7 Ways to Raise Your Credit Score This Year

A better credit score can save you thousands in interest over your life. The good news: the factors that matter most are within your control.

1. Pay every bill on time

Payment history is the biggest factor in most scoring models. Set up autopay for at least the minimum on every account.

2. Keep balances low

Try to use less than 30% of your available credit, and under 10% is even better. Paying down card balances is often the fastest way to see a jump.

3. Pay before the statement closes

Card issuers usually report your statement balance. Paying earlier in the cycle makes your reported balance lower.

4. Keep old accounts open

The age of your accounts matters. An old, unused card with no annual fee is often worth keeping.

5. Limit new applications

Each hard inquiry can cause a small, temporary dip.

6. Check your reports for errors

Get free reports at AnnualCreditReport.com and dispute anything that's wrong.

7. Be patient

Credit rewards consistency. Most improvements show up within a few months of good habits.

Why credit still matters after retirement

You might not plan to borrow again, but your credit score can still affect insurance premiums, apartment or senior community applications, and the rate you'd get if you ever needed to refinance or replace a car.

Don't close your oldest card

Many retirees cancel cards they don't use. But closing your oldest accounts can shorten your credit history and raise your utilization. Instead, use an old card for one small purchase every few months and pay it off right away.

Watch for errors and fraud

Check your credit reports a few times a year. A new account you don't recognize can be the first sign of identity theft.