{"id":12423,"date":"2024-10-23T10:15:15","date_gmt":"2024-10-23T17:15:15","guid":{"rendered":"https:\/\/intuitblog.com\/?p=12423"},"modified":"2026-03-16T10:14:52","modified_gmt":"2026-03-16T17:14:52","slug":"increase-credit-score","status":"publish","type":"post","link":"https:\/\/www.intuit.com\/blog\/innovative-thinking\/financial-tips\/increase-credit-score\/","title":{"rendered":"How to increase your credit score"},"content":{"rendered":"\n

Are you serious about getting your finances in order? Increasing your credit score<\/a> is a good place to focus. It\u2019s important for many reasons and can help brighten your financial future.<\/p>\n\n\n\n

But what is a good credit score<\/a>? And why do they matter so much? Credit scores may seem mysterious, but they tend to follow a few common principles. <\/p>\n\n\n\n

In this article, we\u2019ll explain how to increase your credit score and keep it high. That way, you\u2019ll be prepared for the future.<\/p>\n\n\n\n

9 ways to increase your credit score quickly<\/h2>\n\n\n\n

Raising your credit score can take time. After all, it\u2019s a measure of how trustworthy a borrower you\u2019ve been over the years. It usually takes at least a few months of consistent efforts and strong credit-building habits to raise your credit score. Be patient and stick with it. You\u2019ll get to that ideal number eventually.<\/p>\n\n\n\n

However, if you\u2019re wondering how to increase your credit score quickly, here are some effective strategies you can follow.<\/p>\n\n\n\n

1. Pay your debt strategically<\/h3>\n\n\n\n

Paying off your debt strategically is all about lowering your credit utilization rate. Your credit utilization rate is the amount of credit available to you that you\u2019re actually using. It\u2019s basically your balance divided by your credit limit. <\/p>\n\n\n\n

Say you have a credit card with a $1,000 limit and your current balance is $400. Your credit utilization rate would be 40%. You want to try to keep your credit utilization rate under 30% at all times to show you\u2019re managing your debt responsibly. The sooner you can reduce this rate, the better. <\/p>\n\n\n\n

Two strategically sound debt repayment strategies are the snowball and avalanche methods.<\/p>\n\n\n\n

With the snowball method<\/strong>, you pay off your smallest debts first, regardless of their interest rates. Once you\u2019ve paid off a small debt, you put the money you were using to pay it toward the next smallest debt. The idea is to use the motivation and momentum you get from paying off those smaller debts to keep going.<\/p>\n\n\n\n

The avalanche method<\/strong> works the opposite way. You prioritize paying off debts with the highest interest rates first. This helps you save money by reducing the overall cost of debt and can be the best method for long-term efficiency.<\/p>\n\n\n\n

2. Get higher credit limits<\/h3>\n\n\n\n

If you\u2019ve been regularly making the required payments on your credit card, you may want to try asking the credit card company for a credit limit increase. Why? Because increasing your credit limit and keeping the balance the same leads to a lower utilization rate.<\/p>\n\n\n\n

However, you shouldn\u2019t do this to finance a purchase you otherwise wouldn\u2019t have been able to make. You only want to use the extra credit to reduce your utilization rate and improve your credit score.<\/p>\n\n\n\n

3. Pay everything on time<\/h3>\n\n\n\n

The most important factor major credit reporting bureaus use to assess your creditworthiness is whether you pay for regular expenses on time. It\u2019s not hard to see why. A good track record of regularly making rent payments shows it\u2019s more likely you\u2019ll make regular payments on a loan.<\/p>\n\n\n\n

If a creditor reports a late payment to the credit bureaus, your credit score will suffer. Even worse, an account marked delinquent stays on your credit report for seven years<\/a>.<\/p>\n\n\n\n

4. Keep your oldest account open<\/h3>\n\n\n\n

Though it might seem like closing credit card accounts would boost your credit score, it sometimes has the opposite effect. Closing an account means losing the entire line of credit, increasing your utilization rate. Also, older accounts contribute to the average age of your accounts, a credit score factor.<\/p>\n\n\n\n

Typically, credit bureaus want to see you\u2019ve had several accounts open and in good standing for a long time, even if they have zero balances. A good strategy is to keep them active by occasionally making small purchases and paying them off immediately.<\/p>\n\n\n\n

5. Diversify your credit<\/h3>\n\n\n\n

Lenders want to see you can handle different types of debt, so adding another type of loan and paying it down could have a positive effect on your score.<\/p>\n\n\n\n

For example, if you\u2019ve been paying down a student loan (an installment loan) but don\u2019t yet have a credit card (a revolving credit), you could see a score increase just by opening that credit card account and paying off your balance regularly.<\/p>\n\n\n\n

6. Hold off on opening new credit cards<\/h3>\n\n\n\n

Every time you apply for a credit line, such as a loan, mortgage, or new credit card, the financial institution potentially lending you the money will initiate a credit inquiry. This is often called pulling your credit. Every time your credit report is pulled, your credit score decreases.<\/p>\n\n\n\n

Don\u2019t apply for credit you don\u2019t truly need. Multiple inquiries in a short amount of time can hurt your credit score.<\/p>\n\n\n\n

7. Pay attention to your accounts<\/h3>\n\n\n\n

Keep tabs on your accounts at all times. Set reminders for when rent, bill, credit card, and loan payments are due each month to stay on top of your credit score. This also helps you figure out how much you have left over to budget for other areas.<\/p>\n\n\n\n

Also, regularly check your credit score<\/a> to watch for potential errors or fraudulent activity. If you do spot something, you can dispute the credit report if necessary. Credit disputes usually take no longer than 30 days to resolve.<\/p>\n\n\n\n

8. Become an authorized user on another account<\/h3>\n\n\n\n

Here\u2019s a simple tip for how to increase your credit score fast. Consider asking a family member to add you to their credit card account as an authorized user. This way, that card\u2019s payment history is reflected in your credit report.<\/p>\n\n\n\n

However, trust should go both ways. While the primary cardholder must trust you not to use their card to spend irresponsibly, make sure that they keep up with their credit card bills. Otherwise, you won’t reap any benefits.<\/p>\n\n\n\n

9. Take care of any collections debt<\/h3>\n\n\n\n

If you don\u2019t pay your bills on time, they can get sent to collections. When a bill goes to collections, the collection agency will contact you directly for payment. You won\u2019t hear from the creditor anymore. This means that the original creditor has written off the debt completely, which can majorly impact your credit score.<\/p>\n\n\n\n

Once a debt is in collections, it\u2019s in your best interest to deal with it as soon as possible. Ignoring it will severely affect your credit score, especially if you\u2019re sued and a court orders your wage to be garnished. Try to avoid a lawsuit by negotiating the debt down. After repaying your debt, ask the creditor for a goodwill letter to have the late payments removed from your credit report.  <\/p>\n\n\n\n

The importance of maximizing your credit score<\/h2>\n\n\n\n

A good credit score affects all aspects of your adult life\u2014from renting an apartment to getting a car loan. A low score can take years to improve. It can restrict your ability to apply for a mortgage or even set up utilities without paying a deposit.<\/p>\n\n\n\n

Meaningful score increases come from showing consistently strong credit habits. A good credit score begins as young as 18 years old. It\u2019s built on wise, long-term financial choices. Keep your score high by consistently making student loan and mortgage payments, keeping your credit usage low, and staying on top of your financial responsibilities. <\/p>\n\n\n\n

What is an ideal credit score?<\/h3>\n\n\n\n

A strong credit score has many benefits, including better loan terms, increased chances of mortgage approval, and lower interest rates. These all contribute to saving money over time.<\/p>\n\n\n\n

But how much is actually \u201cenough?\u201d The most commonly used credit score is the FICO\u00ae<\/sup> score<\/a>, which ranges from 300 to 850. Here\u2019s how the FICO scoring model<\/a> breaks down:<\/p>\n\n\n\n