Your credit score is more than just a number; it significantly impacts your ability to obtain a loan, rent an apartment, or secure certain jobs.
However, the job news is that you can improve it as well if you somehow managed to tank it before. In 2025, with smarter tools and newer options, building a strong credit profile is more doable than ever. Here’s how.
Pay Every Bill on Time
Payment history makes up 35% of your credit score. Even if you miss a single payment, it can stay on your report for up to seven years. That’s why it’s highly recommended to set up automatic payments and use calendar reminders. Do whatever it takes to make sure you never miss a due date.
Keep Credit Utilization Low
This means not maxing out your cards just because you liked something and wanted to buy it. In an ideal scenario, you should use less than 30% of your total available credit.
For instance, if your credit limit is $5,000, try to keep your balance under $1,500. What’s even better is if you keep it down to $500 or less, which is less than 10%. This will give a better boost to your credit score.
Add Positive Tradelines to Your Credit File
A strategy that has gained traction recently is becoming an authorized user on someone else’s well-managed credit card. It also includes working with companies that help add Tradelines for your report.
Some individuals can even choose to become a Tradeline broker to earn income while helping others boost their scores. It’s a win-win when done responsibly.
Don’t Chase Old Accounts
Length of credit history matters. That old store credit you opened five years ago? Keeping that one open helps your average account age. This, in turn, contributes positively to your score. Just make sure there’s no annual fee for keeping the account, or you’ll be losing money from it.
Check Your Credit Report for Errors
Sometimes, your credit score is low just because there are errors you didn’t check before. You’d be surprised to know that 20% of the credit reports have errors. That’s a huge number for such an important thing.
You’re entitled to get a free report every 12 months from each of the three major bureaus. Review these reports and dispute any inaccuracies immediately.
Limit Hard Inquiries
Every time you apply for a new credit card or loan, a hard inquiry hits your report. One isn’t a big deal, but several in a short span can lower your score. Space out your applications and only apply when necessary.
Use Tools or Credit-Building Apps
Many people believe that credit-building apps are a scam, but that’s not the case. Modern tools let you get credit for bills that didn’t count before, like your monthly Netflix bill or your utility payments. These apps are designed to give your score a leg up, especially if you’re just starting to build credit.
Conclusion
These ways aren’t some ways to improve your credit score overnight. By being consistent and utilizing smart tools, you’ll begin to see the results. The small changes that you make today will come back to you in the form of a better score and performance.
