Member-only story
How to Increase Your Credit Score in the New Year
Boost your credit score in 2025
The start of a new year is the perfect time to take charge of your financial health. One of the most impactful financial goals you can set is improving your credit score. A high credit score unlocks opportunities for better loan terms, lower interest rates, and increased access to financial resources. Let’s dive into the strategies and practices that can help you boost your credit score in 2025.
What is a Credit Score?
A credit score is a three-digit number that represents your creditworthiness. It typically ranges from 300 to 850, with higher scores signaling lower credit risk to lenders. Credit scores are calculated based on information in your credit report and are used by lenders to decide whether to approve loans or credit cards and what terms to offer.
Key Factors That Influence Your Score
- Payment History (35%): Paying bills on time is the single most important factor in determining your credit score. Late payments, defaults, or collections can significantly harm your score.
- Credit Utilization (30%): This measures how much of your available credit you’re using. A utilization rate below 30% is ideal, but lower is even better.
- Credit History Length…
