How to Improve Your Credit Score

Improving your credit score comes down to a few simple habits done consistently: pay on time, keep balances low, and only take on credit you can handle.

Use KOHO Credit Building

If you’re just starting out, KOHO Credit Building is a simple way to add positive payment history to your file without juggling a traditional credit card.

With KOHO Credit Building, you:

• Pay a small $10 monthly fee

• Get a line of credit reported to Equifax

• Build a track record of on time payments over time

• KOHO members have seen their credit scores go up by an average of 31+ points in just 4 months¹

1. Never Miss a Payment

Payment history is one of the biggest factors in your credit score.

• Pay every bill on time (credit cards, loans, phone, etc.)

• Set up automatic payments or reminders for at least the minimums

• If you think you’ll be short, contact the lender before the due date and see if they can help

Even one missed payment can hurt, so protecting your payment history is priority #1.

2. Keep Your Balances Low

Using too much of your available credit can drag your score down.

• Try to keep your credit utilization (balance ÷ limit) well under 30% on each card and overall

• If you can, pay off cards in full every month

• If that’s not possible, at least pay them down as much as you can before the statement date

Less used credit = less risk in the eyes of lenders.

3. Limit New Credit Applications

Every time you apply for new credit, it can result in a hard inquiry on your file.

• Avoid applying for multiple products at once

• Only apply when you genuinely need the credit

• Focus on using what you already have responsibly

A few inquiries over time is normal; a cluster of applications can look risky.

4. Build a Longer, Stable History

Credit scores also reward stability and age.

• Keep your oldest useful accounts open if they’re low- or no-fee

• Avoid constantly opening and closing accounts just to chase small perks

• Use your accounts regularly and responsibly so they keep reporting positive data

The longer you show good behaviour, the more it helps.

5. Check Your Credit Report

Mistakes happen, and they can hurt your score.

• Get your reports from the major credit bureaus

• Look for errors, duplicates, or accounts you don’t recognize

• Dispute anything that’s clearly wrong

A clean report gives your good habits a fair chance to show up.

^{¹Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.}