How can one improve their credit score?

Making payments on time is one of the most significant factors influencing your credit score. Credit scoring models take into account your payment history, which constitutes a large portion of your overall credit score. When you make payments on or before the due date, it demonstrates to lenders that you are responsible and capable of managing debt, reflecting positively on your creditworthiness.

On the other hand, reducing income, increasing spending, or closing old accounts can negatively affect your credit score. Lower income can limit your ability to repay debts, increased spending can lead to higher debt levels and potential missed payments, and closing old accounts may shorten your credit history or increase your credit utilization ratio, both of which could contribute to a lower score. Thus, maintaining timely payments plays a crucial role in improving and sustaining a healthy credit score.