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Your credit score affects the interest rates you pay on loans, whether you can rent an apartment, and sometimes even whether you get a job. The higher your score, the more money you save over a lifetime.
The good news: you can make real improvements faster than you might think. Here is how.
Rates and figures as of May 2026.
What Makes Up Your Credit Score?
| Factor | FICO Weight | What It Means |
|---|---|---|
| Payment history | 35% | Whether you pay on time |
| Credit utilization | 30% | How much of your available credit you use |
| Length of credit history | 15% | How long you have had accounts |
| Credit mix | 10% | Types of credit (cards, loans, mortgage) |
| New credit | 10% | Recent applications and hard inquiries |
Step 1: Pay Every Bill on Time
Payment history is 35% of your FICO score — the biggest single factor. Even one missed payment can drop your score by 50 to 100 points.
Set up autopay for at least the minimum payment on every account. This protects you from accidental late payments. If you have missed payments in your history, the good news is their impact fades over time as you add more on-time payments.
Step 2: Lower Your Credit Utilization
Credit utilization is how much of your available credit you are using. If your cards have a combined limit of $10,000 and you carry $3,000 in balances, your utilization is 30%.
Keeping utilization below 30% helps. Below 10% is even better for your score. To lower it fast:
- Pay down balances before your statement closing date (not just the due date).
- Ask for a credit limit increase on existing cards without making new charges.
- Spread balances across multiple cards instead of maxing one out.
Step 3: Dispute Errors on Your Credit Report
Errors on credit reports are common. Accounts that belong to someone else, payments incorrectly marked as late, or balances that have not been updated can all drag your score down.
Get your free credit reports at AnnualCreditReport.com. Review each one from Equifax, Experian, and TransUnion. Dispute any errors online with the credit bureau. They are required to investigate within 30 days.
Step 4: Become an Authorized User
If a family member or close friend has a credit card with a long history, low utilization, and no late payments, ask to be added as an authorized user. The account history can appear on your credit report and boost your score — even if you never use the card.
This is one of the fastest ways to build or improve credit with minimal effort.
Step 5: Do Not Close Old Accounts
Length of credit history makes up 15% of your score. Closing an old account shortens your average account age and reduces your available credit (raising utilization). Unless a card charges a high annual fee you cannot justify, keep it open and use it occasionally to keep it active.
Step 6: Limit New Credit Applications
Each hard inquiry from a new credit application can lower your score by a few points. Multiple applications in a short period signal risk to lenders. Space out applications and only apply when you genuinely need new credit.
Credit Score Ranges
| Score Range | Category | What It Means |
|---|---|---|
| 800–850 | Exceptional | Best rates available, easy approvals |
| 740–799 | Very Good | Near-best rates on most products |
| 670–739 | Good | Approved for most products at competitive rates |
| 580–669 | Fair | May face higher rates or deposit requirements |
| Below 580 | Poor | Limited options; secured cards and credit builders needed |
Tools That Can Help
- Secured credit card: Requires a cash deposit that becomes your credit limit. Use it for small purchases and pay in full monthly.
- Credit-builder loan: Offered by credit unions and online lenders. Payments are reported to the bureaus, building payment history.
- Experian Boost: Adds on-time utility, phone, and streaming payments to your Experian credit file. Free and can raise your score quickly.