Your credit score plays a major role in your financial life. Whether you're applying for a mortgage, car loan, apartment rental, or even a job, a good credit score can open many doors. But if your score is low or average, don’t worry—there are proven strategies to improve it. This article explores actionable tips to help you increase your credit score and build strong financial health.

1. Check Your Credit Reports for Errors

One of the first steps to boosting your credit score is reviewing your credit reports. You can request a free copy of your report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—at AnnualCreditReport.com. Mistakes like incorrect account balances, outdated personal information, or accounts that don’t belong to you can lower your score.

Dispute any errors you find immediately. Each credit bureau has a simple dispute process you can complete online. Correcting these mistakes can result in a quick score increase.

Key things to check:

• Incorrect account balances
• Duplicate accounts
• Accounts that aren’t yours
• Late payments that were actually paid on time
• Outdated addresses or employment information

2. Pay Your Bills On Time

Your payment history makes up about 35% of your FICO credit score. One late payment can stay on your report for up to seven years, so it’s crucial to make all payments on time.

If you’re forgetful or have multiple bills, set up automatic payments or calendar reminders. On-time payments show lenders you’re reliable and serious about your credit obligations.

Tips for staying current:

• Set up automatic payments
• Use payment reminders through your bank or phone
• Create a monthly bill payment calendar
• Contact lenders immediately if you foresee payment issues

3. Reduce Your Credit Card Balances

Your credit utilization ratio—how much credit you use compared to your total available credit—accounts for about 30% of your FICO score. Keeping your utilization under 30%, or ideally under 10%, will help improve your score.

Let’s say your total credit limit is $10,000. You should aim to carry no more than $3,000 in balances at any time, and paying it off before your billing cycle ends is even better.

Effective ways to lower utilization:

• Pay more than the minimum balance
• Make multiple payments throughout the month
• Ask for a credit limit increase
• Avoid maxing out cards, even temporarily

4. Avoid Opening Too Many New Credit Accounts

While it might be tempting to open new credit cards for rewards or retail discounts, too many hard inquiries can lower your score. Each application causes a small dip in your score, and several in a short period signal financial instability to lenders.

New accounts also lower your average account age, which can impact your score negatively. Be strategic when applying for new credit and only do so when necessary.

When to apply cautiously:

• Only when you truly need new credit
• If you’re shopping for a mortgage or auto loan, group applications within a 14-45 day window
• Avoid applying before major financing decisions

5. Don’t Close Old Credit Accounts

Length of credit history affects about 15% of your credit score. Keeping old accounts open, especially those in good standing, helps show a longer and more stable credit history. Closing old cards can also impact your utilization ratio by reducing your total available credit.

If you must close an account, choose a newer card or one with unfavorable terms. But ideally, keep older accounts open and use them occasionally.

How to make old accounts work for you:

• Use older cards for small recurring bills
• Pay them off in full each month
• Monitor them for fraudulent activity
• Keep accounts active with small transactions

6. Mix Up Your Credit Types

Lenders want to see that you can manage different types of credit, such as credit cards (revolving credit), student loans, mortgages, or car loans (installment credit). A healthy mix can improve your score.

However, don't take on debt just to improve your credit mix. If you already have a credit card and a car loan, you’re likely in good shape. If your profile lacks variety, consider a small credit-builder loan or secured credit card.

Good credit mix examples:

• One or more credit cards
• A car or personal loan
• A mortgage or student loan
• A retail store card or gas card

7. Become an Authorized User on a Trusted Account

If a family member or close friend has a well-managed credit card account, becoming an authorized user can help your score. You benefit from their positive payment history, length of credit history, and low utilization—without being financially responsible for the card.

Make sure the card issuer reports authorized user data to credit bureaus. Also, only become an authorized user on an account with a spotless record.

Things to keep in mind:

• Choose someone who pays on time and keeps low balances
• Verify the issuer reports authorized user info
• Monitor the account’s impact on your credit

8. Negotiate with Creditors or Use a Hardship Program

If you're struggling to make payments, many lenders offer hardship programs that can help. These plans may temporarily reduce your payments, waive late fees, or offer deferral options without reporting negatively to the credit bureaus.

You can also negotiate with creditors to remove late payments in exchange for immediate payment or a payment plan. Known as a goodwill adjustment, this can boost your score if successful.

Hardship options may include:

• Temporary payment reductions
• Deferred payment schedules
• Waived late fees or interest
• Lower minimum payments

Use a Secured Credit Card to Rebuild Credit

If your credit is poor or you’re new to credit, a secured credit card can help build your score. With a secured card, you place a refundable security deposit that becomes your credit limit. Use the card responsibly and make timely payments—your activity is reported to credit bureaus just like a regular card.

After several months of good use, you may qualify for an unsecured card or get your deposit back.

Tips for using secured cards:

• Use only a small portion of your limit
• Always pay on time and in full
• Choose a card with low fees
• Upgrade to unsecured when eligible

Monitor Your Credit Regularly

Monitoring your credit helps you stay on top of your score and catch problems early. Many banks and apps offer free credit score tracking. Monitoring also alerts you to identity theft, unauthorized activity, or sudden score drops.

Being aware of your credit status keeps you motivated and informed, helping you stay on the path to better credit.

Tools for credit monitoring:

• Credit Karma or Credit Sesame
• FICO Score monitoring from banks
• Identity theft alerts
• Annual credit report checks

Conclusion

Improving your credit score isn’t a one-time action—it’s a journey. By understanding how scores work and taking smart, consistent steps, you can build a stronger credit profile over time. Start by checking your credit reports, paying your bills on time, keeping balances low, and making strategic credit choices. With time and dedication, a higher score is within your reach, and it can unlock better financial opportunities and peace of mind.