Asked by Christopher  |  Submitted January 17, 2015

Hello, I'm 20 years old and I was wondering what I can do to improve my credit. I don't have any negative items on my report, and I make $33k

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  Answers  |  2

January 17, 2015

Hi Christopher! Your credit score is comprised of the following categories in different percentages: Credit Payment History, Debt Ratio, Length of Credit History, Types of Credit and Number of Credit Inquiries. To keep your credit score high, follow these guidelines:
Make your payments on time.
Keep your debt to income ratio low.
Your older accounts are beneficial, so if you are looking to close out a credit card or other debt, close out a newer one.
Secured debt, such as car or home loans, count higher than unsecured debt such as credit cards and other open lines of credit.
Continuing to ask for more credit lowers your score as the number of credit inquiries increase.

Bottom line: don't over extend yourself and your credit score will take care of itself.

$commenter.renderDisplayableName() | 09.23.20 @ 05:56


February 02, 2015

Congrats on starting your "adult" life using credit responsibly. You don't mention what, if any, current accounts you have open. In general, the credit scoring models do prefer a mix of credit (some revolving, some installment), lower balances on revolving accounts (less than 25% of the credit limits), and accounts with a long payment history and no late payments. Pamela's answer above is quite accurate. I'd also note that consumer finance/payday loan accounts can harm your credit, even when paid on time, as credit bureaus consider borrowers who take them out to be more likely to encounter credit issues.

$commenter.renderDisplayableName() | 09.23.20 @ 05:56