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The dreaded credit score. Unfortunately, Americans need to pay attention to their credit scores if they want to be financially healthy. While you don’t need to obsess over yours, knowing where it stands and taking actions that help you improve it can be a significant win for your wallet.

The good news is that improving your credit is possible, and it’s never too late to make positive changes. Ready to make progress? Let’s review a few actions that can help you improve your overall credit health and boost your credit score.

1. Always pay your bills on time

The most crucial factor that impacts your credit score is your payment history. Your payment history makes up 35% of your FICO® Score. Creditors want to see that you pay your bills on time. Late or missed payments on your credit report are a red flag and can affect your score.

If you have missed payments in the past, now is an excellent time to take action and ensure you pay every bill on time. Continuously paying your bills by the due date can help boost your credit score. Doing this can also help you avoid additional expenses like late credit card payment fees.

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2. Lower your credit utilization

Another way to improve your credit is to lower your credit utilization. Your credit utilization ratio is the percentage of the available credit that you use. It makes up 30% of your FICO® Score.

Experts recommend keeping your credit utilization ratio at or below 30%, and the lower, the better. If you have a total credit limit of $20,000 and have $7,000 in outstanding debt, you’re using 35% of your available credit. Taking action to lower your usage could yield positive results.

Want to use less credit? Paying down balances will help you lower your overall credit usage. While you take steps to reduce your credit usage, it’s recommended that you avoid charging new purchases. Otherwise, it may be difficult to make progress.

Another option is to increase your credit limits. Some credit card issuers will increase your available credit limit if you ask — especially if you’ve been a loyal customer and have always paid your bills on time. Doing this can help you lower your credit utilization ratio, which may help increase your credit score.

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3. Keep your oldest accounts open

If you have an older credit account you want to close, you should reconsider. The length of your credit history is another important factor that impacts your credit score. A longer credit history looks good and shows you have managed credit well for a longer time.

This is why, at 37 years old, I still maintain the first credit card account I opened soon after turning 18. I make a small monthly purchase to the card and pay it off in full to keep the account active. This is one of many decisions that have helped me maintain a good credit score.

Don’t give up hope

Don’t give up hope if you’re not proud of your credit score or have limited credit history. Taking small steps to change your financial habits can make a big difference in the long run. It will take time and effort, but increasing your credit score is possible. Following these strategies can help.

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