5 Surprising Experiences That Can Boost Your Credit Score

Find out how unexpected experiences can positively impact your credit score and improve your financial standing.

1. Paying for Rent

Did you know that your monthly rent payment can actually help boost your credit score? Many credit bureaus now recognize rent as a recurring payment and may include it in your credit history. By consistently paying your rent on time, you can demonstrate responsible financial behavior, potentially leading to an increase in your credit score.

2. Opening a Bank Account

Believe it or not, opening a bank account can have a positive effect on your credit score. Having a stable banking relationship shows financial stability and can help build a positive credit history. Additionally, having a bank account can make it easier to manage and pay your bills, further improving your creditworthiness.

3. Becoming an Authorized User

If you have a close friend or family member with a good credit history, consider asking them to add you as an authorized user on one of their credit cards. Being an authorized user allows their positive payment history to be reflected on your credit report, potentially boosting your credit score. However, ensure that the primary cardholder has a responsible credit behavior, as any negative actions can also impact your credit.

4. Regularly Using Your Credit Card

While excessive credit card debt can be detrimental to your credit score, using your credit card responsibly can actually improve it. Regularly using your credit card and making timely payments shows lenders that you can manage credit effectively. Aim to keep your credit utilization ratio below 30% and pay off your balance in full each month to maximize the positive impact on your credit score.

5. Diverse Credit Mix

Having a diverse mix of credit accounts, such as credit cards, student loans, auto loans, and mortgages, can boost your credit score. Lenders appreciate borrowers who can handle different types of credit responsibly. However, it's important to only take on credit that you can manage comfortably, as too much debt can have a negative impact on your creditworthiness.