Understand, get, and improve your credit score | USAGov (2024)

FAQs

What is the main way to improve your credit score? ›

Your payment history is the most important factor for your credit score. To improve your payment history: always make your payments on time. make at least the minimum payment if you can't pay the full amount that you owe.

Pay on time.

Payment history makes up a significant chunk of your credit score, so it's important to avoid late payments. If you struggle with on-time payments, consider using automatic payments for your accounts or setting up alerts so you are reminded to pay.

Pay bills on time and in full

“Making payments on time and keeping your balances low are the two most important factors when it comes to building credit,” Griffin says. In fact, payment history is the most important factor making up your credit score.

Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.

It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

Can I pay someone to fix my credit? ›

If your credit report shows a history of debt problems or contains errors, you may consider using a repair service to “clean it up.” Before you pay, however, know the way these businesses operate. In the vast majority of cases, hiring an outside company will do no more than waste your money.

Some types of mortgages have specific minimum credit score requirements. A conventional loan requires a credit score of at least 620, but it's ideal to have a score of 740 or above, which could allow you to make a lower down payment, get a more attractive interest rate and save on private mortgage insurance.

Using more of your credit card balance than usual — even if you pay on time — can reduce your score until a new, lower balance is reported the following month. Closed accounts and lower credit limits can also result in lower scores even if your payment behavior has not changed.

Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.