8. Diversify Your Credit Mix
- Action: Consider adding a different type of credit to your profile, such as an installment loan or a retail account.
- Why: A diverse credit mix can positively impact your credit score. Lenders like to see that you can manage different types of credit responsibly.
- How: If you need to finance a purchase, consider taking out a small installment loan. Ensure timely payments to benefit your credit score.
9. Automate Your Payments
- Action: Set up automatic payments for your credit cards and loans.
- Why: Automating payments ensures that you never miss a due date, protecting your payment history and avoiding late fees.
- How: Use your bank’s online services to set up automatic payments for at least the minimum due amount each month.
10. Limit Hard Inquiries
- Action: Avoid applying for multiple credit accounts within a short period.
- Why: Each hard inquiry can slightly lower your credit score. Multiple inquiries within a short timeframe can be detrimental.
- How: Be selective about applying for credit and research your approval odds before submitting applications to avoid unnecessary hard inquiries.