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Your credit score is more than just a number—it's a reflection of your financial habits and a deciding factor in many life milestones. Whether you're looking to buy a home, finance a car, or simply get better interest rates, a solid credit score can open doors. The good news? Even if your score isn’t where you want it to be, there are practical steps you can take to improve it.
Here are 10 proven strategies to help you raise your credit score, build financial stability, and move closer to your long-term goals.
1. Review Your Credit Reports for Mistakes
Before you try to improve your credit, it's crucial to know exactly what you're working with. Your credit reports from the three major credit bureaus—Equifax, Experian, and TransUnion—contain the details that influence your score.
What to do:
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Request a free copy of your credit reports You can get one from each bureau every 12 months.
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Go through each report line by line. Check for:
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Incorrect balances or account statuses
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Duplicate accounts
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Payments marked as late that you paid on time
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Accounts you don’t recognize (possible fraud)
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If you find any errors, file a dispute with the bureau reporting the mistake. They typically have 30 days to investigate and respond.
Why it matters:
Correcting just one major error—like a false delinquency or duplicate debt—can give your score an immediate lift.
2. Pay Every Bill on Time
Timely payments are the single biggest factor in your credit score, making up 35% of your total. A consistent record of on-time payments shows lenders you’re dependable.
How to stay current:
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Automate payments for credit cards, loans, and utilities.
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Set up text or app alerts for due dates.
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Consider using a budgeting app that tracks and reminds you of bills.
If you’re behind:
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Contact the creditor right away to work out a payment plan.
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Some lenders may offer hardship programs or waive fees if you explain your situation.
Missing a payment—even by a few days—can impact your score and stick around on your report for years. Consistency is key.
3. Keep Your Credit Usage Low
Another major credit scoring factor is credit utilization, which is the percentage of your available credit that you're currently using. This accounts for 30% of your score.
Best practices:
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Try to keep your credit utilization under 30%, and ideally below 10%.
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If possible, pay your credit card balances in full each month.
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Spread out purchases across different cards to avoid high utilization on any one card.
Example:
Let’s say you have a $5,000 total credit limit and owe $1,500. That’s 30% utilization. Paying down $1,000 would bring it to 10%, giving your score a significant boost.
4. Be Selective When Applying for New Credit
Every time you apply for a loan or credit card, a hard inquiry shows up on your report. Too many inquiries in a short period can make you look like a riskier borrower and ding your score.
Do this instead:
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Limit new credit applications unless absolutely necessary.
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When shopping for big loans (like auto or mortgage loans), do it within a short window—usually 14 to 45 days—so inquiries are treated as one for scoring purposes.
It’s tempting to open new cards for rewards or store discounts, but doing so too often can hurt more than help.
5. Keep Old Credit Accounts Open
Length of credit history makes up about 15% of your score. The longer your accounts have been active, the better they look to lenders.
Why it’s important:
Closing old credit cards can shorten your average account age and reduce your overall available credit—both of which can hurt your score.
Tip:
Even if you’re not using a card anymore, consider keeping it open and using it occasionally for small purchases. Just make sure to pay it off in full.
6. Add Variety to Your Credit Portfolio
Credit scoring models like to see that you can handle different types of credit responsibly. This diversity is called your credit mix, and it makes up 10% of your score.
Types of credit:
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Revolving credit (e.g., credit cards)
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Installment loans (e.g., student loans, personal loans, auto loans)
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Mortgage or home equity loans
Ways to improve:
If you only have one kind of credit (like a single credit card), consider adding a new type—but only if you need it and can manage it responsibly.
7. Become an Authorized User on Someone Else’s Account
A lesser-known yet powerful way to build credit is to be added as an authorized user on someone else’s credit card, especially someone with a strong payment history and low credit utilization.
How it helps:
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The account’s history appears on your credit report, even if you never use the card.
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It can quickly add positive data to a thin or struggling credit file.
Choose carefully:
Only go this route with someone you trust, because if they rack up debt or miss payments, your score could take a hit too.
8. Use Tools Designed to Build Credit
If you’re just starting out or rebuilding after setbacks, you don’t have to go it alone. There are specific financial products designed to help you safely build credit.
Two great options:
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Credit Builder Loans: Offered by credit unions and fintech lenders, these loans hold your payments in a savings account until you’ve paid off the full amount. The lender reports your payments to the credit bureaus.
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Secured Credit Cards: You provide a refundable deposit as collateral, and the issuer gives you a card with a matching limit. Use it wisely and pay it off each month to build a positive history.
These tools are low-risk ways to show lenders you’re reliable.
9. Resolve Past-Due Accounts and Collections
Accounts in collections or charge-offs can do serious damage to your score. But even these can be managed—and in some cases, removed from your report.
What you can do:
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Contact the creditor or collections agency to settle the debt.
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Ask for a “Pay for Delete” agreement in writing, where they agree to remove the negative mark once payment is made.
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Pay off collections, especially on newer credit scoring models (like FICO 9 or VantageScore 3.0), which ignore paid collection accounts when calculating scores.
Note:
Getting collections resolved won't erase all the damage, but it can reduce its impact over time—and it looks better to lenders.
10. Stay Committed and Give It Time
Rebuilding or growing your credit score doesn’t happen overnight. It takes consistency, planning, and sometimes a bit of patience.
What to expect:
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Small improvements may show within a few months.
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Significant score increases may take 12 to 24 months, especially if you're recovering from major negative marks.
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Responsible habits—on-time payments, low balances, and limited applications—add up over time.
Final reminder:
Think of your credit score like your financial reputation. It’s built through steady, responsible behavior—not quick fixes. But with the right strategy, progress is always possible.
Conclusion
Improving your credit score might seem complex, but it's really about sticking to the fundamentals. By checking your reports, paying on time, keeping balances low, and using credit wisely, you'll gradually build a stronger financial foundation.
Each of these 10 steps is manageable on its own. Together, they create a powerful roadmap to better credit and greater financial opportunities. Start today, stay the course, and let your credit score reflect the responsible choices you’re making now for a better financial future.
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