• Make sure to pay your bills on time.

• Pay off as much credit card debt as possible. Lenders prefer balances to be less than 30% of your
available credit.

• Review your credit reports and correct any errors immediately.

• Visit AnnualCreditReport.com to get a free copy of your report, you are entitled to request a credit report
once a year at no cost.

• Avoid closing old credit card accounts or opening new ones.

• Think carefully before applying for new credit.

Getting a new credit card can benefit and harm your credit score, so it’s important to have a strategy. According to FICO, the leading credit score provider, studies show that people who open several credit accounts in a short period of time represent a higher credit risk than those who do not. When you apply for a new credit card, your credit score may initially decrease as your lender checks your credit report (known as an inquiry that affects your credit score) and the average age of your account is lower.

Good credit can help you achieve other financial successes, for example, you are more likely to receive a loan, or you might get approved for a lower interest rate, which can save you money in the long run. A clean credit report, and the positive effect on your credit score, can make it easier to obtain reward credit cards, which offer benefits such as travel deals or cash back. You might also qualify for higher credit limits on your credit cards.