If your credit score is considered “average” or “poor” — anything lower than 650 — you will want to take immediate steps to make it “good” or “excellent,” which is typically considered a score of 700 or above. Your ability to get financing may depend on this. Here are some ways you can improve your credit score today:

Keep credit card balances low

FICO scores, the most popular credit scoring method used by lenders, weigh 30 percent of your credit score on existing amounts owed on credit accounts. A 10 percent credit utilization is ideal when improving your credit score. To find your credit utilization ratio, add up what you owe and divide it by your total available credit.


Avoid impulsive retail decisions

Making hasty decisions often ends in credit complications down the line. Credit reporting expert Randy Padawer warns shoppers against retail credit card solicitations at the checkout counter that promise a discount on purchases. “Too many cards may paint you as someone who depends upon borrowed money just to get by, and that’s why credit scores almost always suffer in turn,” he says.

Look for errors on your report

It’s on your shoulders to do your due diligence in spotting errors on your annual credit report. If you find a discrepancy, report the issue to credit reporting companies as soon as possible. According to the Federal Trade Commission, companies typically must investigate disputes within 30 days of receiving a correction request.

Make timely payments

Poor payment habits can be the biggest detriment to improving your credit. Thirty-five percent of your FICO score is determined by your payment history. A track record of late payments or missed payments will result in a downgrade of your score. Stay on top of payment due dates and, for added safety, make sure to schedule payments with enough time to clear before your creditor’s deadline.

Know all of your credit scores

The three credit reporting bureaus — TransUnion, Equifax and Experian — pulled together to create their own credit scoring model, called the VantageScore. While FICO is used by more creditors to determine creditworthiness, being aware of your VantageScore and working to improve it can help you look your best should a creditor decide to use this algorithm.