Does your credit score feel like a mythical number that somehow determines so much of your financial life? You're not alone. Credit scores were originally invented in the 1950s but weren't widely adopted until 1989 when the Fair Isaac Corporation (FICO) created a uniform, data-backed method for lenders to assess consumer risk. Prior to this, lending decisions were far more subjective.

Today, the FICO score remains the industry standard and is used by the three major credit bureaus: Equifax, TransUnion, and Experian. These bureaus collect and aggregate personal and financial data on U.S. consumers, and that data shapes your ability to buy a home, finance a car, rent an apartment, and even get hired for certain jobs.

According to FICO's April 2025 report, the average credit score in the United States is 715. If you're facing a low score and need to raise it quickly, perhaps before applying for a mortgage or auto loan, that can feel daunting. But reaching a score the credit bureaus deem "good" or even "excellent" isn't out of reach. You just need a strategic plan, the right tactics, and consistent follow-through.

#What does my credit score mean?

Credit scores typically range from 300 to 850. The higher your score, the more likely you are to qualify for loans and financing at favorable rates. Here's how the ranges break down:

• 300-549: Bad credit – likely denied for new credit; very high interest rates if approved
• 550-619: Poor credit – limited options, unfavorable terms
• 620-679: Fair credit – may qualify for some products, but not the best rates
• 680-739: Good credit – access to most credit products with reasonable rates
• 740-799: Very good credit – qualifies for better-than-average rates
• 800-850: Excellent credit – best rates and terms available

If you can get your credit score above 740, you'll likely be offered competitive interest rates. Above 800, you're in the top tier and will access the best terms available - potentially saving thousands over the life of a mortgage or auto loan.

#Understand how credit scores are calculated (Day 1)

Before you start improving your credit score, you need to understand what drives it. According to myFICO, your FICO score is based on five primary factors:

• Payment History (35%) – This is the single most important factor. According to FICO's research, your track record of payment is the strongest predictor of whether you'll pay future debts as agreed. Consistently making on-time payments is the best way to build and maintain a strong score. Even one late payment can drop your score significantly, FICO data shows a 30-day late payment can cause a drop of 17-37 points for someone with fair credit, or 63-83 points for someone with very good credit.
• Credit Utilization (30%) – This measures how much of your available credit you're currently using. If you have a $10,000 credit limit and carry a $2,000 balance, your utilization is 20%. Keeping utilization under 30% is good, but myFICO notes that people with 850 FICO scores have an average utilization rate of just 4.1%.
• Length of Credit History (15%) – Longer credit history generally means a higher score. This is why financial experts recommend keeping old accounts open even if you don't use them regularly.
• Credit Mix (10%) – Having a variety of credit types (credit cards, auto loans, mortgages, personal loans) demonstrates you can manage different kinds of debt responsibly.
• New Credit & Hard Inquiries (10%) – Applying for new credit triggers hard inquiries, which can temporarily lower your score. Too many applications in a short period signals risk to lenders.

Note: VantageScore, another scoring model used by some lenders, weighs these factors slightly differently but follows similar principles.

#Pull your credit reports (Days 1-7)

You're entitled to free credit reports from all three bureaus once per year at AnnualCreditReport.com (the only federally authorized source). As of 2025, the nationwide credit bureaus are also voluntarily offering free weekly credit reports.

Why review your credit report? Because errors happen more often than you'd think. According to a Federal Trade Commission study, one in five consumers had an error on at least one of their credit reports that was corrected after being disputed. The study also found that 5% of consumers had errors significant enough to affect the terms they'd receive on loans. Mistakes can include:

• Duplicate accounts
• Incorrect balances or credit limits
• Accounts that don't belong to you (possible fraud or mixed files)
• Closed accounts marked as open
• Late payments reported incorrectly

If you're trying to improve your score quickly, pull your reports from all three bureaus immediately. Errors on even one report can drag down your score.

#Dispute any errors (Days 1-7)

If you find errors, dispute them immediately with the credit bureau reporting the inaccurate information. Under the Fair Credit Reporting Act (FCRA), bureaus must investigate disputes within 30 days. This means you could see a significant score bump in just one to two months if an error is corrected.

#How to dispute effectively:

• Write a physical letter to the credit bureau (online disputes are possible but often less effective)
• Clearly identify each item you're disputing
• Explain why the information is inaccurate
• Include copies of supporting documentation
• Request that the item be removed or corrected

Also contact the company that reported the inaccurate information whether that's a bank, lender, or collection agency. Under the Fair Debt Collection Practices Act (FDCPA), collectors must provide proof you owe the debt. If they can't verify it, the item must be removed.

#Target your highest utilization cards first (Days 1-30)

For the fastest improvement in your credit score, focus on lowering credit utilization strategically. Credit utilization has an almost immediate impact—your score can improve within one billing cycle once lower balances are reported.

#Your action plan:

• Identify your highest-utilization cards – Using a tool like Monarch, you can see all your credit card balances and limits in one place, making it easy to spot which cards are near their limits.
• Pay down the highest-utilization card first – If one card is at 80% utilization and another at 20%, focus aggressively on the first one.
• Request a credit limit increase – This instantly lowers your utilization ratio without requiring you to pay anything down. Call your card issuer or request an increase online. Be prepared to provide updated income information.
• Consider a balance transfer – Moving balances to a 0% APR card lets you pay down debt without accruing interest. Just know when the promotional period ends and aim to pay off the balance before then.

Pro tip: In Monarch, you can create a temporary 90-day "credit boost" plan within your budget, allocating extra funds specifically toward paying down high-utilization cards.

#Catch up on any past due accounts (Days 1-30)

Late payments devastate your credit score, and the longer an account stays delinquent, the worse the damage. According to FICO's credit damage simulations, a single late payment can cause your score to drop anywhere from 17 to 83+ points depending on your starting score and the severity of the delinquency. An account that goes 90+ days past due can have an even more dramatic impact and may eventually be sent to collections.

#If you're behind on payments:

• List all past-due accounts and prioritize by severity (how late) and amount owed
• Contact creditors to discuss payment plans—many will work with you
• Set up automatic payments to prevent future missed payments
• Use Monarch's recurring bills feature to see exactly when every bill is due and get reminders

Even if you can't pay the full amount owed, making partial payments shows good faith and may prevent the account from being charged off or sent to collections.

#Negotiate late payments and errors with creditors (Days 30-60)

If you have a history of on-time payments with a creditor, they may be willing to remove a one-time late payment as a goodwill adjustment. It's worth calling to ask, the worst they can say is no.

#Tips for negotiating:

• Be polite and explain your situation honestly
• Mention your positive payment history with them
• Ask specifically for a "goodwill adjustment"
• If the first representative says no, try calling back and speaking with someone else
• Get any agreement in writing before making payment

#Add positive credit history if possible (Days 1-90)

If you have a thin credit file or are rebuilding after negative events, adding positive data can accelerate your progress.

#Options include:

• Become an authorized user – If someone with excellent credit (a parent, spouse, or trusted friend) adds you as an authorized user on their credit card, their positive payment history on that account may be added to your credit report. This only works if they have a long history of on-time payments and low utilization on that card. Be careful: their late payments would hurt you too.
• Open a secured credit card – These cards require a deposit (typically $200-$500) that serves as your credit limit. Use the card for small purchases and pay the balance in full each month. Keep utilization under 10%.
• Try a credit builder loan – These loans are specifically designed to help you build credit. The lender holds the loan amount in a savings account while you make monthly payments. Once paid off, you receive the funds. Your on-time payments are reported to the bureaus.
• Use Experian Boost or similar services – Experian Boost lets you add utility, phone, and streaming service payments to your Experian credit report. UltraFICO considers your banking history. These services can add points quickly if you have a history of on-time payments on these bills.
• Rent reporting services – Services like Rental Kharma or Boom can report your on-time rent payments to credit bureaus, potentially boosting your score.

#Don't apply for new credit for at least 90 Days

While you're actively working to improve your score, avoid applying for new credit cards, loans, or other credit products. Each application triggers a hard inquiry and signals to lenders that you may be taking on more debt.

The only exception: If you're rate shopping for a mortgage or auto loan, do so within a focused 14-45 day window so multiple inquiries count as one.

#Special scenario: How to improve your credit before buying a house

If you're preparing to apply for a mortgage, start working on your credit at least 3-6 months before you plan to apply. Here's a focused approach:

• Pull your reports from all three bureaus – Mortgage lenders typically use FICO scores from all three bureaus and take the middle score
• Dispute any errors immediately – Allow 30-60 days for investigations
• Pay down credit cards aggressively – Aim for under 10% utilization on each card
• Don't open new credit accounts – Avoid hard inquiries
• Don't close old accounts – Keep your credit history length intact
• Set up a budget in Monarch to accelerate debt payoff while saving for your down payment

#What about BNPL (Buy Now, Pay Later)?

Buy now, pay later services like Affirm, Klarna, and Afterpay are increasingly being reported to credit bureaus. According to recent FICO announcements, FICO 10T and VantageScore 4.0 now incorporate BNPL payment data.

#What this means for you:

• On-time BNPL payments could help build positive history
• Late or missed BNPL payments could hurt your score
• If you're trying to improve your score fast, avoid taking on new BNPL loans and ensure you're current on existing ones

#How Monarch helps you improve and maintain your credit score

Building excellent credit isn't just about knowing the tactics, it's about having a system to execute them consistently. Monarch brings everything together:

• Track your spending and create a credit-boost budget – Identify where you can cut back temporarily to free up cash for paying down high-utilization cards.
• See all your accounts in one place – Quickly spot which credit cards have the highest utilization so you know where to focus.
• Never miss a payment – Use the recurring bills feature to see every upcoming due date and set reminders so late payments become a thing of the past.
• Monitor your progress – Track your credit score trends alongside your net worth and debt payoff goals. Seeing the numbers improve is powerful motivation.
• Set financial goals – Create goals that tie together your down payment savings, debt payoff plan, and target credit score - all tracked in one dashboard.

Your credit score doesn't have to feel like a mystery. With a clear plan and the right tools, you can take control and see real improvement in as little as 30-90 days.

#Be consistent and patient

You can rebuild your credit, but it takes time, patience, and consistency. The strategies above can produce meaningful results in 30-90 days, but lasting credit health requires ongoing habits:

• Pay every bill on time, every month
• Keep credit utilization below 30% (ideally under 10%)
• Don't open or close accounts without strategic thinking
• Monitor your credit regularly for errors or fraud

#FAQs

#What are the fastest ways to improve your credit score?

The fastest ways to improve your credit score are paying down high-utilization credit cards (aim for under 10% utilization), disputing errors on your credit report, catching up on past-due accounts, and using services like Experian Boost to add positive payment history. Credit utilization changes can reflect in your score within one billing cycle, while successful dispute resolutions take 30-45 days.

#Can I raise my credit score 100 points in 30 days?

Yes, it's possible but depends on your specific situation. You're most likely to see a 100-point jump if you correct errors on your credit report, pay down credit cards from high utilization (80%+) to under 10%, get a collection account removed, or become an authorized user on an account with excellent history. If your low score is primarily due to late payments or bankruptcies, improvement will be more gradual, typically 20-50 points in the first 30 days with continued gains over 60-90 days.

#How long does it take for a credit score to go up?

Credit scores can improve within one billing cycle (about 30 days) when you reduce credit utilization or errors are removed from your report. More significant rebuilding, especially after late payments, collections, or bankruptcies, takes 3-6 months for noticeable improvement and 1-2 years to fully recover. Negative items remain on your report for 7-10 years but their impact diminishes over time.

#Does paying off collections improve your credit score?

It depends on the scoring model. Newer models like FICO 9, FICO 10, and VantageScore 3.0/4.0 treat paid collections more favorably than unpaid ones. However, older FICO models still used by many mortgage lenders count the collection against you whether paid or not. That said, paying collections is still worthwhile, it stops collection calls, prevents lawsuits, and may be required for mortgage approval. You can also try negotiating a "pay for delete" agreement.

In 2022, the three major credit bureaus voluntarily agreed to remove paid medical collections from credit reports, stop reporting medical debt less than a year old, and exclude medical debt under $500. In January 2025, the Consumer Financial Protection Bureau (CFPB) finalized a rule that would have removed all medical debt from credit reports, but this rule was vacated by a federal court in July 2025. Several states have enacted their own laws banning medical debt from credit reports.

#Does checking my own credit score hurt it?

No. Checking your own credit score or report is a "soft inquiry" and has zero impact on your score. You can check as often as you like. Only "hard inquiries" which occur when you apply for new credit can lower your score, typically by 5-10 points. Monitor your credit regularly using Monarch's credit monitoring feature to catch errors and track your progress.

#Is it better to pay off debt or keep a balance?

Pay off your debt. The myth that carrying a balance helps your credit score is false. What helps your score is having available credit and using a small portion of it responsibly. Ideally, use your credit cards for regular purchases, then pay the statement balance in full each month. This shows activity while keeping utilization low and avoiding interest charges.

#Should I close old credit cards to improve my score?

Generally, no. Closing old credit cards can hurt your score in two ways. First, it increases your utilization ratio, if you have $10,000 in total credit limits and close a card with a $3,000 limit, your total available credit drops to $7,000, and any existing balances now represent a higher percentage of your available credit. Second, it can shorten your credit history if the closed card was one of your oldest accounts. Instead, keep old cards open with zero or minimal balances. If a card has an annual fee you want to avoid, ask the issuer to downgrade it to a no-fee version rather than closing the account entirely.

#How many points can a late payment drop my score?

A single late payment can drop your score anywhere from 17 to 180+ points, depending on several factors: how late the payment is (30, 60, or 90+ days), your starting score, and your overall credit history. People with higher scores typically see larger drops because they have less negative history to offset it. A 30-day late payment is damaging; 90+ days late is significantly worse and may lead to collections.

#What is a good credit score to buy a house?

While you can qualify for some mortgages with a score as low as 500-580 (FHA loans), a score of 740 or higher will get you the best conventional mortgage rates. For most buyers, a score of 680+ opens up good options. If you're planning to buy a house, start working on your credit 3-6 months before applying to give yourself time to improve your score and resolve any issues.

#How long do hard inquiries stay on your credit report?

Hard inquiries remain on your credit report for two years but typically only affect your score for about 12 months. Each hard inquiry may lower your score by 5-10 points. If you're rate shopping for a mortgage or auto loan, multiple inquiries within a 14-45 day window are usually counted as a single inquiry by scoring models.