Lenders use your credit score to determine how likely you are to repay your debt. The lower your score, the more apt you are to be rejected for a loan or an unsecured credit card because you’re deemed high risk.

A low credit score will hold you back in more ways than one. You might not be able to get the new car you want, buy a house, or even be hired for the job of your dreams. How do lenders use your score to decide how big a risk you are? These are the general numbers lenders use according to Equifax:

  • 300 - 579 = Poor

  • 580 - 669 = Fair

  • 670 - 739 = Good

  • 740 - 799 = Very good

  • 700 - 850 = Excellent


Check your own credit so you’ll know what lenders will see when they pull a report. Checking your own credit won’t hurt your score. You’re currently entitled to get a credit report from the three major credit bureaus, TransUnion, Equifax, and Experian, once a week instead of once a year until April 22, 2022. The easiest way to go about it is to go to AnnualCreditReport.com, but you can also request the reports by mail or phone.

If you don’t like what you see, there are simple ways to boost credit dramatically in just a few months, especially if your score is in the poor to fair range. Here are eight of the most effective:

1. Make your payments on time.

No strategy to boost credit is going to work if you’re making payments past the monthly deadline. At 35%, payment history affects your credit score more than any other factor. Late payments can show up more than seven years after they’ve been made.

If you know you’re going to be late, contact the creditor right away. Make arrangements to get caught up and request that the creditor not report the missed payment. If that request is denied, make plans to get current as soon as possible. Every month you’re late hurts your credit. Once you get current, stay current. Every month you pay your bills on time helps offset any past late payments.

2. Make more than one payment a month.

Try to make small payments several times during each month. This will help reduce your debt and improve your credit. Credit utilization is an important factor when determining your score.

You want to keep your credit utilization below 30%. A FICO study showed that those with the highest scores, 750 or higher, only use about 10% of their credit limit.

3. Eliminate any errors on your credit report.

According to a Consumer Reports investigation, 34% of Americans have at least one mistake on their credit report. That’s why it’s so important to go over your reports regularly. If you find an error, dispute it. This includes negative information that is too old to still be on your report. Credit bureaus are allowed 30 days to investigate your claims, but will sometimes respond quicker.

4. Open a secured credit card account.

If you don’t have any credit or have poor credit, apply for a secured card. To open this type of credit line, you must make a deposit upfront. After that you can use the card just like you would any other credit card. You want to select a card that reports to all three credit bureaus.

There are also alternative credit cards you can look into that don’t require any security deposit.

5. Maintain existing credit cards.

A lot of people mistakenly think closing out their credit card accounts will help them improve their scores. In fact, the opposite is true. When you close a card, you’ll lose that card limit and drive up your credit utilization percentage. That can lower your overall credit score.

A better idea is to keep your cards open and pay off any balance every month. If you stop using a card altogether, the issuer might close it.

6. Diversify your credit.

If you only have credit cards and no loans, or vice versa, consider mixing it up. Having both revolving credit and installment loans will increase your creditworthiness and help improve your score.

7. Request higher credit limits.

Increasing your credit limit without increasing your balance reduces your credit utilization percentage and increases your credit score. If your income has increased or you’ve got a number of years of positive credit rating, the creditor might be willing to add to your limit. Ask the creditor to do it without a hard credit check, which can reduce your score by as much as five points.

8. Request authorized user status.

If you have a good friend or close family member who has great credit and a high card limit, consider asking if you can be put on their account as an authorized user. This is especially helpful if you don’t have much credit yourself. It will help establish a credit history and reduce your credit utilization.

Authorized use doesn’t mean you have to have access to the friend or family member’s account information. You don't have to use the card personally for this strategy to work.

A good credit score can open up a world of opportunities, like home ownership, low interest rates, lower insurance premiums, and travel perks. The sooner you get started the sooner you’ll achieve your goals.