How to Increase Your Credit Score

Building strong credit is one of the most important steps you can take for your financial future. A higher credit score can open the door to better loan options, more favorable credit card offers, and overall financial flexibility. But how do credit scores work, and what can you do to raise yours? Let’s break it down. 

Why does your credit score matter? 

Your credit score helps lenders like Premier America understand how reliable you are when it comes to borrowing money and paying it back on time. A higher score can make it easier to get approved for loans and credit cards and can even save you money on certain financial products. 

As Credit Karma notes, scores in the 700s typically qualify for strong offers, and scores above 760 are typically considered excellent. But the biggest difference often happens when you move up a score range, for example, from “fair” to “good.” 

Here’s how FICO generally categorizes scores: 

• Poor: 300–579 

• Fair: 580–669 

• Good: 670–739 

• Very good: 740–799 

• Excellent: 800+ 

What factors affect your credit score? 

Both FICO® and VantageScore® models look at similar factors (information current as of fall 2025): 
 
FICO® 

• Payment history (35%) 

• Amounts owed/credit utilization (30%) 

• Length of credit history (15%) 

• New credit inquiries (10%) 

• Credit mix (types of accounts you have) (10%) 

VantageScore® 

• Payment History (Most influential) 

• Age and type of credit (Highly influential) 

• Percent of credit limit used (Highly influential) 

• Total balances/debt (Moderately influential) 

• Recent credit behavior and inquires (Less influential)) 

• Available credit (Less influential) 

What are the best ways to improve your credit score? 

1. Pay your bills on time 

Payment history makes up the largest portion of your score. Even one late payment can negatively impact you. Set up reminders or automatic payments to stay on track. 

2. Keep your balance low 

Aim to use less than 30% of your total available credit. For example, if your credit cards give you $5,000 in available credit, try to keep balances below $1,500. 

3. Don’t open too many new accounts at once 

Each new credit application creates a hard inquiry, which can temporarily lower your score. Only apply when you truly need to. 

4. Keep older accounts open. 

The length of your credit history matters. Closing an older account can shorten your average credit history and increase your utilization percentage. 

5. Check your credit reports for errors. 

You can request free credit reports via all three credit bureaus and dispute any mistakes. Correcting an error can improve your score quickly. 

6. Diversify your credit mix. 

Having both revolving accounts (like credit cards) and installment loans (like auto or student loans) shows you can handle different types of credit responsibly. 

How can Premier America help build or rebuild credit? 

Premier America offers credit card options designed to meet you where you are in your financial journey: 

Whether you’re just starting out or working on a comeback, these tools can help you build a stronger financial foundation. 

What about fraud and identity theft? 

Even if you’re doing everything right, fraudulent activity can hurt your credit. Consider placing fraud alerts or a security freeze with credit bureaus if you believe your identity has been compromised. Monitoring your credit regularly can also help you catch suspicious activity early. 

If you ever notice suspicious activity on your account or think you’ve been targeted by a scam: 

• Call us immediately at (800) 772-4000. 

• Never share personal account details over the phone or email. 

• Visit our Security Center for more tips, resources, and updates on keeping your accounts safe. 

How do I get closer to excellent credit? 

The key is consistency. Pay on time, keep balances low, monitor your credit reports, and use tools like Premier America’s credit cards responsibly. Over time, these habits can move you into higher score ranges and give you more financial opportunities.