1. Check your credit report (+ 20 points)
Groberg’s first bit of advice is to get a copy of your credit reports and go over them with a fine-tooth comb, looking for errors, outdated negative items or signs of fraud.
“You’re looking to see if everything on there belongs to you,” she said.
According to a 2024 Consumer Reports study, nearly half of consumers who reviewed their credit reports found at least one mistake. Roughly a quarter of them found errors that could negatively impact their score.
You can get free copies of your reports from all three credit (Experian, TransUnion and Equifax) once a year by going to AnnualCreditReport.com.
If you notice anything amiss, file a dispute right away: Getting an incorrect negative item taken off your report can increase your credit score by as much as 20 points.
A credit bureau has 30 days to investigate your claim and another 5 days to notify you of the results…
2. Pay off your credit cards (+100 points)
Paying off your balances and reducing your debt load is the fastest way to boost your credit score.
“Say your credit cards are maxed out and you’re using more than 90% of your credit line,” Groberg said. “If you paid off your balance in full, it could raise your score 60 to 100 points.”
Paying on time is just as important as paying in full, she added.
“You’re really going to increase your score by making payments before the closing date on your statements,” said Groberg.
Missing a payment can adversely affect the largest segment of your credit score: Payment history.
Groberg suggests setting up autopay on all your credit card accounts, ideally so that the funds are received three business days before their closing dates.
3. Raise your credit limit (+30 points)
The second largest segment of your credit score comes from credit utilization, or the amount of credit you are using compared to your total credit limit.
You don’t want to use more than 30% of your total credit limit on any given card, Groberg said. If your limit is $10,000, for example, don’t let the balance get over $3,000, even if you plan to pay it all off on time.
“It makes the credit card companies nervous when you’re using the full amount of your credit limit,” Groberg said. “They’re scared you’re not going to pay in full.”
A high credit utilization rate will negatively impact your score. If you need to lower yours and you don’t have the funds to pay down your card, try asking your credit card company to raise your limit.
As long as you don’t spend the additional credit, a higher limit will shrink your credit utilization rate.
“That’s a pretty low-hanging fruit that’s not going to ding your credit,” Groberg said. “If you’re able to get a higher limit on your card and don’t increase your spending, you could see a 10 to 30 point increase.”
You can be approved for a higher credit limit in as little as 30 seconds.
4. Score points with utility bills (+13 points)
Credit reports reflect information on your revolving lines of credit and installment loans, including credit cards, car loans and mortgages.
If you have a thin credit history, though, you can goose your score by providing the bureaus with proof of your on-time payments for utilities, car insurance, rent, even streaming services.
Experian Boost® is a free service that reports on-time bill payments to Experian. eCreable, a paid service, does the same with TransUnion.
For more information, including how your credit score is calculated, read the full article here.
Your credit score can impact your financial situation in so many ways – both positively and negatively. Even when events beyond your control bring your score down, know there are a few simple steps you can take to help build that number back up. And if you have a high score already, know you know some easy ways to keep it!