Step 3: Lower Your Credit Utilization
Fancy word, simple meaning: don’t use too much of your available credit.
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Example: $5,000 limit, $2,500 balance = 50% utilization.
The magic number? Under 30%. The sweet spot? Under 10%.
👉 How to pull it off without spending more:
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Spread balances over multiple cards.
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Ask for a credit limit increase (but promise yourself you won’t use it as shopping money).
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Pay your bill twice a month so it reports lower.
It’s a quick win once you get the hang of it.
Step 4: Don’t Ditch Old Accounts
Here’s a mistake a lot of people make—they close old cards thinking it helps. Nope. That history actually works in your favor.
👉 Keep those old cards open, even if you don’t use them much. Swipe them once in a while for gas or groceries, then pay it off. They’re your credit “anchors.”
Step 5: Mix It Up (Credit Diversity)
The bureaus like to see you can handle different types of credit: revolving (credit cards) + installment (car loans, mortgages).
👉 Not saying you should rush out and get a loan. But if you only have one card, something small like a credit-builder loan from a credit union could add healthy variety.
