You know your zodiac sign, your social security number, and even your significant other’s date of birth. But do you know your credit score? It may not be as exciting as astrology, but it can have a major impact on your financial life.

Knowing and improving your credit score can make a real difference when it comes to getting a loan or securing favorable interest rates. So let’s talk about how you can repair and maintain a healthy credit score.

Use Your Credit

Don’t be too quick to close your credit accounts. While you may think avoiding credit cards is a smart move, it actually affects your credit score. Credit utilization makes up 30% of your total score, so having a few lines of credit open can actually improve your score, even if you don’t use them often. Before you pay off and close that credit card account, consider keeping it open to continue building your score.

But Don’t Use Too Much

Did you know there’s a magic number when it comes to how much credit you should be using? It’s 30%, and that’s the maximum amount you should aim for to keep your credit score healthy and high. So, avoid maxing out all your credit cards. Instead, experts recommend making small purchases, like a tank of gas or groceries, that you can easily pay down each month.

Pay Your Bills On Time

Staying on top of your payments is crucial, yet it’s a concept that often trips people up. Even the most responsible bill payers can fall behind occasionally, but it’s important to prioritize staying current or catching up in the short term for long-term benefits. This doesn’t just apply to credit card payments; it includes utility bills, student loans, and even store cards like Gap. The good news is, every on-time payment you make helps rebuild your credit score, so don’t lose hope if you miss a few.

Keep Inquiries to a Minimum

Every time you apply for a credit card, loan, or even a new apartment, it affects your credit score. Lenders see these inquiries as a sign that you rely heavily on credit to finance your lifestyle. So, it’s essential to be cautious about applying for credit cards without careful consideration and think twice before cosigning loans for others if you want to maintain a healthy credit score.

Ask an Expert

If your credit score needs a boost, professional help is available. Credit counselors can guide you on managing your debt and improving your financial situation. While it may take time to turn your credit history around, making sound financial decisions will lead to a strong credit profile and an impressive score. Get the assistance you need today to achieve your financial goals.