What should you primarily focus on to improve your credit history?

Focusing on reducing outstanding debts is crucial for improving your credit history. A significant factor in your credit score is your payment history and the amount of credit you are using relative to your total available credit, known as your credit utilization ratio. By paying down debts, you can lower your credit utilization, making it look more favorable to lenders. Additionally, timely payments on existing debts help to build a positive payment history, which directly affects your credit score.

In contrast, diversifying your investments, increasing your income, and maximizing your savings, while beneficial for financial health, do not have a direct impact on your credit history or score. Credit history primarily revolves around how well you manage your debts and payment obligations, making it essential to prioritize debt reduction for obtaining a better credit outlook.