Actions that could help improve credit history include paying bills and loans on time, limiting credit applications, keeping credit card balances low relative to credit limits, maintaining long-standing credit accounts, and building up savings. Specifically, consistently making on-time payments for credit cards, loans, and bills is crucial since payment history is the largest factor affecting credit scores. Also, keeping credit utilization below 30% by not maxing out credit cards helps lenders see that debt is manageable. Avoiding frequent credit applications and retaining old credit accounts supports a positive credit history. Building savings can provide a buffer to pay bills on time during unexpected events, demonstrating good credit risk.
In summary, the most effective single action to improve credit history is to consistently pay debts and bills on time.
