Learn tips for recovering a low credit score in the USA
Having a low credit score can feel overwhelming, especially when it affects your ability to get approved for loans, credit cards, or even housing applications. In the United States, credit scores are a key factor in financial decisions, and a low score can increase interest rates or lead to outright denials.
The good news is that credit scores are not permanent, they can be improved with time, discipline, and strategy. Below are five practical tips to help you recover and rebuild your credit score.
1. Check Your Credit Report Regularly
The first step in fixing your credit is understanding what’s hurting it. Many people don’t realize that credit reports can contain mistakes, such as accounts listed in error, payments marked late when they were actually on time, or even signs of identity theft.
These errors can drag down your score unnecessarily.
You’re entitled to a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion, once a year.
Reviewing all three helps you spot discrepancies. If you find an error, you can file a dispute directly with the bureau, and once corrected, your score could improve quickly.
- Pro tip: Set a reminder to check your reports at least once a year. Staying informed helps you act fast if new issues appear.
2. Pay Bills on Time—Every Time
Payment history makes up about 35% of your FICO score, which means it’s the single most important factor. Even one missed payment can have a big impact, especially if your score is already low.
To avoid late payments:
- Set up automatic payments for at least the minimum amount due;
- Use calendar reminders or budgeting apps to track due dates;
- If you’re struggling financially, contact creditors to ask about hardship programs or revised payment schedules;
Consistency is key. Each on-time payment helps rebuild trust with lenders and contributes to long-term credit recovery.
3. Lower Your Credit Utilization Ratio
Your credit utilization ratio is how much of your available credit you’re currently using.
For example, if you have a $5,000 credit limit and carry a $2,500 balance, your utilization is 50%. Experts recommend keeping this number under 30%, and ideally closer to 10%.
Here are ways to bring it down:
- Pay down credit card balances aggressively, starting with the ones closest to their limit;
- Ask your creditor for a credit limit increase, but avoid spending more just because you have more available;
- Spread out expenses across different cards to keep each utilization ratio lower.
Lower utilization shows lenders that you can manage credit responsibly, which can boost your score significantly.
4. Avoid Closing Old Accounts
It might seem logical to close unused credit cards, but doing so can actually hurt your credit score. Here’s why: the length of your credit history matters.
The longer you’ve had accounts open, the more it contributes positively to your score. Closing an old card can shorten your average credit age and reduce your overall available credit, which may increase your utilization ratio.
Instead, consider keeping older accounts open, even if you use them sparingly.
You can make a small purchase every few months and pay it off right away to keep the account active. This strategy maintains your history and helps your score over time.
5. Build Positive Credit Habits
Recovering from a low score isn’t only about fixing mistakes—it’s also about building new, healthy credit habits. If you’ve struggled with credit in the past, there are tools designed to help you rebuild responsibly.
Some options include:
- Secured credit cards: These require a cash deposit as collateral, making them easier to obtain with bad credit. Use them responsibly and they can help reestablish positive payment history;
- Credit-builder loans: Offered by some credit unions and banks, these allow you to make fixed payments while the lender reports your activity to the bureaus;
- Becoming an authorized user: If a trusted family member adds you to their credit card, their positive payment history can benefit your score (as long as they maintain good habits).
Over time, consistent responsible use of these tools can transform your credit profile.
Final Thoughts
Recovering a low credit score in the US doesn’t happen overnight, but it is absolutely achievable.
By monitoring your credit reports, paying bills on time, lowering your credit utilization, keeping old accounts open, and building positive credit habits, you set yourself on a steady path toward improvement.
Remember: credit recovery is more of a marathon than a sprint. Small, consistent actions compound into meaningful progress, and with patience and discipline, you’ll see your score rise.
A better credit score not only improves your financial opportunities but also gives you peace of mind and greater control over your future.