Your credit score can have a big impact on your life. It can help you qualify for the loan you need to reach your goals, such as buying a home or a car. It can also help you get the best interest rate, saving you a lot of money.

If you have a strong credit score, you are at an advantage. However, if you have a poor credit score or haven’t yet established one, you’ll want to work on raising it.

Here are 5 steps that can help you:

1. Pay your bills on time. Every time. The biggest factor that impacts your credit score is your history of making on-time payments. That’s why you should always pay your bills by the due date. Automating your bill payments and setting bill payment reminders can ensure you don’t miss a payment.

2. Reduce balances on credit cards and other revolving debt. If you have revolving lines of credit like credit cards or home equity lines, work on reducing your outstanding balances. That’s because revolving debt impacts your credit utilization, which is the percentage of revolving debt you use. Paying down your credit card balances will lower your credit utilization, which can increase your credit score.

3. Keep older accounts. If you have an older credit card you’ve paid off, you may be tempted to close it, but doing so can actually lower your credit score. To keep the lender from closing your account, use the card now and again to make and pay off small purchases.

4. Avoid applying for new credit. Sometimes it’s tempting to apply for a new credit card, especially when it comes with a perk like 20% off your first purchase or 50,000 airline miles. But each time you apply for a credit card, the lender will conduct a hard inquiry on your credit, which can lower your credit score. What’s more, those hard inquiries stay on your credit report for up to two years.

5. Regularly check your credit report for errors. Mistakes and fraud can happen, which can hurt your credit score. That’s why it’s essential to frequently check your credit report for errors. You can obtain a free credit report every 12 months from each of the three credit bureaus at AnnualCreditReport.com. If you spot errors, contact the credit bureaus to dispute them. You can also monitor your credit score and report in your Liberty Bank mobile app or online banking.

Your credit score is key to your financial health, so make sure you give it the attention it needs.