If the information is accurate but your score isn’t as high as you’d like, take steps to improve it.
“The two most important factors in building or maintaining good credit are to pay your bills on time and in full each month,” Skwarek says. “Another crucial factor is your credit utilization rate—the ratio of credit you’re using compared to your full available credit limit. Most experts recommend keeping your account balances at or below 30 percent of your credit limit.”
Remember that improving your credit score can take a while, and you want to have that higher score in place when you apply for a loan. So, start today.
Will rarely using credit affect my credit score?
To get a credit score, you must have a minimum credit history. Specifically, you must have at least one credit account that has been open for six months or longer, and at least one account that has been updated in the past six months. This ensures that there is enough information in your credit report to generate an accurate score.
If you don’t meet these minimum criteria for getting a score, get started! Open a credit card or two, use it, and pay your bills on time. Then you’ll get a credit score—an essential step in applying for a loan.