HOW TO INCREASE YOUR CREDIT SCORE
✅ 1. Pay Bills On Time (Most Important Factor)
- Payment history accounts for 35% of your credit score.
- Set reminders or use autopay to avoid missed payments on:
- Credit cards
- Loans (student, auto, personal)
- Utilities and phone bills (if reported)
✅ 2. Lower Your Credit Utilization Ratio
- Keep usage below 30% of your credit limit (under 10% is ideal).
- Example: If your limit is $1,000, try to keep your balance below $300.
- You can:
- Pay off balances early (before the statement date)
- Ask for a credit limit increase (but don’t spend more)
- Spread spending across multiple cards
✅ 3. Avoid Opening Too Many New Accounts
- Each application causes a hard inquiry, which can drop your score slightly.
- Opening several cards in a short time looks risky to lenders.
✅ 4. Don’t Close Old Accounts
- The length of your credit history (15% of your score) matters.
- Keep older, unused cards open if they have no annual fee — they help your average account age and credit utilization.
✅ 5. Check Your Credit Reports for Errors
- You’re entitled to free credit reports annually from:
- Look for:
- Incorrect balances
- Duplicate accounts
- Accounts that aren’t yours
- Dispute any errors directly with the credit bureau (Experian, Equifax, TransUnion).
✅ 6. Use a Mix of Credit Types
- A healthy mix of revolving credit (credit cards) and installment credit (loans) can boost your score.
✅ 7. Become an Authorized User
- A trusted family member or friend can add you to their credit card.
- Their good credit history with that account reflects on your report.
✅ 8. Use Tools That Help Build Credit
- Consider credit-builder loans, secured credit cards, or services like:
- Experian Boost (adds utility and phone payments to your credit report)
- Self, Chime Credit Builder, etc.
⏳ How Long Does It Take?
- Minor score increases can happen in 1–3 months with good habits.
- Major improvements (50+ points) usually take 6–12 months or more, depending on the starting point.
