How to Improve Your Credit Score: Short- and Long-Term Strategies

One of the best ways to save money over the course of your lifetime is learning how to improve your credit score. Having good credit enables you to qualify for the most competitive interest rates, which can save you thousands of dollars when it comes to refinancing loans or making large purchases like buying a house or car.

Below, we’ll share dozens of strategies to improve your credit score, from quick fixes to long-term habits that can raise your credit score over time. We will also answer common credit score questions and debunk long-held myths about credit scores.

Table of Contents

Factors that affect your credit score

According to FICO, the credit scoring model that 90% of top lenders use, here are the main factors that affect your credit score.

Payment history (35%): Paying your bills on time, every time, is the most important factor in keeping a high credit score. Late payments can stay on your credit report for seven years.
Credit utilization (30%): Your credit utilization is your debt-to-credit ratio, that is, how much of your available credit you are using by carrying a loan or credit card balance. Although many experts recommend keeping your utilization below 30% of your available credit, FICO recommends keeping it below 10%.
Length of credit history of (15%): This is one part of your credit score that takes time to build and is the reason you shouldn’t close your oldest credit account.
Credit mix (10%): Having student loans, credit cards, personal loans, and a mortgage shows a good credit mix and indicates to lenders you can handle several different types of credit.
Credit inquiries (10%): Having a significant number of credit inquiries raises a red flag for lenders because it shows you might be struggling financially.

Other important tips

Checking your own credit score does not harm your credit. You can get free weekly credit reports from Equifax, Experian and TransUnion at AnnualCreditReport. Many credit card companies also include a free credit score as an account benefit.
You do not need a balance on your credit card to have a good credit score.
Instead of closing credit cards to avoid an annual fee, call your credit card company and ask if you can downgrade to a card with no annual fee.

Quick wins: How to improve your credit score fast

These strategies can improve your credit score as soon as by your next billing cycle. Of all the tips listed, these are the fastest ways to improve your credit score.

Check for credit report errors: A recent Consumer Reports investigation found that almost half of credit reports have mistakes. Fixing errors and contesting credit tradelines that aren’t yours can immediately improve your score.
Request a credit limit increase: Another fast way to improve your credit score is to call your credit card companies and ask for a credit limit increase. Make sure they only conduct a soft pull. Increasing your credit limit improves your debt-to-credit ratio and thus, your credit utilization.
Pay down credit card balances: Reducing your credit card balances to 10% or less credit utilization can boost your score.
Move your balance to a personal loan: If you can’t pay down your high-interest credit card debt, consider refinancing it to a personal loan. This will improve your credit mix and utilization.
Become an authorized user: If you have a friend or family member who wants to help you improve your credit, they can add you as an authorized user to their credit card. This goes on your credit report and can improve your credit utilization if their card has a high limit and no balance.
Report your utility payments: Some programs, such as Experian Boost and Ultra FICO, will report your utility and phone payments to credit bureaus, which can help your payment history. Be sure to read the terms of these programs before signing up.

Short-term strategies: How to improve your credit score in 30 days to 3 months

These strategies can help you improve your credit score in one to three months.

Create a payment plan: There are several different debt payment strategies, including the debt snowball method and the debt avalanche method. Choose a debt repayment plan that helps you pay down your debt the fastest.
Make payments twice a month: The lower your balance is before your statement closes, the better your debt utilization will be.
Set up autopay: Missing payments can have a negative effect on your credit score. Set up autopay to make sure you always pay on time. You can set your autopay to pay the minimum balance if you’re worried you won’t have enough in your account to pay it in full.
Tackle collections accounts: Contact collections agents and negotiate to settle your accounts.
Use a credit building loan: Credit builder loans are designed to help you improve your credit score. Many of them allow you to apply with no credit check.
Build an emergency savings: Having an emergency savings account can prevent you from going further into debt. A starter $1,000 savings account can help you handle small home or car repairs.

The time frame for improving your credit score depends on your level of debt or the credit you need to build. I set an expectation of six to 18 months.
Erin Kinkade, CFP®

Erin Kinkade , CFP®, ChFC®

Long-term strategies: Build a strong credit foundation

Here are several long-term strategies to create (and keep) a good credit score.

Establish a positive payment history: Because your payment history is the largest portion of your credit score, paying bills on time every month is vital.
Diversify your credit mix: While you don’t need to take out a new loan just to improve your credit mix, you can strategically diversify the type of credit you use when it makes sense. For example, you can consolidate credit card debt into a personal loan, take out a student loan if you need one for school, or use an auto loan to help you afford a car.
Keep old accounts open: Because the age of your credit factors into your score, do not close old accounts, even if you don’t use them.
Avoid unnecessary hard inquiries: While inquiries don’t make up a large part of your credit score, it’s still wise to limit the number of times you apply for new credit.
Refinance to pay off debts faster at lower rates: Consider refinancing your student loans if you can get a lower rate (just be aware of what federal protections you might lose if you refinance your federal loans to private loans). You can also refinance a car loan if you find a better rate.
Consolidate debts: Consolidating high-interest credit card debt into a personal loan can help you reduce your debt-to-credit ratio and improve your credit mix at the same time.

How to improve your credit score with collections

According to the Consumer Finance Protection Bureau, the number of past-due accounts in collections on credit reports has declined by 33% since 2018. This is primarily due to the decline of medical debt reporting on credit reports.

In April 2023, the three main credit bureaus began removing medical debt collections under $500 from credit reports. In June 2024, the White House announced a new initiative to remove all medical debt from credit reports.

Follow these steps

If you want to improve your credit score with collections, complete these steps.

Verify the debt in collections on your report is legitimate.
If you have a medical debt under $500 in collections, call or write to each credit reporting agency and ask for it to be removed.
Work with non-medical debt creditors and negotiate with them to settle your accounts. While your debt and payment history won’t be removed for seven years, your account will show the debt as settled.
Regularly monitor your report to ensure you don’t have any new accounts in collections.

How to improve your credit score without a credit card

If you want to improve your credit score without using a credit card, you have a few options.

Apply for a credit builder loan: A credit builder loan can help you establish credit or repair damaged credit. You’ll send in monthly payments, which are kept in a separate account. The lender reports each payment to the credit bureaus to help you establish a payment history. See our recommendations for the best credit builder loans.
Report your rent to the credit bureaus: Some landlords might offer this service, but if yours doesn’t, you can use Rent Reporters, Boom, or Rock the Score.
Report alternative payments: Use rent or utility reporting services such as StellarFi or ultraFICO to add positive data to your credit file.
Pay installment loans on time: Pay your student loans, car loans, and mortgages on time to create a positive payment history on your credit report.
Become an authorized user on someone else’s card: A friend or family member can add you as an authorized user to their credit card.

Leverage credit cards responsibly

If you have credit cards, here are a few tips to help you use them responsibly to build (or keep) a good credit score.

Pay off your balance at the end of each month.
Only put purchases on the card if you have the money to pay it off (versus putting expenses on a card hoping to pay it with a future paycheck.)
Avoid maxing out your credit card limit.
Apply for a secured card if you are new to building credit or restoring bad credit.
If you carry credit card balances with high interest rates, consider moving your balances to a 0% introductory rate credit card to pay down your debt faster.

How to improve your credit score to buy a house

A good credit score can save you thousands of dollars in interest costs when you buy a house. It’s worth it to improve your credit as much as possible before you start house hunting.

How fast you improve your score depends on the amount of high-interest debt you have and your payment history, but you can typically see results in a few months. Here’s where to start.

Check your credit report for free at AnnualCreditReport, and make sure it’s up to date and accurate.
Address any adverse accounts, which are often at the top of your report. Work with collections agents to settle your debt and remove them from your report.
Speak to more than one mortgage lender to understand their requirements. Ask what credit scores generally qualify for the best interest rates.
Work hard to pay down as much debt as possible before applying for a mortgage. Debt can harm your debt-to-credit ratio and your debt-to-income ratio.
After getting preapproved for a mortgage, avoid taking on new debt or submitting new credit inquiries until after you’ve closed on your house.

How to monitor and maintain your credit score

Maintaining a strong credit score is just as important as building it. Here are the best ways to keep your score high and avoid common pitfalls:

Check your credit score often: Use free credit monitoring services, such as Credit Karma, or your credit card provider’s tools. Regularly reviewing your credit report helps you catch errors or unauthorized activity early.
Check all three major credit bureaus at least once a year: View your credit reports with Equifax, Experian, and TransUnion through AnnualCreditReport. Look for inaccuracies, and dispute them immediately.
Avoid missing payments: Even one late payment can do significant damage to your credit score. Set up autopay to ensure on-time payments for all your accounts.
Keep old accounts open: Even if you don’t use them, old credit cards contribute to your credit history length and available credit.
Don’t max out your credit: High utilization can harm your score. Aim to use less than 30% of your available credit. (So if your credit limit is $10,000, aim to keep your balance under $3,000.)
Monitor your debt-to-income ratio: Though not part of your credit score, lenders review your DTI when approving loans. Keeping it below 36% can improve your financial stability.
Set long-term goals: Aim to maintain a FICO credit score of 740 or higher. High scores unlock better loan terms and lower interest rates.

Tracking and monitoring your credit score is important for many reasons. It helps keep a pulse on your financial health. It also helps detect fraud. With fraudulent activity prevalent and becoming more sophisticated, it is critical to detect and correct fraud and incorrect adverse reporting on your credit report (which will affect your credit score).

At the end of the day, your credit score and report influence your long-term financial goals (which could include employment!) and your creditworthiness.
Erin Kinkade, CFP®

Erin Kinkade , CFP®, ChFC®

Know when to seek professional help

If you’re overwhelmed or unsure how to improve your credit score, professional assistance might be the best option. Here are ways experts can help:

Credit counseling services: Credit counselors can provide personalized advice on managing your debts and improving your credit. They may help you create a manageable budget, negotiate with creditors to lower interest rates or payments, or develop a debt management plan to consolidate payments without taking out new loans.
Debt relief programs: Debt relief companies specialize in helping consumers negotiate with creditors to settle debts for less than the full balance. This can be a longer-term option to improve credit scores for those facing significant debt, especially unsecured obligations such as credit cards or medical bills.

You can avoid credit repair scams by ensuring that you’re dealing with a reputable company. National Debt Relief is the highest-rated debt relief company of those we evaluated, so we think it’s an excellent place to start if you think settling your debts for less than you owe makes sense.

However, be aware that debt relief programs can initially harm your credit score because this strategy involves not making payments on your debt before beginning negotiations on your behalf.

The Best Debt Relief Companies of 2025

FAQ

How long does it take to improve your credit score?

The time it takes to improve your credit score depends on your starting point and the actions you take. Positive changes, such as paying down credit card balances or disputing errors, can improve your score within a few months.

However, addressing deeper issues, including missed payments or collections, may take longer—often six months to a year or more—to see significant changes.

How do collections affect your credit score, and how can you recover?

Collections can tank your credit score: They indicate serious delinquency. To recover, start by negotiating with the creditor or collection agency to pay off or settle the debt. Some agencies may agree to remove the collection from your credit report upon payment, which can help restore your score faster.

Over time, maintaining on-time payments and reducing overall debt will offset the impact of past collections.

Can I improve my credit score without a credit card?

Yes, you can improve your credit score without a credit card by focusing on other forms of credit. For example, making consistent payments on installment loans (student loans or auto loans) helps build a positive payment history. Adding a credit builder loan or becoming an authorized user on someone else’s account can also improve credit without requiring your own credit card.

What are the best ways to improve your credit score with student loans?

Making on-time payments on student loans is crucial for improving your credit score. Payment history is the most significant factor in credit scoring. If you’re struggling to meet payments, consider income-driven repayment plans to avoid late payments or delinquencies.

Refinancing student loans to lower your interest rate can also make payments more manageable, helping you maintain a positive credit record over time.

How can I instantly improve my credit score?

Instant improvements are rare but possible in some cases. For example, disputing errors on your credit report and having them removed can boost your score right away. If you have access to funds, paying down high credit card balances can significantly lower your utilization ratio, resulting in a near-immediate score increase.