I have a low credit score. How can I improve it?

Improve your credit rating

Your is something that helps potential creditors how likely you are to pay back your .

Your rating is based on information about:

  • how much debt you have
  • whether you pay your bills on time
  • whether you only make minimum payments on your bills
  • whether you seem to have more credit than you can manage
  • what kind of debts you have

There are things you can do to improve your :

  • Pay your bills on time and in full.
  • Pay off any past-due bills.
  • If you can’t pay off your bills in full, keep your account balances (such as credit card balances) below 60% of your available credit. For example, if your credit card limit is $1,000, keep the amount you owe below $600.

Don’t apply for new credit (for example, another credit card, or a furniture loan) unless you really need it. However, having a low-limit credit card or a cell phone contract that you pay each month can help you build credit – but only if you pay it on time and in full each month.

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