Your credit score is one of the most important financial indicators in the U.S. It determines your ability to secure loans, get better interest rates, rent an apartment, and even land certain jobs. The most widely used credit scoring model, FICO, ranges from 300 to 850, with higher scores representing better creditworthiness.
If you need to improve your credit score quickly, follow these strategic steps:
1. Check Your Credit Report for Errors
Errors in your credit report can significantly impact your score. A simple mistake—such as an incorrect late payment or an account you never opened—can lower your credit score.
How to Do It?
- Obtain a free credit report from the three major credit bureaus (Experian, Equifax, and TransUnion) through AnnualCreditReport.com.
- Review each report carefully, checking for incorrect balances, unauthorized accounts, or outdated negative items.
- If you find errors, dispute them with the credit bureau immediately. The bureau has 30 days to investigate and correct inaccuracies.
2. Pay Bills on Time
Your payment history makes up 35% of your FICO score. Even one missed payment can significantly drop your score.
How to Do It?
- Set up automatic payments for your credit cards, loans, and utility bills.
- Use reminders (calendars, apps, or alarms) to ensure you never miss a due date.
- If you have missed payments, bring accounts current as soon as possible. The sooner you get back on track, the faster your score will improve.
3. Reduce Your Credit Utilization Ratio
Credit utilization—the percentage of available credit you’re using—accounts for 30% of your score. Keeping your utilization below 30% (preferably under 10%) will help boost your credit score quickly.
How to Do It?
- Pay down existing credit card balances as much as possible.
- Request a credit limit increase on existing cards (but don’t spend more!).
- Make multiple payments per month to reduce your balance before your statement closing date.
- Use different credit cards instead of maxing out one card.
Example: If you have a credit card limit of $5,000, keep your balance below $1,500 (30%) or ideally below $500 (10%).
4. Become an Authorized User on a Creditworthy Account
If you’re added as an authorized user on someone else’s credit card (such as a parent, spouse, or trusted friend), their positive credit history can help improve your score.
How to Do It?
- Ask a trusted family member with good payment history and low utilization to add you as an authorized user on their credit card.
- You don’t even need to use the card—their positive history will be reflected in your credit report.
- Ensure the primary cardholder maintains good habits, as negative marks can impact you too.
5. Pay Off Collection Accounts (If Any)
Unpaid collection accounts can significantly lower your score. However, paying them off may help your score, especially if the lender removes the negative mark.
How to Do It?
- Contact the debt collector and negotiate a “pay-for-delete” agreement—they remove the collection account once you pay.
- If you can’t get it removed, still pay it off, as newer credit scoring models ignore paid collection accounts.
6. Use a Secured Credit Card
If you have a low credit score or no credit history, a secured credit card can help you build positive credit quickly.
How to Do It?
- Apply for a secured credit card, which requires a refundable security deposit (e.g., $200–$500).
- Use it responsibly, keeping utilization low and making on-time payments every month.
- After 6–12 months of responsible use, you may qualify for an unsecured credit card (no deposit required).
7. Limit New Credit Applications
Each time you apply for credit, a hard inquiry appears on your report, temporarily lowering your score. Too many applications in a short period can indicate financial instability.
How to Do It?
- Only apply for credit when necessary.
- Space out applications by at least 6 months if possible.
- Check if you prequalify for credit offers before applying to avoid unnecessary hard inquiries.
8. Diversify Your Credit Mix
Credit mix makes up 10% of your score. Lenders like to see a mix of credit types, such as:
- Credit Cards (Revolving Credit)
- Auto Loans (Installment Loan)
- Mortgages
- Student Loans
How to Do It?
- If you only have credit cards, consider adding a small installment loan (e.g., a credit-builder loan).
- If you already have loans, pay them on time to maintain a positive history.
9. Keep Old Credit Accounts Open
Credit history length accounts for 15% of your credit score. Closing old accounts reduces your average account age, which can lower your score.
How to Do It?
- Keep old accounts open (especially if they have a good payment history and no annual fees).
- Use them occasionally for small purchases to prevent automatic closure by the lender.
10. Use Experian Boost or Rent Reporting Services
Certain services allow you to add utility bills, streaming subscriptions, and rent payments to your credit history, which can increase your score quickly.
How to Do It?
- Sign up for Experian Boost to add phone, utility, and streaming payments to your Experian report.
- Use rent reporting services (e.g., Self, Rental Kharma, or RentTrack) to include on-time rent payments in your credit history.
How Fast Can Your Credit Score Improve?
- 1-2 Months: Paying down credit card balances, disputing errors, or using Experian Boost can show improvements.
- 3-6 Months: Making consistent on-time payments, lowering utilization, and keeping accounts open can create significant changes.
- 12+ Months: Long-term habits, such as maintaining a good credit mix and avoiding new hard inquiries, help sustain and grow your score.