Your credit score is a crucial element of your financial health. Whether you’re applying for a loan, renting an apartment, or even landing a job, your credit score plays a significant role in shaping your financial future. If you’re looking to boost your credit score, you’re in the right place! Here are 10 actionable tips to help you improve your credit score and take control of your financial destiny.

The first step in improving your credit score is understanding where it stands. In Australia, you’re entitled to request a free credit report from the three major credit agencies—Equifax, Experian, and illion—once a year. Take the time to review your report for any errors or inaccuracies. If you spot anything that doesn’t look right, dispute it right away, as mistakes can hurt your score.

Your payment history is one of the biggest factors influencing your credit score. Late or missed payments can have a major negative impact. Set up reminders or automate payments to make sure you never miss a due date. Staying on top of payments is one of the quickest ways to improve your credit score.

Credit utilisation—the percentage of your available credit that you’re using—makes up a large portion of your score. Try to keep your credit card balances below 30% of your available limit. Paying down existing balances will not only improve your score but also help you avoid high-interest charges. If you’re unable to pay off the balance, consider requesting a credit limit increase to lower your utilisation ratio.

Every time you apply for new credit, a hard inquiry is made on your report, which can temporarily lower your score. While it might be tempting to open new accounts for rewards or bonuses, it’s best to limit applications to only when absolutely necessary. If you’re new to credit, start with a low-limit credit card or a personal loan to establish a good track record.

The longer your credit history, the better. The age of your credit accounts contributes to your credit score, so keeping older accounts open—especially those with good payment histories—can work in your favour. Avoid closing old accounts just to “clean up” your credit report, as this could shorten your credit history and lower your score.

Having a variety of credit accounts (credit cards, personal loans, car loans, etc.) can be beneficial to your credit score. A diverse credit mix shows that you can responsibly manage different types of credit. However, don’t take on new credit just for the sake of variety—only open accounts you genuinely need.

If you have any outstanding debts, particularly those in collections, it’s crucial to address them. Unpaid debts can significantly impact your credit score. Consider contacting creditors to negotiate settlements or payment plans. Once you’ve settled the debt, make sure it’s marked as “paid” on your credit report to show that you’ve cleared the balance.

If you’re just starting to build your credit or need to rebuild it, a credit builder loan could be a smart move. These small, short-term loans are designed to help individuals improve their credit by making regular, on-time payments. The lender reports your repayments to the credit agencies, helping you establish a positive credit history.

If you’ve been using your credit responsibly, consider asking your credit card issuer for a higher credit limit. Increasing your available credit can lower your credit utilisation ratio, which could improve your score. Just be sure not to increase your spending along with the higher limit—your goal is to use credit responsibly, not to overspend.

Improving your credit score takes time—there are no quick fixes. While making small changes can have a big impact over time, be patient and consistent. As you continue making on-time payments, reducing debt, and managing your credit responsibly, you’ll begin to see positive results. Rome wasn’t built in a day, and neither is a great credit score!

Improving your credit score is a gradual process that requires consistency and smart financial decisions. By following these 10 powerful tips, you can boost your credit score and take control of your financial future. Whether you’re planning to buy a house, finance a car, or simply want more financial freedom, improving your credit score is a crucial step toward achieving your goals. Stay committed, and watch your score rise!