Top 5 Ways to Repair Your Credit Score
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A low credit score can hold you back from getting approved for loans, credit cards, or even a new apartment. It may also lead to higher interest rates, insurance premiums, or security deposits.
The good news? Credit scores are not permanent. With time, discipline, and the right steps, you can repair your score and put your financial life back on solid ground.
Pay Bills on Time, Every Time
Payment history is the single most important factor in your credit score. It makes up about 35% of your total FICO score, which means even one missed or late payment can cause real damage. If you’ve fallen behind on payments before, now’s the time to turn things around.
Start by getting current on any past-due accounts. Catching up helps prevent further negative reporting and shows lenders you’re working to correct your history. From this point forward, focus on staying consistent. That means making at least the minimum payment by the due date every month.
Set reminders, use a budgeting app, or enable autopay so you don’t forget. If you have trouble covering everything at once, contact your creditors to ask about hardship plans or modified payment options. Many lenders are willing to work with you if you’re proactive.
On-time payments won’t erase the past, but they lay the foundation for a better future. Over time, positive behavior carries more weight than old mistakes.
Lower Your Credit Utilization Ratio
Your credit utilization ratio compares your credit card balances to your credit limits. If your available credit is $10,000 and you owe $3,000, your utilization is 30%. Most experts recommend staying below that 30% threshold. Ideally, you want it to be even lower—closer to 10%—if possible.
High utilization sends a message to lenders that you may be overextended or struggling with debt. Even if you pay your cards on time, carrying large balances can weigh down your score. Fortunately, this is one of the fastest areas to improve. As you pay down your balances, your score may begin to rise almost immediately.
To make progress, focus on knocking out high-interest cards first. Consider making more than the minimum payment each month or using any windfalls (like a tax refund) to pay off chunks of your debt. Avoid closing cards once paid off unless there’s a good reason—older accounts help your credit age, and unused credit lines improve your utilization ratio.
If your income allows, you may also request a credit limit increase. Just be sure not to use the extra credit. The goal is to increase the gap between what you owe and what’s available to you.
Dispute Inaccurate Information on Your Credit Report
One of the easiest ways to improve your credit score is by correcting errors that shouldn’t be there in the first place. According to a 2021 study by Consumer Reports, more than one-third of consumers who reviewed their reports found at least one error. These mistakes can include incorrect account balances, wrong personal details, duplicate listings, or even accounts that don’t belong to you.
You’re entitled to a free copy of your credit report from each of the three major bureaus—Equifax, Experian, and TransUnion—once per year at AnnualCreditReport.com. Through the end of 2026, you can check all three weekly.
Review your reports closely. If you see anything that looks wrong or unfamiliar, file a dispute directly with the credit bureau that’s reporting it. Each bureau offers an online process that’s fairly straightforward. Include any documentation you have, such as billing statements or identity verification.
Once submitted, the bureau usually has 30 days to investigate and respond. If the item is removed or corrected, you could see your score improve within a month.
Help With Your Debt
Avoid Opening Too Many New Accounts at Once
When you’re trying to rebuild credit, it may be tempting to apply for multiple new accounts in hopes of increasing your available credit or getting a fresh start. But this can backfire. Each credit application triggers a hard inquiry on your report, and too many hard inquiries in a short period can signal to lenders that you’re desperate for credit. That’s a red flag.
Instead, focus on building a positive track record with the accounts you already have. New credit only makes up about 10% of your FICO score, so opening accounts isn’t as powerful as improving the ones you have. If you need to open a new account—such as a card with a lower interest rate or a balance transfer offer—space out your applications by several months.
Some lenders offer prequalification tools that allow you to check your odds without affecting your credit score. These use soft inquiries and can help you narrow your options before submitting an application.
As you work to repair your score, patience is key. Quality matters more than quantity when it comes to credit accounts.
Consider a Secured Credit Card or Credit Builder Loan
If your score is low because you’ve had limited credit or major setbacks like collections or bankruptcy, it can be hard to qualify for new credit. That’s where secured tools come in. They’re designed to help you build or rebuild your credit from the ground up.
A secured credit card works like a regular card, but it requires a cash deposit that acts as your credit limit. For example, if you deposit $300, you can spend up to $300. You use the card for small purchases and pay the balance in full each month. These payments get reported to the credit bureaus and help you establish a positive history.
A credit builder loan is another useful tool. Offered by some banks and credit unions, these loans set aside a small amount of money (say, $500 to $1,000) in a savings account. You make fixed monthly payments over a period of 6 to 24 months. Once it’s paid off, you get the funds—plus a stronger credit profile.
These products are not quick fixes, but they are reliable. Over time, they help show lenders that you’re responsible with credit, even after a rough patch.
Stay Consistent and Monitor Your Progress
One of the most overlooked parts of rebuilding credit is simply sticking with it. Improving your score takes time, but every on-time payment, every debt you reduce, and every wise decision adds up. The more consistent you are, the better your credit picture becomes.
It helps to track your progress along the way. Many banks, credit card companies, and free apps now offer access to credit score updates and credit monitoring. Use these tools to see how your actions affect your score. They can also alert you to new inquiries or suspicious activity so you can act fast.
Set realistic goals and celebrate small wins. Whether your score goes up 20 points in a month or 100 points in a year, every improvement gives you more financial flexibility and confidence.
Build a Stronger Financial Future With Smart Credit Habits
Your credit score affects more than just your ability to borrow—it can influence job opportunities, housing applications, and even car insurance rates. That’s why it pays to take control and start building smarter credit habits today.
By focusing on timely payments, lowering your balances, correcting errors, and using the right tools, you can set yourself on the path to recovery. These steps won’t fix your score overnight, but they’ll create lasting change. Keep at it, and your credit will start to reflect your progress.
For more simple, actionable advice on building credit, managing debt, and making smart money decisions, sign up for the Consumer Insite newsletter. Your financial future is worth the effort—start strengthening it today.
