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Last summer, my 22-year-old nanny, Eve, was completely obsessed with her credit score. She would agonize over it daily, celebrating or despairing over every single-point change as if her entire future depended on it.

One day, I sat her down and told her something I wish more people realized: "Yes, your credit score is important, but it doesn't define who you are as a person. All a credit score really tells anyone is what your credit score is."

That conversation stuck with me. Credit scores often feel like this mysterious number that looms over our financial lives. But here's the thing: Your credit score is not a measure of your worth or potential. It's simply a tool — a tool that you have control over. And the good news? With the right habits, you can improve it.

In this article, we'll break down what a credit score really is, how it's calculated, and — most importantly — what steps you can take to influence it. Because while credit scores matter, they don't have to be a source of stress. Instead, they're just another part of your financial journey that you can actively manage.

Understanding Your Credit Score

Before we dive into how to control your credit score, let's start with the basics. At its core, your credit score is essentially a financial report card, showing lenders (and anyone who checks it) how well you've managed money in the past — and how likely you are to repay borrowed money. It's made up of five main components: payment history, credit utilization, length of credit history, new credit inquiries, and credit mix.

Each of these components plays a role in calculating that final number. The biggest factors that contribute to your credit score include whether you have a history of making your payments on time (35%), how much of your available credit you use (30%), how long you've been borrowing (15%), the kinds of credit you have (10%), and how often you're hunting for new credit (10%).

The three credit reporting agencies are Experian (EXPGY), TransUnion (TRU), and Equifax (EFX). Their role is to gather, maintain, and provide financial data on consumers. Lenders then utilize this data to assess risks and make lending decisions.

It can feel like a lot to keep track of, but remember — all of these factors are within your control, which means with time and effort, you can positively influence your score.

Here's a simple breakdown of the ranges that define where your credit score falls:

- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Excellent

No matter where you fall on this scale right now, improving your score is always possible. It's not about perfection — it's about progress. Understanding how your credit score is calculated is the first step toward taking control of it.

Why Your Credit Score Matters 

So, why does this three-digit number matter in the first place?

Your credit score acts as a key that can unlock (or sometimes block) certain financial opportunities. Lenders use it to determine how much risk they're taking on by offering you credit. A higher score usually means better terms — lower interest rates on loans, higher credit limits, and approval for better financial products. On the flip side, a lower score can mean higher interest rates, lower limits, or even denial for things like credit cards or mortgages.

But it doesn't stop there. Your credit score can also influence things you might not expect — like your insurance premiums, the cost of renting an apartment, or even your ability to land a job in certain industries. In these cases, your score is viewed as a reflection of your responsibility and reliability (whether that's fair or not).

By focusing on building good habits — paying bills on time, reducing debt, and avoiding unnecessary credit inquiries — you can steadily improve your score and put yourself in a stronger financial position. Every small step you take now helps shape a better financial future.

How to Check Your Credit Score

The first step to improving your credit score is knowing what it actually is. Fortunately, checking your credit score is easier than ever (and won't hurt your score).

There are a few ways to keep tabs on your credit. Many banks and credit card companies now offer free access to your credit score as a perk for being a customer. You can also use free online services like Credit Karma or Credit Sesame, which provide regular updates and insights into your score.

It's important to understand the difference between your credit score and your credit report. While your credit score is a quick snapshot, your credit report offers a more detailed view of your credit history, including payment records, the total amount of debt you owe, and any public records like bankruptcies. You're entitled to one free credit report per year from each of the three major credit bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com.

Checking your credit report regularly is crucial because errors do happen, and they can drag down your score. By reviewing your report at least once a year, you can spot any inaccuracies and dispute them before they cause lasting damage.

To stay on top of things, consider setting a routine. Check your credit score monthly, and review your full credit report at least once a year. Think of it as a wellness check for your financial health. If you spot something that doesn't look right, you can take action before it becomes a bigger issue.

10 Tips for Improving Your Credit Score 

Okay, time for the big payoff. What steps can people take to improve their credit score? It doesn't require drastic measures; it's all about consistency and making smart choices. Here are some practical tips that can help you take control of your score and start seeing positive changes.

1) Pay Your Bills on Time
This is the single most important factor in determining your credit score. Lenders want to know that you can be trusted to make payments on time, so even one missed payment can have a significant impact. Consider setting up automatic payments or reminders to ensure you never miss a due date. It's a simple habit that can have a big impact.

2) Reduce Your Credit Card Balances
Another major factor in your credit score is your credit utilization ratio — essentially, how much of your available credit you're using. Ideally, you want to keep this number below 30%, but the lower, the better. If you're carrying high balances, start working on paying them down. Every little bit helps, and reducing your balances will not only boost your score but also lighten your financial load.

3) Avoid Opening New Credit Accounts Frequently
Each time you apply for a new credit card or loan, a "hard inquiry" appears on your credit report, and too many of these inquiries in a short period can signal risk to lenders. Be mindful of how often you're opening new accounts. Stick to what you need, and let your credit history build steadily over time.

4) Keep Old Accounts Open
Even if you're not using an old credit card anymore, keeping the account open can work in your favor. The length of your credit history makes up 15% of your score, so the longer your accounts have been open, the better. As long as there are no fees involved, it's often beneficial to keep older accounts active.

5) Dispute Errors on Your Credit Report
Mistakes on your credit report can drag down your score, and they're more common than you might think. If you spot any inaccuracies — such as accounts you don't recognize or payments wrongly marked as late — promptly dispute them with the credit bureaus. Document any evidence that supports your claim, be it payment records or correspondence. Clearing up these mistakes can lead to a notable credit score improvement, especially if the errors were significant, like wrongfully reported late payments.

6) Consider a Secured Credit Card
If you're working with a low credit score or no credit history at all, a secured credit card can be a valuable tool. Unlike traditional credit cards, secured cards require a deposit that acts as your credit limit. By using it responsibly and making on-time payments, you can start building a positive credit history and gradually improve your score.

Those first six tips are your foundational strategies — the ones that will steadily and reliably elevate your credit score over time. These are the best practices for long-term success.

But if you're in need of a quicker lift, don't worry. The next set of suggestions is designed to give your score a boost in the short term, helping you make progress while staying on track for your bigger financial goals.

1) Request a credit line increase
Credit utilization, or how much of your available credit you're using, is a key factor in your credit score. One way to improve this is by requesting a credit limit increase. A quick call to your card issuer could instantly lower your utilization ratio — just ensure they don't perform a "hard" inquiry, which can temporarily lower your score. While an increased limit offers more borrowing power, resist the urge to spend more. The goal is to widen the gap between your balance and your credit limit, not add to your debt.

2) Become an authorized user
If a family member or friend has a credit card with a strong history, consider asking to be added as an authorized user. Their positive credit behavior will then reflect on your report, even if you don't use the card. However, this requires trust, as their missed payments or high balances could negatively impact your score. Simply being linked to a well-managed account can be a quick boost to your credit standing.

3) Pay off credit card balances twice a month
Paying off your credit card balance monthly is great advice, but splitting your payments into two can be even better. Your card issuer reports your balance at a specific time each month, often before your due date. Paying part of your balance before the statement closes keeps your reported balance low, while a second payment before the due date avoids interest charges. This strategy optimizes your credit utilization on reports and can improve your score by showing lower usage.

4) Have bad credit or no credit history? Go alternative!
Establishing credit can be tough without an existing credit history. But there are programs designed to break this cycle by incorporating utility and telecom payments into your credit report. By linking your bank account, on-time payments for bills like utilities or streaming services can boost your score. This is especially helpful for those with thin credit files or those rebuilding credit, offering an immediate score improvement and encouraging timely bill payments in areas that previously didn't affect your credit score.

Keep in mind that while all of these tactics might give a short-term boost, maintaining a good credit score requires consistent and responsible financial habits over time. That's why many financial experts will tell you that improving your credit score is a marathon, not a sprint. By focusing on these manageable steps, you can take control of your score and set yourself up for better financial opportunities down the road. Remember, it's about progress, not perfection.

Whether it's paying bills on time, keeping your balances low, or disputing errors on your report, small changes add up over time. Your credit score is a tool, not a judgment — and with the right habits, you can use it to your advantage.