How to increase your credit score quickly

You've decided to boost your credit score, and that's a brilliant move. This decision shows you're serious about improving your financial situation. You're already on the right track by looking for ways to enhance your credit. This journey is about more than just numbers. It's a commitment to bettering your financial health.

Your credit score is yours to own, and yes, there are legitimate ways to put the pedal to the metal and get an instant credit boost. An action-oriented mindset is going to be your biggest asset here. With the right moves, you could improve your credit score faster than you think. We'll show you how. 

Achieve isn't a credit repair organization and doesn't provide or offer services or advice to repair, modify, or improve your credit.

How quickly can you increase your credit score?

It can take anywhere from a few days to a few years to boost your credit score, depending on where you’re starting from and what information is added—or falls off—your credit report over time. 

Here’s why. Credit scores could change the instant new information hits your file at one or more of the main credit bureaus: Equifax, Experian, or TransUnion. 

Here are some examples of score-changing events. Most have the potential to change your score quickly, but not always in the direction you want it to go. The bold items could push your score up.

• Make an on-time payment on a debt (usually a slow, positive impact)

• Miss a payment

• Charge a purchase to your credit card

• Lower your credit card balance (potentially quick positive impact)

• Apply for new credit

• Have a debt sent to collections

• Close a credit card account that still has a balance

• Correct an error on your credit report (potentially quick positive impact)

• File for bankruptcy

• Go through a home foreclosure or short sale, or have your vehicle repossessed

• Get a higher credit limit on your credit card account (potentially quick positive impact)

• Open a new credit card account (potentially quick positive impact)

The resulting changes are reflected on your credit report in varying times. For example, if you dispute an error on your credit report, the credit bureau could take 30 days—and in some cases, up to 45 days—to investigate. If the credit bureau finds an error, a correction could take another five business days. 

Payments to credit accounts may take around 30 days to hit your credit reports. While payment activity credits to your account in a few business days, it takes a little longer to note an update in your credit reports and scores. Lenders typically report to credit bureaus just once a month, though some may report more frequently. So if you happen to pay off your credit card the day before it gets reported to the credit bureaus, you could see a positive impact right away. 

Steps to boost your credit score quickly

You might already know that your payment history and debt balances have more of an impact on your credit score than other factors. Normally, those things take a little while to adjust, but you could do two things to boost your credit score rather quickly:

• Improve your credit utilization

• Fix credit report errors 

Both could have short- and long-term impacts on your credit. In the short term, you might spot a few points added to your scores when you address these factors. In the long run, you'll be able to keep your credit score higher when you manage your credit effectively and keep your report clear of errors. 

Let’s learn more.

Get your credit reports

Your credit reports offer insight into what helps or hurts your credit scores. There are several important reasons to check your credit regularly.

• Check for errors. Millions of people have errors on their credit reports. Errors could be impacting your score. Unless you check your credit often, you may be unaware that your report has inaccuracies.

• Monitor for fraud. Identity theft could be a real threat to your financial security, and it could cause serious damage to your credit. When you monitor your credit reports regularly, it's easier to spot potentially fraudulent activity that suggests identity theft. 

• Look for opportunities to improve. Your credit reports could give you some clues about how to improve your credit scores. For example, if you notice that your balances are high relative to your credit limits, that's a sign you may need to come up with a plan to pay them down. 

You can get a free online report from each credit bureau weekly at AnnualCreditReport.com, which is authorized by the federal government. You can also obtain them for free directly from Equifax, Experian, and TransUnion.

Credit scores aren’t included with credit reports, but you can check your credit score for free from multiple sources. Start with your own bank.

Correct credit report errors

When you get your credit report, look over it with a fine-tooth comb for errors. Dispute any credit report errors you find, even if they seem inconsequential. According to the Consumer Financial Protection Bureau, these are the most common credit reporting errors, and many could drop your credit scores:

• Errors in your identity information, such as the wrong name, phone number, or address

• Accounts mixed up with someone who has a similar name (a so-called mixed file)

• Fraudulent accounts from someone stealing your identity

• Hard inquiries for new credit you didn't apply for

• Accounts with an incorrect status, for example, a closed account still showing up as open

• Being reported as the owner of an account when you're an authorized user (and therefore not responsible for payments)

• Accounts reported as late or delinquent when they aren't

• Incorrect dates for the last payment, date opened, or date of first delinquency

• Payments that you made but weren’t reported

• Incorrect information that reappears in your file after it was corrected

• Accounts appearing multiple times with different creditors listed, especially if they are delinquent or in collections

• Errors in the current balance or credit limit of your accounts

• Being mistakenly reported as deceased

How to dispute credit report errors

Each of the three major credit bureaus allows you to submit a dispute online. You could also dispute credit report errors over the phone or by mail, but online is the fastest method. 

Here's how to dispute an error:

• Visit the credit bureau's dispute page and register for a free account.

• Once registered, pull up your credit report to start a dispute. Provide information about the error, including the account number, what you'd like to dispute, and why you think the information is incorrect.

• Upload any documentation you have to support your claim, such as receipts, bank statements, or debt relief agreements.

• Submit your dispute.

Once you submit a dispute, the credit bureau has up to 30 days to investigate. The credit bureau may reach out to you for additional information or documentation, which may push the window out to 45 days. 

The credit bureau will notify you in writing of the outcome of the investigation. If an error is found, the credit bureau must correct or remove it. That could add a few points to your credit score almost immediately. If the credit bureau doesn't find an error, your report will stay the same. 

Pay down credit card balances

If you can, paying down your credit card debt could give you a good shot at a quick credit boost. That’s because of a method that credit scoring companies use to calculate how much of your available credit you’re using: your credit utilization ratio. The less credit you use, the more you’ll be rewarded with a higher credit score. Let’s dig into how it works. 

Credit utilization is your total credit balances compared to your total credit limit. In other words, it's how much of your credit limit you use at any given time. Credit utilization only applies to unsecured revolving accounts like credit cards—not personal loans, mortgages, or auto financing. 

Credit utilization is a snapshot. It's not something that needs to build over time, like payment history or the age of your accounts. Your credit score can change the instant your credit card balances are reported to the credit bureaus. That's why changing your credit utilization is one of the fastest ways to boost your credit score.

Credit utilization example

To figure out your utilization, divide your credit card balance by your credit limit:

2,900 / 3,000 = 97 (multiply by 100 to get the percentage)

Your utilization on this account is nearly 97%—not good for your credit scores. Accounts that are maxed out or close to maxed out ding your score significantly.

Now let's say you make a $2,500 payment. That would bring your utilization down to around 13%, and your credit score is likely to go up when your new balance is reported. (This is a simplified example that assumes no other significant changes are reported.)

400 / 3,000 = 13 (multiply by 100 to get the percentage)

Here’s what the opposite scenario could look like. Let’s say you have a card with a zero balance, and you:

• Make purchases that use up a significant amount of your credit limit

• Don't pay off those charges before your new balance is reported

In that case, your score is likely to go down when the bureaus receive that new balance. How far? It depends on your utilization and other factors influencing your score.

Pro tip: Opening a new credit card has a similar effect on utilization as paying down an existing balance. If you qualify for a new card and you don’t charge up a new balance, you could lower your utilization ratio. That could have a positive impact on your score. This isn’t a good strategy for someone struggling to pay down credit card debt.

Credit utilization example with new card strategy

Strategies for an instant credit boost

Fixing credit errors and paying down credit card balances are the two quickest ways to get an instant credit boost. You have lots of other ways to raise your credit score fast, too. Next, we’ll look at a few other options you can use. 

Quick actions that could help

The path to a strong credit score starts with getting lots of positive information onto your credit report. You can lay the groundwork for a quick credit boost with these tips:

• Use a service to have your utility and rent payments reported to credit bureaus. Also known as alternative credit data, this information won't affect your FICO Score. But it could show a creditor that you're creditworthy. Alternative credit data may also include information from your bank and your employer's payroll department that can help you gain points. You can add your utility and cell phone payments to your credit history for free using Experian Boost. You or your landlord will need to sign up (and pay) for a service if you want your rent payments reported.

• Become an authorized user on a friend or relative's account. Their payment history on that account is reported to your credit file, so only do this if they have excellent credit.

• Use credit-builder apps. If you plan to use credit-builder apps, get to know the features so you can make the most of them. Review your account info regularly and make sure that any new credit accounts you open are linked to your account. 

Credit utilization hacks

Paying down your credit card balances isn't the only way to improve your credit utilization. You could also: 

• Ask for a credit limit increase. Many credit card companies allow you to request a credit limit increase online. If approved, the change is instant. Your new credit limit will then be reported to the credit bureaus. The catch is to avoid new debt. If the above credit card has a $2,900 balance and a $5,000 limit, your utilization drops to 58%.

• Open a new credit card account. You could also open an entirely new credit card account to add to your overall credit limit. Even if your new card's limit is relatively low, that could help improve your credit utilization as long as you don’t use the new credit limit. 

• Pay off your credit card balances with a consolidation loan. This doesn't reduce the amount you owe, but it'll lower your utilization ratio if you move the debt from credit cards to an installment loan. The catch is to avoid racking up new balances on those paid-off credit cards. 

If you’re wondering what's a good credit utilization ratio, the short answer is: the lower the number, the better. According to Experian, people with good credit tend to maintain their credit utilization at around 35%; people with excellent credit have less than 10% utilization. 

Credit scores look at your utilization across all of your accounts and on each individual account. If you need your credit score to be at its best for a loan application, spread out your debt across your accounts. Pay your bill early after charging purchases (so a higher balance doesn't get reported on the statement closing date). 

Other ways to raise your credit score fast

You can also increase your credit score quickly using other tips and tricks, even if they don't give you an instant credit boost like the methods above. It helps to ensure that all your bases are covered when it comes to your credit-building journey. 

Let’s take a look at some of the strategies that can help. 

Rent payments

If you rent, you could get credit for on-time payments, which may help your credit scores. Rent-reporting services collect information about rental payments and pass it on to the credit bureaus. 

There are two ways to report rent payments:

• Do it yourself for a fee through a service like Self or Rental Kharma

• Ask your rental manager or property owner to report your payments

Rent payments that show up on your credit reports could be factored into your credit scores. If you plan to rent for a while, this is a simple way to see your score improve even if you don't have credit accounts. 

If your property manager reports rent payments, ask which service they use and whether you'll pay a fee for this benefit. Some rent reporters report to all three credit bureaus while others may only report to one, which could make a difference in how your scores are calculated. 

Credit-building apps

Credit builder apps could help you build credit from your mobile device. Experian Boost, for example, lets you set up a free account and instantly raise your credit score for free when you pay everyday bills like:

• Utilities

• Cell phone service

• Streaming services like Netflix and Hulu

• Rent

• Insurance

You create your account and connect your bank accounts. Experian scans for bill payments to add to your Experian credit file. Once those payments are added, you could get a real-time boost to your credit scores. 

It's free to sign up, and you don't need a credit card to get started. 

Secured credit cards

A secured credit card is a credit card that usually requires a cash deposit to open. The credit card company holds your deposit and gives you a line of credit to use.

You can make purchases with your card, which shrinks your available credit. You free up available credit as you make payments toward the balance. 

A secured credit card is a good way to rebuild damaged credit for a few reasons.

• Credit limits are usually low, so you don't run the risk of racking up a big debt. 

• Secured credit cards are easier to qualify for when you have poor credit. 

• Account activity, which includes payments, gets reported to the credit bureaus. 

• Your credit card company may return your deposit and convert you to an unsecured account after you make a certain number of on-time payments. 

If you want to rebuild credit with a secured credit card, do your research. Check out how different cards compare when it comes to deposit requirements, credit limits, fees, and other benefits. Some may have rewards programs. The best secured credit cards help you build credit at your own pace, with minimal fees. 

Credit card refinancing

If you have some credit card debt, you could refinance it to improve your scores in the long run. You could combine credit card balances with a debt consolidation loan or use a balance transfer offer. 

Either way, you'd have one debt payment to make each month instead of several. And you may get a lower interest rate on a consolidation loan or balance transfer card. 

What does it mean for your scores?

• In the short term, your score may drop slightly, since you'll have to apply for a new loan or credit card. Inquiries usually trim a few points off your credit scores. 

• In the long term, your scores could rise if you make your loan or balance transfer card payments on time each month. You could also get a score boost if the gap between what you owe and your credit limit widens as you pay down the balance.

Here's a pro tip to make this strategy work: Keep your credit card accounts open, but don't use them. You get the benefit of a higher credit utilization, and you don't add to your debt. 

Credit builder loans

If you don't have any credit accounts in your credit file and therefore have no score, there's another strategy you could use. You could apply for a credit builder loan (typically offered by credit unions).

Here's how credit builder loans typically work:

• You apply for a small loan, usually $500 to $5,000. 

• The lender deposits the loan proceeds into a secure account that earns interest. 

• You make payments each month until it's paid off.

• Once the loan is paid in full, the lender turns over the money in the secure account to you. 

You'll pay interest and possibly a lender fee. The lender reports the account as an installment loan. As long as you make your payments on time, a credit builder loan could have a positive impact on your credit score within six months.

Playing the long game: Build excellent credit over time

You can maintain excellent credit year after year by establishing good financial habits.

• Pay bills on time. Set up automatic payments or reminders to protect your credit. A budgeting app might help you get better at managing your monthly finances.

• Apply for credit only when you need it. Most people naturally add a variety of credit accounts to their credit file over time, like a student loan, a credit card, a car loan, or a mortgage. Don't try to force it. Applying too often could hurt your score.

• Avoid carrying credit card balances if you can. The best way to use credit cards is for rewards or convenience, but without carrying the balance and paying interest. If you have to put an expense on a credit card, prioritize paying it off as soon as possible. 

• Keep old accounts open. Credit plays a part in credit scoring, so it helps to keep older accounts open, even if you don't use them regularly. You can make one small purchase every few months and pay it off to keep the account active. If the account charges an annual fee, consider asking your credit card company if there’s a fee-free version of the same card.

Building and protecting good credit isn't a one-and-done exercise. It's a lifelong process that could also improve your financial health.