How to Improve Your Credit Score

Like most Americans, you probably have credit card debt or a credit card that you make payments on every month. However, when your credit card debt increases, it probably means you’re not managing your credit card responsibly. Improving your credit score is essential if you want to take your credit card use to the next level. A credit score is a numerical value used to measure credit risk — most lenders rely on the FICO Score, which ranges from 300 to 850, according to myFICO’s credit education resource. It’s a tool to help lenders assess your creditworthiness and predict the likelihood of you defaulting on loans, mortgages, or credit cards. The Consumer Financial Protection Bureau (CFPB) notes that lenders, landlords, and even some employers may review your credit profile when making decisions. If you want to improve your credit score, here are some simple strategies that you can implement today.

1. Pay Down your Revolving Credit Balances

If you’re carrying a balance on your credit card, your credit score will likely suffer. Credit utilization — the ratio of your current balance to your total credit limit — is one of the most heavily weighted factors in your FICO Score, accounting for roughly 30% of the total calculation according to myFICO. When you pay off the minimum monthly payment on a revolving credit card, you will be paid off sooner than if you continue to carry a growing balance. The more time between when your payment is made and when that balance is paid in full, the longer it will take to recover your credit score. If you carry a balance on your credit card, prioritize paying more than the minimum each month whenever possible. The most important thing is to pay off your credit card balance as quickly as possible. Lenders such as Chase, Citi, and SoFi all factor your reported balances into their underwriting decisions, so keeping balances low benefits you across the board.

2. Increase your Credit Limit

If you’re carrying a balance on your credit card, you may be able to increase your credit limit to help lower your overall credit utilization ratio (CUR). The most important thing is that you’re financially responsible enough to pay off the balance in full each month. You can do this by applying for an increase in your credit limit and requesting a new credit card. Major issuers like Chase, Bank of America, and American Express routinely grant credit limit increases to customers who demonstrate a strong on-time payment history. In addition, you must have made an effort to improve your credit score before trying for an increase in your credit limit. However, if you do qualify for an increase in your credit limit, the bank will likely grant one. Keep in mind that some issuers will conduct a hard inquiry when processing a limit increase request, which could temporarily affect your score — a detail worth confirming with your issuer before making the request, as noted by the Consumer Financial Protection Bureau (CFPB).

3. Check your Credit Report for Errors

If you’re having trouble improving your credit score, it’s essential to check your credit report for any inaccuracies. Under the Fair Credit Reporting Act (FCRA), you are entitled to a free copy of your credit report from each of the three major bureaus — Experian, Equifax, and TransUnion — at least once per year, available through AnnualCreditReport.com. Before you file a complaint with the Federal Trade Commission (FTC), contact the bureau directly and have them assist in resolving any errors on your credit report. Many people assume that only one credit card company can make a mistake on their credit report, but that isn’t always true.

Many different entities can have an error on your credit report. For instance, certain retailers and service providers may be able to place a negative mark on your credit report if you don’t pay them in full for services or goods. Collection agencies and debt collectors can place a negative mark on your credit report because you owe money to them. A 2024 study by the CFPB found that errors on credit reports remain a significant and ongoing consumer concern, with millions of disputes filed each year across Experian, Equifax, and TransUnion. It’s essential to take action before any errors appear on your credit reports because it will impact your ability to obtain new loans if you need one down the road.

4. Ask to have Negative Entries that are Paid Off Removed from Your Credit Report

If you’ve tried to improve your credit score but are having trouble, you may be able to have negative entries that are paid off removed from your credit report through a process sometimes called a “goodwill deletion.” Many companies will mark negative entries with a “paid in full” status if you pay the creditor for the debt. However, there are many other reasons why specific entries can be removed from your credit report. Under the FCRA, most negative items — including late payments and collections — must be removed from your report after seven years, and Chapter 7 bankruptcies after ten years, as outlined by Experian. You may need to file a complaint with the FTC or the CFPB if you believe an error has been placed on your credit report because of anything other than a legitimate collection action. Many banks will remove negative entries that are paid off if you ask them to.

5. Contact Your Creditors and Explain Your Situation

If you’ve tried to improve your credit score but are having trouble, it’s good to contact the creditors who have placed negative entries on your credit report. You should explain why you are having trouble improving your credit score and ask them to remove the negative entries from your credit report. Many large creditors — including those serviced through institutions like Wells Fargo, Discover, and SoFi — have hardship programs or goodwill adjustment policies that may not be widely advertised. The creditors may be able to help you remove the negative entries from your credit report or make them less damaging. Many creditors will remove negative entries if they believe they have been placed in error. If they do, they will usually place a note on their reports explaining that the entry was removed because of a mistake. The CFPB recommends documenting all communications with creditors in writing to protect your rights throughout this process.

6. Avoid New Credit Card Applications

Credit card applications are a good idea, but only if you know how to manage your credit card debt. Before you apply for a new credit card, make sure that you have a plan to pay off your existing credit cards. Each new application typically results in a hard inquiry on your credit report, and multiple inquiries in a short period can signal financial distress to lenders. If you’re interested in obtaining a new credit card, do some research on the company and the type of rewards program. For instance, if you’re looking at an airline credit card from issuers like Chase or American Express, make sure that there are no annual fees or foreign transaction fees associated with the card. The Federal Reserve’s G.19 Consumer Credit report tracks revolving credit trends and can give you broader context for how Americans are managing credit card debt before you take on more.

7. Ask for a Lower Interest Rate

If you’re having trouble with your credit score, it’s a good idea to ask the bank charging you interest to lower your annual percentage rate (APR). The average credit card APR as of early 2026 remains elevated at approximately 21.47% according to Federal Reserve consumer credit data, making high-interest debt especially costly to carry. Consider applying for a secured credit card if you can’t get the bank to lower your interest rate. Secured credit cards — offered by issuers like Discover, Capital One, and OpenSky — offer structured credit-building opportunities by requiring a refundable deposit that typically equals your credit limit. You can also use a secured credit card to build up your credit score by paying off your balances each month. Over time, responsible use of a secured card may qualify you for an upgrade to an unsecured product, as described by NerdWallet’s secured card guide.

Credit Score Factors at a Glance

Frequently Asked Questions

How long does it take to improve your credit score?

It depends on what is dragging your score down. Minor improvements — such as reducing credit utilization — can show up within one to two billing cycles, typically 30 to 60 days. More serious issues like late payments, collections, or bankruptcy may take one to seven years to fully recover from, according to Experian. Consistent on-time payments and low balances are the most reliable path to steady improvement.

What is a good credit score?

Under the standard FICO Score model, a score of 670 to 739 is considered “good,” while 740 to 799 is “very good” and 800 or above is “exceptional,” per myFICO. Lenders typically reserve their best interest rates and terms for borrowers in the very good to exceptional range. The average American FICO Score is approximately 717, which falls in the good range.

How much does a late payment hurt your credit score?

A single late payment — especially one that is 30 or more days past due — can lower your FICO Score by 17 to 83 points depending on your starting score and overall credit profile, according to myFICO research. The higher your score before the missed payment, the more dramatic the drop tends to be. Late payments remain on your credit report for up to seven years.

Does checking your own credit score hurt it?

No. Checking your own credit score or credit report generates what is called a “soft inquiry,” which has no impact on your FICO Score whatsoever. Only “hard inquiries” — generated when lenders pull your report as part of a credit application — can affect your score, and even then only modestly. You can check your score for free through tools offered by Experian, Credit Karma, or your bank or credit card issuer without any concern.

What is credit utilization and why does it matter?

Credit utilization is the percentage of your available revolving credit that you are currently using. For example, if you have a $10,000 total credit limit and carry a $3,000 balance, your utilization is 30%. This factor accounts for 30% of your FICO Score, making it the second most important factor after payment history. Experts generally recommend keeping utilization below 30%, and ideally below 10%, for the best score impact.

Can I remove negative items from my credit report early?

In some cases, yes. You can dispute genuinely inaccurate items with the credit bureaus — Experian, Equifax, and TransUnion — and they are required by the FCRA to investigate within 30 days. For accurate but negative items, you may be able to request a goodwill deletion from your creditor, particularly if the account is now paid in full and you have an otherwise clean history. There is no guarantee, but many creditors will accommodate reasonable requests.

How many credit cards should I have to maximize my credit score?

There is no single magic number, but having two to three credit cards with low balances and a long history of on-time payments is generally beneficial. Credit mix accounts for 10% of your FICO Score, so having a variety of account types — including credit cards, an installment loan, and potentially a mortgage — can help round out your profile. Opening too many cards in a short period, however, can generate multiple hard inquiries and temporarily lower your score.

What is the fastest way to boost a credit score?

The fastest legitimate method is to pay down revolving credit card balances to reduce your credit utilization ratio. Because utilization is reported monthly, a significant paydown can reflect in your score within one billing cycle — as little as 30 days. Another quick option is to dispute and remove inaccurate negative items from your credit report. Avoid applying for new credit while you are actively trying to boost your score.

What is the difference between a FICO Score and a VantageScore?

Both are three-digit credit scores ranging from 300 to 850, but they are developed by different companies and use slightly different models. The FICO Score, created by Fair Isaac Corporation, is used in approximately 90% of lending decisions in the United States according to myFICO. VantageScore, developed jointly by Experian, Equifax, and TransUnion, is widely used for consumer credit monitoring tools. Both scores are influenced by the same core factors — payment history, utilization, account age, credit mix, and new inquiries — but may weight them differently.

Does closing a credit card hurt your credit score?

It can, for two reasons. First, closing a card reduces your total available credit, which increases your overall credit utilization ratio if you carry any balances. Second, if the card is one of your oldest accounts, closing it can reduce the average age of your credit history over time. The CFPB advises consumers to think carefully before closing old accounts, particularly those with no annual fee, as the long-term cost to your score may outweigh the perceived simplicity of having fewer accounts to manage.