A higher or lower credit score indicates the condition of your financial health. It gives lenders an instant snapshot of how responsibly you manage credit. The stronger your score, the better your chances of securing loans or new lines of credit. A higher score can also help you access the most competitive interest rates when borrowing.
If you’re looking to improve your credit score, there are several simple steps you can take right away. While it may take a few months to see noticeable progress, you can begin working toward a better score in just a few hours.
Why Does a Strong Credit Score Matter?
A credit score reflects how well you handle debt. The higher your score is, the more reliable you appear to lenders. A score of 850, for example, is considered perfect under the FICO model.
What are the benefits of having a high credit score? Simply put, it makes borrowing easier and more affordable. Those with excellent credit is often secure auto loans, have lesser interest rates on loans and mortgages, and use other types of financing—potentially saving hundreds of thousands of dollars over time.
A credit score is a number between 300 and 850 that reflects your financial trustworthiness.
- Scores above 700 are considered good
- Based on payment history, credit use, and length of credit
- Used by lenders to decide on loans, rates, and approvals
💡 Tip: Always pay at least the minimum due on time—even one missed payment can hurt your score.
Lenders see individuals with strong credit as low-risk borrowers, leading to better loan terms, lower fees, and additional perks. On the other hand, those with poor credit face fewer lending options, higher interest rates, and more financial hurdles.
A weak credit score can also make it harder to rent a home, lease a car, or even obtain life insurance, as insurers often consider credit history when determining risk.
Since payment history plays a major role in FICO scores, even a single late payment can have a significant impact.
How to Build Strong Credit
There are multiple ways to improve your credit score, and some changes can make a difference in just a day, while others require consistent effort over time. Here are a few steps to get started:
Some improvements take time—others can happen fast. These steps help lay the foundation:
- Check your credit reports for accuracy
- Stay on top of bill payments
- Keep credit usage below 30%
- Limit how often you apply for new credit
- Build a positive history if your record is limited
- Keep old accounts open; resolve past-due balances
- Consider debt consolidation if payments are overwhelming
- Use credit monitoring tools to track progress
Each of these steps plays a role in strengthening your credit profile. Some efforts will show results quickly, while others will contribute to long-term financial stability. Here’s what to expect as you work toward better credit.
1. Check Your Credit Reports
Estimated time: 1-3 hours
Before making improvements to your credit, it’s important to understand what’s working in your favor and what isn’t. That’s why reviewing your credit history is a crucial first step.
Get a copy of your credit report from each of the 3 major national credit bureaus: Experian, Equifax, and TransUnion. Carefully review each report to spot factors that may be boosting or lowering your score.
A strong credit profile typically includes consistent on-time payments, low amounts on credit cards, a mix of credit types, older accounts, and minimal new credit inquiries. On the other hand, late or missed payments, high balances, collections, and judgments can bring your score down.
- On-time payments and positive history
- Credit cards with low balances
- Any missed or late payments
- Accounts in collections or charged off
- Incorrect info that needs to be disputed
You can request free reports annually at AnnualCreditReport.com.
You are also entitled to a free copy of your credit reports from all three bureaus once per year, which you can access at AnnualCreditReport’s official website.
How often should you check your credit score?
It’s smart to review your credit score regularly to catch any mistakes, but always use soft inquiries to avoid lowering it. Many banks provide free credit tracking for their customers—check with yours to see if you can sign up for alerts whenever your score fluctuates.
How can you increase your credit score in a short time?
Boosting your credit score takes time, and major changes won’t happen overnight. However, you can speed things up by paying down revolving balances to reduce your credit utilization, disputing inaccurate information (like incorrect late payments), or being added as an authorized user on an older account with a spotless payment history and low usage. This works best if a trusted friend or family member adds you without handing over the card itself.
Be cautious of services promising instant results—if it sounds too easy, it’s likely not legitimate.
- Set calendar or app reminders to pay bills before the due date
- Enable autopay for recurring fixed bills like loans and utilities
- Pay at least the minimum—even partial payments are better than missed ones
- Review your statements monthly to catch surprises or errors
Missing just one payment can stay on your credit report for up to 7 years—consistency protects your credit score.
2. Take Control of Your Bill Payments
Estimated time: 1-2 hours
More than 90% of major lenders rely on FICO scores when making credit decisions. These scores are based on five main factors:
- Payment history (35%)
- Credit usage (30%)
- Age of credit accounts (15%)
- Credit mix (10%)
- New credit inquiries (10%)
Since payment history carries the most weight, keeping past paid-off debts—like student loans—on your record can be beneficial. Paying debts on time consistently works in your favor.
One of the simplest ways to improve your credit score is to avoid missing payments. Here are a few ways to stay on track:
- Set up a system—paper or electronic—to monitor your monthly bills
- Use due-date alerts to remind yourself when payments are approaching
- Automate bill payments through your bank
Another approach is to charge as many recurring bills as possible to a credit card—assuming you can pay the full balance every month to avoid interest. This can make managing payments easier while helping build a record of on-time payments.
Payment history is the most important part of your credit score. Even a single missed payment can stay on your report for up to 7 years. Consistent on-time payments build lender trust and long-term credit health.
Set reminders or automate bills to avoid missing due dates. Use a single card for small, recurring expenses and pay it in full to establish a reliable history. Keep old accounts open whenever possible to show credit stability.
3. Keep Credit Utilization at 30% or Lower.
Estimated Time: Varies, depending on total debt and monthly payments
Credit utilization is mainly the percentage of your credit limit that you are leveraging at any given time. It ranks just behind payment history in importance when it comes to FICO Score calculations. Learn more about using credit cards for daily expenses and how it affects your score.
The best approach is to pay off your credit card balance in full each month. If that’s not always possible, aim to keep your total balance at 30% or less of your available credit. From there, working toward 10% or lower can help improve your credit score even more.
If your utilization is creeping too high, consider setting up a high-balance alert on your credit card to help manage spending.
Another way to improve this ratio is by requesting a credit limit increase. A higher limit can work in your favor—as long as you don’t increase your spending along with it. Most credit card issuers grant you to request an increase by updating your annual household income, often with a quick response. You can also call customer service to make the request.
Pay your balance in full each month if possible. If not, try to keep your balance under 30% of your credit limit. Set alerts to avoid creeping too high.
Don’t assume a high limit gives you room to spend. Even if you pay on time, high utilization can lower your score until paid down.
4. Be Mindful of New Credit Applications and Their Impact
Estimated time: Depends on how often you seek credit
There are two kinds of credit inquiries: hard and soft. Soft inquiries occur when you review your own credit, allow a potential employer to review it, or when financial institutions you already work with conduct routine checks. Credit card companies may also review your history to decide whether to send pre-approved offers. Both of these checks do not affect your credit score.
Hard inquiries, on the other hand, can reduce your score for a few months up to two years. These happen when you apply for new credit, such as a mortgage, car loan, or credit card. A single instance won’t make much of a difference, but multiple inquiries in a short period can harm your score. Lenders may see frequent applications as a sign of financial strain, increasing their perception of risk. If improving your credit is a priority, consider pausing new credit applications for a while.
Will avoiding hard inquiries improve your credit score?
Yes, removing hard inquiries can boost your score—but only slightly. They account for about 10% of your overall rating. If you spot any that shouldn’t be there, it’s worth addressing, but this alone won’t cause a major improvement.
- Checking your own credit
- Pre-approved credit offers
- Employer background checks
- Ongoing checks by your bank
- Applying for new credit cards
- Car loans and mortgages
- Store financing applications
- Multiple inquiries in a short time
5. Strengthen a Thin Credit File
Estimated time: 3 to 6 months to start seeing progress
A thin credit file means there’s not enough credit history on your report to generate a score. Around 62 million Americans face this issue, but there are ways to build a solid credit profile.
One option is Experian Boost, a program that factors in financial data that usually isn’t included in credit reports—such as utility payments and banking history—when calculating your Experian FICO Score. It’s free and designed for those with little to no credit who consistently pay their bills on time.
UltraFICO works in a similar way. This free service considers your banking habits when determining a FICO Score. Having a stable bank account, keeping some savings, making payments from your account on time, and avoiding overdrafts can all contribute to a stronger credit standing.
For renters, certain services can help get credit for on-time rent payments. Rental Kharma and RentTrack, for example, report your rent payments to credit bureaus, which may boost your score. However, this approach is more likely to affect your VantageScore rather than your FICO Score. Some rent-reporting services charge fees, so be sure to check the details before signing up.
A newer option in this space is Altro (formerly Perch). It is a mobile app that reports rent payments to credit bureaus at no cost.
Lets you include utility and phone bill payments in your Experian FICO Score. Free, and ideal if you pay bills on time but have no credit cards.
Uses your banking behavior to build credit. Good for those who save consistently, avoid overdrafts, and pay from their accounts.
These services report on-time rent payments to credit bureaus. Some charge fees, and most impact VantageScore more than FICO.
A free mobile app that reports rent and subscription payments to credit bureaus. Simple and fast option for renters.
6. Keep Old Accounts Open and Address Delinquencies
Estimated time: The longer your accounts have been active, the better
The length of your credit history influences the determination of your credit score. A longer average account age makes you more appealing to lenders.
If you have older credit accounts that you no longer use, it’s best to keep them open. Closing them while carrying balances on other cards can decrease your available credit and enhance your utilization ratio, which may lower your score.
For accounts with missed payments, charge-offs, or collections, take steps to resolve them. If an account has late payments, catching up on past dues and ensuring future payments are on time can help improve your payment record over time. While previous late payments won’t disappear, responsible management moving forward can make a difference.
For charge-offs or collection accounts, consider whether paying them off in full or settling the debt is the right move. Newer credit-scoring models are less harsh on paid collections, so clearing these debts could offer a small boost. Negative marks can stay on your credit score report for up to 7 years, while bankruptcies may stay for up to 10 years.
A longer credit history boosts your score. Avoid closing your oldest accounts, even if you don’t use them. Closing them may shorten your average credit age and hurt your utilization ratio.
Late payments, charge-offs, or collections? Catch up and stay current. New scoring models are less harsh on paid collections, so resolving debts can help. Negative marks may stay up to 7 years — but good behavior moving forward counts.
7. Think About Combining Your Debts
Estimated time: 2-3 hours
If you have multiple debts, you might benefit from taking out a consolidation loan from a bank or credit union. This allows you to pay off everything at once and focus on a single monthly payment. If the new loan comes with a lower interest rate, you could reduce costs and pay off your debt faster.
Another approach is using a balance transfer credit card to clear multiple credit card balances. These cards often have an introductory period with 0% interest, which can help you save money. If you’re wondering how to pay off debt fast, methods like the snowball or avalanche strategy can work alongside balance transfers. Just be mindful of balance transfer fees, which typically range from 3%-5% of the transferred amount.
Take out a personal loan from a bank or credit union to pay off all existing debts. You’ll simplify payments and potentially lower your interest rate.
Use a card offering 0% intro APR to transfer credit card balances. Be aware of transfer fees (usually 3–5%) and pay it off before the promo ends.
8. Track Your Credit Score with Monitoring Services
Estimated time: 20 minutes
Keenly monitoring your credit score is simple with credit monitoring services. Many of these tools are free and provide updates on changes to your credit report, such as a new account or a balance payoff. If you’re also keeping an eye on spending, consider using apps to track your expenses. Plus, they often grant access to at least one score from Equifax, Experian, or TransUnion, refreshed each month.
Beyond tracking progress, these services can help detect potential fraud. If you receive an alert about an unfamiliar credit card account appearing on your report, you can take immediate action to dispute it.
Credit monitoring tools help you stay on top of changes like new accounts, paid-off balances, or score updates from Equifax, Experian, or TransUnion.
Alerts for unfamiliar accounts, hard inquiries, or address changes help you take quick action if something looks suspicious.
The Bottom Line
Ready to Take Control of Your Credit?
You don’t need to fix everything at once. Just take the first step today — whether it’s checking your score, paying down a balance, or signing up for alerts.
- 📌 Choose one step from this guide
- 📅 Set a reminder to revisit your progress next month
- 🔒 Build habits that protect your score over time
Taking steps to increase your credit score is a smart move, particularly if you’re planning a major purchase like a car or home or aiming for a top-tier rewards card. While changes won’t happen overnight, taking the right steps now can bring noticeable results in a matter of weeks or months.
In some cases, working with a trusted credit repair service may be necessary to clear up lingering negative marks. The sooner you work on strengthening your credit, the sooner you’ll see the benefits.