I’ve spoken in the past about my love affair with credit cards. Yes, I’ve gotten another one since I published that article. No, I’m still not in debt.

I’ve also written a pretty in-depth guide to what exactly goes into your Credit Score. I definitely recommend checking that one out first if you're a personal finance nerd like I am.

But if you’re not into specifics and the technicalities of credit like I am, that’s okay. You can still do a lot to improve your credit score and set yourself up for future success.

Good Credit Sets You Up For Financial Success

Why should you even care about your credit score? There are certainly people out there who take it too far in pursuit of that perfect 850.

Then there’s the other end of the spectrum, the people who advocate you should have a zero credit score. The argument goes, if you pay for everything in cash, you don’t need credit.

That’s a great way to live if you make hundreds of thousands of dollars a year and never need to get, say, a mortgage. But most of us aren’t in that boat. We need our credit scores to get mortgages and car loans and even avoid deposits on utility bills.

For most people, having a solid credit score (above 750) will be a tremendous help throughout their lives.

Better Credit Means Less Interest

This is at the heart of why a good credit score matters. While you should pay your credit cards off every month to avoid any interest there, there are loans where you’ll inevitably have to pay interest.

These are large purchases that we’ll all eventually have to make. And while I think it’s a great aspiration to try to buy a house or a car in all cash, for most of us it isn’t realistic.

You need a new car when your old one breaks, whether you have enough in the bank to buy one outright or not.

Similarly, if you live in an expensive market, you could save for a couple lifetimes before you save enough to buy a home in cash.

A good credit score allows you to get the things you need and pay as little interest on them as possible.

Better Credit Means Greater Flexibility

I touched on this in my credit scores primer, but your credit score is often used as a proxy for your quality as a person. It sucks, but it’s just a fact of modern life.

People with better credit scores get access to better apartments and lower fees. Not to mention the perks that can come with premium credit cards, if you’re into that sort of thing.

Improving your credit score opens up new avenues for you. It allows you to pay less for the things you already have and need.

There Is No Quick Credit Fix

If you came to this article expecting “the 5 things you can do to trick the credit bureaus into giving you a perfect score tomorrow,” sorry to disappoint. Improving your credit score takes effort and time.

It’s a commitment. You have to show up and make the right money moves, day in and day out. Over time, those moves will result in some pretty big payouts.

Your Credit Score Reflects Your Credit History

In fact, your credit score is nothing more than your credit history. 

It is the result of an algorithm that takes in all the information about your past credit use and spits out a number between 500 and 850.

That’s why there’s no quick fix. You’ll certainly see your score go up within a couple months of you starting to make smart decisions. But it’ll take time for your old mistakes to fall off your credit report.

As time goes on, your mistakes have less and less impact on your credit score, until eventually (after 7 years, to be exact), they disappear from your credit report.

Your Credit Score Predicts Your Credit Future

Think of making smart credit decisions as an investment in your future self. Your credit score may not go up all that much tomorrow if you start paying your bills on time.

But you’re playing the long game. Improving your credit score isn’t about having some vanity number tomorrow. It’s about securing your financial future.

A good credit score is the result of sound financial decisions. It happens when you work hard, pay your bills on time, and use loans responsibly.

All those things tell lenders they should trust you, which is the ultimate goal. When you can be trusted, you set yourself up for smooth sailing.

Get Started On The Path To A Great Credit Score

So we know you’re playing the long game. You want to start making the right decisions now so that your credit score can benefit for years to come.

You’re setting yourself up for a future of lower interest, greater flexibility, and financial freedom. There are a few concrete steps you can take to get started building a great credit score.

Get A Copy Of Your Credit Report

You can get a copy of your credit report for free from annualcreditreport.com, and you absolutely should. Free credit scores are great for your information, but they don’t give you the full picture.

Your credit report shows you everything that goes into your credit score. It gives you the complete picture of what’s helping you, and what’s hurting you.

You’ll know what areas you’re doing well in, and where you need to focus your energy on improving.

Having your credit report also lets you check for errors. Disputing something wrong or fraudulent on your report may be the only way to instantly boost your credit score.

Get Accounts You’ll Keep Open For The Long Haul

Since your credit score is just a number based on your credit history, you want that history to look as good as possible. What does that mean?

It means not frivolously opening and closing accounts. Banks like customers that are consistent and reliable. They want to know that once you’re a customer, you’ll be a customer for a long time.

Especially if you’re young with little to no credit history, you should look to open accounts you’ll keep open for a long time. This generally means credit cards with no annual fee and some form of cashback incentive.

This also means not opening accounts you don’t need. Chasing sign-up bonuses can be a lot of fun, but it tends to lead to overspending and dings to your credit.

Conclusion

Your credit score isn’t permanent. It changes and evolves as you do. Don’t beat yourself up over a bad score. Work to make the types of decisions that improve it.

There’s more to life than a good credit score. Live within your means, use credit cards responsibly, and your score will take care of itself. 

Then, when you have big decisions to make, you’ll be able to thank your past self for the better interest rates, lower deposits, and greater flexibility that a good credit score offers.