Your credit score is a critical part of your financial health. At Tucoemas, we want to help you achieve financial success, so here are five practical tips to improve your credit score:

1. Pay Your Bills on Time

Your payment history is one of the most significant factors in your credit score. Pay all your bills on time, including credit cards, loans, and utilities. Setting up automatic payments or reminders can help you stay on track. If paying your bills on time is challenging, we highly encourage you to join our free financial counseling program. Learn more here.

2. Keep Your Credit Utilization Low

Credit utilization, the ratio of your credit card balances to your credit limits, impacts your score. Aim to keep your credit utilization below 30%. If possible, pay off your credit card balances in full each month.

3. Avoid Opening Too Many New Accounts

Each time you apply for credit, a hard inquiry is recorded on your credit report, which can temporarily lower your score. Avoid opening multiple new accounts in a short period. Instead, focus on managing your existing credit responsibly.

4. Check Your Credit Report for Errors

Mistakes on your credit report can hurt your score. Regularly review your credit reports from the three major credit bureaus (Experian, TransUnion, and Equifax) to ensure accuracy. If you find any errors, dispute them promptly.

5. Maintain a Mix of Credit Types

A diverse credit mix, such as a combination of credit cards, installment loans, and mortgages, can positively affect your credit score. However, opening new credit accounts just for diversity is not recommended. Only take on debt you can manage responsibly.

Improving your credit score takes time and disciplined financial habits. By following these tips, you can build a healthier credit profile and open the door to better economic opportunities. At Tucoemas, we're here to support you on your journey to financial well-being. Please check our Pathways to a Brighter Future Program to get connected with one of our Certified Financial Coaches for free!