How do I improve my credit score?

There are a number of ways to improve your credit score.

Below are the ones we believe are important: 

  • Pay your bills on time.
    Late or missed payments can affect your credit score. Paying your bills on time is the simplest and most effective way to improve your credit score. As a member, your linked bills will be paid automatically on time through the StellarFi app.
  • Don’t apply for a lot of new credit cards all at once.
    Every time you apply for new credit cards, lenders may process a “hard inquiry” which can have a negative impact on your credit score. When applying for new credit, make sure creditors use a “soft inquiry” which will not negatively impact your credit score.
  • Be careful when closing old credit cards.
    The length of your credit history is a significant factor in calculating your credit score. 
  • Pay down your credit debt.
    Your credit utilization ratio (the amount of debt you owed compared to the amount you have) is an important figure to keep in mind. Lenders typically want to see a utilization ration below 30%.
  • Diversify your credit mix.
    It’s not a major factor, but lenders typically like to see a mix of evolving credit accounts like credit cards and installment loans. If you struggle getting these items, StellarFi will support you since we don’t require credit checks upon signup.
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