Understanding Your Credit Score

Never skip rent to pay another bill. Paying rent late can lead to expensive fees, damage your relationship with your landlord, and even lead to eviction. A late rent payment might get reported to a collection agency, which severely hurts your credit score for years. A late credit card payment hurts, but keeping a roof over your head is the top priority. Always communicate with your billers if you’re struggling.

No, this is a common myth! Having a zero balance reported is perfectly fine and does not hurt your score. Your positive payment history is still recorded every single month. What can help your score even more is if a small balance (like $10) gets reported to the credit bureaus before your due date, showing you’re using the card. You then pay that off in full by the due date to avoid interest. The key is to never carry a large, expensive balance from month to month.

Get a starter credit card, like a secured card where you put down a small deposit. Use it only for one small thing you already buy, like gas or a streaming service. Pay the full balance on time, every single month. This shows lenders you can handle credit responsibly. It’s a simple, low-risk habit that builds your score steadily over time.

The fastest ways to boost your score are to pay all your bills on time, right now, and to lower your credit card balances. Try to use less than 30% of your total credit limit. For example, if you have a $1,000 limit, keep your balance under $300. Also, check your credit report for any mistakes and dispute errors you find. Avoid applying for new credit unless you really need it, as those applications can cause a small, temporary dip in your score.