What factors can positively help a credit score?

Making payments on time and maintaining a low debt-to-credit ratio are pivotal factors that positively impact a credit score. Timely payments demonstrate to lenders that an individual is responsible with their financial obligations, which is crucial because payment history constitutes a significant portion of a credit score calculation. A record of on-time payments signals reliability, thus boosting one's creditworthiness.

Additionally, maintaining a low debt-to-credit ratio—essentially the amount of credit used compared to the total credit available—helps indicate that an individual is not overextending themselves financially. This ratio is important because lower utilization implies that the borrower is managing their credit effectively, which can lead to higher credit scores.

In contrast, options involving missed payments, high debt levels, applying for loans indiscriminately, or relying solely on one type of credit can adversely differentiate those strategies from the recommended practices for improving credit scores. Therefore, focusing on timely payments and managing credit utilization effectively creates a strong foundation for a healthy credit score.