Editor’s Note: This post has been updated with the latest credit card information.
A low credit score can seriously affect your life. It may prevent you from getting some Our favorite credit cards and affect your ability to get a home or car loan.
Fortunately, no one can suffer from a low credit score forever. There are several things you can do to raise your score and keep it where you want it to be.
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Here’s how to improve your credit score.
Your credit check
The first day, check your free credit report across all three offices (Equifax, Experian and TransUnion) to see what might drag your score down. Check to make sure everything is correct and dispute any errors you see.
If you see a particular area that is lowering your score, focus on whatever you need to do to improve that area. For example, if you have a number of late payments that lower your score, you’ll want to focus on setting up a system to make sure you pay all your bills on time. This is the simplest way to improve your credit score.
Related: How to check your credit score for free
Make the most of your checking account
Banks are your best friend if you want to improve your credit score. Use your checking account to set up automatic minimum payments on every account you have. Remember that payment history accounts for about 35% of your credit score, which makes it the most important factor.
Mistakes still exist on your credit report, and the best thing you can do for your credit score is avoid them. Many banks offer budgeting tools to help track spending and savings.
Related: How to set up automatic payments for all your credit cards
Keep credit usage low
The amount of available credit you use affects your credit score. Try to keep it as low as possible, but definitely work to keep it below 30%.
If you need adjustment use credit, consider paying off high account balances before they’re due. You can also call your bank to Request a credit increase. Either of these actions will reduce your credit usage and help improve your credit score.
Related: Here’s Why You Should Never Turn Down Your Credit Line Up
Earn credits to pay your bills and maintain a bank balance
If you don’t have a good credit history, consider Experian Boosta free service to add utilities and telecom payments to your Experian credit profile to build a payment history.
If you are a saver and have a healthy bank balance history, UltraFICO may be an option for you. UltraFICO considers test and savings information when calculating scores.
Become an authorized user
If you know someone with a high credit limit, ask if they’d be willing to add you as an authorized user on one of their credit cards. They can do this without having to give you the card.
As an authorized user, your name will be added to your account and it will contribute to your credit report. Therefore, the good credit of the primary cardholder will positively impact your credit score.
This is one of the easiest things you can do to improve your credit score.
Avoid canceling your credit card
The age of your credit line matters when it comes to your credit score. For this reason, you want to keep your credit line open to increase your credit age.
If you find that you no longer use your credit card enough to prove annual feechoose to downgrade to a free or lower annual fee card instead of closing the account.
For example, if you have Chase Sapphire Reserve®you can request to downgrade it Chase Sapphire Preferred® Cardhave a much lower annual fee or Chase Freedom Flex℠, no annual fee. This will allow you to increase your credit age and improve your credit score while reducing your annual cost.
Related: Should I cancel my credit cards if I don’t use them anymore?
How long does it take to improve my credit score?
It takes a while to fix a damaged credit report. Debts – typically reported to credit bureaus after two consecutive late payments – remain on your report for seven years. Questions can stay on your credit report for up to two years.
Since this takes some time, it’s important to maintain good credit habits. By regularly implementing as many of these tips as possible, you’ll be on a solid path to getting and keeping a better credit score.
Key point
If a low credit score is negatively affecting your life, you’re not alone. However, you can and should take steps to improve it.
Follow our recommendations on how to improve your credit score outlined above, and you’ll be well on your way to achieving and keeping a good credit score.
If you want to learn more about credit scores, check out these links:
Additional reporting by Benét J. Wilson.
