What action can help improve your credit score?

Paying bills on time is the most effective action that can help improve your credit score. Timely payments demonstrate to creditors that you are reliable and capable of managing your finances responsibly. Payment history is one of the most significant factors that credit scoring models consider when calculating a score; it typically accounts for about 35% of the total credit score.

Establishing a positive payment history by consistently paying your bills by their due date can lead to an increase in your credit score over time. This practice not only reflects well on your credit report but also improves your overall financial health by avoiding late fees and potential penalties, which can further harm your creditworthiness.