Welcome to my new blog, friends. In this blog, we’re going to talk about a credit score: what it is, what it’s for, why it’s low, and how it can be increased. You’ll find out about all of this in this blog. Stay updated with our website for more interesting finance-related topics.
What Is a Credit Score and Why It Matters
A credit score is a 3-digit number that shows how trustworthy you are with payments.
A credit score plays a big role in your financial life in the US. If you want to rent an apartment, buy a car, get a credit card, or apply for a loan, having a good credit score makes everything easier. If your score is low or you are just starting your credit journey, don’t worry — there are simple steps you can follow to build or improve your credit score in the US.
What is a good credit score?
If your credit score is between 300 and 400, you won’t be able to get a loan from any bank. This is the lowest level of credit score. With this score, you won’t be able to get EMIs on any product. In the US, if your credit score is 670, you can get a loan from any bank and loan companies and can also increase your credit card limit from Credit Card Company. If your credit score is higher than 800, you can easily get a loan of several million dollars with the some documents. If you want to increase your credit score to over 800, read our blog carefully and you will find answers to all your questions.
- 300–579: Poor
- 580–669: Fair
- 670–739: Good
- 740–799: Very Good
- 800–850: Excellent
Try to stay above 670.
What Affects Your Credit Score?
Your score is based on:
- Paying all bills on time
- How much credit you use
- How long have you had loans?
- Different types of credit
- How many new cards or loans you apply
Easy Ways to Improve Your Credit Score
1. Pay Your Bills on Time
If you pay your EMI or bills on time, your credit score will not go down.
2. Keep Your Credit Card Balance Low
Do not use more than 30% of your card limit.
Example: If the limit is $1,000, try to use less than $300.
3. Check Your Credit Report
You can get a free report from:
AnnualCreditReport.com. Check if everything is correct.
4. Fix Mistakes on Your Report
If you see wrong information, report it to:
- Experian
- Equifax
- TransUnion
Mistakes can bring your score down.
5. Don’t Apply for Too Many Cards
Each new credit card application can reduce your score a little. Apply only when needed.
If You Have No Credit History
6. Get a Secured Credit Card
You give a small deposit (like $200), and the bank gives you a card.
7. Become a trusted user
Ask a family member with good credit to add you to their card. Their good history helps you.
8. Don’t Close Old Cards
Old accounts help your credit age. Keep them open if possible.
Read More: Top 5 Banks in California: Best Choices for 2025-26
Mistakes to Avoid for a Good Credit Score
These things can lower your credit score, so try to avoid them:
- Paying bills late
- Using too much of your credit limit
- Not paying small debts
- Applying for many credit cards at once
- Closing old credit card accounts
Staying away from these mistakes will help your credit score stay healthy.
To improve your credit score in the US: Pay on time, use less credit, check your report, avoid many applications, and slowly build history. Small steps every month can make your score go up.
How to Build Credit Without a Credit Card
Many people think that just by taking a credit card the credit score can be reduced or increased, they all are wrong in thinking that you can increase the credit score even without a credit card, Here are some easy ways to do it:
- Report Your Rent Payments
- Report Your Utility Bills
- Get a Credit-Builder Loan
- Become an Authorized User
- Use “Buy Now, Pay Later” Carefully
- Take a Small Personal Loan
- Keep Your Bank Account Active
How to Keep Your Credit Safe From Fraud
These days, along with the conveniences, fraud has also become rampant. Always check your credit carefully before making any payment. Never share your OTPs or passwords with anyone you don’t know. To protect yourself from fraud, keep all your passwords strong. Never share your passwords with anyone you don’t know in public. Before opening an account with any money-related application, always check whether the application is genuine or fake. If your cards are found, be sure to have your bank block them.
Final Words
This blog is for informational purposes only. Our website does not currently handle financial transactions with any one. To give us suggestions or share any information, simply email us at info@financeglide.com.
Frequently Asked Questions
1. What is a good credit score?
A score above 670.
2. Will checking my score lower it?
No. Checking your own score is safe.
3. How much credit should I use?
Try to stay under 30% of your limit.
4. How fast can my credit improve?
You may see changes in a few months.
5. How do beginners start?
Use a secured card, rent reporting, or become an authorized user.