Key takeaways
Paying bills on time, keeping your credit utilization low, and keeping older accounts open can help improve your credit score.
Carrying a balance, avoiding card use, and paying with cash typically won't help raise your score.
Lower card balances may show up after your issuer's next report, while bigger gains often take several months.
Checking your credit reports and disputing errors can keep inaccurate information from hurting your score.
Your credit score might be three simple digits, but it can have a huge impact on your finances. If you're having trouble finding a decent loan or credit card and want to improve your credit score, you're in the right place. We'll walk you through the proven tactics that have the biggest impact on your score and debunk the myths that waste your energy.
How to improve your credit score: the short answer
To improve your credit score, pay every bill on time, keep your credit card balances low, and check your credit reports for errors. These habits target payment history and amounts owed, the two biggest factors in FICO® Scores. An error check also helps make sure your score reflects accurate information.
On-time payments can help build positive credit history over time. Lower balances can reduce your credit utilization ratio, which is the share of your available credit you're using. Fewer new applications can also limit hard inquiries, the credit checks lenders run when you apply.
Expect progress to build over several months of consistent habits. Some changes, like a lower reported balance, may show up sooner. Each step you take counts as progress.
What is a credit score?
A credit score is a three-digit number that lenders use to estimate how likely you are to repay a loan on time. FICO® Scores range from 300 to 850.
Building a good credit score can unlock major financial progress. Good credit may improve the terms available to you on loans and credit cards. It may also help when you apply for an apartment lease or car insurance.
How your credit score is calculated
Knowing what goes into your credit score helps you prioritize which habits to focus on first. FICO groups the information behind its scores into five categories, and the weight of each can vary from person to person:
Credit score factor | Weight | What it means |
|---|---|---|
Payment history | Whether you pay on time or have missed payments | |
Amounts owed | Your overall debt balances, including how much of your available revolving credit you’re using. | |
Length of credit history | How long your accounts have been open | |
Credit mix | The types of accounts you have, like credit cards or installment loans | |
New credit | How frequently you apply for new credit and open new accounts |
Proven ways to improve your credit score
Several strategies target the most influential scoring factors, and the right mix depends on your situation. Start by checking where your score falls and reviewing your credit reports for accuracy. Then choose one or more of the methods below.
Check your credit report early and often
Before you start on your journey to a better credit score, you need to know where you're starting from. Review your credit report to see what's on there, keeping a close eye out for any errors.
Correcting inaccuracies can keep incorrect information from hurting your credit score. Three major credit bureaus – companies that collect and report your credit history – handle these reports: Equifax®, Experian®, and TransUnion®. You can get your report from each bureau once a week at no cost through AnnualCreditReport.com.
Keep an eye out for the following issues:
Payments a lender wrongly marked as missed or late
Collection accounts for debts that don't belong to you
Paid-off debts that still show a balance
Don't be surprised if you find inaccurate information. In a 2024 Credit Checkup study from Consumer Reports and WorkMoney, 44% of participants who checked their reports found at least one mistake. More than a quarter of participants found serious errors.
The study surveyed more than 4,000 volunteers, so its results reflect those participants rather than all consumers. If you do find an error, you can dispute the error with the credit reporting company. Federal law generally requires the company to investigate.
Need help contacting credit bureaus? The Consumer Financial Protection Bureau, or CFPB, provides sample letters and instructions for disputing errors. You can send them to credit reporting companies and to furnishers, the lenders that send your account data to the bureaus.
Always pay bills on time
Life can be hectic, and sometimes you might forget the occasional bill. Lenders may report a payment once it is 30 days late, and even one late payment may hurt your score. If you want to improve your credit score, the single most important thing you can do is pay your bills on time.
Payment history is the most influential factor in FICO Scores, making up about 35% of the calculation. Making on-time payments can help build positive credit history and may positively impact your credit score. Late payment may negatively impact your score.
But don't worry if you have past late payments. Late or missed payments can remain on your credit record for a while, but their impact on your score tends to fade with time. Paying on time from here on can add newer, positive history.
Here are some tips to help you build a strong payment record:
Set up automatic payments so you don't have to remember each due date.
Pay at least the minimum amount due, and aim to pay your balance in full to avoid interest charges.
Keep at it every month to build a steady track record.
Chime® tip: If paying your bill slipped your mind, call your credit card company right away. Paying before it's 30 days past due may keep the late payment off your credit reports.
Keep your credit utilization low
Just because you have available credit doesn't mean you need to use it all. Your credit utilization ratio is the share of your available credit you're using. It falls under amounts owed, which makes up about 30% of FICO Scores and ranks second only to payment history.
Experian notes that credit experts generally advise keeping utilization below about 30%, though lower tends to help more. People with exceptional FICO Scores typically keep their utilization under 10%. What does 30% look like?
If you have a credit limit of $1,000, keep your balance at or below $300.
If you have $5,000 in total limits across several cards, keep your combined balance at or below $1,500.
Pay before your statement closes
Card issuers typically report your balance to the credit bureaus once a month, often on or near your statement closing date. Experian notes that each issuer reports on its own schedule. Scoring models then use that reported balance to calculate your utilization, even if you pay in full by the due date.
Paying down your balance before the statement closes can lower the amount your issuer reports. Try these steps:
Find your statement closing date in your card app or on your statement
Make a payment a few days before that date
Split payments across the month if you use your card often
Keep older or unused credit cards open
It's tempting to close older or unused cards to declutter your wallet. But keeping your oldest credit card open and in active rotation can benefit your credit score in two ways:
It shows you can manage credit: Older cards help lengthen your credit history, which accounts for about 15% of FICO Scores.
It counts toward your credit utilization ratio: An open card adds to your total available credit. Closing it may raise your ratio and hurt your score.
It's also smart to use your older cards occasionally so your card issuer has fresh activity to report to the credit bureaus. Here's how to do it:
Put a small charge on the card every few months and keep it well below the card's credit limit.
Pay off the balance in full each month to build your record of on-time payments.
Ask for a credit limit increase
Increasing your credit limit can help lower your utilization ratio if your balances stay the same. If you have a history of responsible card use, consider asking your lender for a higher limit. Before requesting an increase, ask whether the issuer uses a soft or hard credit inquiry. A hard inquiry may temporarily lower your credit score.
Some lenders raise limits automatically after reviewing your account. Other times, you'll need to request a credit limit increase online or by phone.
Another way to increase your available credit is to get a new credit card. But this comes with both benefits and drawbacks:
The upside: A new card raises your total credit limit, which can lower your utilization ratio if you keep balances low.
The downside: A credit application may result in a hard inquiry, which may temporarily lower your credit score.
Note: Even if your limit goes up, try to keep your spending the same. Spending more can cancel out the benefit of a lower utilization ratio.
Limit new credit applications
New credit makes up about 10% of FICO Scores, so try to space out your applications. A hard inquiry is the credit check a lender runs when you apply for a loan or card.
For most people, one additional inquiry takes fewer than five points off their FICO Scores, according to myFICO. The impact can be greater if you have few accounts or a short credit history. myFICO says hard inquiries can stay on your report for two years, but FICO Scores only count them for one year.
Rate shopping works a little differently for mortgages, auto loans, and student loans. Scoring models may treat inquiries for the same type of loan within about 14 to 45 days as a single inquiry. myFICO suggests keeping your rate shopping within about 14 days.
Become an authorized user
Got any credit score idols in your life? Their stellar reputation could help you improve your own if they're willing to make you an authorized user on one of their accounts. An authorized user can use someone else's card but doesn't own the account.
When someone adds you to an established card, that card's history may appear on your credit file and factor into your score. Not all issuers report authorized-user activity to the credit bureaus, and the impact on credit may vary. Before you join, contact the card issuer to confirm its reporting.
If the primary cardholder misses a payment, that late payment might also show up on some of your credit reports. Only go this route if you trust that person.
And don't get someone to add you and then use their card irresponsibly. Just as their poor credit behavior can lower your credit score, your poor behavior can lower theirs. If you only want to raise your score, the primary user may feel more at ease if you agree not to use the card.
Build history with a secured card or credit builder loan
Got a thin credit file or starting over? The CFPB says some loans and credit cards can help you build or rebuild your credit history. Secured credit cards and credit builder loans both make the list.
A secured credit card uses money you set aside as security for your spending. A credit builder loan typically holds the loan amount in an account while you make payments, then releases the money once you finish. That makes the loan one way to build credit without a credit card.
Both tools can help only if the lender reports your payments to the credit bureaus, so ask before you sign up. Debit cards, prepaid cards, and payday loans typically don't help build credit history, according to the CFPB.
The Chime Visa® Credit Card is a secured credit card that can help you build credit (see disclosure 1) over time when you make on-time payments and use it responsibly.
Add everyday bills with Experian Boost
Experian Boost® lets you add on-time payments for certain household bills to your Experian credit file to help you build credit. Eligible bills can include phone, utilities, internet, streaming services, insurance other than health coverage, and rent you pay online.
Boost changes your Experian credit file but not your Equifax or TransUnion reports. It counts on-time payments only, and results vary because not all lenders use Experian credit files.
How long it takes to improve your credit score
How fast you see results depends on the action you take and when lenders send updates to the credit bureaus. Here's a quick look at typical timing:
Action | When you may see changes | Why |
|---|---|---|
Paying down card balances | After your issuer's next report, often near your statement closing date | Experian says issuers typically report balances monthly on their own schedules |
Disputing a credit report error | Often within about a month | Bureaus generally must investigate within 30 days, or up to 45 days in some cases |
Building on-time payment habits | Small changes within three to six months | myFICO says there's no quick way to fix a credit score |
Recovering from a late payment | Gradually, as the late payment ages | Credit reports can generally show negative payment history for up to seven years, and myFICO says its impact fades over time |
Every on-time payment adds to your track record, so give your new habits time to work.
What doesn't improve your credit score
You might have heard some ideas to improve your score that we haven't mentioned above. Here, we debunk some common myths that actually have little to no direct effect on your credit score.
Carrying a balance on your credit
One of the most common credit scoring myths is that keeping a balance helps increase your score.
In fact, an outstanding balance can raise your credit utilization ratio. Carrying a balance also adds interest charges, so you'll owe more than you first put on the card. Aim to pay your balance in full each month when you can.
Stopping all card use
myFICO notes that in some cases, a low utilization ratio can help your FICO Scores more than not using your available credit at all. Going inactive can actually hinder your efforts to improve your credit score.
When you stop using your credit altogether, your card issuer has no new activity to report to the credit bureaus. Eventually, your lender could close the account due to inactivity.
Paying with cash or a debit card
Paying with cash or a debit card shows good money management, but it doesn't show lenders how you handle credit.
Instead, try paying for everyday items like groceries and gas with your credit card. Then pay off the balance using your checking account. This approach helps you spend only money you actually have while you build a payment record.
Using buy now, pay later programs for purchases
Although BNPL is a type of installment plan, it may not help your credit score the way a personal loan can.
According to the CFPB, most BNPL lenders don't report your payment history to the major credit bureaus.
Paying your rent and utilities on time
Most utility companies don't report payment activity to the three major credit bureaus. That means your on-time utility payments typically don't appear on your credit reports by default. Unpaid bills that go to collections can still show up, though.
The Experian Boost® section above covers one way to add eligible bills to your Experian credit file.
Getting married
Marriage might join two people legally, but it doesn't merge your credit. According to Equifax, your credit reports remain distinctly separate after you say "I do." Joint accounts you open together can appear on both of your reports, though.
Getting a raise
Your income isn't part of your credit report, so it doesn't factor into your credit scores – even when you get a raise. Lenders may still ask about your income when you apply. If a raise helps you get a higher credit limit, your utilization ratio could drop.
Demographic information
Credit scores don't consider personal details such as your age, race, gender, nationality, or marital status.
Certain flattering and less-than-flattering financial information
Your net worth, account balances, savings interest rates, and investing prowess have no bearing on your credit score.
Past credit denials and bank account overdrafts also typically don't factor into your score.
How often you check your own credit
Despite rumors to the contrary, checking your own credit counts as a soft inquiry, and the CFPB says soft inquiries don't affect your scores. In fact, it's a good idea to keep tabs on where you stand – especially while you're working to raise your score. Watching your progress can motivate you to keep going.
A higher credit score is just ahead
When you show lenders you can manage borrowed money well, you can improve your credit score over time. Focus on the factors that carry the most weight, and results can build month by month.
These steps apply whether you're trying to build credit for the first time, working to repair your credit, or aiming for a perfect credit score. As you monitor your progress, don't forget to celebrate every small score increase along the way!