4 Most Effective Ways to Improve Your Credit Score

Improve Your Credit Score

Last Updated on April 11, 2024 by Team Experts

With a top-notch credit score, you can quickly obtain minimal interest rates and better terms on credit cards and loan products. But it’s impossible to improve the score overnight as you need to consider the reasons for a lowered score. 

Your below-average credit score will never guarantee a loan; hence, you need to improve it or apply with a loan service provider. If you would like to improve it, several ways exist to do so. But are you wondering how? You shouldn’t worry, as several ways are available to boost your credit score rapidly. 

Although it might take a few months to see improvement in your credit score, you should start working on it today to reap the benefits later. The most significant takeaway is not to close old credit card accounts or never apply for multiple ones. However, here are the four most efficient ways to boost your credit score. So, let’s get straight to it!

1. Steer clear of applying for new loans unless required

Every time a new loan, credit card, or line of credit is applied for by you, the online lender will quickly access your credit report from the credit bureaus to check if you have a bad credit score or history. As it will be recorded as a “tough inquiry,” several inquiries can plummet your credit score, despite reducing your credit age. Therefore, if you need bad credit loans on this site, it’s important to apply only when there’s an emergency. 

On the other hand, being a consumer, you might also access your credit report and score, which the bureaus record as a “delicate inquiry.” It will never affect your credit score, and you may verify your free credit score.

2. Make timely payments of the loans

Whether a credit card bill or any bad credit loan, on-time payments are vital to boost your credit score. Payment history is one of the most significant ranking factors in computing your FICO score. However, the reimbursements can be tricky as people often forget the date; hence, setting payment reminders before 2-3 days will give you an extra buffer. 

You may enable the automatic bill payment option to ensure you never miss the payment, and the debt amount will automatically be deducted from your linked bank account.   

3. Target 30% credit utilization or less

Credit utilization means the segment of your credit limit you are using at any given time. It’s the most vital factor in calculating the FICO score after payment history. However, the most hassle-free way to keep credit utilization in check is by paying total balances on time every month. If it’s impossible to pay back the installments on time, the best way is to keep the entire balance at 30% or less of your credit limit. 

On the other hand, you may boost your credit utilization ratio, for example, by demanding a credit limit increase. Therefore, increasing your credit limit will aid your credit utilization until and unless the balance doesn’t increase in tandem. 

4. To get full benefit from a thin credit file

Owning a thin credit file implies that you must not have sufficient credit history on your credit report to produce a credit score. Luckily, multiple ways are available to plump out a thin credit file and obtain a top-notch credit score. 

For example, UltraFICO is one of those free programs that uses your banking history to help increase your FICO score. Moreover, this platform will help you maintain a bank account over time, have a savings cushion, pay off the bills via your bank account in a timely manner, and bypass the overdraft situation. 

Another way to fatten up a thin credit file is with renters. If you pay monthly rent, numerous services let you acquire credit for those timely payments. However, reporting rent payments will never affect your FICO score. 


In a nutshell, boosting your credit score may take a month. If your credit score is minimal due to several collections and a lousy payment history, it might take months to notice any positive changes or improvements in the score. However, increasing your credit score is a top-notch goal to possess, mainly when you plan to make a significant purchase or want to be eligible for the best rewards cards available. 

Observing a significant improvement in the FICO score might take several months or weeks. Lastly, you may also seek help from the best credit repair companies to eliminate those negative marks on your score. But the faster you start working to boost your credit, the sooner you can expect the positive outcomes.

Read more: Quick Tips for Salaried Employees to Qualify for a Personal Loan


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She has over 7 years of experience writing about technology, education, digital marketing, general and business. Her experience in the tech industry (fieldengineer, wowtechub, techsprohub, techinfobeez) has taught her how to write engaging, informative content that makes complex issues accessible to a wide audience. Follow her on Linkedin

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