1. Be punctual

35% of your FICO score is based on how reliably you’ve made payments in the past.You should always make on-time payments toward your debts, whether they are credit card balances or utility bills. Overdue library books and parking tickets can negatively affect your credit score.

2. Retain low credit card balances

Low balance and large credit limits are optimal for credit use.  CUR is a debt-to-credit ratio, this easy proportion calculates your current balance to the total available credit on all cards (your credit limit).  CUR is the amount you owe and the percentage by which it is more than your credit limit. CUR is the second most important component in establishing your FICO score, accounting for 30%. The lower your credit utilization rate, the better it is for your score. Experts recommend 10%.

3. Keep your longest-running credit card active

You should consider maintaining your first credit card account even if you no longer use it. Make sure to use the card at least once every few months, or charge a small recurring subscription to it and set up automatic monthly payments to keep it active. Considering that the length of time you have had credit accounts for 15% of your FICO credit score, you should avoid closing your oldest card. When you close an old or new credit card account, it reduces your available credit and annual percentage rate.

4. Pay basics You should use your credit card regularly to maximize its benefits. Inactive accounts can have a negative impact on your credit score in the short term if card issuers decide to close them. By charging necessities like gas and groceries to a rewards credit card, you can earn rewards for money you would have spent anyway. You can get the most out of your credit card privileges by always paying your balance in full and on time.

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