The steps you take to improve your credit score will depend on your unique credit profile. In general, its important to understand the factors that influence your score, including your payment history, amounts owed, length of credit history, credit mix and new credit.
You can raise your credit score in a number of ways, such as by paying your bills on time, lowering your balances, avoiding taking on too much debt, and more. But depending on your unique situation, it can be difficult to know where to start.
Whether youre building credit from scratch or rebuilding after some credit missteps, understanding the factors that go into your credit score can help you determine which steps to take. So, here are seven things you can do to raise your credit score, how they’ll work, and how long it might take to see results.
Having a poor credit score can feel like you’re trapped in a vicious cycle. Low credit scores mean higher interest rates which make it harder to pay off debt. But the good news is that you can make meaningful improvements to your credit in just 3 months Here’s how.
Why 3 Months?
You may be wondering, why 3 months specifically? There are a few reasons:
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Credit scoring models look at your recent credit history from the past 3-6 months. By focusing on a 3 month timeframe, you ensure your positive changes will be reflected in your scores.
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Many negative marks start to lose their sting after 3 months, Late payments only impact your score for a few months before the damage starts decaying
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You can realistically make impactful changes in 3 months. Building good credit habits takes time, so setting a goal for three months keeps you from giving up.
Step 1: Review Your Credit Reports
Before making any changes, you need to understand exactly what is dragging down your credit. Get copies of your credit reports from Experian, Equifax, and Transunion and comb through them carefully.
Look for:
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Errors—One in five credit reports has mistakes that could lower your scores without reason. Dispute any inaccuracies.
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Old negatives – Collection accounts and late payments hurt less over time. Make sure nothing old is still dragging you down.
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Identify theft – Accounts that aren’t yours could indicate fraud. Report any suspicious activity.
Checking your reports gives you a blueprint to start repairing your credit effectively.
Step 2: Pay Down Balances
Your credit utilization ratio (how much of your available credit you’re using) is a key factor in your score. Below 30% utilization is ideal, so focus on paying down balances, especially on cards close to their limits.
Strategies that help:
- Pay more than the minimums
- Focus on cards with highest balances first
- Ask issuers for credit limit increases
- Use cash or debit until balances drop
Cutting down on how much credit you use can give you a nice boost in just one or two billing cycles.
Step 3: Bring Accounts Current
Recent late payments, collections, and other delinquencies will trash your credit faster than anything else. Bringing these accounts current helps in two ways:
- It removes the negative status from your credit reports
- It demonstrates you’re willing and able to get back on track
If you have unpaid collections accounts, contact the collectors to pay them off. If you’re behind on bills, call the creditors to work out more affordable payment plans.
As you bring accounts current, you should see improvements in your scores within a couple months.
Step 4: Become an Authorized User
It’s possible for someone with good credit to let you use one of their credit cards. Ask that person to do this. As an authorized user, the account history will start showing up in your credit report. This will give you a credit score boost right away from their long history of good behavior.
Just make sure it’s someone trustworthy who won’t stick you with their purchases. Also confirm that their issuer reports authorized user history to the credit bureaus.
Step 5: Only Apply for What You Need
It can be tempting to apply for new credit cards and loans when trying to build your credit. But each application triggers a hard inquiry on your report, which can ding your scores, especially if you have limited credit history.
Only apply for accounts you reasonably need and space applications out by at least 6 months. Getting too eager with the credit applications can slow down your progress.
Step 6: Develop Positive Habits
In addition to fixing negatives, it’s critical that you start developing positive credit habits – after all, you’ll have to keep them up to maintain your improved scores.
- Make at least the minimum payments on all accounts, every month
- Keep credit utilization low, around or below 30%
- Pay bills on time – set up autopay if it helps
- Limit new credit applications to only what you truly need
Good financial habits take time to build, but are necessary for long-term credit health.
The Impact in 3 Months
If you tackle these steps aggressively, you can achieve noticeable improvements in just 3 months. Credit scoring models give recent activity more weight. So your delinquent accounts can start aging off your reports and your positive habits, like lower balances and on-time payments, can boost your scores.
That being said, 3 months is just the beginning. More complex credit repairs, like dealing with bankruptcies or foreclosures, take longer. But putting in the work for 3 months gets your credit turnaround started and headed in the right direction. Stay diligent and keep up the positive momentum. With an eye on your credit reports and scores, you’ll continue to see your numbers improve month after month.
Don’t Close Your Oldest Account
Credit impact: The length of your credit history makes up 15% of your FICO score and is heavily influenced by the age of your oldest account and the average age of all of your accounts. While loan accounts are typically closed once you pay off the debt, you can keep credit cards open indefinitely. Closing a credit card can hurt your credit score, especially if its one of your oldest tradelines.
Actions you can take: Even if you no longer use your oldest credit card, consider using it every few months or putting a small recurring bill on the card to keep it active. If the card no longer fits your needs or has an annual fee, call the company that gave you the card and ask if you can change it to a better one. This may allow you to keep the credit history but switch to a card that works better for you.
How long it takes: Your length of credit history is established over the course of several years. However, if you close an old account or open multiple new credit accounts in a short period, you may see negative results rather quickly.
Diversify the Types of Credit You Have
Credit impact: Credit mix accounts for 10% of your FICO® Score and involves managing different types of credit. Someone with two credit cards, an auto loan, and a mortgage loan, for instance, will have a better credit mix than someone with only one credit card.
Note that your credit mix generally wont be a major factor in determining your eligibility for a loan or credit card, but it can help take a good credit score to the next level.
Actions you can take: Your credit mix will likely improve naturally over time as you apply for different types of credit to meet your financial needs. If youre just starting to establish your credit history, it can help to apply for a starter credit card and a credit-builder loan.
Once you get going, however, try to avoid taking on more debt than is necessary just for the sake of building credit.
How long it takes: Because your credit mix has a smaller influence on your credit score, theres no need to rush. Diversifying your credit mix can take several years as you apply for new credit accounts when you need them.
How To Fix A BAD Credit Score ASAP
FAQ
How to fix credit score in 3 months?
12 Strategies to increase your credit score in 3 monthsKnow your credit score. Your credit report details your history and financial accounts. Pay all bills on time. Stay within your credit limit. Dispute credit report errors. Increase credit history. Avoid repeated credit inquiries. Pay down debt. Become an authorized user.
Can credit score go up 100 points in 3 months?
Your credit score could go up by 100 points in a few months if you pay your bills on time, get rid of debts, keep your credit card balances low, and borrow money for both personal and business reasons.
How long does it take to get a 500 credit score to 700?
How quickly can a credit score be fixed?
How long does it take for your credit score to go up?EventAverage credit score recovery timeMissed/defaulted payment18 monthsLate mortgage payment (30 to 90 days)9 monthsClosing credit card account3 monthsMaxed credit card account3 months.