According to Experian, a credit score that’s less than 670 falls below what is considered “good.” And it can make it more expensive to borrow money or cause lenders to deny your loan application — neither of which is ideal.
The good news is there are ways to boost your credit score, and you may not have to wait years to see results.
Learn More: Who Can Access Your Credit Score? Here’s the Full List
Find Out: 7 Luxury SUVs That Will Become Affordable in 2025
Here are some fast, expert-approved ways to boost your credit score if you’re looking to get a loan this year.
Gwyneth Borden, co-founder and CEO of Remynt, said that to quickly improve your credit score, focus on managing your credit utilization rate — the total amount of credit card debt you owe compared with your total credit limit across all your cards.
“Keeping this rate under 30% is key because higher utilization can negatively impact your score,” she explained. “If your utilization exceeds this threshold, prioritize paying down your balances to bring it below 30%. Once you achieve this target, then take out your loan. The credit score is only a snapshot of your credit file, so if your utilization rate exceeds 30% after the loan is approved, it won’t factor into the approval process.”
Be Aware: Do Your Student Loans Affect Your Credit?
“Any errors, regardless of how minor — such as incorrect balances or a late payment not properly reported — will lower your score,” said Michael Baynes, co-founder and CEO of Clarify Capital. “Disputing errors sooner minimizes the possibility of their causing issues when obtaining credit in the future.”
If you find errors on any of your reports, you’ll need to dispute the errors with the relevant credit bureau online or by mail or phone.
“This is one of the most significant factors in payments reported to credit bureaus, and late payments can significantly impact your credit score,” Borden said.
Unfortunately, a late payment can affect your credit score by up to 100 points, according to Capital One. Plus, it can stay on your credit report for seven years, per Equifax.
Baynes said that if you’ve made the occasional late payment, catching back up and requesting a goodwill adjustment with the lender can be beneficial. “Most lenders, especially the ones with whom the client enjoys good standing, will drop a late payment upon request,” he said.
If you choose to write a goodwill adjustment letter, it should acknowledge that you made a late payment and explain why. Also, mention your past efforts to make payments on time and politely make your request that the late payment be removed. The lender may or may not approve your request, but it doesn’t hurt to try.
