5 Ways to Improve Your Credit Score in 2026

Your credit score plays a crucial role in your financial life, affecting everything from loan approval to interest rates. Here are five proven strategies to boost your credit score this year.

1. Pay Bills On Time, Every Time

Payment history is the most important factor in your credit score, accounting for 35% of your FICO score. Set up automatic payments or reminders to ensure you never miss a due date. Even one late payment can significantly impact your score.

2. Keep Credit Card Balances Low

Credit utilization (the percentage of available credit you're using) makes up 30% of your score. Aim to use less than 30% of your available credit, and ideally under 10% for the best results. Pay down existing balances and avoid maxing out cards.

3. Don't Close Old Credit Cards

The length of your credit history accounts for 15% of your score. Keeping older accounts open, even if you don't use them regularly, helps maintain a longer average account age and higher total available credit.

4. Limit New Credit Applications

Each hard inquiry from a credit application can temporarily lower your score by a few points. Multiple inquiries in a short period can signal financial distress to lenders. Only apply for new credit when necessary.

5. Diversify Your Credit Mix

Having a mix of credit types (credit cards, installment loans, mortgage) can positively impact your score, though this is a smaller factor at 10%. Don't take on debt you don't need, but maintaining different types of credit responsibly shows lenders you can manage various credit products.

The Bottom Line: Improving your credit score takes time and consistency. Focus on paying bills on time, keeping balances low, and being strategic about new credit. Monitor your credit regularly and you'll see gradual improvements over the coming months.