How can an individual improve their credit score?

Making payments on time is crucial for improving an individual's credit score. Credit scoring models consider payment history as a significant factor, often accounting for around 35% of the total score. Timely payments demonstrate to creditors that an individual is responsible and can manage their debt effectively. Consistently making payments by the due date helps build a positive credit history, which can lead to a higher credit score over time.

In contrast, maximizing credit card use can potentially lead to higher credit utilization ratios, which might negatively impact credit scores if balances are close to credit limits. Ignoring debts completely will certainly harm one's credit standing, as missed payments and defaults are reported to credit bureaus. Lastly, while applying for new credit can sometimes improve a score if done wisely, excessive or frequent applications can also reduce scores due to hard inquiries. Therefore, making timely payments stands out as the most effective and secure method to enhance creditworthiness.