Financial Literacy Month 2026: 10 Tips to Improve Your Credit

Financial Literacy Month is the perfect time to take control of your credit — here are 10 tips to help you understand, build, and improve your scores.

1. Know what’s in your credit report.

You can access your credit reports from each of the three credit bureaus at www.AnnualCreditReport.com.

2. Establish credit while you are young.

The sooner you can enter the credit ecosystem and exhibit responsible credit management, the sooner you can put credit to work in your favor.

3. There are easy ways to establish credit.

Apply for a credit card, open a secured credit card, apply for an account with a cosigner, ask a friend or family member to add you as an authorized user, or add on-time utility, streaming service, or rent payments with Experian Boost.

4. Always pay your bills on time.

Your payment history is the number one factor in your credit report. A late payment will remain on your credit report for 7 years from the missed payment date.

5. Don’t use credit to live beyond your means. 

Carrying high balances could signify that you may be a higher credit risk, and it could prevent you from qualifying for the credit you want and need.

6. Pay your credit cards in full each month if you can. 

Many people mistakenly think that you have to carry a balance month to month to show activity. If you can make small charges and pay your balances off each month, you will save yourself money on interest and build a strong credit history.

7. Plan ahead for major purchases.

Check your credit reports and scores at least 3-6 months before a major purchase, like purchasing a house. This will help you identify if you are on track for the best rates, or if there are changes and improvements that need to take place before you apply.

8. Use caution when closing accounts.

Closing an account should be carefully considered as it could lower your overall available credit, which could increase your balance-to-limit ratio, or utilization rate. A higher utilization rate can negatively impact scores.

9. Apply for credit judiciously.

Only apply for the credit you really need or that offers special incentives you want to take advantage of. Applying for multiple accounts within a short period of time may cause a temporary dip in scores because some lenders view this as a sign of risk.

10. Put credit to work for you.

Use credit as a tool to take advantage of low interest rates, convenient shopping, rewards programs and financial management. When you are in control, credit works for you.