6. Use a Secured Credit Card
- Action: Apply for a secured credit card to build or rebuild your credit history.
- Why: Secured credit cards require a cash deposit, which reduces the lender’s risk. Using a secured card responsibly can quickly boost your credit score.
- How: Use the secured card for small purchases and pay off the balance in full each month to demonstrate good credit behavior.
7. Keep Old Accounts Open
- Action: Avoid closing old credit accounts, even if you no longer use them.
- Why: The length of your credit history contributes to your credit score. Keeping old accounts open helps maintain a longer credit history.
- How: If you have old accounts with no annual fees, keep them open and use them occasionally to keep them active.