When you think about financial security, what comes to mind? Maybe it’s having an emergency fund, contributing to a robust retirement account, or having adequate insurance coverage.
But there’s another powerful marker of financial security: your credit score. If you’ve ever asked yourself “how to raise my credit score?” or wondered why credit scores matter — you’re already on the right track.
That’s because a strong credit score isn’t just a number or bragging rights; it can open doors — and it can protect your future.
JPMorgan Chase believes financial confidence is key to empowering communities. Building credit confidence plays a significant role in that. Here’s why it matters for your long-term stability and success.
What Is a Credit Score?
Before we explore why strong credit matters, let’s take a step back and define a credit score. In a typical scoring model, your credit score is a number generally ranging from a low of 300 to a high of 850. The average credit score in the United States, based on the VantageScore 3.0 credit score model, is 705.
But your score is more than just a mystery number. Your credit score represents a snapshot in time of your credit history — and lenders use this number to help determine how likely you are to repay a loan in the future.
The higher the credit score, the better a borrower looks to potential lenders.
Why Credit Scores Matter for Your Financial Future
Because your credit score reflects your financial trustworthiness, a higher-than-average credit score can really support your goals and build proactive protection for your future.
A good credit score can help you:
- Qualify for a credit card
- Qualify for a personal loan, private student loan, auto loan, or home mortgage
- Get lower interest rates on loans and secure more favorite terms
- Get approved for renting an apartment
- Secure better insurance rates
- Boost your job prospects (Some employers check credit as part of the hiring process!)
In addition, if you have an emergency — whether it’s a car repair, need unexpected medical care, or new housing — strong credit can mean faster solutions with less financial stress.
Answering the Question: “How to Raise My Credit Score?”
If you’re reading this and wondering how to boost your credit score responsibly and effectively, it’s not as difficult as you might think. And it’s also a myth that you need to take on big debts to boost your credit.
Here’s how to improve bad credit — and for those who already have decent credit, you can keep improving your number responsibly with these steps, too.
1. Pay Your Bills on Time, Every Time
When you make a late payment, you likely have to pay a penalty fee and could even be charged additional interest. But that late payment also has a ripple effect on your credit. Payment history is actually a huge indicator of your credit score and makes up the largest portion of it. Even one missed payment can cause the number to decline.
That’s why JPMorgan Chase encourages setting up automatic payments through your bank account to stay on track.
2. Keep Balances Low
Here’s the thing: There is no rule that you have to wait until the end of your credit card cycle to pay your monthly bill. Credit utilization — how much credit you’re using compared to your limits — makes a difference to your credit score. Consider paying off your credit card every week to keep the balance low and try to use less than 30% of your available credit. Both of these factors will give your score a healthy boost.
3. Build Credit History Slowly
Slow and steady wins the credit score race. The longer your accounts stay open and in good standing, the better. It may be tempting to close out old credit cards, but resist the urge — even if you don’t use them all that often.
4. Diversify Your Credit
Just as it’s smart to diversify your investments, it is important to mix and match your credit types, too. That could look like having a car loan and a few credit card accounts. This shows lenders that you can manage different responsibilities and keep up payments — all on time, of course.
5. Check Your Credit Regularly
It’s important to check your score regularly to keep track of your credit activity while spotting any errors or fraud early on. JPMorgan Chase Credit Journey® offers free credit score tracking to help you stay informed and confident — and there’s no impact on your score, no matter how many times you check it.
How Credit Confidence Impacts Your Future
While you’ve probably heard that an emergency fund is essential to equipping you for unexpected life occurrences, creating credit confidence is just as important.
Together, they form a two-part safety net that covers:
- Reactive Resilience: Your emergency fund savings can help you handle immediate needs. A good credit score can also step in to help if something like an unexpected loan or a last-minute change in housing enters the picture.
- Proactive Preparation: Your strong credit score helps you secure affordable loans, better housing, and other critical resources without high costs, delays, or unfavorable terms.
By building resilience and preparation, you’ll set yourself up to thrive now and in the future.
How Chase Can Help You Build and Boost Your Credit
JPMorgan Chase walks alongside you at every step of your financial journey. Chase Credit Journey® provides:
- Tips for growing your credit: Guides you through the steps to building your credit and how to stay on top of it
- Credit score factors and details: Helps you understand your credit score better by showing how it’s impacted and why it goes up and down
- Helpful tools and resources: Gives you access to tools and a full library of articles and videos to learn about improving your financial health
You don’t have to be a JPMorgan Chase customer to enroll in the Chase Credit Journey.
When you feel empowered about your credit, you’re not just preparing for the present — you’re building the confident financial future you deserve.