Your credit score affects everything from loan approval to getting a good interest rate on a mortgage or car loan.
A higher score can save you money, while a low score can make loans more expensive or even prevent you from qualifying for credit.
If you need to improve your score quickly, check out our tips.
Check Your Credit Report for Errors
Review your credit report for inaccuracies as the first step. In the U.S., credit reports are maintained by three major agencies: Equifax, Experian, and TransUnion.
You are entitled to one free credit report from each agency per year.
If you find something wrong, dispute it directly with the credit agency. If the error is corrected, your score may improve almost immediately.
Pay Your Bills on Time
Your payment history makes up a large portion of your credit score. Late payments can stay on your report for up to seven years and have a significant impact on your score.
If you have overdue bills, pay them as soon as possible. Even if you can’t pay the full amount, making partial payments can help reduce the negative impact.
Reduce Your Credit Card Balances
Your credit utilization ratio—the amount of credit you’re using relative to your available credit—has a large impact on your score.
To increase your score, try to keep your credit utilization below 30%.
If you have high balances on your credit cards, consider paying them off as quickly as possible. Paying down high-cost debt can also save you money in the long run.
Request a Credit Limit Increase
If your card issuer agrees to increase your limit, your available credit will increase, which lowers your overall credit utilization—as long as you don’t increase your spending.
If you have a good history of on-time payments and keep your balance low, the issuer may be willing to approve a credit limit increase. Just be careful not to start using this additional credit.
Pay Off High-Interest Debt First
If you have multiple debts, it’s a good idea to focus on paying off the highest interest debts first.
By eliminating high-cost debt, you can free up more money for other financial goals, and paying off those balances will have a direct positive effect on your score.
Consider using strategies as avalanche method or snowball method.
Avoid Closing Old Accounts
Closing old credit accounts can hurt your credit score by reducing your available credit and shortening the length of your credit history.
The length of your credit history is part of your score, so it’s beneficial to keep older accounts open, even if you don’t use them.
If you have a credit card you no longer use, consider leaving it open with a zero balance instead of closing it.
Become an Authorized User on Someone Else’s Account
If you have a family member or close friend with a good credit history, ask if you can be added as an authorized user on their credit card account.
As an authorized user, you’ll benefit from their positive payment history without needing to make purchases on the card.
This strategy can be especially useful if you have a limited credit history or a low score.
Use a secured credit card
If you’re new to credit or have a low score, a secured credit card can be a great way to improve your credit.
With a secured card, you make a deposit into a savings account as collateral, and the card issuer provides a credit limit equal to that deposit.
Using a secured card responsibly, making on-time payments, and keeping the balance low can help you build a positive credit history.
After several months, you may be eligible for an unsecured card and a boost in your score.
Avoid Applying for New Credit
Every time you apply for a new credit card or loan, the lender performs a hard inquiry on your credit report.
While a single inquiry may cause a small temporary dip in your score, multiple inquiries within a short period can have a significant impact.
If you’re working to improve your score, avoid applying for new credit.