FICO Scores are calculated using different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%). FICO Scores range from 300 to 850 and the higher your score the better.

Credit scores are a financial tool, lenders, employers, utility companies, insurance companies and others use your credit score to determine your risk and creditworthiness.

Since 35% of your credit score is based on your payment history it is important to pay all of your bills on time. People who have the best credit scores are those who are financially responsible and take into consideration all aspects that make up a credit score and work to meet those standards.

If your payment history is less than stellar there are easy ways to get back on track and improve your score.

Use Your Credit Card as a Tool

You should think of your credit card as a tool to earn cash back rewards and improve your credit score. Each time you make a purchase using your credit card you should be certain you have enough money to cover the entire cost, pretend it is a debit card linked directly to your bank account. If you don’t have the money in the account to cover the purchase don’t do it, credit card companies make money from interest and fees. You can easily slip into a debt cycle by charging purchases on your credit card you cannot afford.

Establish a Routine

Setup a schedule so that you are reminded to pay your bills on a certain day once or twice a month, bills come due at different times so figure out a schedule that works best for you to make your payments, use a calendar reminder so that you never forget.

Autopay Credit Cards

The process varies by card issuer but typically you connect to the issuers web site and link your bank account, setup the date you want the payment to be processed and choose the payment amount. Typically, you can choose to pay the minimum, full balance or a specified amount. Avoid making the minimum payment because you will incur interest charges.

Pay More Often

If you don’t want to use autopay, consider making more frequent payments. You don’t have to wait until the due date to make a payment, log in when the payment is posted and pay then. Setup reminders so you don’t forget. Making more frequent payments keeps your balance low and makes it easier for you to keep up.

Autopay Utilities & Other Expenses

Any monthly bills you pay most likely can be set up for automatic payments, autopay your mortgage or rent, car payment, insurance, and utilities so you never miss a payment.

Review Your Credit Reports

You are entitled to a free copy of your credit reports from all three major credit bureaus, Experian, TransUnion or Equifax. Go to https://www.annualcreditreport.com/ to request your reports and then review them for any inaccuracies or errors. If any are found report them to the bureaus. Inaccurate remarks on your credit report can impact your credit score.