I’ve always been fascinated by the extreme opinions people have about credit scores. Some people ignore theirs completely, assuming it doesn’t really impact their life (spoiler: it does). Others obsess over every single point, without realizing that your credit score only matters to the extent that you actually need credit. If you have no plans to finance a home, buy a car, or take out a loan, then sure, your score might not be your top priority. But for most people, learning how to improve your credit score can open doors to better interest rates, more financial flexibility, and even savings on things like insurance.

The truth is, your credit score is a financial tool—nothing more, nothing less. It’s not a reflection of your worth, but it does reflect how you manage borrowed money. And whether you’re looking to build it up, fix past mistakes, or simply understand how it works, knowing the facts around your credit score is important. 

So, let’s clear up the misconceptions and talk about what really matters when it comes to credit— and how to improve your credit score in a way that works for you.

Why Does Your Credit Score Matter?

Your credit score isn’t just a random number—it’s a snapshot of your financial habits. It provides banks, landlords, and lenders a glimpse into your ability to repay borrowed money. The higher your score, the more confident they’ll feel lending you the funds. Makes sense, right?

Think about it: a solid credit score can open doors. It helps you:

• Secure a mortgage for that dream home
• Lock in better interest rates for car loans
• Access premium credit card offers with perks and rewards
• Have more negotiating power to get more favorable lending terms
• Improve your rental application, especially for high demand properties

In short, a healthy credit score makes it easier and more affordable to borrow when you need to.

On the flip side, a low or poor credit score can make borrowing feel like an uphill battle. Not only will it be harder to get approved, but you’ll likely face higher interest rates, making borrowing more expensive for you when you do manage to access funds.

What’s Considered a Good Credit Score?

According to Equifax, here’s how your score stacks up:

• 580–669: Fair
• 670–739: Good
• 740–799: Very Good
• 800+: Excellent

It’s clear—where you fall on this scale can impact how lenders view you. The closer you are to 800, the better off you’ll be when borrowing.

5 Simple Ways to Improve Your Credit Score

1. Make Consistent and Timely Payments

The most important factor in your credit score (about 35%) is paying bills on time. It’s non-negotiable. Set a goal to pay off your balance in full by the due date. If you’re not able to, it might be a sign that your spending is outpacing your income. Yes, life happens, and sometimes a credit card can feel like a quick fix—but carrying a balance can lead to interest rates of 15% or more, making it much harder to get ahead and leading you down a very slippery slope.

2. Avoid Applying for More Credit While You Are Trying to Improve Your Credit Score

It can be tempting to open a new line of credit to increase your spending power, but this can hurt your credit score in the short term. Every time you apply for credit, it triggers a hard credit pull on your credit report, and too many of these in a short period can signal financial instability and cash flow concerns. Suppose you’re trying to build your score in the next few months. In that case, it’s better to resist the urge to apply for new credit cards or loans for the time being and focus on consistent and timely payments for the debt you already have.

3. Don’t Rush to Close Old Accounts

Your old accounts are like financial milestones. They show credit bureaus how you’ve been managing debt over time. Your credit history makes up about 15% of your score, so keeping those old accounts open—even if you’re not actively using them—can be helpful. Closing them could raise your credit utilization rate (more on that in a minute), which could lower your score temporarily. If you’re looking to boost your credit in the short term, it’s worth keeping those accounts open for now. 

If you’re not in need of debt and not too concerned with you credit score at the moment, I’m all about financial simplicity—may make sense to take a quick ding of credit, a little time building it back up, to simplify your financial life.

4. Keep Your Credit Utilization Rate Low

One of the easiest ways to improve your credit score is by maintaining a low credit utilization rate. This rate shows how much debt you’re carrying compared to your available credit. 

For example, if your credit card limit is $10,000 and you’re carrying a $2,000 balance, your utilization rate is 20%. The lower this number, the better it looks to credit bureaus. Keeping this on the low end will prove to the credit bureaus that you are not over extending yourself. 

You can keep this rate low by continually paying off your balance before the statement date posts for the following month before the company reports your balances to the credit bureaus OR paying off your credit card multiple times per month to keep the balance low.

5. Check Your Credit Score Regularly

I always encourage individuals to review their credit score every couple of months for purposes of protecting their identity and ensuring that their credit report continues to be reasonable and accurate.

Checking your credit score often will be one way to get peace of mind that no one else has taken your personal information and used it to take on debt in your name. It sounds outrageous, but sadly it happens more than you know.

With that said, first review your credit score and make sure that all of the reports noted are accurate. If you found any unfamiliar activity or a mistake, take the following steps to dispute it. 

Going forward, review it periodically to ensure that it remains accurate and that your personal credit score remains intact and untouched by others.You can go to one of the credit bureaus like Equifax, TransUnion or Experian to review your free credit report.

You’re On Track to Improve Your Credit Score

The path to improve your credit score may take longer for some than others, but the key is that it’s a journey, not a sprint. It won’t happen overnight, but with consistent effort and smart financial habits, you can absolutely make meaningful progress.  Think of it as an investment in your future financial freedom. By improving your credit score, you’ll open doors to larger loans, better deals, and more opportunities!

Resources:

If you find yourself in a position where you’re in debt and looking for guidance and support around how best to pay it off—please click here to read The Top 3 Ways to Payoff Debt — there are additional resources and tips within the blog post to help as well!