3 Ways to Improve your Credit Score (2024)

A credit score is an important part of your financial well-being.

A good credit score can help you in so many ways such as obtaining new credit; think mortgages or better interest rate on your current credit cards.

Below, you will find everyday tips on how to improve your credit score with 3 specific ways that you can implement now to improve your score.

I will go over three specific ways to improve your credit score, but I want to let you know that the ultimate way to improve your credit score is to let time work its magic.

It can take years of diligently doing the right things to improve your credit to achieve an excellent credit score; I am talking over 800.

I think the algorithm works better over time and the more time you can do the things needed to improve your credit score, the better your credit score will be.

I write this as I haven’t always had a good relationship with my credit score.

On a personal note, I am not a patient person, so waiting for my credit score to improve, especially when I was young and had no credit, was so very hard.

I remember at 18 years old, I had no credit score at all, so I applied for a big, major brand credit cards and got denied for no credit... I felt defeated.

I remember asking my parents what I should do, and they couldn’t really give me advice as their own credit scores were not great.

So, after some researching, I applied for a $150 maximum limit credit card, that was advertised as a way to build credit and I was accepted.

I remember feeling so happy that someone would take a chance on me.

I built my credit score from there; from my first credit card.

I would use the card to pay for gas, back when $50 filled up my gas tank, then I would immediately pay the balance off.

I did that for at least a year, while my credit score started to take off.

Things have not always been rosy. I have had one missed payment in my Credit Score journey; a 30 day late pay for an annual fee that I forgot about.

I wasn’t using the credit card at the time, and I just plain forgot about the annual fee.

That one event, a 30 day late pay; tanked my credit score.

Since that time, I have been so diligent with checking my credit score monthly. I now pay for a service to be able to do that.

I tried to write the account holder to try to reverse the 30 days late pay but they wouldn’t. Cannot say I didn’t try.

I am also a firm believer in keeping accounts open, even if you do not use them.

Part of your credit score is based on history of accounts, meaning how long you have had accounts open, what their max credit is, so the longer they are open with good history, the better your score will be.

What is a Credit Score?

Credit agencies such as Experian, determines the score through a formula that accounts for things like paying your bills on time and current unpaid debt.

The credit score ranges from 300 – 850. 850 being the highest, best credit score you can get.

So, here are a few ways that I have improved my credit score over the years and I hope you can too.

3 Ways to Improve your Credit Score

Paying your bills on time seems so easy and straight forward, but if you do not pay your bills on time, your score will drop significantly and the longer it goes (60 and 90 days past due), the more the score will go down.

If your account goes to a collection agency, the score can drop even more.

If your account does go to collections, do not be afraid to call the collection agency and ask about paying the bill.

When it is paid, ask the collection agency if they will take off the collection account from your credit report.

Some will and some will not take the late account off your credit report, but I think it is worth a try.

Some collection agencies will even give you a discount on the balance if you pay in all cash. Again, it is worth a try.

A good tip for paying your bill on time is to set a notification on your phone for a few days before your bills are due and go in and pay them immediately, can be the whole balance or the minimum payment.

I have a journal that I keep, pretty old school that has all the dates when my payments are due.

Do what works for you.

Paying down your high interest credit cards can help improve your credit score.

It doesn’t have to be to zero but paying down a decent chunk can help. I have personally done this, and my score has increased. It has taken a few months to show the increase.

Another tip, in addition to paying down your credit cards, is to ask for increases in your credit limit from cards you already have but do not use the additional increase.

This can help improve your revolving credit ratio which can then help your overall credit score.

Your revolving credit ratio can help your score, and it takes the amount of credit outstanding and the amount of credit available.

Last tip and I think this is one of the most important ones is to not apply for new credit unless you really need it.

In the stores, when the salespeople ask you if you want to apply for their business credit card, just say no.

The more inquiries you have on your credit report, the more it shows lenders that you are out looking for new credit, so there could be a cash flow or a debt problem.

These are just a few tips that have worked over the years for me.

Did I miss anything? Is there anything you would add?

Thank you for reading.