– Payment History(35%): How consistently you’ve made on-time payments. – Credit Utilization Ratio(30%): The ratio of your revolving debt to your credit limit.
Creating a solid payment history is the most efficient way to enhance your credit score. Look out for due dates, and set reminders if you need to.
keeping your balance low compared to your overall credit limit can do wonders for your credit score. An effective rule of thumb is to keep your credit utilization below 30%.
Having a blend of credit cards, retail accounts, installment loans, and mortgages shows that you can handle various forms of credit responsibly.
While new credit is essential, too many hard inquiries within a short span can negatively impact your score.