How to Improve Your Credit Score: 7 Steps, Even With Bad Credit

By the TCA Financial Editorial Team. Last reviewed: October 30, 2026.

Short answer: To improve your credit score, pay every bill on time, keep your credit card balances low (under 30% of your limits, and under 10% if you can), apply only for credit you need, and check your credit reports for errors and dispute any you find. You can see all three reports for free every week at AnnualCreditReport.com. There is no quick fix: the CFPB says no one can remove accurate negative information, so steady on-time payments are what raise a score over time (CFPB).

Key points

A credit score is “a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.” Most scores range from 300 to 850 (CFPB).
In FICO scores, payment history counts for about 35%, amounts owed 30%, length of credit history 15%, new credit 10% and credit mix 10% (myFICO).
Many experts recommend using less than 30% of your total credit limit; people with the highest scores often use less than 10% (CFPB).
You can get your Equifax, Experian and TransUnion reports free once a week at AnnualCreditReport.com (CFPB).
A credit reporting company generally must finish investigating a dispute within 30 days (15 U.S.C. 1681i).
Most negative information can be reported for seven years and bankruptcies for up to ten. Paying a company to “repair” accurate information does not work (CFPB).

What a credit score is and why it matters

Your credit score is a three digit number built from your credit reports. Lenders use it to decide whether to approve you for a credit card, auto loan or mortgage and at what interest rate and credit limit, and it is also used “for tenant screening and insurance” (CFPB). Your credit report itself can affect the deposit you pay for utilities and phone plans, and an employer can review it if you agree (CFPB).

You do not have just one score. The CFPB explains that each score “depends on the data used to calculate it,” including the scoring model, the credit reporting company the data came from and even the day it was calculated (CFPB). That is why the number in your banking app may differ a little from the one a lender sees. A higher score usually makes it easier to qualify and “may result in a better interest rate or loan terms.”

What goes into your score

Scoring models use the same kinds of information, though each weighs it differently. The CFPB lists your bill paying history, your current unpaid debt, the number and type of accounts, how long they have been open, how much of your available credit you use, new applications for credit, and any collections, foreclosure or bankruptcy (CFPB). FICO, the most widely used scoring brand, publishes its general weights (myFICO):

Factor (FICO)	Weight	What helps
Payment history	35%	Paying every account on time; getting current on any you have missed
Amounts owed	30%	Low balances compared with your credit limits
Length of credit history	15%	Keeping older accounts open and in good standing
New credit	10%	Applying only for credit you need, not many accounts at once
Credit mix	10%	Managing different kinds of credit well; you do not need one of each

How to improve your credit score: 7 steps

1. Pay every bill on time

Payment history is the biggest single factor. The CFPB says most credit scores treat repayment history “as the number one factor,” and suggests automatic payments or electronic reminders. If you have missed payments, “get current and stay current” (CFPB). If a due date does not line up with your payday, ask the lender to move it. For autopay, set it for at least the minimum so a busy week never turns into a late payment, but only from an account that will have the money, so you do not trade a late fee for an overdraft fee.

2. Keep your card balances low

Credit scoring models look at how much of your credit limit you are using, called credit utilization. “Many experts recommend using less than 30 percent of your total credit limit. Consumers with the highest credit scores often use less than 10 percent” (CFPB). You do not need to carry a balance to build a score; paying the balance in full each month “helps get you the best scores and keeps your interest costs as low as possible.”

Worked example: you have two cards with limits of $1,200 and $800, so $2,000 in total, and balances of $1,400. Your utilization is $1,400 / $2,000 = 70%. To get under 30% you need total balances of $600 or less, which means paying down $800. Under 10% means $200 or less.

3. Check your credit reports for free

Your score is only as accurate as the reports behind it. You can view your reports from Equifax, Experian and TransUnion online for free once a week at AnnualCreditReport.com, and you also have a legal right to one free report from each company every 12 months (CFPB). You can also call (877) 322-8228. The CFPB warns about lookalike sites: “Some of these websites will only give you a free report if you buy other products or services” (CFPB).

Read each report line by line and look for:

Accounts you never opened, which can be a sign of identity theft
Late payments you made on time, or a paid account still showing a balance
The same debt listed twice, for example by the original creditor and a collector, both showing as owed
Wrong names, addresses or Social Security number digits that could mean your file is mixed with someone else’s
Negative items older than the reporting limits: most negative information for seven years and bankruptcies for up to ten

You can get your score itself for free from many credit card companies and lenders you already use, and from nonprofit credit and housing counselors (CFPB). Before you sign up for a “free” score service, check whether a trial turns into a monthly fee.

4. Dispute errors, and do it yourself

You have the right to dispute errors, and fixing one “generally means contacting both the credit reporting company and the company that provided the information” (CFPB). Send the credit reporting company a written dispute with your contact details, each error and why it is wrong, a copy of the report with the item highlighted, and copies (not originals) of documents that support you. The CFPB suggests certified mail with a return receipt. Then dispute with the company that reported it, called the furnisher, which “generally must investigate and respond to your dispute within 30 days” (CFPB). The credit reporting company has 30 days to reinvestigate in most cases, which the law can extend in some situations (15 U.S.C. 1681i(a)(1)).

If the error comes from identity theft, report it at IdentityTheft.gov. If a dispute goes nowhere, you can submit a complaint to the CFPB.

Skip paid “credit repair.” “No one has the right to remove negative information, such as late payments, from a credit report if it is accurate. You can only get your credit report fixed if it contains errors, and you can do that on your own at no cost” (CFPB). A company that promises to erase accurate late payments for an upfront fee is selling something the law does not allow. Our guide to debt collector scams covers similar pressure tactics.

5. Apply only for credit you need

Scoring formulas read recent applications as a sign you need credit. “If you apply for a lot of credit over a short period of time, it may appear to lenders that you are dealing with financial setbacks” (CFPB). Say no to store card offers at the register unless you planned to open one, and space out applications. See hard vs soft credit inquiries for which checks count.

6. Keep old accounts open and watched

A longer history helps because there is more record of paying as agreed (CFPB). An old card with no annual fee is often worth keeping open: closing it removes its limit from your utilization math, while its on-time history can stay on your reports after it closes (CFPB). The CFPB adds one caution: keep an eye on unused accounts “to make sure that an identity thief is not using them.” A security freeze is free, blocks new accounts in your name and does “not impact your credit scores in any way whatsoever.” Our guide on how and why to freeze your credit explains the steps.

7. Build credit if your file is thin or damaged

If you are new to credit or rebuilding, the CFPB points to products built for it: a secured credit card, where you put down cash, for example $500, and can spend up to that amount; a credit builder loan from a bank or credit union, where the money is held as savings while you make small payments, usually over six to 24 months, and you receive it at the end; and a retail card with a low limit (CFPB). Ask whether the payments are reported to all three credit reporting companies. Debit cards, prepaid cards and cash do not build credit, and the CFPB notes that payday loan payments generally are not reported either (CFPB). For more, see building credit for beginners.

Credit card mistakes that hurt your score

Most credit damage comes from a few habits. Avoid these:

Paying late, even once. Payment history is the largest factor, and a late payment can stay on your reports for up to seven years (CFPB).
Maxing out a card. A card at or near its limit pushes your utilization up across all your accounts.
Paying only the minimum for months. You are not required to pay more, but “if you make only the minimum payment, it could take years to pay off your credit card.” Your statement shows how long the minimum would take and what payment clears the balance in 36 months (CFPB).
Opening several cards in a short time, or applying for new cards while you cannot pay the ones you have.
Using a credit card cash advance for everyday bills. The CFPB calls a card cash advance “a short-term loan” that “can be expensive”: fees, often a higher interest rate and no grace period, so “interest on a cash advance starts as soon as you withdraw your money” (CFPB).
Giving out your card number to someone you did not contact first. Check your statements every month and report charges you do not recognize right away.
Ignoring the warning signs: paying only minimums, paying late, or using credit to cover groceries and rent. That is the point to make a budget and call a nonprofit credit counselor.

How long it takes to improve your credit

Some changes show up as soon as new information is reported, usually monthly. Lowering a high card balance can help within a statement cycle or two, and a corrected error is fixed once the dispute is resolved. Negative history takes longer: most negative items can be reported for seven years, lawsuits or judgments for seven years or until the statute of limitations runs out, whichever is longer, and bankruptcies for up to ten (CFPB). Their effect generally fades as they age and as on-time payments build up after them. If you are rebuilding after a bankruptcy, see how to increase your credit score after bankruptcy, and if your score jumped recently, this explainer covers why.

Frequently asked questions

How can I raise my credit score fast?

The fastest legitimate moves are paying down credit card balances, ideally under 30% of your limits, and disputing real errors on your reports. Both can change your score once the new information is reported. Accurate late payments cannot be removed early.

How do I improve my credit score with bad credit?

Get current on any past due accounts, pay on time every month from now on, keep balances low and add a secured card or credit builder loan that reports to all three credit reporting companies. Recent on-time history counts, so the gains build month by month.

How often can I check my credit report for free?

Once a week from each of Equifax, Experian and TransUnion at AnnualCreditReport.com. You also have a legal right to one free report from each every 12 months, and to extra free reports in some cases, such as after being denied credit based on a report.

Does checking my own credit hurt my score?

No. Checking your own reports or score is not a credit application. Hard inquiries come from applying for new credit.

Does a credit freeze lower my score?

No. The CFPB says security freezes do not affect your credit scores. A freeze stops new creditors from seeing your file until you lift it, which is free.

Can a credit repair company remove late payments?

Not if they are accurate. No one has the right to remove accurate negative information. You can dispute real errors yourself for free.

Sources

Last reviewed October 30, 2026 by the TCA Financial Editorial Team. Found an error? Email [email protected].

Disclosure: TCA Financial (tcaloans.com) is not a bank, credit union, lender, credit reporting company or credit repair company, and does not make credit decisions. We connect people with independent lenders and may be paid by those lenders for advertising. This guide is general information, not legal or financial advice. A nonprofit credit counselor can help you review your own reports and score.