How to Improve Your Credit Score: Essential Tips

Your credit score might seem like just a random number, but it can open or close the doors to things that matter most: buying a car, renting an apartment or even landing a job. The tricky part? Credit often feels complicated, and many people aren’t sure where to start. You might be just starting out, working to rebuild your credit or aiming to reach the next level. The good news is that there are clear steps you can take to improve your score.

At Westerra, we believe “you can do money,” and that includes building the credit you need for the future you want.

I Want to Understand the Basics First

Before you dive into building or improving your credit, it helps to know what your score really measures. A credit score is a three-digit number, usually between 300 and 850, that shows lenders how reliable you are with money.

Score ranges:

• 300 – 579: Poor

• 580 – 669: Fair

• 670 – 739: Good

• 740 – 799: Very Good

• 800 – 850: Excellent

The higher your score, the easier it is to qualify for loans with lower interest rates, higher credit limits and even more favorable insurance rates. Landlords and employers sometimes check scores, too.

What goes into a credit score?

• Payment history (35%): Making payments on time is the single biggest factor.

• Amounts owed/credit utilization (30%): Using more than ~30% of your available credit can bring your score down.

• Length of credit history (15%): Lenders like to see long-standing accounts, even if you don’t use them often.

• New credit inquiries (10%): Too many applications in a short time can signal financial stress.

• Credit mix (10%): A healthy variety of credit (like a credit card, auto loan and mortgage) shows you can manage different kinds of debt.

Quick steps to get started:

• Check your reports annually from all three major bureaus (Equifax, Experian and TransUnion). Dispute any errors.

• Be mindful of hard inquiries. Apply for credit only when you truly need it.

• Keep balances low and pay on time every time.

Once you understand these basics, you’ll be better equipped to decide whether you need to start building, focus on repairing or simply maintain your credit.

I’m Just Starting Out and Have No Credit

When you’re young or new to borrowing, it can feel like a catch-22. You need a credit history to qualify for credit, but you can’t build credit without a credit history. The key is to start small, use credit responsibly and show lenders you can be trusted to pay on time.

Ways to begin building credit include:

• Become an authorized user: Partner with your parent or guardian to learn smart money habits and understand how to build credit at the same time by becoming an authorized user on one of their accounts.

• Open a starter card: A secured credit card can be a safe way to begin.

What is a secured credit card? If you have no credit history, lenders may be uncertain about letting you open a line of credit. Secured credit cards usually have you set aside some cash as collateral. This gives you the opportunity to prove that you are trustworthy and reduces risk to lenders.

• Keep it simple: Use your card for small, regular purchases (like gas or groceries).

• Pay in full, every month: Never carry a balance if you don’t have to. On-time, full payments are the fastest way to build a positive credit history.

Starting small and being consistent is the foundation for strong credit habits that will serve you for years to come.

I Need Help Rebuilding My Credit

Credit score is less than 670.

If you’ve had late payments, high balances or accounts in collections, you’re not alone. Life happens, and many people find themselves needing a second chance with credit. The good news is that your credit score isn’t permanent; every positive step you take today can help rebuild your financial future.

Ways to start rebuilding include:

• Catch up on current payments: Making on-time payments going forward is the single most important factor in improving your score.

• Prioritize debt repayment: Focus on paying down high-interest balances first while keeping up minimum payments on others.

• Consider consolidation or counseling: In some cases, combining debts into one lower-interest payment or working with a nonprofit debt management counselor like

  Green Path can help you regain control.

• Avoid getting new credit too soon: Opening multiple accounts while rebuilding credit can actually hurt your score.

Rebuilding credit takes time and patience, but every on-time payment and reduced balance shows lenders you’re committed to managing credit responsibly.

I’m Ready to Take My Good Credit Score Even Higher

Credit score is above 670

If you already have a solid credit score, you might be wondering how to reach the next level. Moving from “good” to “excellent” doesn’t mean making big changes, it means staying consistent with smart habits that show long-term reliability.

Ways to strengthen your credit even further include:

• Keep older accounts open: The longer your credit history, the better. Even if you don’t use an old card often, keeping it active can help. Be sure to check on these cards every month or quarter to make sure there are no unauthorized transactions.

• Diversify responsibly: A healthy mix of credit types (like a credit card, auto loan and mortgage) shows you can handle different forms of debt. However, be careful not to open more lines of credit than you can handle.

• Stay consistent: Continue paying bills on time and in full. Small, steady actions make the biggest difference.

At this stage, it’s all about maintaining strong habits and proving to lenders that your financial stability is long-term. Be patient with the process; it might feel like your credit score is increasing slowly.

You Can Do Credit

Credit scores can be a scary, difficult concept. Maybe you’re just beginning to build credit, working to recover from setbacks or aiming to make your strong score even higher. Knowing what goes into your credit score can give you the power to increase it. Small, consistent steps add up, and every positive choice you make helps shape your financial future. At Westerra, we believe “you can do money,” and that includes growing the credit confidence you need to reach your goals!