The best way improve your credit score is to be a responsible borrower. Pay your bills on time every month. Avoid having debt fall to collection agencies. Don’t run up your credit card bills to astronomical levels.
Manage the “amounts owed” percentage of your credit score formula by keeping your debt-to-credit ratio low. Aim to always keep your credit usage to less than 30% per month. Keep in mind that this ratio uses your total available credit. If you have two credit cards and each has a limit of $5,000, then your total available credit is $10,000. For responsible card users, it might be a good idea to find a new credit card in order to increase your total available credit.
All the information in your FICO score comes from your credit report. That makes it important to read your credit report and ensure that all the information is correct.
A financial advisor can help you create a financial plan based on your credit situation. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.