How-to
How to Improve Your Credit Score: 8 Steps That Work
🇩🇪 Diesen Artikel auf Deutsch lesenPay every bill on time, keep credit card balances well below 30% of your limits (under 10% is even better), and check your credit reports for errors. Utilization changes can lift your score within a month or two; a record of on-time payments builds it over time.
A better credit score means lower interest rates on mortgages, car loans and credit cards — and in most states, lower insurance premiums. The difference between a fair and an excellent score can be worth tens of thousands of dollars over a mortgage.
What makes up a FICO score
| Factor | Weight |
|---|---|
| Payment history | 35% |
| Amounts owed (utilization) | 30% |
| Length of credit history | 15% |
| New credit | 10% |
| Credit mix | 10% |
Two factors — paying on time and keeping balances low — account for nearly two thirds of the score. That is where to focus.
Step by step
- Get your free credit reports
You can get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com, the official site authorized by federal law.
- Dispute any errors
Look for accounts that are not yours, wrong balances and late payments you did not make. Dispute errors online with the bureau that shows them and keep copies of your documents.
- Set up automatic minimum payments
One payment that is 30 or more days late can drop a good score significantly. Autopay for at least the minimum prevents that.
- Lower your credit utilization
Utilization is your card balances divided by your total limits. Keep it below 30%, ideally below 10%. Paying before the statement closing date lowers the balance that gets reported.
- Ask for a higher credit limit
A higher limit with the same spending lowers utilization. Ask whether the issuer will do a 'soft pull' that does not affect your score.
- Keep old accounts open
Closing your oldest card can shorten your credit history and raise utilization. If it has no annual fee, keep it and use it occasionally.
- Limit new applications
Each application can cause a hard inquiry. Rate shopping for a mortgage or auto loan within a short window usually counts as one inquiry.
- Build credit if you have little history
A secured credit card or a credit-builder loan reports on-time payments and helps you establish a score.
How long does it take?
- Lower utilization: visible as soon as issuers report new balances, often within 30–60 days.
- Fixing a reporting error: bureaus generally have 30 days to investigate a dispute.
- Late payments: stay on your report for seven years, but their impact fades as you add on-time history.
Paying down card balances helps your score and saves interest at the same time:
Credit Card Payoff CalculatorHow long until your card is paid off?Try the calculator →Frequently asked questions
Does checking my own score hurt it?
No. Checking your own credit is a soft inquiry and has no effect on your score.
Should I pay off collections?
Newer scoring models such as FICO 9 and VantageScore 3.0 and 4.0 ignore paid collection accounts, but older models used by many mortgage lenders may not. Ask the collector for a written agreement before paying.