It is important to learn about using credit appropriately early in life. A Fair Isaac Corporation (FICO) Credit Score is integral in assessing the creditworthiness of consumers. A FICO score is designed to predict how likely a person is to pay bills on time and affects consumers’ ability to get approved for loans and receive favorable interest rates.

Managing credit wisely is one of the best ways to boost a FICO score, and there are various ways individuals can do just that.

Be aware of your credit limit. It is important to avoid “maxing out” a line of credit, says the Consumer Financial Protection Bureau. Credit scoring models look at how closely you are to being at the top of your credit limit. Experts suggest keeping your use of credit to no more than 30 percent. Paying off balances in full each month is a key component of wise credit management.

Make timely payments. Payment history is one of the biggest factors affecting a credit score. Making timely payments on credit cards, loans and other accounts demonstrates reliability to lenders. If you cannot make the full payment in a given month, it is best to make at least the minimum payment, if not a little more, to avoid late fees and hefty interest charges.

Keep a long credit history. Johnson Financial Group says a credit score also is based on the length of a given consumer’s credit history. Longer credit histories are favorable because they provide more data on your spending habits and repayment behavior. Rather than closing out older credit cards or lines of credit, keeping the oldest open (even if it’s not actively used) adds to the length of your credit history.

Maintain a mix of credit. A credit mix refers to the variety of credit products you have. These can be installment loans, credit cards, finance company accounts, and mortgages. Experian says an ideal credit mix includes a variety of both revolving accounts and installment accounts. A well-diversified credit profile is advantageous because it demonstrates you can responsibly manage different types of credit. However, don’t open accounts for the express purpose of strengthening this variable, as credit mix has a relatively low impact compared to other categories.

Monitor your credit score. Monitoring credit is key for managing financial health and remedying anything on a credit report that is inaccurate or needs attention. Credit card companies often provide free credit score monitoring to customers, or you can subscribe to credit monitoring services that will alert to changes in your credit report. You also are eligible to receive a free annual credit report from each of the three major credit reporting agencies, which include Equifax, Experian and TransUnion.

Avoid opening too many accounts. Each time you apply for credit, it can cause your credit score to dip due to the mandatory credit inquiry associated with each application. Therefore, opening too many accounts in a short time frame can compound this effect. While there isn’t a universally defined number of inquiries considered to be too many, most lenders often view six or more hard inquiries within a year as a sign of high risk.