How to Improve Your Credit Score: 10 Steps That Work

Editorial note: This guide is for general education, not individualized financial advice. We independently research every topic and cite our sources. Our editorial standards · How we make money.

A better credit score can lower the interest you pay on car loans, mortgages and credit cards, and make it easier to rent an apartment. The good news is that credit scores respond to a small number of habits, and some changes can show results quickly. The bad news: there are no legitimate shortcuts for erasing accurate negative history.

This guide gives you a ten-step plan, ordered roughly from fastest impact to longest-term. If you are not yet sure how scores are calculated, read how credit scores work first.

Step 1: Get all three credit reports

Your score is calculated from your credit reports, so start there. Download your free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com, the only site authorized by federal law for free reports. Free weekly access is available.

Review each report separately. Information can differ between bureaus because not every lender reports to all three.

Step 2: Dispute errors

Errors are more common than many people expect. Look for:

• Accounts you did not open (possible identity theft)
• Late payments you believe were on time
• Incorrect balances or credit limits
• Duplicate accounts or debts listed twice
• Old negative items that should have aged off (most after seven years)
• Personal information that is not yours

Under the Fair Credit Reporting Act, you can dispute inaccurate information with the credit bureau and with the company that furnished it. The bureau generally must investigate within 30 days. Include copies of supporting documents and keep records of everything you send. The FTC offers step-by-step dispute instructions and sample letters.

Our guide on how to read a credit report walks through each section of a report so you know what to look for.

Step 3: Never miss another payment

Payment history is the largest factor in FICO scores. A payment that is 30 or more days late can be reported to the bureaus and cause a significant drop — often larger for people who had excellent credit before.

• Set up autopay for at least the minimum payment on every card and loan.
• Add calendar reminders a few days before each due date.
• Ask to change due dates so they align with your paydays.
• If you miss a payment, pay it immediately. A payment that is a few days late usually will not be reported to the bureaus if you pay before it reaches 30 days, although you may owe a late fee.
• If you have a long, clean history, you can ask the lender for a goodwill adjustment on an isolated late payment. They are not required to agree.

Step 4: Pay down credit card balances

Credit utilization — your card balances relative to your limits — is the second most important factor, and it is the one you can change fastest.

Moving from 60% to under 10% utilization can make a meaningful difference. Because most scoring models look only at the current balances reported, the improvement can appear as soon as your issuers report the lower balances.

If you cannot pay everything down at once, use the credit card payoff calculator to plan payments, and read how to pay off credit card debt.

Step 5: Time your payments to the statement date

Card issuers usually report your balance to the bureaus around your statement closing date, not your due date. That means even if you pay in full every month, a large balance can be reported if you charge a lot before the statement closes.

To report a lower balance:

• Make a payment a few days before the statement closing date.
• Or make smaller payments throughout the month.

Step 6: Keep individual cards below their limits

Scoring models look at utilization on each card as well as overall. A single maxed-out card can hurt even if your total utilization is moderate. Spread balances out or pay down the card closest to its limit first.

Step 7: Consider a credit limit increase — carefully

A higher limit lowers your utilization ratio, as long as your spending does not rise with it. Many issuers let you request an increase online. Ask whether the request will cause a hard inquiry. Do not request an increase if a higher limit would tempt you to spend more.

Step 8: Limit new credit applications

Each application for new credit usually creates a hard inquiry, which can lower your score slightly for up to a year. New accounts also reduce the average age of your accounts.

• Apply only for credit you need.
• Use prequalification tools that rely on soft inquiries to gauge approval odds.
• When shopping for a mortgage, auto or student loan, do it within a short window so inquiries are treated as one.

Step 9: Keep old accounts open

The length of your credit history matters. Your oldest card may be doing quiet but valuable work. If it has no annual fee, keep it open and use it for a small recurring charge — then pay it off automatically — so the issuer does not close it for inactivity.

If an old card has a high annual fee you no longer want to pay, ask the issuer about switching to a no-fee card in the same family, which often keeps the account history intact.

Step 10: Add positive history if your file is thin

If you have few accounts, adding positive history helps:

• Become an authorized user on a family member’s well-managed card.
• Open a secured card and use it lightly.
• Take out a credit-builder loan from a credit union.
• Report rent payments through a rent-reporting service or your landlord.

See how to build credit for a detailed comparison.

What to expect: realistic timelines

Avoid credit repair scams

Be wary of companies that:

• Ask for payment before doing any work (illegal under the Credit Repair Organizations Act)
• Promise to remove accurate negative information
• Tell you not to contact the credit bureaus yourself
• Suggest creating a “new credit identity” — which is illegal

Everything a legitimate credit repair company can do, you can do yourself for free by disputing errors directly.

The bottom line

Improving your credit is mostly about repetition: correct errors once, then pay on time and keep balances low month after month. The quickest wins usually come from lower utilization; the most lasting gains come from years of clean payment history. Keep learning in our credit scores section and the broader credit hub.

This guide is part of our Credit & Credit Cards hub and our complete personal finance guide. Spot an error? Request a correction.