__A question we often get asked is, “How can I improve my credit score?” While credit scores can often seem mysterious, understanding what makes a credit score can actually be very straightforward.__

The three digit number of our credit scores is a representation of how we use credit, measured in 5 different ways. Improving one or more of these 5 factors can help to improve the overall score.

__1. Payment History:__

This is the single most important component of your credit score. Lenders evaluate your future ability to pay based on your payments in the past. Since your Payment History comprises 30%-35% of your score (based on the scoring model), making the payments on time, every time, is the most important step you can take when building and maintaining your credit score.

__2. How Much You Owe:__

This factor is measured by the Credit Utilization Ratio. This is calculated by dividing your total balances by your total available credit. If you are using more than 30% of your available credit, you may see your credit score drop. This factor comprises 30%-35% of your total score, so it is important to keep your balances low in order to raise your overall score.

__3. Length of Credit History:__

In general, having a longer credit history will mean having a higher credit score. This factor looks at the average age of your accounts, as well as when your youngest and oldest accounts were opened. All things being equal, it is better to leave an account open, especially if you are not actively using it. This factor comprises 10%-15% of your total score.

__4. Mix of Credit:__

Statistically, people with multiple types of credit products have higher credit scores. This can include things like credit cards, mortgages, auto loans, or other types of credit. This doesn’t mean you should apply for new credit just to have a certain type of account! Having just one type of credit (say, credit cards) will not necessarily lower your score, but may be an important factor when you are reaching the very top of the credit score scale. This factor comprises 10% of your total score.

__5. New Credit Inquiries:__

Many people know that, when you apply for new credit, an inquiry is placed on your credit report. While it is true that too many new accounts opened, or too many inquiries over a short period of time can impact your score, this factor, at 10%, is one of the least impactful.

__So, how can I improve my credit score? By maximizing one or more of the credit scoring factors! One of the most potent steps you could take would be to have a credit card that you never use.__

Let’s look at why based on the most important scoring factors.

1. If you never use the card, the balance is $0 and no payment is due. That means you have perfect payment history!
2. If the balance is $0, you are using 0% of your available credit, well below the 30% negative threshold
3. The longer you keep this account open and in good standing the more positive impact it will have on your overall score.

__In other words just by having an account open and doing nothing, you are positively impacting the factors that make up over 75% of your total score!__

For more information about credit scores and how to improve them, visit us at [www.christiancreditcounselors.org](https://www.christiancreditcounselors.org/).

Our debt management program helps people avoid bankruptcy, debt settlement scams, and quick fixes that ruin credit.

Christian Credit Counselors

Articles

While credit scores can seem mysterious, understanding what makes a credit score can actually be very straightforward.

DEBT | Mar 27, 2025

How Can I Improve My Credit Score?

By: John Jodka

Our debt management program helps people avoid bankruptcy, debt settlement scams, and quick fixes that ruin credit.

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