This post is part four in the “What’s my credit score?” blog series.

In part two of our “What’s my credit score?” blog series, we explained that your credit score is what lenders and creditors use to estimate how likely you are to pay off your debt in a timely manner and decide whether to lend to you.

Tip! With MoneyLion Plus, good credit is not required to get access to 5.99% APR loans, and borrowing can actually help you build credit. Learn more in the MoneyLion app.

Do you know your credit score?

Signing up for MoneyLion’s free credit monitoring service lets you quickly learn your credit score from our partner TransUnion in less than a minute.

Credit Monitoring Tips

Remember, your credit score isn’t set for life, and there are simple things you can do to boost your score and make your credit profile more attractive to lenders.

Five easy ways to raise your credit score

  1. Pay your bills on time. Thirty-five percent of your FICO score is determined by your payment history, i.e., whether you’ve paid your bills in full and on time, had any accounts referred to collections, or whether you’ve declared bankruptcy. Even just paying the monthly minimums on credit card bills is better than falling behind. If any of your debts have gone to collections, attack those first. Both FICO and VantageScore, a similar credit score provider, ignore collections with a zero balance.

  2. Keep your debt relatively low. Another major factor in your credit score is how close your credit debt is to maximum limits. All things being equal, it’s better to have $4,000 of debt and a $12,000 limit than $3,000 of debt but a limit of only $6,000. Many experts suggest keeping a revolving credit balance under 10% is a good idea. If your credit card debt is well above that, it might make sense to get a personal loan (such as from MoneyLion) or join MoneyLion Plus to pay it off. Personal loan debt isn’t as score-damaging as credit card debt. Plus, a personal loan will likely have a lower interest rate than most credit cards.

  3. Age your credit. Old credit is generally better than new credit, because past accounts that have remained in good standing suggest that you can make longer-term debt payments over time. That’s why it’s difficult for people with little or no credit to have a high score (although timely payments and low balances can offset that problem). Opening more credit accounts is OK, you just may want to avoid opening too many at once so the average age of your credit accounts doesn’t fall, which can lower your credit score.

  4. Mix it up. Variety can also help boost your credit score. While having longer-term credit accounts can be useful, having too many credit card accounts relative to your total debt can hurt your score. Also, many scoring systems consider what types of accounts you have. Loans from finance companies, for example, may lower your score. On the other hand, showing that you’ve successfully paid a car loan, a student loan, and credit card bills shows you can handle different kinds of credit.

  5. Don’t be afraid of credit! It’s easy to think you’re better off with no credit, especially if you have a bad credit score or have been burned by credit in the past. But remember: “credit” and “debt” are two different things. Having the capacity to borrow or charge doesn’t require you to do so. If you’ve just completed a bankruptcy, for instance, consider opening a secured credit card, where you deposit a set amount that you can charge against. A bankruptcy will have less impact on your score as time passes, as long as you aren’t defaulting on new loans. And don’t necessarily cancel cards you don’t use that are still in good standing (and have no annual fee). Doing so can lower your debt-to-credit ratio, which can lower your score.

  6. Here's a bonus 6th tip: Correct errors in your credit report By some estimates, more than 70% of people have an error in their credit report. Check your credit report regularly to make sure all of the information is correct. Your credit score could be negatively impacted if there are errors. If you do find or suspect errors on your credit report, consider a credit repair service like CreditRepair.com. They may be able to help you address errors and get them straightened out on your behalf - and you could see a corresponding credit score bump in the process.

Taking these steps can help raise your credit score over time. The key is to use credit responsibly. And if you don't know your most up-to-date credit score, find out for free by downloading our mobile app today.

Credit Monitoring Tips

What other tips and suggestions do you have for raising a credit score? Share your thoughts in the comments below.