The specific steps to improve your credit score will depend on your unique situation, but there are a few general strategies that can benefit almost anyone. One of the most important actions is to pay debts by their due dates, as payment history makes up a large percentage of credit scores. From a lender’s perspective, an established history of on-time payments is an indicator that you will handle future debt responsibly. Another important factor is keeping your credit utilization rate low, which means avoiding maxing out your credit cards. It may also help to have a mix of credit, including credit cards and installment loans like a mortgage, auto loan or student loan.

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If you do apply for new credit, it is best to minimize the number of hard inquiries within a short period to avoid putting too many dings on your credit reports. Finally, it is helpful to recognize that the older items on your credit report have less impact on your scores than the more recent information. This phenomenon is known as recency bias.

The good news is that, as you make progress with improving your credit, your score will likely rise. It will take time to rebuild a damaged credit file, but it is possible to get back to a great score after addressing delinquencies and paying off balances. For most people, it will take seven years to recover from a late payment or other negative items that appear on their credit reports, though some negative information can linger longer, such as repossessions, foreclosures and Chapter 7 bankruptcies.