Final answer:
Gary can improve his credit score by paying his bills on time. Maintaining a timely payment history and managing credit card debt effectively by paying more than the minimum payment due can help in boosting his score.
Step-by-step explanation:
Gary can raise his credit score by option D, paying his bills on time. Having a history of punctual payments is crucial for building a good credit score. Additionally, it's generally advised to keep credit utilization low; this means not using too much of the credit that you have available. It's better to stay well under 30% of your credit limit if possible.
In contrast to option D, never borrowing money (option A) or cutting up a credit card (option C) does not necessarily improve credit scores. Lenders need to see a history of responsible credit use and repayment to assess creditworthiness. Option B, keeping debt above 30% of your credit card limit, is typically considered harmful to your credit score and should be avoided.
For instance, suppose you and a friend both have $2,000 in credit card debt, and your cards require minimum payments of $60 a month. If you only make the minimum monthly payments like your friend, who adds an additional $10 each month, the friend would likely improve their credit score faster than you, as they are paying down the debt more quickly. Beyond just making minimum payments, paying off debt more aggressively can also have a positive effect on your credit score.