Which action can help improve a person's credit score?

Paying bills on time is a crucial action that can significantly improve a person's credit score. Timely payments demonstrate to creditors that an individual is responsible and reliable in managing their financial commitments. Payment history accounts for a substantial portion of a credit score calculation, influencing it positively. Consistent, on-time payments contribute to building a strong credit history, which is essential for securing future credit at favorable terms.

In contrast, maximizing credit card balances can lead to higher credit utilization ratios, which can negatively affect credit scores. Obtaining multiple new credit cards simultaneously may signal financial distress to lenders, potentially harming an individual's score. Similarly, ignoring credit reports can prevent someone from identifying and resolving inaccuracies or negative information, which are vital for maintaining or improving their score.