account.<\/p>\n\n\n\n
5. Number of Total Accounts<\/h2>\n\n\n\n
\nThe number of total accounts doesn’t have a huge percentage in the makeup of your credit score, but it’s still one way on how to improve credit scores. Whether you can open new accounts or join someone else’s account, you can grow your total number of accounts.<\/p>\n\n\n\n
Applying for Credit Cards<\/h3>\n\n\n\n
One way to increase the total number of accounts is to apply for credit cards. Credit cards are an easy way to increase your total number. Of course, don\u2019t apply to multiple credit cards at once, and you need to make sure you\u2019ll be approved before applying. Otherwise, it\u2019ll look bad.<\/p>\n<\/div>
![\"A](\"https:\/\/www.movinghelp.com\/move\/wp-content\/uploads\/2026\/02\/Bad-credit-while-renting-1.jpg\")
<\/figure><\/div>\n\n\n\n<\/p>\n\n\n\n
When you apply for a credit card,\u00a0you\u2019ll\u00a0receive a hard inquiry. After a while, the hard inquiry should fall off and have less of a negative difference.<\/p>\n\n\n\n
Diversify Your Debt<\/h3>\n\n\n\n
While you can have one type of debt,\u00a0it\u2019s\u00a0best to diversify your debt. If you have credit cards, student loans, and a car loan, and\u00a0you\u2019re\u00a0paying them off responsibly, it shows you can handle\u00a0different types\u00a0of debt.<\/p>\n\n\n\n
Join an Account\u00a0As\u00a0an Authorized User<\/h3>\n\n\n\n
If you\u00a0can\u2019t\u00a0apply for a new credit card or you\u00a0don\u2019t\u00a0want to go that route, you can try joining a family member\u2019s or friend\u2019s account as an authorized user.\u00a0You\u2019ll\u00a0benefit\u00a0from being on their account and qualifying as\u00a0an\u00a0authorized user. Just remember to follow their\u00a0rules and\u00a0don\u2019t\u00a0spend more money than you\u00a0earn to pay the monthly statements.<\/p>\n\n\n\n
Use a Secured Credit Card<\/h3>\n\n\n\n
You can always use the secured credit card approach. A secured credit card is an account when you pay a refundable security deposit that equals the credit limit. For example, if you pay $500,\u00a0your\u00a0credit limit is $500. If you default, the issuer keeps the money.<\/p>\n\n\n\n
This is\u00a0mainly meant\u00a0for people who have no credit, poor credit, or damaged credit.\u00a0It\u2019s\u00a0an easy way\u00a0to build your credit scores while being\u00a0at\u00a0a\u00a0low risk\u00a0to the issuer.<\/p>\n\n\n\n
Build Credit While Renting<\/h3>\n\n\n\n
More and more\u00a0landlords are offering\u00a0third-party services\u00a0to report a tenant\u2019s monthly\u00a0rent<\/a>\u00a0to the credit institutions. This is\u00a0an easy way\u00a0to build credit, create a credit history, and pay on time. If you\u00a0don\u2019t\u00a0have a credit score at all, this is\u00a0a great way\u00a0to get you started.<\/p>\n\n\n\n
Credit Scores Are a Long-Term Game<\/h2>\n\n\n\n
How to improve credit scores\u00a0doesn\u2019t\u00a0happen overnight. If\u00a0you\u2019re\u00a0trying to create good credit,\u00a0it\u2019s\u00a0a long-term game. You\u00a0can\u2019t\u00a0have a quick fix or an immediate positive difference to your score.<\/p>\n\n\n\n
By taking advantage of some of the points listed above, you can create\u00a0a strong foundation\u00a0for a higher credit score in the long-term future.<\/p>\n\n\n\n
It\u2019s\u00a0easier said than done,\u00a0and\u00a0you\u2019ll\u00a0need to have patience. By having some patience, you can make sure\u00a0you\u2019re\u00a0on the\u00a0right\u00a0track.<\/p>\n\n\n\n
Improve Your Credit Scores Today<\/h2>\n\n\n\n