5 Actions You Can Take to Improve Your Credit Score

Improving your credit is not about chasing hacks. It is about changing the signals your credit file sends to most lenders, then giving those changes time to show up in your credit score. If you focus on the right handful of behaviors, you can improve your credit score, reduce higher risk flags, and qualify for better terms on a loan or credit card.

Below are five primary actions you can take, followed by a few targeted steps that help you keep the progress.

Know what your credit score measures before you try to improve it

Your credit score is a shortcut lenders use to make credit decisions. It reflects patterns in your credit history, including payments, balances, and how you use credit over time. While different scoring models exist, the FICO score is still widely used, and payment behavior is a major factor in most scoring systems.

If you want a quick refresher on what a good credit score looks like and how ranges are generally categorized, read Credit.org’s guide on what is a good credit score. A higher credit score can help you qualify for better interest rate offers, but the steps to get to a good score are mostly practical and repeatable.

Action 1: Improve credit score by making on time payments

1. Make every payment on time, even when money is tight.

Payment history is the biggest driver of your credit score. Late payments, missed payments, and delinquent payments can all negatively affect your credit profile for years, and it often takes longer to recover than people expect. One missed payment can do real damage, especially if you have a short credit history or limited credit accounts.

Steps that actually work:

• Set up automatic payments for minimums on every loan or credit card so you never miss a due date.
• Add a calendar reminder to review statements weekly, even if payments are automated.
• If you cannot pay in full, keep the account current and avoid rolling into delinquent payments.

Late payments can remain on a credit report for seven years. If you want a plain explanation of how long they stick around and why they hurt, see this overview from Credit Karma on late payments and reporting timelines. If you already have late payments, the best move is to stop adding new ones and build a clean streak of payments.

This is also a good time to look beyond credit card bills. Pay bills like utilities or medical bills on time, because if they become a collection account, they can affect your credit. That is how a small balance turns into a bigger credit problem.

Action 2: Lower your balance low to improve credit utilization and protect your credit limit

1. Lower balances and keep your utilization rate under control.

Your credit utilization rate is the percentage of available credit you are using. Even with perfect on time payments, a high credit card balance compared to your credit limit can drag down your credit score. This is one of the few areas where you can sometimes see a credit score fast change, especially if balances are currently high.

A simple example:

• If your total available credit limit is $10,000 and you owe $5,000, your utilization rate is 50%.
• If you lower balance to $2,000, your utilization rate is 20%, and your credit profile usually looks safer.

Tactics that help without creating new debt:

• Make an extra payment before the statement closes, not just on the due date, so a lower balance gets reported.
• Spread payments through the month if you rely on revolving credit for bills.
• Focus on cards where the high credit card balance is closest to the credit limit, because those cards can look maxed out even when your total utilization seems acceptable.

You can also ask a card issuer for higher credit limits. Higher credit limits can improve utilization, but only if you do not treat that extra available credit like permission to spend. If you raise limits and then spend more, you will be worse off.

If you are dealing with debt across multiple credit cards, you may need a structured plan. Credit.org compares payoff approaches in which debt should you pay off first, and the math behind common strategies is explained in debt repayment, doing the math. Use one method, stick with it, and avoid new accounts that increase spending.

Action 3: Check your credit report and credit report errors using free credit reports

1. Pull your reports and understand what is in your file.

Your credit report is the data, your credit score is the output. If you are trying to improve your credit, you need to see what the three credit reporting agencies are seeing.

You can get free credit reports through AnnualCreditReport.com, which is the official source for free credit reports from the three credit bureaus. Review each report for:

• Accounts you do not recognize, which can be a sign of identity theft
• Incorrect credit limit amounts or balances
• Wrong payment history entries
• Duplicate credit accounts
• Old accounts that should be closed, or closed accounts listed as open accounts
• Hard inquiry entries you did not authorize

This is also where you check the basics of your credit profile, including the average age of your accounts and whether an old account is helping your credit history. A long, clean history helps your own score. Closing an old account can reduce average age and increase utilization by shrinking available credit.

For ongoing awareness, build a light habit of monitoring. Credit.org explains how monitoring works in credit monitoring, what it is and why you should have it. Monitoring is not a replacement for reading your reports, but it can help you catch sudden changes, like a new inquiry or a new account you did not open.

Action 4: Fix credit report errors with a credit report dispute plan

1. Dispute inaccurate or outdated information that should not be there.

Credit report errors are not rare. Consumer Reports and PIRG research has found that many consumers discover mistakes, and about one in four credit reports may contain serious errors that can affect approval decisions. If an error is dragging down your credit, disputing it is one of the most direct paths to a higher credit score.

For the underlying research, see the Consumer Reports coverage at Almost half of participants find errors on credit reports and the PIRG resource Mistakes do happen. The practical takeaway is simple, you should check, because the data is not always clean.

A credit report dispute is a formal request to investigate. Keep it organized:

• Identify the specific line item and why it is wrong.
• Collect documents that support your claim, such as statements, cancellation letters, or receipts.
• Submit the dispute to the credit bureaus where the error appears.
• Track the result and confirm the correction on the next report.

For a clear walkthrough, use Credit.org’s guide on dispute credit reports, how to dispute credit reports. This is especially important for identity theft issues, because fraudulent accounts can snowball into missed payments and collections.

Action 5: Build a stronger credit mix without taking on unnecessary new credit accounts

1. Add the right type of account only if it fits your situation.

People often hear that opening new accounts will improve credit, then end up adding risk. New credit can help in limited cases, but it can also hurt if it leads to more borrowing or too many inquiries.

Credit mix refers to the types of accounts on your report. A healthy credit mix may include:

• Revolving credit, such as credit cards
• Installment loans, such as an auto loan or other installment loans
• A mortgage, depending on your goals

If you have only one type, adding variety can help building credit, but you should not open accounts just to game a score. Every new credit application can trigger a hard inquiry, and too many new accounts can signal instability.

If you need an option specifically designed for building credit:

• A secured credit card can help if you are starting over or have limited credit history. The deposit reduces risk to the lender, but your payments can still be reported.
• Credit builder products can also help, as long as you read the terms and keep payments on time. Two examples often used for structured credit building are Self and Mission Asset Fund. These are not magic solutions, but they can support building credit when paired with responsible payments and low balances.

Be cautious with a car loan or auto loan if the payment will strain your budget. A loan or credit card that pushes your monthly payment too high increases the chance of missed payments later, which can undo progress quickly.

Use authorized user status wisely to strengthen credit history

Becoming an authorized user on someone else’s credit card accounts can help, but it is not automatic. The account must be well managed and the card issuer must report authorized user activity to the credit bureaus.

Authorized user status can help your credit profile when the primary account:

• Has a long, clean payment history
• Keeps utilization low with a low balance
• Has a high credit limit relative to spending

It can also hurt if the primary account runs high balances or racks up late payments. Before you do it, agree on rules for use, and decide whether you will have the physical card or only the reporting benefit.

Keep credit card accounts open when it supports your average age

Many people close cards after paying them off, thinking it is responsible. Sometimes it is necessary, especially if a card encourages overspending or has an annual fee. But closing credit card accounts can reduce available credit and shorten average age, and both changes can lower your credit score.

If an account has no annual fee and you can manage it, consider keeping it open:

• Use it lightly for one recurring bill.
• Pay it off in full each month.
• Keep the balance low so utilization stays stable.

This approach supports credit history while keeping debt controlled.

Avoid rapid applications and protect your FICO score from inquiry spikes

A hard inquiry is not a disaster, but repeated credit inquiries in a short window can make you look risky. That matters because most lenders use patterns, not isolated events. If you are shopping for a car loan, inquiries may be treated differently when done within a short rate shopping window, but outside of that context, multiple applications can add friction.

If you are trying to improve your credit score, slow down applications:

• Always be caution when applying for new credit accounts
• Apply only when the account serves a clear purpose.
• Avoid stacking store cards or short term financing offers.
• If you need credit, try improving utilization first, then reassess.

Protecting your FICO score is partly about avoiding avoidable dings while you are rebuilding fundamentals.

Handle collections and old negatives without repeating the same mistake

A collection account can weigh down your credit, especially if it is recent. If you have one, you generally have three lanes to consider:

• Verify the debt is accurate and belongs to you.
• Negotiate carefully and get agreements in writing.
• Keep everything documented in case reporting does not match the deal.

Also, check reporting timelines. Many negative items stay for about seven years. That does not mean you wait it out passively. It means you prioritize preventing new late payments while you clean up what you can.

This is where your credit report review matters, because the details determine the right move.

Use a personal statement only when it adds clarity, not as a substitute for action

A personal statement does not change your credit score, but it can add context for a future manual review. If you had a one time crisis that caused missed payments, you can add a brief statement to your credit report.

Credit.org explains how it works in adding a personal statement to your credit report. Use this option when the information is accurate but incomplete, and keep the wording factual. It should support your story, not argue with the numbers.

Get a plan for building credit that matches your situation

If you want help prioritizing the five actions above based on your credit report, your credit limit, and your current budget, Credit.org offers nonprofit support. A counselor can help you understand what is driving your score today, what to fix first, and how to avoid choices that create more debt while you are trying to improve your credit.

Schedule a session through Credit.org’s consumer credit counseling service.