Before We Begin…

In 2021, your credit score is priceless. If you have excellent credit, you can expect to get the best interest rates on lines of credit, Get bombarded with credit card applications with incredible incentives, pay less insurance, and have negotiating power with banks. While we all would love to qualify for excellent credit scores, the truth is it takes years to achieve it. However, in this article, I will highlight five ways to boost your credit score and get a step closer. 

1. Get a Copy of your Credit Report

This might seem obvious, but the first step is checking your credit and finding out your current credit score. After reviewing your credit report, you can find out what factors may be working in your favor or against you. You can ask your bank for a copy of your credit report or also get a free credit report once a year from major national credit bureaus. Go to and get a copy so you can see what is helping or hindering your credit score. Make sure to check that all the information is correct!

2. Pay Your Bills On Time

I cannot stress just how important it is for people to pay their bills on time! This tip is unquestionably the easiest way to benefit your credit score. Banks and financial institutions want to loan money to people with an excellent track record of timely payments. We recommend you set up automatic payments from your bank account to help you pay on time. Just be careful and make sure you have enough money in your account to avoid an overdraft fee.

3. Understand How a FICO Credit Score Is Calculated

9 out of 10 top lenders use FICO credit scores to determine an individual’s credit score. 

The algorithm used to calculate your credit score is the following: 

  • Payment history (35%)
  • Credit usage (30%)
  • Age of credit accounts (15%)
  • Credit mix (10%)
  • New credit inquiries (10%)

An individual Payment’s history is the most influential factor, which is why it is crucial to pay your bills timely and pay past loans, such as student loans, as soon as possible. If you can show that you pay your debts and bills promptly, expect a high credit score. 

As you can see, payment history has the most significant effect on your credit score. That is why, for example, it’s crucial you do not miss loan payments, such as student loan payments, and have a spotless repayment record. If you paid your debts responsibly and on time, it works in your favor.

4. Limit Your Credit Utilization to 30% or less

Credit Utilization is the amount of revolving credit you have used divided by the total amount of credit you have available. In simpler terms, it’s how much you currently owe divided by your credit limit. An example would be if you have a monthly revolving credit of $5000 but only charged $900 worth of purchases to your credit card. In this example, your credit utilization rate would be 18%.

It is recommended that your credit utilization should always be 30% or less. The lower the number, the better. However, if you need to use your credit, we recommend calling your credit card provider and asking your monthly credit line to be increased. By increasing your credit line, you will be able to lower your utilization rate significantly. 

5. Make Frequent Payments

If you are in a financial position to make micropayments on your credit card bill, you should! By making numerous small payments throughout the month, you can keep your credit card balance low which will help boost your credit score. This method is one way of lowering your credit utilization if you do not/cannot increase your revolving credit line. By making micropayments, you will see your credit score increase promptly.