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.
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:
- Check your credit reports for accuracy.
- Stay on top of bill payments.
- Keep your credit usage below 30% of your limit.
- Be mindful of how often you apply for new credit.
- Add a positive credit history if your record is limited.
- Keep old accounts open and address any past-due balances.
- Consider consolidating your debts if managing multiple payments is difficult.
- Monitor your progress with credit tracking tools.
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.
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.
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.
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.
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.
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.
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.
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.
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 can last for ten.
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. Just be mindful of balance transfer fees, which typically range from 3%-5% of the transferred amount.
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. 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.
The Bottom Line
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.