Looking to boost your credit score this year? Whether you're hoping to buy a house, secure a car loan, or just improve your overall financial well-being, your credit score plays a critical role.

Improving your credit is a multi-faceted process that requires a strategic approach — but it doesn’t have to be complicated. These four moves can help you get started on the right path.

Reduce your credit utilization rate

Your credit utilization is the percentage of available credit you use. It has a significant impact on your score. The lower your credit utilization, the better. While most experts recommend keeping your utilization rate below 30%, aiming for a rate under 10% is ideal. High utilization can signal to lenders that you’re stretched financially, which can lower your score.

How to do it: Consider asking your credit card issuer for a credit limit increase. This move can help lower your utilization ratio without having to make any extra payments. Of course, you’ll need to ensure you don’t use the additional credit limit, or you’ll be back at square one.

Kick “paying on time” up a notch

Paying on time is one of the best ways to raise your credit score, but did you know that paying your bills before the due date can help in more ways than one? Creditors typically report to the bureaus around your statement date, not your due date. By paying off the balance a few days before your statement date, the reported balance will be lower, helping your credit utilization rate.

How to do it: Set up automatic payments or reminders so that you can pay your bill a few days before your statement is generated. You can also make multiple smaller payments a month to ensure your reported balance remains low.

Pay more than the minimum

If you’re carrying a balance on any credit card, making only the minimum payment each month can drag down your credit score due to high utilization and accumulating interest. Paying more than the minimum helps you lower your balance faster and demonstrates responsible debt management, both of which can improve your credit over time.

How to do it: Let’s say you have a $1,000 credit card balance with a 15% interest rate. If the minimum payment is $25, it will take you years to pay off that debt, even if you make every payment on time. However, if you can increase your monthly payment to $100 or $150, you’ll pay off your debt in a fraction of the time and reduce your overall interest paid. Look at your budget and find areas where you can cut back on non-essential expenses and direct that money toward paying down your credit card debt.

Diversify your credit mix

Most people have a credit card or two, but credit scoring models like FICO and VantageScore give weight to the diversity of your credit accounts. Having a variety of credit types — such as installment loans in addition to credit cards — can positively impact your score. A diverse credit mix signals to lenders that you can manage multiple types of debt responsibly.

How to do it: Consider adding an installment loan to your portfolio. A small personal loan or a car loan could be the right move to diversify without taking on unnecessary risk. However, avoid opening too many new accounts at once, as this can cause a temporary dip in your score. Instead, consider strategically adding one type of credit over time.

Whether you’re aiming to purchase a home, refinance your car loan, or simply want to improve your financial standing, taking action now will benefit you in the long run. Use this year as an opportunity to set clear, actionable goals to improve your credit.