Discover the secrets to maintaining a good credit score

Some credit score tips to keep in mind this year are always paying your bills on time, keeping credit utilization low, and not opening too many accounts at once. 

Are you looking to buy a home soon? Perhaps you wonder how you can get the best interest rate on your mortgage or loans? 

The most important number you need to think about when it comes to your finances isn’t your net worth or even your investment ROI. It’s your credit score. A good credit score can literally be the difference between getting a cheaper interest rate on your mortgage and saving thousands of dollars over its lifetime. 

According to FICO, the average credit score in February 2025 was 715. An excellent credit score is from 800 to 850. A very good score is from 740 to 799. 

It’s important to know how to improve your credit score, so you can stay in the good books of financial institutions and keep saving money on loans. 

Always, Always, Always Pay Your Bills on Time

It can be tempting to avoid paying a big bill for some months so you can get some respite on some other bill, but that is a recipe for disaster when it comes to your credit score.

Financial institutions do not like it when you don’t pay bills on time. Even a small delay can ding your credit score, and that ding can stay on your record for a while to come. 

Whenever possible, pay your bills on time. Keep this rule in mind whenever you are thinking about making a big purchase. If you can’t pay your bills on time, you don’t want to buy something really expensive when you can’t afford it. 

Keep Credit Utilization Low

Credit utilization refers to the percentage of your available credit that you’re currently using. Experts generally recommend keeping this ratio below 30%, though lower is even better.

For example, if your total credit limit is $10,000, then you want to keep your credit utilization below $3,000. 

Avoid Opening Too Many Accounts at Once

Every time you open a new account and the financial institution performs a credit check, that dings your credit score. This applies to hard enquiries only (temporarily lowers your credit score).

Boosting a credit rating starts by opening as few accounts at a time as possible. 

Additionally, opening multiple accounts in a short period may make lenders view you as a higher risk. It’s best to apply for new credit only when necessary and to space out applications over time.

For more credit score tips and learning, check out Empower.com. 

A Good Credit Score Has Many Benefits

If you have never had a good credit score, you might imagine that you can never achieve this holy grail. However, if you follow our credit score tips above, you can start slowly but surely improving your credit score and getting all those high credit score benefits. 

Make sure to regularly check your credit score to ensure that nothing untoward is happening with your accounts, as identity theft is a common problem with Americans nowadays. Are you ready to take advantage of your new, better credit score? 

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