What is one of the most effective actions a borrower can take to raise their credit score?

Paying all bills on time and reducing the use of credit are among the most effective actions a borrower can take to improve their credit score. Timely payments constitute a significant portion of the credit scoring model, often accounting for 35% of the score. Consistently paying bills on or before the due date demonstrates to creditors that the borrower is responsible and reliable, which positively influences their credit profile.

Additionally, reducing the use of credit, especially in the context of revolving accounts like credit cards, can help lower the credit utilization ratio—the amount of credit currently being used compared to the total available credit. A lower utilization ratio is favorable, as it shows that the borrower is not overly reliant on credit and is managing their finances prudently. Therefore, this combination of practices can noticeably enhance a borrower’s creditworthiness over time, making option A the most effective among the choices provided.

The other options do not directly address immediate improvements to the credit score or can sometimes lead to unintended consequences. For example, closing unused trade accounts might lower the overall credit limit available, which could inadvertently increase the credit utilization ratio and have a negative impact on the score. Writing a letter to an underwriter about errors could be useful, but it is a more passive approach and