Your credit score is an important number in the grand scheme of your finances. That number tells lenders and credit card issuers how much risk they’re taking on when they loan you money or give you a line of credit. So the higher your credit score is, the more options you’re likely to get.
Experian reports that in 2023, the average American’s credit score was 715. But the truth is, if you want to qualify for the most attractive loan rates, and if you want to snag the best credit card deals, you may need your score to climb a bit higher.
Credit scores go all the way up to 850. And while most people don’t have perfect credit, if you’re able to get your score into the upper 700s or somewhere in the 800s, it could open the door to cheaper borrowing the next time you sign a loan. It could also make it so you’re able to qualify for a great credit card offer — say, one with a generous sign-up bonus.
With that in mind, here are some steps you can take to set yourself up with a credit score that beats the average.
1. Pay all bills on time
Of the various factors that go into calculating a credit score, your payment history carries the most weight. Your payment history is a summary of how timely you are with bills.
If you don’t have any late payments on your credit report, it sends the message to lenders that you can be trusted to repay your debts when you’re supposed to. So if you’re able to pay all of your bills by their due dates, in time, your credit score could climb nicely.
2. Pay off credit card debt
Making your minimum credit card payments on time isn’t enough to get your credit score into great shape. It’s also important to keep your credit card balances low relative to your credit limit, as that’s another major factor that impacts your credit score.
So if you owe $5,000 on your credit cards and your total credit limit is $10,000, paying half of that balance off could result in a nice credit score boost. Getting your balance down to $0 can do even more good — not to mention spare you from owing more money in interest.
3. Check your credit report regularly
You’re entitled to a free copy of your credit report every week. And while you don’t have to check it every week, you should check it every few months for errors. Correcting mistakes is a good way to increase your credit score.
For example, you might review your credit report and see a delinquent personal loan listed that you never took out. Fixing a mistake like that could actually bring your credit score up quite a bit. You can fix a credit score error by contacting the credit bureau that has it listed and requesting that it be removed.
There’s nothing wrong with having a credit score that’s in line with the average American’s. But having a higher credit score could make your financial life a lot easier. So if you’re able to boost your credit score, it pays to make that a goal of yours, even if it takes some time.
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