Deciphering the factors that contribute to a credit score and the ways to improve that magic financial number might seem intimidating, but achieving the great credit score of your dreams is a somewhat simple matter of discipline and attention.

Whether your score is poor or on the verge of great, you know you want to improve it because you've already checked it. Understanding what constitutes your score means more than knowing the number, though. There are three major bureaus that report your credit: Equifax (yes, that Equifax), Experian and TransUnion. It's smart to check all three reports annually for errors or inaccurate information.

A credit score is based on payment history, credit utilization, length of history, credit mix and the amount of inquiries on your accounts.

Some of these factors are worth more than others and the two highest-weighted factors are your payment history and credit utilization. To optimize your score, you'll need to manage all of these factors carefully. Here are the best tips to improve your credit score.


Pay all bills in full and on time

This includes credit cards, utilities, rent and loan payments. Any balance that carries over to the next month or any late penalties incurred will hurt your score and quickly undo the work you've begun. Paying off debt contributes 30% to a FICO Score while your payment history contributes 35%. If you've let a payment go by accidentally, you can ask for the company to forgive the mistake, convince them not to report it to the credit agencies, or, at least, ask them to waive any late fees. A person with a history of on-time payments will have more bargaining power to try to earn this forgiveness but it's always worth a shot.

To avoid late payments, see if the credit or utility company offers payment reminders and turn them on if they do. And, for an extra level of protection, set up automatic payments from a checking or savings account. Be sure that the company will pull the full balance that's due and not just the minimum payment amount. Late payments will remain on your reports for years but older mistakes count for less and less toward your score as they age. Every positive step builds good credit and, simultaneously, reduces the effects of the older, bad credit. The faster you take charge of your future credit, the faster you'll earn forgiveness for the past.

Credit utilization

Credit utilization is the amount of your credit limit you spend each month. If a credit card offers a $3,000 limit and you spend half of it in one month, then your credit utilization for that month is 50%. The magic number according to most experts is 30%; keeping your usage under 30% (optimally, around 10%) will raise your score more quickly, as it evidences responsible borrowing.

The most obvious way to lower your utilization is to reduce overall spending but this might not be immediately possible. Paying off some of your balance before it's due will show the credit company a lower utilization when they close the statement. Opening another line of credit can increase your credit limit but do not open several lines in a short amount of time. This will sound like a warning alarm to the reporting agencies.

It's worth mentioning that closing old credit cards might not actually benefit you, though it sounds like the logical thing to do if you've stopped using a card. Some reports take into account the age of your oldest open account, and closing those unused cards might shorten your credit history and negatively affect your score.

Hard inquiries

Any time a company requests access to your credit report—such as for a car loan or mortgage—it is called a hard inquiry. Whether or not you are approved by the company, the hard inquiry affects your credit score. Several hard inquiries in rapid succession will negatively impact your credit. However, checking your own score has no effect.

Recovering from bad credit

All of the above steps are important long-term choices for healthy credit. But you might be trying to recover quickly from a major financial loss, like a foreclosure, short sale or bankruptcy, which could drop your score by up to 150 points. Unfortunately, these long-term methods are still the best ways to heal even the worst credit. One slightly more immediate action is to apply for a secured credit card. With a cash deposit—often $200—some banks will offer an equal or greater line of credit with which you can begin, carefully, to grow that magic number.

The keys in every case are discipline, diligence and patience. Improvement will happen gradually but it will happen. The more care you put into your financial decisions, the more quickly you'll boost and secure your credit health.

Tom Twardzik is a writer covering personal finance, productivity and investing for Paypath. He also contributes pop culture reviews for Popdust and travel writing for The Journiest. Read more on his website and follow him on Twitter.



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Over two years into the most momentous event in our lives the world has changed forever … Some of us have PTSD from being locked up at home, some are living like everything’s going to end tomorrow, and the rest of us are merely trying to get by. When the pandemic hit we entered a perpetual state of vulnerability, but now we’re supposed to return to normal and just get on with our lives.

What does that mean? Packed bars, concerts, and grocery shopping without a mask feel totally strange. We got used to having more rules over our everyday life, considering if we really had to go out or keeping Zooming from our living rooms in threadbare pajama bottoms.

The work-from-home culture changed it all. Initially, companies were skeptical about letting employees work remotely, automatically assuming work output would fall and so would the quality. To the contrary, since March of 2020 productivity has risen by 47%, which says it all. Employees can work from home and still deliver results.

There are a number of reasons why everyone loves the work from home culture. We gained hours weekly that were wasted on public transport, people saved a ton of money, and could work from anywhere in the world. Then there were the obvious reasons like wearing sweats or loungewear all week long and having your pets close by. Come on, whose cat hasn’t done a tap dance on your keyboard in the middle of that All Hands Call!

Working from home grants the freedom to decorate your ‘office’ any way you want. But then people needed a change of environment. Companies began requesting their employees' RTO, thus generating the Hybrid Work Model — a blend of in-person and virtual work arrangements. Prior to 2020, about 20% of employees worked from home, but in the midst of the pandemic, it exploded to around 70%.

Although the number of people working from home increased and people enjoyed their flexibility, politicians started calling for a harder RTW policy. President Joe Biden urges us with, “It’s time for Americans to get back to work and fill our great downtowns again.”

While Boris Johnson said, “Mother Nature does not like working from home.'' It wasn’t surprising that politicians wanted people back at their desks due to the financial impact of working from the office. According to a report in the BBC, US workers spent between $2,000 - $5,000 each year on transport to work before the pandemic.

That’s where the problem lies. The majority of us stopped planning for public transport, takeaway coffee, and fresh work-appropriate outfits. We must reconsider these things now, and our wallets are paying

the price. Gas costs are at an all-time high, making public transport increase their fees; food and clothes are all on a steep incline. A simple iced latte from Dunkin’ went from $3.70 to $3.99 (which doesn’t seem like much but 2-3 coffees a day with the extra flavors and shots add up to a lot), while sandwiches soared by 14% and salads by 11%.

This contributes to the pressure employees feel about heading into the office. Remote work may have begun as a safety measure, but it’s now a savings measure for employees around the world.

Bloomberg are offering its US staff a $75 daily commuting stipend that they can spend however they want. And other companies are doing the best they can. This still lends credence to ‘the great resignation.’ Initially starting with the retail, food service, and hospitality sectors which were hard hit during the pandemic, it has since spread to other industries. By September 2021, the US Bureau of Labor Statistics reported 4.4 million resignations.

That’s where the most critical question lies…work from home, work from the office or stick to this new hybrid world culture?

Borris Johnson thinks, “We need to get back into the habit of getting into the office.” Because his experience of working from home “is you spend an awful lot of time making another cup of coffee and then, you know, getting up, walking very slowly to the fridge, hacking off a small piece of cheese, then walking very slowly back to your laptop and then forgetting what it was you’re doing.”

While New York City Mayor Eric Adams says you “can't stay home in your pajamas all day."

In the end, does it really matter where we work if efficiency and productivity are great? We’ve proven that companies can trust us to achieve the same results — or better! — and on time with this hybrid model. Employees can be more flexible, which boosts satisfaction, improves both productivity and retention, and improves diversity in the workplace because corporations can hire through the US and indeed all over the world.

We’ve seen companies make this work in many ways, through virtual lunches, breakout rooms, paint and prosecco parties, and — the most popular — trivia nights.

As much as we strive for normalcy, the last two years cannot simply be erased. So instead of wiping out this era, it's time to embrace the change and find the right world culture for you.

What would get you into the office? Free lunch? A gym membership? Permission to hang out with your dog? Some employers are trying just that.

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Did you hear about the Great Resignation? It isn’t over. Just over two years of pandemic living, many offices are finally returning to full-time or hybrid experiences. This is causing employees to totally reconsider their positions.

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