Age brings wisdom, especially when it comes to making financial decisions. A 40-year-old may know more credit repair facts and myths than a 20-year-old. However, there may be cases where people are stuck with similar credit problems, regardless of their age.

For starters, the key to improving your credit score is a proactive approach. You should seek the help of a competent credit repair specialist and then prioritize certain things as you get older to eliminate problems that arise in your credit domain.

Things to consider in your 20s to improve your credit score:

At age 20, there are specific things that catch your eye, when it comes to boosting your credit health.

Address the five factors:

The first step to improving your credit score is to have a clear understanding of the rules. The actual state of your credit score is determined by five factors: debt utilization, payment history, new credit, length of credit, and diversification. If you were unaware of the essential factors that impact your credit score, you need to work on strategies that will help you take care of all five factors.

Pay off your student loans:

As stated by the Institute for College Access and Success (TICAS), about 69 percent of students dropped out of college with loans in 2013. The end result (which was $28,400) was actually quite a burden on the salary of a new student. You have the option of extending the loan for as long as you like (years or even decades), but you also need to consider the downside of the decision.

Adding interest will not only increase the principal amount, it will also increase the life of the loan. This will increase the total cost of the loan you have taken out. Paying off your loans as soon as possible will lead to a lower credit utilization ratio, better and more opportunities to improve your credit, less stress on your budget, and last but not least, even more opportunities to save.

The final advice:

Credit score plays a vital role in every phase of your life, whether you are in your 20s to 50s and beyond. Check your credit score regularly to ensure you maintain positive credit and avoid any issues related to your financial plans.