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Reviewed By:
Ashley Davison
Ashley Davison
Editor
Ashley is currently the Chief Compliance Officer for Credit Saint, previously the Chief Operating Officer. Ashley got into the Financial world by working as a Logistics Coordinator at Ernst & Young. Coming from a previous career in education, she is eager to teach the world every...
To improve your credit score, keep your credit card balances low, pay every bill on time, and check your credit reports for errors you can dispute. Steps like becoming an authorized user or getting credit for rent payments may also help. How much your score changes, and when, depends on your credit profile.
A low credit score, especially in the “fair” or “bad” range, often has more room to change, but results vary by credit profile.
Here are 9 methods that can help improve your credit score:
1. Strategic Payment of Credit Card Balances
Managing your credit utilization, which is the percentage of your credit limits in use, is crucial. Aim to use under 30% of your limits, though the lower, the better.
The timing of your payments can also be important, as you want a low balance reported to credit bureaus. Frequent payments can help maintain a low balance.
Impact: This has a significant influence on your credit score, as credit utilization is a major factor.
Effort: Setting reminders and making regular payments require a low to medium time investment.
How Long It May Take: Utilization is based on the balances your card issuers report, so your score reflects a lower balance once it has been reported.
2. Request Higher Credit Limits
Increasing your credit limits while keeping your balances steady can lower your credit utilization ratio. This tactic is particularly effective if your income has increased or your credit history has improved.
Impact: Can be effective, as it directly affects your credit utilization ratio.
Effort: Generally low, as it involves a simple request to your credit card issuer.
How Long It May Take: Your utilization ratio changes once the new limit is reported, as long as you don’t use the extra credit.
3. Become an Authorized User
Being added as an authorized user on a well-managed credit card can positively impact your credit score. This method works best for those with new or limited credit histories.
Impact: Potentially high, especially for those with limited credit history.
Effort: Low to medium, depending on the discussions and arrangements with the primary account holder.
How Long It May Take: The account’s history can appear on your credit report once the issuer reports you as an authorized user.
4. Timely Bill Payments
Consistent on-time payments are vital for credit improvement. Late payments can significantly harm your credit score, so it’s important to address any missed payments promptly.
Impact: Extremely influential, as payment history is the most significant factor in credit scoring models.
Effort: Low, especially with automated payments or reminders.
How Long It May Take: This can vary; consistent on-time payments gradually build a positive history over time.
Impact: Can be meaningful if significant errors are corrected.
Effort: Medium to high, as it involves obtaining reports, identifying errors, and following up on disputes.
How Long It May Take: This can vary. Credit bureaus generally have 30 days to investigate disputes, up to 45 in some cases.
If that’s more work than you have time for, a reputable credit repair company can handle the disputes for you. To see where you stand, start a free credit review.
Dealing with collections accounts can have a varied impact on your credit score. Paying off such accounts and negotiating with creditors can help, especially with newer credit scoring models.
Impact: Varies depending on the response of the collection agency and the credit scoring model used.
Effort: Medium, involving reviewing credit reports and negotiating with creditors.
How Long It May Take: Varies. Some newer credit scoring models disregard paid collections, while older models may still count them.
7. Utilize a Secured Credit Card
For those new to credit or looking to rebuild, secured credit cards can be a practical option. They require a deposit and can help build a positive credit history through regular payments.
Impact: Varies, most beneficial for those new to credit or rebuilding credit.
Effort: Medium, as it involves selecting the right card and managing it responsibly.
How Long It May Take: This takes several months, as it’s about building a consistent payment history.
8. Get Credit for Rent and Utility Payments
Using rent-reporting services or Experian Boost can add your rent and utility payments to your credit report, which may help your score. Experian Boost only changes your Experian report, so it only helps scores based on Experian data, and a lender may check a different bureau.
Impact: Varies. More meaningful if rent and utility payments are a large part of your financial activity.
Effort: Low, primarily during the setup phase.
How Long It May Take: Some services, like Experian Boost, add payments once you connect your accounts, but building a history of on-time payments can take months.
9. Diversify Your Credit Mix
Having different types of credit, like an installment loan as well as credit cards, can help your credit score. But credit mix is a smaller scoring factor, and new accounts add hard inquiries, so opening new loans only to change your mix is generally not recommended.
Impact: Usually modest, since credit mix carries less weight than payment history or utilization.
Effort: Medium, as it involves researching and applying for new credit types.
How Long It May Take: A new account starts adding to your credit mix once it’s reported, but its inquiry and lower account age can weigh on your score at first.
How long does it take to see changes in my credit score? It depends on the method used. Changes like lower credit card balances or being added as an authorized user show up once they’re reported to the bureaus. Others, like building a history of on-time payments, take longer.
Can anyone promise a specific score increase? No. Results vary, and no one can promise a specific increase. People with lower scores often have more room for change, but how much your score moves depends on everything in your credit file.
Are there any risks to these strategies? Yes, certain strategies come with risks. For example, increasing credit limits or becoming an authorized user could lead to overspending if not managed carefully.
How often should I check my credit report? Check it regularly. You can get free reports from all three bureaus every week at AnnualCreditReport.com. Regular checks can help you spot errors or potential fraud early.
Can small changes really impact my credit score? Yes. Even small adjustments, like reducing your credit utilization or correcting a single error on your report, can make a difference in your credit score.
Is it possible to rebuild credit after major financial setbacks? Yes, rebuilding credit is possible even after significant setbacks. It requires consistent effort and careful financial management, but improvement is achievable over time.
Bottom Line on Improving Your Credit Score
These nine steps give you practical places to start. Paying on time and keeping your balances low carry the most weight, and disputing errors helps your score reflect accurate information. Results vary, and no one can promise a specific increase. Steady, responsible habits over time are what build stronger credit.
Reviewed By:
Ashley Davison
Editor
Ashley is currently the Chief Compliance Officer for Credit Saint, previously the Chief Operating Officer. Ashley got into the Financial world by working as a Logistics Coordinator at Ernst & Young. Coming from a previous career in education, she is eager to teach the world everything she knows and learn everything that she doesn’t! Ashley is a FICO® certified professional, a Board Certified Credit Consultant, a Certified Credit Score Consultant with the Credit Consultants Association of America, UDAAP certified, and holds a Fair Credit Reporting Act (FCRA) Compliance Certificate.
