Five Easy Ways to Improve Your Credit Score

Your credit score has a bigger impact on your life than you might think. It can affect everything from getting approved for a loan to renting an apartment—and sometimes even landing a job. The average credit score in the U.S. is 715, but if yours isn’t quite there yet, don’t worry. While improving your score doesn’t happen overnight, there are simple steps you can start taking right now. 

In this article, we’ll explain further as to why your credit score is important, and we’ll walk you through five easy ways to build better credit starting today. 

1. 
   

   Pay Your Bills on Time 

   
   

No matter what your credit score looks like right now, paying your bills on time should always be a priority. When a company provides a product or service, it’s our responsibility to pay for it—it’s just part of keeping good financial habits.

But there’s another big reason to stay on top of your bills: payment history makes up about 35% of your credit score. Missing even one payment, or letting a few pile up, can send your score in the wrong direction fast. It’s not just a small dip either—it can be a serious drop that’s hard to recover from.

An easy way to stay on track is to set up autopay or use reminders on your phone. It’s a small step that can make a huge difference over time.

1. 
   

   Keep Credit Card Balances Low 

   
   

It’s easy to think that just because a credit card company gives you a certain limit, you can max it out without any big consequences. But that’s not really how it works. High balances don’t just rack up debt—they hurt your credit score, too. Plus, most credit cards come with high interest rates. Right now, the average credit card interest rate is around 28.70%.

The higher your balance, the bigger your minimum monthly payment will be. And making just the minimum payment barely touches the interest you’re being charged—it can leave you stuck in a long cycle of debt.

A good rule is to keep your credit utilization under 30% of your total limit. Paying off balances quickly or making multiple smaller payments each month can help lower your usage and keep your credit score moving in the right direction.

1. 
   

   Don’t Apply for Too Much Credit All at Once 

   
   

Imagine you’re spending a day at the mall or a big outlet center. Every time you check out, the cashier asks if you want to apply for their store credit card. It’s tempting—especially when they offer things like a discount off today’s purchase, a free tote bag, or some other little bonus. But before you say yes, think twice.

Each time you apply for a new credit card, it creates a “hard inquiry” on your credit report. Even one or two can cause your score to drop slightly. If you apply for several cards in a short time, the drop can add up.

It’s better to only apply for new credit when you really need it. A healthy credit mix looks like this: maybe a lease or mortgage, a student loan, an auto loan, and one or two credit cards you manage well—not a handful of store cards you barely use. Being thoughtful about credit applications keeps your score stronger in the long run.

1. 
   

   Check Your Credit Report for Errors 

   
   

It’s more common than you might think for credit bureaus to make mistakes. Plus, with identity theft on the rise, there’s always a chance that something could show up on your credit report that doesn’t belong there. That’s why it’s so important to keep an eye on it.

First, it helps to know the difference: your credit score is the number lenders look at to judge your creditworthiness, but your credit report is the detailed history of your accounts, payments, and any public records tied to your name.

Review your credit report for mistakes, outdated accounts, or anything that looks suspicious. If you find something wrong, dispute it directly with the credit bureau to fix the mistake and make sure your score is based on the right information.

You can check your credit report for free once a year at annualcreditreport.com. It’s a quick step that can save you a lot of trouble later. And don’t underestimate this step—it’s a powerful way to ensure your credit score is accurate. Further, it’s a solid way to improve your credit score if you find something there that shouldn’t be.

1. 
   

   Consider a Credit-Builder Loan or Secured Credit Card 

   
   

Your credit score falls somewhere between 300 and 850. This number, often based on your FICO score, helps lenders decide how likely you are to pay back what you borrow. FICO (Fair Isaac Corporation) created one of the most commonly used scoring models.

Generally, a good credit score falls somewhere in the mid-600s to mid-700s. But if you want to have more borrowing options and better rates, aiming for 700 or higher is a smart goal.

If your score is currently fair (mid-500s to low-600s) or poor (300 to high-500s), you might need to take a few extra steps to get things moving in the right direction. That’s where a credit-builder loan or a secured credit card can help. These tools are made for people who need to build or rebuild their credit history.

Using one responsibly—making small charges and paying them off on time—can slowly help raise your credit score over time. It’s a steady way to build trust with lenders again.

Improve Your Credit Score, Starting Today 

Improving your credit score is a marathon, not a sprint, but even small changes can lead to big financial improvements over time. The good news? There are plenty of simple ways to improve your credit score, and you don’t have to do everything at once. Start by picking one or two actions you can take today, like setting up bill reminders or checking your credit report for errors.

At Cash Loans Direct, we’re here to help. Check out our blog for more tips on credit and managing payday loans wisely. Ready to move forward?—start your application today!