How to Improve Your Credit Score
A step-by-step guide with realistic timelines and honest advice. No guarantees, no hype — just what actually works.
Your credit score is based on five main factors: payment history (biggest), how much of your available credit you're using, how long you've had credit, the mix of account types, and recent applications. To improve it, focus on paying on time, keeping balances low, and giving it time. There are no shortcuts — but there are clear steps that work.
What Affects Your Score
Your credit score comes from information in your credit reports. Here's what matters most:
Biggest Factor
Do you pay your bills on time? Late payments hurt your score. The more recent and severe the late payment, the bigger the damage.
Second Biggest
How much of your available credit are you using? If you have a $1,000 limit and a $900 balance, that's 90% — too high. Aim for under 30%.
Important
How long have you had credit accounts? Older accounts help your score. This is why closing old cards can sometimes hurt you.
Moderate Impact
Do you have different types of credit (cards, loans, etc.)? A healthy mix can help, but don't open accounts just for variety.
Minor Impact
Each time you apply for credit, it can cause a small, temporary dip. Too many applications in a short time looks risky.
First, Do This
Before you try to improve your score, you need to know where you stand.
Go to AnnualCreditReport.com — the only official source for free reports from all three bureaus (Equifax, Experian, TransUnion). You can get one free report from each bureau every week.
Why all three? Different lenders report to different bureaus. An error might show up on one report but not another.
Check each report carefully for:
- Accounts you don't recognize
- Wrong balances or credit limits
- Late payments you actually made on time
- Accounts listed as open that you closed
- Personal information errors (wrong address, wrong name spelling)
Don't try to fix everything at once. Pick the ONE thing that will have the biggest impact and focus on that first. Usually that's either:
- Catching up on any past-due payments
- Paying down high credit card balances
- Disputing a clear error
Next Steps: Your Action Plan
Follow these steps in order for the best results.
If you have past-due accounts, getting current is your top priority.
What to do:
- List all past-due accounts with amounts owed
- Contact creditors to ask about payment plans
- Prioritize accounts that aren't yet in collections
- Set up autopay once you're current to avoid future late payments
Reality check: A late payment stays on your report for 7 years, but its impact fades over time. Getting current stops the bleeding.
High credit card balances are one of the fastest things to fix.
What to do:
- Calculate your utilization: (total balances ÷ total limits) × 100
- Pay down the card with the highest utilization first
- Consider making payments twice a month to keep balances low
- Ask for a credit limit increase (but don't spend more!)
- Keep old cards open even if you don't use them
Target: Under 30% is good. Under 10% is excellent. 0% on all cards except one small recurring charge is ideal.
If you find errors on your reports, you have the right to dispute them.
What you CAN dispute:
- Accounts that aren't yours
- Incorrect balances or payment history
- Accounts showing as open when you closed them
- Duplicate accounts
- Outdated information that should have fallen off
What you should NOT dispute:
- Accurate negative information (even if it hurts)
- Legitimate debts you owe
- Information you just don't like
If you have thin or damaged credit, you need to add positive accounts that report to the bureaus.
Secured Credit Cards
You put down a deposit that becomes your credit limit. Use it for small purchases and pay in full each month.
Credit Builder Accounts
You make payments into a savings account, and when you're done, you get the money. Payments get reported.
Rent Reporting Services
If you pay rent on time, some services will report those payments to credit bureaus.
Authorized User (Carefully)
If a trusted family member adds you to their card, their payment history may appear on your report.
Don't close old credit cards
Even if you don't use them, old accounts help your credit age and total available credit.
Don't apply for too much credit at once
Each application can cause a small score drop. Space out applications by at least 6 months.
Don't fall for payday loans
These often trap people in cycles of debt and don't help build credit.
Don't pay for guaranteed credit repair
Anyone guaranteeing specific score increases is lying.
No Credit Score? Start Here
If you have a "thin file" (not enough credit history for a score), you're not alone. Here's how to build credit from scratch.
- 1
Start with a secured card or credit builder account
These are designed for people with no credit history.
- 2
Become an authorized user
If a family member with good credit adds you to their card, you may inherit some of their history.
- 3
Report your rent payments
Services like Boom or RentReporters can add your rent history to your credit file.
- 4
Get a credit-builder loan
You make payments into a savings account while building credit. At the end, you get the money.
- 5
Be patient
It typically takes 3–6 months of activity to generate your first score.
Important: Only open accounts you can manage responsibly. One missed payment can set you back significantly when you're just starting out.
How Long Does It Take?
There's no magic timeline — it depends on what's in your credit file.
| Situation | Typical Timeline |
|---|---|
| Paying down high credit card balances | 30–60 days to see impact |
| Building first credit score from scratch | 3–6 months |
| Recovering from a single late payment | 6–12 months for significant improvement |
| Recovering from collections or charge-offs | 1–3 years for major improvement |
| Waiting for negative items to fall off | 7 years for most items, 10 for bankruptcies |
Scam Radar: Protect Yourself
The credit repair industry has a lot of bad actors. Here's how to spot them.
- "We guarantee we can raise your score by X points" — No one can guarantee this.
- "We can remove accurate negative information" — This is illegal.
- "Get a new credit identity with a CPN" — CPNs are often stolen SSNs. Using one is federal fraud.
- "Pay us upfront before we do any work" — Legitimate companies can't charge until they've performed services.
- "Don't contact the credit bureaus yourself" — You have every right to dispute errors yourself for free.
- Pressure tactics or urgency — "Act now or lose this opportunity" is a sales tactic, not help.
- Nonprofit credit counseling (NFCC) — Free or low-cost help
- HUD-approved housing counselors — Free help, especially for homebuyers
- CFPB guides and FTC resources — Excellent free DIY guides
Frequently Asked Questions
This guide provides educational information only. We are not financial advisors, credit repair companies, or legal professionals. Results vary based on your individual situation. Always verify terms and pricing directly with service providers.