Credit 101
Five habits that help build strong credit.
Good credit doesn't happen overnight, but a handful of consistent habits can make a real difference over time.
Good credit doesn't happen overnight, but a handful of consistent habits can make a real difference over time.
1. Pay on time, every time. Payment history is the single biggest factor in most credit scores. Setting up autopay for at least the minimum due on every account is one of the simplest ways to protect your score.
2. Keep balances well below your limit. Using a large share of your available credit — even if you pay it off monthly — can lower your score. Aim to keep balances under roughly 30% of your limit whenever possible.
3. Don't close your oldest accounts. The length of your credit history matters. Keeping older accounts open, even if you don't use them often, generally helps rather than hurts your score.
4. Be deliberate about new credit. Applying for several new accounts in a short window can temporarily lower your score. Apply only when you actually need the credit, and space out applications when you can.
5. Check your credit report regularly. Errors happen, and catching them early matters. Reviewing your credit report periodically helps you spot mistakes or signs of fraud before they cause bigger problems.
