Paying bills on time is one of the most impactful ways to improve your credit score. Your payment history makes up about 35% of your FICO score, so consistently paying your bills when they're due has a major effect on your overall creditworthiness. This includes all types of bills—credit cards, mortgages, car loans, utilities, and more.

Missing payments or consistently paying late will negatively affect your score, and the impact can be long-lasting. Set up automatic payments or reminders to ensure you never miss a due date. Over time, as you build a solid history of timely payments, your credit score will improve, granting you access to better loan terms and financial opportunities.