Which action can help improve one's credit score?

• A. Making late payments
• B. Keeping credit card balances high
• C. Establishing a payment schedule
• D. Closing old credit accounts

Answer: (C)

Establishing a payment schedule can significantly improve one's credit score because timely payments are one of the most crucial factors impacting credit scores. Payment history accounts for a substantial portion of a credit score calculation, with on-time payments demonstrating financial responsibility and reliability to lenders. By creating a payment schedule, individuals can ensure they make all their payments on time, thus positively influencing their credit score over time.

This approach also helps to instill good financial habits, such as budgeting and prioritizing bills, which further reinforces the individual's commitment to maintaining a healthy credit profile. A consistent track record of on-time payments showcases a borrower's ability to manage debt effectively, which is viewed favorably by credit scoring models and lenders.