Your Credit Score Is a Lever

Your credit score affects mortgage rates, car loans, insurance premiums, and even rental applications. The difference between a 680 and 780 score on a $400K mortgage? About $200/month — or $72,000 over 30 years.

Here's how to move the needle.

Quick Wins (1-30 Days)

1. Dispute Errors on Your Credit Report

About 1 in 5 consumers have errors on their credit reports. Request your free reports from AnnualCreditReport.com and look for:

• Accounts that aren't yours
• Incorrect balances or limits
• Closed accounts showing as open
• Wrong payment history

Disputing errors online takes about 15 minutes and can result in score jumps of 20-50 points.

2. Pay Down Credit Card Balances

Credit utilization (balance / limit) is the second-biggest factor in your score. Aim for under 30%, but under 10% is ideal.

| Utilization | Score Impact | |-------------|-------------| | 0-9% | Excellent | | 10-29% | Good | | 30-49% | Fair | | 50%+ | Hurting your score |

Even partial paydowns help. Paying a $3,000 balance on a $5,000 card down to $500 can boost your score 30-50 points.

3. Become an Authorized User

Ask a family member with excellent credit to add you as an authorized user on their oldest, lowest-utilization card. You don't need to use (or even receive) the card — their payment history gets added to your report.

Medium-Term Moves (1-6 Months)

4. Set Up Autopay on Everything

Payment history is 35% of your score — the single largest factor. One missed payment can drop your score 100+ points. Set up autopay for at least the minimum payment on every account.

5. Request Credit Limit Increases

Call each card issuer and ask for a limit increase. This instantly lowers your utilization ratio without paying anything down. Most issuers grant increases every 6 months.

6. Keep Old Accounts Open

Account age matters. Don't close old cards even if you don't use them. Put a small recurring charge on each and autopay it.

Long-Term Habits (6-12 Months)

7. Diversify Your Credit Mix

Scores reward having different types of credit: credit cards, installment loans, mortgage. A credit-builder loan ($25-50/month) adds an installment account if you only have cards.

8. Limit New Applications

Each hard inquiry costs 5-10 points. Space out new credit applications by at least 6 months. Rate shopping for mortgages and auto loans within a 14-day window counts as a single inquiry.

Realistic Timeline

| Starting Score | Possible Improvement | Timeframe | |---------------|---------------------|-----------| | 500-579 | +80-120 points | 6-12 months | | 580-669 | +50-100 points | 3-9 months | | 670-739 | +30-60 points | 2-6 months | | 740+ | +10-30 points | 3-12 months |

Tools We Recommend

Compare credit monitoring services, credit repair options, and credit cards for rebuilding in our comparison tables above. Each option includes our editorial rating and direct links.