Credit scores are not always the easiest to understand. So, whether you’re interested in boosting your credit score or just looking for a few good tips on how to manage your credit, we think the tips below can help you reach your goals.

Probably the biggest reason to improve your credit score is to help improve your ability to become approved for a loan. Keep in mind that because your credit score reflects years of past behavior, not just the more recent activities, it will usually take time to raise it.

In addition to making the right moves to improve your credit or maintain your score, you also have to be consistent.

Here are a few easy steps that can push your score in the right direction.

  1. Pay your bills on time

To improve your credit score, one of the most important things you can do is to pay your bills on time. Missing a few monthly payments is one of the fastest ways to make your credit score drop. Set up automatic payments or reminders to help.

  1. Check your reports

Knowing what is on your credit report is not only a great way to combat identity theft, but it’s also a great start to knowing how to raise or keep your score high. Visit AnnualCreditReport.com to request your free credit report from one of the three national credit bureaus.

  1. Don’t apply for multiple credit cards at once

Applying for several credit cards at once generates multiple credit inquiries on your report, which can have a negative impact on your score. Instead, carefully read prospective cards’ terms and conditions and apply for just one. This will also help improve your score by not lowering the average age of your credit accounts or taking on too much new credit at once.

  1. Keep credit balances relatively low

According to experts, it is best to maintain a cumulative balance on your credit lines that is under 10% of your total credit line. Having a higher ratio indicates an elevated credit risk.

  1. Maintain a variety of credit types

By successfully paying, for example, a student loan, auto loan, and credit card bills over the same period, you demonstrate that you’re able to juggle different credit types. This contributes 10% to your score.

  1. Get a personal loan to pay off credit card debt

Finally, you can also improve your credit score by paying off the score-damaging debt of credit cards by taking out a personal loan and consistently paying down the debt via an installment loan. Plus, the interest rate on the loan is likely to be lower than the credit card interest rates.

A low credit score can be a barrier between you and qualifying for a loan you want, such as a mortgage loan. And if home ownership is in your future, or if you have questions about your credit score, contact a Day Air Home Loan Specialist today!