Top 10 Proven Strategies to Increase Your Credit Score

1. Pay Your Bills on Time 🕒

Impact: 35% of your FICO Score
Your payment history is the most significant factor in your credit score. Late payments can negatively impact your score, so always pay your bills on time.
✔ Set up automatic payments or calendar reminders to avoid missed due dates.
✔ Even one late payment can drop your score—stay consistent.

 

2. Lower Your Credit Utilization 💳

Impact: 30% of your FICO Score
Your credit utilization ratio is the amount of credit you’re using compared to your total credit limit. Keeping this ratio low signals responsible credit usage.
✔ Keep balances below 30% of your credit limit—below 10% is ideal.
✔ Pay off balances before the statement closing date for a lower reported balance.

 

3. Request a Credit Limit Increase 📈

Impact: Helps Reduce Credit Utilization
Increasing your credit limit while maintaining the same spending habits can lower your utilization rate.
✔ Request a credit limit increase from your card issuer if you have a positive payment history.
✔ Avoid spending more just because you have a higher limit.

 

4. Pay Off Debt Strategically 💰

Impact: Reduces Debt-to-Income Ratio & Utilization
A lower debt balance improves your credit profile and makes you more attractive to lenders.
✔ Use the Avalanche Method (pay off highest-interest debt first) or Snowball Method (pay off the smallest debt first) to reduce overall debt.
✔ Consider making multiple payments per month to keep balances low.

 

5. Keep Old Accounts Open 🏦

Impact: 15% of your FICO Score (Length of Credit History)
The longer your credit history, the better. Closing old accounts can shorten your credit age and increase utilization.
✔ Keep your oldest credit accounts open, even if you don’t use them regularly.
✔ Use an old card occasionally for small purchases to keep it active.

 

6. Check & Dispute Credit Report Errors 🔍

Impact: Errors Can Drag Your Score Down
Mistakes on your credit report can lower your score and affect mortgage approval.
✔ Check your free credit reports from AnnualCreditReport.com.
✔ Dispute any inaccurate late payments, outdated accounts, or fraudulent activity with the credit bureaus (Experian, Equifax, TransUnion).

 

7. Diversify Your Credit Mix 🏡🚗💳

Impact: 10% of Your FICO Score
Lenders like to see a mix of different credit types, such as credit cards, auto loans, and mortgages.
✔ If you only have credit cards, consider adding a small personal loan or credit-building loan to diversify your profile.
✔ Don’t open unnecessary accounts—only take on new credit when needed.

 

8. Limit Hard Credit Inquiries 🚫

Impact: 10% of Your FICO Score
Each time you apply for credit, a hard inquiry is recorded. Too many inquiries can temporarily lower your score.
✔ Apply for new credit only when necessary.
✔ If shopping for a mortgage, keep inquiries within a short time frame (14-45 days) so they count as a single inquiry.

 

9. Become an Authorized User 👥

Impact: Can Quickly Boost Credit Score
If you have a trusted family member or partner with a long-standing, well-managed credit card, ask to be added as an authorized user.
✔ Their positive payment history and credit age can help boost your score.
✔ Make sure the primary cardholder has good credit habits before joining their account.

 

10. Use Credit-Building Tools 🏗️

Impact: Helps Establish or Repair Credit
If you have limited or damaged credit, consider using tools designed to help you rebuild.
✔ Open a secured credit card (requires a deposit, but builds credit).
✔ Get a credit-builder loan from a bank or credit union to establish a positive payment history.

 

Final Thoughts 💡

Improving your credit score takes consistent effort, but the rewards are worth it—especially when applying for a mortgage. By implementing these strategies, you can position yourself for better loan approvals, lower interest rates, and stronger financial health.

📢 Need personalized credit advice? Contact a trusted loan officer today to review your credit and get expert guidance on home financing options.