How to improve your credit score

As a Credit Karma member, I frequently check in to see how my credit is doing and make sure there’s nothing suspicious going on there.

I really like Credit Karma because it’s free and provides detailed information about changes to your credit score. Also, you can link all your accounts to monitor your debt to savings ratio, and the site provides suggestions for financial products to apply for and why.

Another great feature I like to play around with is my spending. When I connect my bank account, I can categorize each transaction and see where all my money is going, which gives me a clear view of my spending habits.

One day when I logged in to my account, I was very excited to see that my credit score had increased by almost 100 points! I had managed to raise my credit score by 92 points in just one month.

In this article, I’m going to share with you the steps I took to improve my credit.

How To Improve Your Credit Score Quickly

The major contributing factor to improving my credit score in just 30 days was decreasing my credit utilization ratio. I lowered my credit utilization ratio by 19%!

This took two different steps.

First, I paid more than the minimum amount due on my credit cards. I do that anyway, but I bumped up the amount by about $25.

Second, I increased my available credit on one of my credit cards by accepting a credit line increase offer on my account. I would definitely suggest that you accept any credit line increase offer. Just be smart enough not to use it!

It’s suggested that you request a credit line increase once every 6-12 months. Why? It helps with your credit utilization ratio, and that helps your credit score.

Your credit utilization ratio is the amount of debt you have divided by the total amount of credit you’ve been extended. Sign in to your credit card account online to see if a credit limit request is waiting for you, or call the number on the back of your card to find out about your options. The suggested utilization ratio is 30% or less on each individual account and all accounts combined.

Another major contributing factor is my perfect track record of on-time payments. According to Credit Karma, I have a 100% record of consistent, on-time payments. I manage to never miss a payment by maintaining my own personal bills calendar, which tells me when all of my bills are due. I even set reminders one week early to allow room for any mistakes.

It may be more helpful to auto-schedule payments at the beginning of the month on all of your accounts so you won’t have to worry about it for the rest of the month. If your income is steady enough and your checking account never hovers around zero, I would definitely suggest setting up automatic bill pay for recurring monthly payments.

What Is Considered a Good Credit Score?

According to the Fair, Isaac and Company (FICO), the creator of the three-digit score used to rate your borrowing risk, the higher the number, the better your credit score. The FICO score ranges from 300-850. says a “good” credit score is in the 670-739 score range.

Your credit score is made up of five different factors.

I believe my credit score rose as much (and as quickly) as it did because credit utilization has a really high impact on my overall credit score. Also, as mentioned above, I have a perfect payment history, which makes up the largest portion of my overall credit score.

Credit Score Considerations

Credit Karma uses TransUnion and Equifax for their credit scores. Since all scoring models are not the same, my score may have changed in different ways with the other major credit bureau, Experian.

But note that each person’s score is affected in different ways, even though you may be taking the exact same actions. Sound confusing? Don’t worry, it is. Here are some examples of how this can happen:

  • If Jane has a history of perfect payments but forgot to pay her bill one month, her score won’t be affected in nearly the same manner as Megan, who has a long string of late payments on her report. In fact, due to Jane’s great payment record, she may even be able to call up her credit card issuer and explain what happened to see if the company will consider not reporting a late payment to the credit bureaus. Megan, on the other hand, won’t likely able to get that removed no matter how hard she tries, given her payment pattern.
  • Each hard credit inquiry can affect your credit score by 4-10 points. If John fills out an application, but it’s his third application in 30 days, it’s more likely that his score will drop more than Jeff’s, who filled out only one application in a 30-day time period. (There are exceptions for mortgage, car loan and student loan inquiries.)

Final Thought

There’s no guarantee that you’ll get the same results I did, but if your credit rating needs a boost, consider taking the steps I did.

Earning a top credit score takes time. Learn the different factors that affect your score and four strategies that may help to improve it.

By Allan Halcrow | American Express Credit Intel Freelance Contributor

6 Min Read | July 31, 2020 in Credit Score

How to improve your credit score



There is no magic formula for boosting your credit score by 100 points, or within 30 days.

Earning a top credit score takes time. But a thoughtful strategy focused on using credit responsibly over the long term usually leads to good results.

Identify your opportunities for improvement, develop a strategy, and stick to it.

How can you improve your credit score? In a single word, strategically. I’ll unpack that word throughout this article, but simply stated you’re more likely to see the credit score improvement you seek if you do four key things:

  • Learn all you can about what affects your credit score.
  • Analyze your unique credit profile against what you learned.
  • Identify the responsible behaviors that improve your score.
  • Follow a strategic plan to hit your target credit score improvement goals.

Experts encourage you to be realistic. As Fair Isaac Corp. – inventor of the industry-leading FICO credit score – says, “raising your credit score is a bit like losing weight.” 1 In other words, meaningful and sustainable improvement takes time – and there is no quick fix. People often ask, “How can I raise my credit score in 30 days?” or “How can I raise my score by 100 (or 200) points?” But, according to Fair Isaac, “The best advice is to manage your credit responsibly over time.”

Your own actions, though, are what determines your score – and there are ways that you can have a real impact. And if you need to raise your credit score by as much as 200 points, there’s probably some room to change your credit-related behavior in a way that demonstrates increased responsibility.

How to Raise Your Credit Score, Strategically

Experts point to some principles to consider as you shape your plan. Effective strategies typically depend on first getting your credit reports from the three major credit bureaus. 2 Without the reports, you won’t have a clear picture of the problems you’re trying to solve or the areas that represent the best opportunities for improvement.

Next, you’re more likely to see a big jump in your credit score (such as 100 points) and to see it more quickly if you’re starting with a low score. That’s because you have more room for improvement, and small changes can have greater impact. 3 Remember, don’t get discouraged if you don’t see all the improvement you’re hoping for right away – improving your credit score is a long game. That said, some strategies definitely impact your score more quickly than others, so read on.

Steps to Begin Improving Your Credit Score

1. Clear up errors on your credit report: If anything on your credit report isn’t correct, dispute it with the credit bureaus. Getting it removed or corrected can improve your score. 4 Research has shown that 21% of people who reviewed their credit report found errors that resulted in changes to their report. 5 For more, read “How to Dispute Your Credit Report at All 3 Bureaus.”

2. Pay down your balances: Experts note that slashing your credit utilization rate – the percentage of available credit that you’ve used – is one of the few things you can do to quickly boost your score. 6 Utilization is 30% of your FICO score, second only to the longer-term strategy of always paying your bills on time, 7 and is the most influential factor in the VantageScore model. 8 Because creditors are reporting your activity at least monthly, you don’t have to wait long to see the benefits. The potential here is so great that some experts suggest you pay your card bill twice a month or even more often – called micropayments – to increase the likelihood that your balance will be lower whenever it gets reported. However often you pay, your credit score will get the greatest lift if you keep your utilization to 30% or less – and the lower the better.

I saw this in action using the credit score simulator that’s available through MyCredit Guide from American Express. Paying down balances to push me below the 30% threshold helped improve my credit score about 1%, but paying them off in full boosted my score by more than 8%, according to the simulator.

3. Resolve collection accounts: Since payment history is 35% of your FICO score, any payment 30 days late or longer hurts your credit score. It hurts a lot more when an account is sent to collection, so getting those removed from your credit report can help you. One way to do that is to seek a “pay for delete,” a creditor’s agreement to remove the account from your credit report in exchange for payment in full. Not all creditors or collectors are willing to do that, but experts suggest you first pay those that are. You’ll ultimately need to pay everything, but it won’t help your credit score to pay off a collection account that continues to appear on your report. 9

4. Open a secured credit card: If you’re struggling with a low score, experts say that opening a secured credit card can be an effective way to increase your score. To get such a card, you deposit funds and the bank issues a card with a credit limit that’s typically the same as your deposit. If you default, the bank keeps your money. To get the boost to your credit, you’ll need to charge against your deposit and then make your payments on time, to demonstrate responsible credit use. You may get a similar lift by becoming an additional card member on someone else’s account, provided that person has maintained a good payment history. 10

It’s not impossible. Read on to learn how.

You can raise your credit score 100 points overnight if you’re a victim of identity theft. If that doesn’t apply to you, a reality check is in order. Gaining a 100 points overnight is unrealistic. You can expect this increase in 24 months by settling debts and paying bills on time.

Boost credit score overnight

How to boost your credit score overnight:

  1. Dispute all negatives on your credit report
  2. Dispute all excess hard inquiries on your credit report
  3. Pay down your revolving balances (0 is best, 30% is decent)
  4. Pay your bills on time
  5. Have family add you to their cards as an authorized user

Are There Instant Credit Repair Services?

Removing negative items can take several months. Instant is virtually impossible. Sometimes removing the derogatory items can result in a score increase in as little as 72 hours, but the process of removing items still takes a while.

Can I Improve (& Raise) My Credit Score Instantly?

You can raise your score instantly if you’re eligible for credit repair. Removing falsely reported items and derogatory remarks is a quick way to boost your score (FAST). If you aren’t sure how to do it on your own, a reputable company like Credit Glory can make it easy!

How To Improve (& Raise) Your Credit Score Quickly

The best way to boost your credit score instantly is through credit repair. Removing derogatory items on your report can increase your score dramatically. If you aren’t sure how to remove these items on your own, a credit repair expert (like Credit Glory) can help!

Get Your Credit Score Improved Professionally

In some cases, we recommend speaking with a Credit Repair professional to analyze your credit report. It’s so much less stress, hassle, and time to let professionals identify the reasons for your score drop.

If you’re looking for a reputable company to increase your credit score, we recommend Credit Glory. Call them on (833) 461-0151 or setup a consultation with them. They also happen to have incredible customer service.

Credit Glory is a credit repair company that helps everyday Americans remove inaccurate, incomplete, unverifiable, unauthorized, or fraudulent negative items from their credit report. Their primary goal is empowering consumers with the opportunity and knowledge to reach their financial dreams in 2020 and beyond.

How to improve your credit score

Improve your credit score with these functional tips Pickawood//Unsplash

Having a good credit score is crucial if you want to get approved for loans such as home and car loans. Keep in mind that even small money habits can affect your credit score. But if you’re already on the right track and within the higher credit score ranges, you don’t need to do much to improve your good record. Just continue with your healthy money habits to better qualify for the best terms on loans or credit cards, making life a lot easier.

But if you’re looking for ways on how to improve credit score immediately, here are a few tips to help you out.

How to improve your credit score

Improve your credit score by making frequent payments Photo:

1. Make smaller but more frequent payments

Consider making micropayments throughout the month. Set a schedule every payday or every week to pay off a small portion of your credit card debt. Rather than waiting for your credit to inflate, keep your balances low and get a better chance of improving your credit score.

2. Always pay your bills on time

We cannot stress this enough: pay your bills on time. Your payment history is the main factor that affects your credit score. Late payments have a tendency to be retained on your record for years to come. Late payments leave a dent in your credit score that can negatively affect your chances of getting a loan or the best loan terms. If you do miss a payment, be sure to pay it as quickly as you can and continue paying on time for future bills to offset any blunder.

How to improve your credit score

Always check on your credit reports Photo: Ibrahim Boran//Unsplash

3. Check your credit report for any errors

One reason that can affect your credit score is a mistake in your credit report. If you’re looking at how to check your credit score, you can request a credit report check for free on a weekly basis from any of the major credit bureaus such as Equifax, Experian and TransUnion. You can check for errors on late payments or negative antiquated details and report them to the credit bureau for investigation and dispute it to improve your credit score. It’s vital that you check your credit report constantly to find any problems that can be fixed.

4. Request for higher credit limits

Another way on how to improve your credit score fast is requesting for higher credit limits while your balance stays the same. By doing so, you immediately lower your credit utilization which, in effect, increases your credit score. But how do you qualify for a higher credit limit? If card issuers see an increase in your income or you’ve had a winning streak of good credit experience by paying on time, paying more frequently and the like, then you have a better chance of getting a bump up on your credit limit.

5. Don’t close your credit cards

Keep your credit card open and use it periodically to avoid it from being closed by the card issuer. There is a causal relationship between closing your card and it negatively affecting your credit score. This is because by closing a credit card, you lose the card’s limit which you need to reflect a lower balance. When you lose your card’s limit, it can give you a lower credit score once your credit utilization is factored in the calculation.

How to improve your credit score

Ask for higher credit limits to positively affect your score Photo: Jonathan Cooper//Unsplash

6. Learn to diversify

Diversifying your credit means not limiting yourself to just credit cards or loans. Think about what type of credit you don’t have and add it to your portfolio to mix it up a bit. Consider having both loans and credit cards under installment accounts and revolving credit for diversification and improve your chances of getting a better credit score. However, don’t simply take out a loan just to mix up your credit if you can’t afford it. As mentioned, late payments and failure to pay your bills will easily drag down your credit score.

7. Consider a secured credit card

If you’re wondering how to build credit or just increase your credit score, use a secured credit card. A secured credit card is supported by a cash deposit that is paid upfront. The amount of money you deposit will determine your credit limit and is usually the same. Although, you will still need to continue paying your bills on time to drastically raise your credit score. It’s also important to keep in mind when choosing a secured credit card to pick one that reports to all the major credit bureaus so you can easily request your credit report as needed.

8. Examine a debt consolidation

Consider paying off your multiple outstanding debts through a debt consolidation loan from your bank or credit union. This way, you’re only paying off one debt and have the chance to get a lower interest rate on your loan and pay off your debt more quickly. This way, you improve your credit utilization ratio which results in an improved credit score.

How to improve your credit score

It’s vital that you check your credit report constantly if you want to build your credit or improve your credit score. Get help from Credit Karma. Credit Karma helps you check if you have any money in state governments.

When a business owes you money but can’t send it to you, they may turn it over to the state. Then each state holds on to that money and keeps a detailed list of who it belongs to. If some of it is yours, you can file a claim to get it back.

Find out if you have unclaimed money with Credit Karma! It’s absolutely free to use and can help you improve your credit score. Check out Credit Karma here.

Improving your credit score next year could be possible.

How to improve your credit score

Image source: Getty Images.

While it doesn’t influence our opinions of products, we do receive compensation from partners whose offers appear here. We’re on your side, always. See our full advertiser disclosure here .

If your credit score is below 580, that’s generally considered to be a poor credit score. A score this low could mean you have a hard time getting approved for a loan. It could also mean you end up paying a lot of extra interest when you do borrow.

Poor credit scores can happen for a lot of reasons, from a history of late payments to simply having too little information on your credit report. The good news is, you aren’t stuck with poor credit for the rest of your life, even if your score isn’t great right now. There are steps you can take to raise your credit score from poor to good.

In fact, with the right moves, you may be able to hit this milestone in as little as a year. That means you could end 2021 with a credit score that’s a lot better than when you started. Here are a few techniques to try.

1. Ask your creditors for help

Chances are good you have poor credit because creditors are reporting black marks on your history. This might be the result of late payments or even defaulted debt. Removing one or more of these negative remarks could, by itself, be enough to raise your credit score from poor to good.

This isn’t always going to be possible. But there are circumstances where your creditors may work with you. If you have one or two late payments but have otherwise been a good customer, you can write a goodwill letter and ask your creditor if they’ll remove the derogatory information from your credit.

Since a single late payment could cause your score to drop by more than 100 points, the removal of that late payment could be enough to send your score into “good” territory. A good credit score is defined as a score of 670 or higher.

Creditors may even be willing to remove a record of a default under certain circumstances. If you can negotiate with your creditors to make a lump-sum payment for any debt you’re behind on, they might agree to list the account as paid in full on your report. When you make this type of agreement, make sure you get it in writing.

2. Make all your payments on time, all the time

Payment history is the single most important factor that determines your credit score. If your goal is to raise your score from poor to good by 2022, you can’t afford to miss a single payment. To make sure you don’t, consider setting up automatic payments to develop the type of history that should improve your score over time.

If you already have late payments or derogatory information on your credit history, time alone can make those past black marks less important — especially if all of your more recent transactions show you’ve been responsible with borrowing.

3. Make sure all of your positive accounts are listed on your credit record

Services such as Experian Boost allow you to get information added to your credit report that wouldn’t otherwise be on it.

This can include a history of paying utility or phone bills on time. When this information is added to your report, it can show a history of on-time payments (assuming you’ve been responsible with paying your bills). Since payment history is the most important factor in determining your credit score, this can also cause a significant increase in your score.

While simply adding more data to your credit report isn’t going to raise your score from 580 or below to 670 or above, there’s a real chance this could increase your score by around 20 points or so.

4. Pay off debt that you owe

Your credit utilization ratio is another important factor for your credit score. It’s the ratio that compares the amount of available revolving credit you have to the amount of credit you’ve used. Your revolving credit is things like credit cards that change from month to month, rather than, say, a personal loan or mortgage. A ratio above 30% will damage your credit score as it makes lenders concerned you’re in over your head.

If you can pay down your credit card balances, you’ll be able to reduce this ratio and so bring your score up. A maxed-out credit card could cause as much as a 45 point drop in your credit score.

5. Consider becoming an authorized user

One of the single fastest ways to improve your credit score is to piggyback on someone else’s solid payment credit history. You can do that if there’s someone in your life who’s willing to list you as an authorized user on one of their credit accounts.

If you’re listed as an authorized user on a card, the entire history of that card will show up on your credit report. This can help your credit utilization ratio if there’s a lot of available credit on the account. And it can help your payment history if no late payments were ever made on it. If it’s an older account, it can also help make your average age of credit longer, which is another component in determining your credit score.

Being added as an authorized user isn’t a permanent solution, since the benefits of this status would disappear as soon as you were removed from the card. But it can be a great way to quickly raise your score, perhaps even from poor to good — especially when combined with some of the other steps on this list. It could buy you time to develop your own positive payment history and wait for black marks to drop off your report.

Raising your credit score is possible

Raising your credit score from poor to good is definitely doable. And if you’re able to follow most or all of the steps on this list, you should be able to make it happen by 2022.

Even if it takes a little longer, the important thing is to start ASAP and practice responsible borrowing behavior consistently. You’ll achieve that “good” score range sooner rather than later — and perhaps one day you’ll even be able to earn an excellent score.

5 Minute Read | February 25, 2021

How to improve your credit score

We know a simple way to improve your credit score that might surprise you: Pay off your debt, don’t add any new debt, and let your credit score go extinct. It’s time to improve your credit score by getting rid of it.

But don’t worry—having absolutely no credit score is a good thing!

Intrigued? We’ll break it down . . .

What Is a Credit Score?

A credit score is a three-digit number that tells banks and lenders how likely someone is to repay debt. A high score, usually 800 or above, is considered “exceptional” by most credit monitoring agencies. And a much lower score, typically 579 or below, is considered “poor” and will sometimes prevent someone from being able to borrow money. 1

What you need to know is that this number is really just a measure of how comfortable someone is with taking on mountains (and mountains) of debt.

We like to call it the “I love debt score.” And for good reason. Just take a look at how this score is calculated and you’ll understand why.

How Is a Credit Score Calculated?

It might not be as complicated as doing long division—the old-fashioned way with pen and scratch paper—but calculating your credit score does involve a couple of important factors worth noting. According to FICO, there are five things that can impact your score:

  • Payment history (35%)
  • Amounts owed (30%)
  • Length of credit history (15%)
  • New credit (10%)
  • Credit mix (10%) 2

There’s absolutely nothing about a credit score that indicates you are good at handling your finances (like balancing a checkbook or investing in mutual funds). What it really does is monitor how comfortable you are with taking on debt to pay for things over the course of your life.

Get help with your money questions. Talk to a Financial Coach today!

If you happen to have a credit score north of 800, creditors may treat you like royalty and roll out the red carpet at the drop of a hat. But here’s the catch: Your “superior” score in no way, shape or form indicates you are good at handling money. It just means that you are good at borrowing lots of money!

How Do I Improve My Credit Score?

Here are a few things that can improve a credit score:

  • Paying your bills on time
  • Paying off debt
  • Carrying a balance that is less than the credit limit
  • Disputing inaccuracies

But we’ve said it before, and we’ll say it again: The best way to “improve your score” is by ditching your credit altogether. Peace out, credit score—you’ve been dumped! Your financial success depends on the numbers in your bank account, not the numbers on your credit report.

The only way to truly improve your credit score is by paying off debt and committing to a debt-free lifestyle today. As you build up your own financial security, you might see that “all-important” number start to dwindle. But don’t freak out . . . that’s actually when you know you can celebrate. And once those numbers vanish completely, that means you’ve made it. Welcome to your new life of debt freedom and financial security.

But listen closely: While the numbers on your report will lose all meaning, you’ll still want to keep an eye on your credit. Unless you’ve got all your cash buried in the backyard, identity theft and debit card fraud can still catch you off guard. Grab a free copy of your report every year from one of the three major credit reporting agencies—Equifax, Experian and TransUnion—to check for any suspicious activity. 3

So instead of wondering how you might be able to increase your score by a few points or worrying about identity theft, start focusing on building wealth and securing your financial stability for the future of your dreams.

How Do I Build Wealth Without a Credit Score?

Rather than fixating on the things you can’t do without a credit score, think about the things that you can do when you’re free of monthly payments and carry zero debt. Have you always wanted to take a backpacking trip in the south of France? Have you ever wanted to invest in the stock market so you can retire the way you want? Or have you given a thought to saving for your kid’s college education?

Well, when you’re not sending a third (or more) of your paycheck to creditors for all the loans you took out, you’re free to do whatever you please with your income—and that includes investing for the future and giving generously.

Ready to Live Without a Credit Score?

Alright, so by now you know our advice on how to improve your credit score. Spoiler: It doesn’t involve opening up another credit card account or taking out a risky loan on a brand-spanking-new automobile. If you’re looking to improve your credit score, the best thing you can do is pay down all your debts and say goodbye to it altogether.

Ditching your credit score is just one step on the journey toward financial peace. Unsure of how or where to begin? Check out our Getting Started Assessment. We’ll help you figure out where you are with money now so you can get to where you want to be: managing your money like a pro!

How to improve your credit score

About the author

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.