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As of 2023, the average U.S. credit score was 715, says Experian, one of the three credit bureaus. That score is considered good, but not great.

With a credit score of 715, you might get a car loan or mortgage when you apply. But you won’t necessarily get the best rate a mortgage lender is offering. While a 715 is certainly a respectable score, it could be helpful to raise your credit score.

But it’s important to know what to do to raise your credit score — and what not to do. With that in mind, here are a few dangerous myths about boosting your credit that could come back to bite you.

1. Carrying a credit card balance is a good way to raise your score

Using a credit card regularly and paying your bills on time and in full every month could help your credit score increase. But you do not need to carry a balance on your credit cards to boost your score. In fact, carrying too large a balance could actually lower your credit score.

Indeed, if you make your minimum credit card payments on time every month, it’ll count as positive activity in the context of your credit history. That’s the factor that carries the most weight in calculating your credit score.

But if you carry a balance forward every month, and that balance is large relative to your total credit limit, it could cause your credit score to drop. Plus, in that situation, you’re handing money over to your credit card issuers every month in the form of interest instead of keeping it to use yourself or save and invest.

If you’re juggling multiple credit card balances, you may want to consolidate them into a single balance with a 0% introductory interest rate that makes your debt easier to pay down. Click here for a list of the best balance transfer credit cards.

2. Paying rent on time will give your score a boost

When you owe money on a mortgage and make those payments when you’re supposed to, that information gets reported to the credit bureaus and could help your credit score rise. But rent payments aren’t automatically reported to the credit bureaus the same way mortgage payments are.

If you want your timely rent payments to help your credit score, you need to ask your landlord to report them. There are different reporting services your landlord can use, including Boom and Experian RentBureau.

3. Having a lot of savings will improve your credit score

Having a nice amount of savings can be great for your finances. But it won’t actually do a thing to help your credit score improve.

The amount of money you have is not counted toward your credit score. Your credit score is a measure of how well you manage debts, and how you use the various lines of credit available to you. But whether you have $500 in your savings account or $50,000 is irrelevant.

Of course, the more savings you have, the less likely you are to fall behind on debts. So in an indirect way, a larger savings balance could lead to a higher credit score.

Also, reducing credit card balances could help your credit score improve. If you have a healthy amount of savings, taking some of that money and using it to pay down existing balances could lead to a boost in your credit score.

A higher credit score could make it easier to sign loans at affordable rates, qualify for these great credit card offers, and enjoy other perks. But it’s important to know what actions on your part will and won’t have an impact on your credit score. You also need to avoid mistakes that could be dragging your credit score down without you knowing it, like intentionally carrying a balance on your credit cards.

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