A credit expert says that once you reach this credit score, you're considered good—here's how to improve even further.

Your credit score is a crucial number to monitor for managing your personal finances effectively.

Your credit score is a crucial factor for lenders to determine your creditworthiness. Higher scores grant you access to the most competitive interest rates on various financial products, including credit cards, auto loans, and mortgages. On the other hand, a lower score may result in higher interest rates or even deny you credit altogether.

What is the ideal credit score, specifically? Financial institutions make it challenging to determine. Borrowers are evaluated on a scale of 300 to 850, and credit agencies typically categorize scores as follows:

• Poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800 to 850

If your FICO score is higher than the average American's score of 717, you can classify yourself as officially above-average.

You don't need to be exceptional to get the best offers, says Ted Rossman, a senior industry analyst with Bankrate.

"To obtain the best rates on credit and auto loans, it is recommended to have a credit score of 740 or 750. However, for mortgages, a credit score of 760 or 780 is closer to the ideal. It is important to note that a perfect credit score of 850 is not always necessary."

How to optimize your credit score

Rod Griffin, senior director of consumer education and advocacy for Experian, says that it's not the end of the world if you're a little short of the optimum score.

"He advises that a below-average credit score should not cause panic, as it can serve as a reminder to assess your financial situation. However, the good news is that you can take steps to improve your credit score over time."

Here are three ways the pros say to do just that.

1. Check your credit report

To improve your score, you must first determine what is affecting it, advises Griffin.

It's crucial to familiarize yourself with the contents of your credit report, he emphasizes.

You can access reports from all three credit agencies by visiting AnnualCreditReport.com.

Analyzing your credit history can reveal what may be hindering your progress and provide a prompt solution, according to Rossman.

"The solution depends on the cause of your financial struggles. While negative payments can remain on your credit report for seven years, errors can be corrected easily if they are not legitimate late payments."

2. Fix the factors that affect your score the most

Griffin advises that in addition to receiving your credit score from FICO or a credit agency, you should also obtain a list of the risk factors from your credit history that are most impacting your score. By addressing these factors, you can enhance your credit scores over time.

"Making timely and full payments on your credit card is crucial for maintaining a good credit score," Griffin advises.

It is wise to monitor your credit utilization ratio, which is calculated by dividing your outstanding balances by your total available credit. For example, if you have a $5,000 balance on a $10,000 credit card, your ratio is 50%.

Experts suggest keeping your credit utilization ratio below 30%, with an ideal limit of 10%. To achieve this, you may need to reduce spending, request a credit limit increase from your card issuer, or open a new credit card, as long as it doesn't lead to overspending.

3. Add more good information to your credit history

Rossman suggests that even if you have negative credit history, you can balance it out by adding positive entries to your report.

Signing up for a service that expands what is included in your credit report is recommended, particularly if you have a thin credit file.

Experian Boost and UltraFICO are two options that may help improve your credit score by providing evidence of on-time payments and financially sound banking data, respectively.

"Rossman advises that you can piggyback off a parent or spouse's positive payment history by becoming an authorized user on their card. However, he emphasizes that you must actively work towards improving your credit score by following through on certain actions. If you do so, you may see significant changes in your credit score within six months."

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