It’s no secret that a solid credit history helps improve your overall credit score. Having a solid track record of paying a mortgage, an auto loan, and a credit card bill on time will positively impact your rating, but never make a purchase on credit, or take out a loan simply to “build good credit.” While paying off the loan could make a positive impact, if you don’t make payments on time – even one payment – your score could drop dramatically.

Paying your bills on time is the best way to improve your credit rating. Never use credit if you have any doubt, you can make the payments; one late payment can ruin months of on-time payments.