Your credit score is one of the most important numbers in your financial life. It impacts everything from loan interest rates to insurance premiums to whether you can get approved for an apartment. So if your score is lower than you’d like, improving it should be a top priority.
The good news is, there are many actions you can take to lift your credit score With some time and focus, you can get yourself back on track. In this comprehensive guide, we’ll cover the key factors that make up your score and provide strategies to boost it over time
Understanding What Impacts Your Credit Score
Before diving into how to raise your score, it’s helpful to understand what makes up this important three-digit number.
Your credit score is calculated based on information in your credit reports from the three major credit bureaus – Experian, Equifax, and TransUnion. While the exact formula varies by scoring model, these key factors typically have the greatest influence:
-
Payment history – Whether you pay your bills on time. This has the biggest impact accounting for up to 35% of your score.
-
Credit utilization – The amount of credit you’re using compared to your total available credit limits. Keeping this low helps your score.
-
Credit history length – How long you’ve had credit. The longer your history, the better.
-
Credit mix – Having different types of credit, like credit cards, installment loans, and mortgages.
-
New credit – Opening too many new accounts in a short period can lower your score.
Knowing what goes into your score can help you pinpoint areas to target to give it a lift. Next, let’s look at proven strategies.
8 Ways to Improve Your Credit Score
Here are the most effective methods for raising your credit score:
1. Pay Bills On Time
The number one thing you can do is pay all your bills on time, every time. Set up autopay or calendar reminders to avoid late payments. Even one 30-day late can drop your score significantly.
Bring any past due accounts current and continue making on-time payments. As negative information ages, it hurts your score less.
2. Lower Credit Card Balances
High balances relative to your credit limits hurt your score. Pay down card balances and avoid running them back up. Aim for a credit utilization rate under 30%. You may also consider requesting credit limit increases from issuers.
3. Don’t Close Old Accounts
Keep your oldest credit cards open, even if you don’t use them often. Length of credit history is important, so closing old accounts shortens this and can lower your score. Put a small recurring charge on unused cards to keep them active.
4. Mix Up Your Credit Types
Diversify credit by having installment loans (like auto, student, or personal loans) and real estate accounts. This mix of credit demonstrates you can manage different types responsibly.
5. Limit New Credit Applications
Only apply for credit when you need it to avoid unnecessary “hard” credit inquiries. Too many new accounts can signal higher risk and hurt your score. Shop for rates within a short window since multiple inquiries for certain loan types may count as one inquiry.
6. Correct Report Errors
Dispute and get removed any inaccurate or outdated information on your credit reports that may be dragging your score down. Stay on top of monitoring your credit to catch issues.
7. Become an Authorized User
If you have a short credit history, getting added as an authorized user on someone else’s credit card can establish positive account history to help your score. Make sure the card has low balances and on-time payments.
8. Use Experian Boost
With Experian Boost, you can add on-time cell phone, utilities, streaming service, and rental payments to build your credit file. Even one Boost can raise your Experian credit score in real time. Enrollment is free and easy.
How Long It Takes to See Your Credit Score Improve
Now that you know techniques to raise your score, how long will it take to see results? Unfortunately, boosting your credit score takes patience and consistency.
You likely won’t see a big overnight increase. As you consistently implement positive credit habits, you should see gradual improvement over time.
For example, negative information like late payments will impact your score less severely after a year. Keeping balances low and making monthly payments on time will slowly raise your score as positive information gets reported.
Generally, you can expect to see a noticeable score lift within 6 months to a year if you stay focused on building your credit. The key is sticking to responsible habits long-term.
Resources to Monitor Your Credit Score Progress
As you work to increase your credit score, be sure to keep tabs on your progress by checking your scores regularly.
Monitoring lets you gauge the effectiveness of your credit-boosting actions and spot any negative surprises early. There are a few places to access your latest scores and reports:
-
Experian.com – Offers a free Experian credit report and FICO score monthly. You can also monitor your VantageScore credit score for free daily.
-
AnnualCreditReport.com – Provides free credit reports once per year from Equifax, Experian, and TransUnion that you can check for accuracy.
-
Your credit cards – Many issuers offer free FICO or other scores on monthly statements or online account logins.
-
Scores provided by banks/lenders – When applying for loans, you’ll get free access to the score the lender uses to make decisions.
Checking your credit score frequently lets you track improvement and catch errors before they do more damage. As you implement positive habits, you should see your number steadily rise.
Take Control of Your Credit Score Today
Improving your credit score opens doors to more favorable interest rates, better terms, and thousands of dollars in savings over time. The strategies above, when consistently applied, can help raise your score 100 points or more.
The most important actions are making monthly payments on time, lowering credit utilization, and correcting credit report errors. Healthier credit means access to more financial opportunities. So take control of your score today by putting positive credit habits in place. With focus and discipline, you’ll be on the path to reach your credit goals.
What you need to know
You must be 18 to create a myEquifax™ account.
Visit Customer Care to learn how to submit requests by phone or mail.
Parents, legal guardians, or others with Power of Attorney can place a security freeze on theEquifax credit reports of minors under the age of 16.
A security freeze is one step you can take to help prevent access to your Equifax credit report to open credit accounts, with certain exceptions. Freezes are federally regulated. To freeze your other credit reports, you will need to contact Experian and TransUnion directly.
Before applying for credit, you will need to lift your security freeze so that potential creditors can access your Equifax credit report. At Equifax, you can manage your freeze online with your username and password after creating a myEquifax account.
You can also manage your freeze by phone: call us at (888) 298-0045. Youll be required to give certain information to verify your identity. Youll also have the option to receive a one-time PIN by text message or answer questions based on information in your Equifax credit report for identity verification. Placing, lifting and removing a security freeze is free.
To place a security freeze on the Equifax credit report of an active duty military service member, you will need to submit proof of their identity, along with yours, and proof that you are their authorized representative. Download and follow the instructions on the Military Families Freeze Request form.
To place a security freeze on the Equifax credit report of a minor (under the age of 16), you will need to submit proof of their identity, along with yours, and proof that you are their authorized representative. Download and follow the instructions on the Minor Freeze Request form.
To place a security freeze on the Equifax credit report of an incapacitated adult, you will need to submit proof of their identity, along with yours, and proof that you are their authorized representative. Download and follow the instructions on the Incapacitated Adult Freeze Request form.
In order to add a security freeze to the TransUnion or Experian credit reports of an incapacitated adult or a minor, you will need to contact those bureaus directly. Help reduce your identity theft risk
Identity Theft: What It Is, What To Do Being a victim of identity theft can be a frightening experience. Learn more about the warning signs of ID theft and what to do if you believe your identity has been stolen.
How to RAISE Your Credit Score Quickly (Guaranteed!)
FAQ
How do I raise my credit score fast?
Paying bills on time and paying down balances on your credit cards are the most powerful steps you can take to raise your credit. Issuers report your payment behavior to the credit bureaus every 30 days, so positive steps can help your credit quickly.
Is freezing your credit report a good idea?
A credit freeze may be a good way to prevent identity theft, but keep in mind that it’s not always the best solution and that you’re still susceptible to other forms of fraud. It’s a good idea to continue exercising caution in other ways to avoid falling victim to scams.
How do I reset my credit score?
How do I come back from a 500 credit score?
Quick Answer. You can “fix” a bad credit score by paying bills on time, keeping credit card balances low and adding positive payment history to your credit report with a secured credit card or credit-builder loan. Having a bad credit score can make it difficult to borrow money and cost you more in interest.