How to Increase Your Credit Score

Understanding Your Credit Score

Before diving into ways to increase your credit score, it’s important to have a clear understanding of what a credit score is and the factors that influence it. Your credit score, also known as a FICO score, is a metric that takes into account various factors:

  • Payment history (35%): This refers to how well you pay off your credit.
  • Amount of debt (30%): This relates to how much you owe.
  • Length of credit history (15%): This considers the amount of time you’ve spent building credit.
  • New credit (10%): This takes into account the number of new lines of credit you’ve opened and when you opened them.
  • Credit mix (10%): This looks at the diversity of credit you owe, such as auto loans, credit cards, and mortgages.

Now that you have a basic understanding of how credit scores work, let’s explore some strategies to help you increase your credit score.

Becoming an Authorized User

One of the quickest and easiest ways to boost your credit score is by becoming an authorized user on someone else’s credit card. If you know someone with good credit who is willing to add you to their card, it can have a significant impact on your score. However, keep in mind that this strategy may not work for everyone, as it can negatively affect the primary cardholder’s credit score if you misuse the card or if they already have bad credit.

Building Credit History

If you don’t have any credit history, a great starting point is to apply for your first credit card. If you’re unable to get approved for a regular credit card, you can opt for a secured credit card. These cards require a security deposit, making them accessible for beginners with no credit history. As you build your credit history over time, your score will increase.

Paying off Your Credit Cards

Paying off your credit cards in full and on time is crucial for raising your credit score. Most credit card companies offer autopay services, which make it easier to ensure timely payments. Setting up autopay for your credit cards helps you avoid missed or late payments, which can have a negative impact on your credit score.

Building Multiple Lines of Credit

As you continue to build your credit history and establish a strong payment record, it’s beneficial to have multiple lines of credit. By increasing the number of credit cards you have, your total credit limit will also increase. This not only helps you stay within the recommended credit utilization ratio, but it also strengthens your credit history by showing lenders that you can manage multiple credit cards responsibly. Additionally, diversifying your loans by taking out auto loans, getting a mortgage, or paying off small loans reported to credit agencies can further improve your credit profile.

Timing New Credit Applications

Applying for new credit too frequently, especially all at once, can negatively impact your credit score. Each time you apply for new credit, a hard inquiry is performed, which can temporarily lower your score. Lenders may view multiple credit applications as a sign of financial trouble, even if that’s not the case. To avoid unnecessary dings on your credit, it’s best to wait before applying for new credit, especially if you plan to make a significant purchase, such as a car or a house.

Managing Credit Utilization Ratio

The percentage of your overall credit limit that you are utilising is known as your credit utilisation ratio. It’s recommended to keep this ratio under 30%, or even better, under 10%. Lenders see high utilization ratios as a risk, as it suggests that you’re relying heavily on borrowed money. To keep your utilization ratio low, you can either increase your credit limits by getting more credit cards or spread out charges across different cards. Making multiple payments a month can also help keep your balances low.

Checking Your Credit Reports

Regularly checking your credit reports is essential to catching and correcting any errors. is a free service that allows you to review your reports multiple times a year. Common mistakes include missing accounts, duplicate reporting of accounts, and incorrect closing information. These errors can inflate your debt or misrepresent your credit history, negatively impacting your credit score. If you spot any errors, contact the credit bureau and the information provider to dispute them.

Requesting Credit Limit Increases

An often overlooked strategy to increase your credit score is to ask credit card companies to raise your credit limit. This can be done by calling the customer service department and making a request. The worst they can say is no, and as you establish a positive history with the company, it becomes easier to secure credit limit increases. You can try this strategy with all your credit cards, focusing on the one you use the most.


Having a good credit score is crucial for borrowing money and leveraging credit. By following these eight steps, you can work towards achieving an excellent credit score. Remember to become an authorized user, build a credit history, pay off your credit cards, build multiple lines of credit, time new credit applications, manage your credit utilization ratio, check your credit reports for errors, and request credit limit increases. You may improve your financial future and take charge of your credit score by putting these methods into practice.

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