A strong credit score can open the door to better rates and terms. The good news? Improving your score doesn’t have to take years—you can start making changes today that will make a difference when you’re ready to buy or refinance.
1. Pay your bills on time
Your payment history makes up the largest part of your credit score. Even one late payment can impact your score, so set up automatic payments or reminders to keep everything on track.
2. Reduce your credit card balances
Aim to use less than 30% of your available credit limit. For example, if your credit card limit is $10,000, try to keep your balance under $3,000. Lower balances can boost your score quickly.
3. Avoid opening new credit lines right before applying
Every time you apply for new credit, it can cause a small dip in your score. Too many new accounts in a short time can raise red flags for lenders.
4. Check your credit report for errors
Mistakes happen, and incorrect information could be lowering your score. You can get a free copy of your report from each of the three credit bureaus once a year at AnnualCreditReport.com and dispute any errors you find.
5. Keep older accounts open
Closing old credit cards can shorten your credit history, which may lower your score. If they’re in good standing, keep them open to maintain your history length.