Improving your credit score is one of the most effective financial steps you can take now — especially if you plan to buy a home, refinance, or strengthen your overall credit profile. Credit scores can shift daily as balances update, inquiries post, and accounts age. Understanding how the FICO scoring system works can help you make meaningful improvements that last.

Below are 14 proven, practical steps to help raise your credit score, supported by current best practices used by lenders and credit experts.

1. Pay Every Bill on Time (Most Important Factor)

Primary keywords: payment history, on-time payments, credit score improvement

Payment history makes up 35% of your FICO score — the single largest factor.

• Never let a bill go 30 days past due.
• One late payment can drop your score significantly.
• Consistent on-time payments rebuild damaged credit over time.

If you’ve had past late payments, get current immediately and maintain a perfect track record going forward.

2. Reduce Credit Card Balances (Credit Utilization Ratio)

Primary keywords: credit utilization, credit limits, balances, maxed-out cards

Utilization — how much of your credit limit you’re using — makes up 30% of your score.

• Keep balances below 30% of your limit.
• For best results, aim for 10% or lower.
• Maxed-out cards are one of the fastest ways to lower your credit score.

If your card is reporting the wrong limit, dispute it — inaccurate limits can dramatically lower your score.

3. Keep Long-Standing Accounts Open (Credit Age Matters)

Primary keywords: length of credit history, old accounts, average age of credit

Credit age makes up 15% of your score.

• Do not close old credit cards before buying a home.
• Your oldest accounts help anchor your file and strengthen your score.
• Keep long-term accounts active with small charges paid off monthly.

4. Avoid Opening New Accounts (Protect Your Score)

Primary keywords: new credit, new accounts, credit dips, FICO impact

Opening new accounts temporarily lowers your average credit age and can cause a short-term score drop.
Only open new credit when necessary — especially during the year before applying for a mortgage.

5. Maintain a Healthy Mix of Credit Types

Primary keywords: credit mix, installment loans, revolving credit, HELOC, auto loan

The ideal credit profile often includes:

• A mortgage
• Three major bank credit cards
• One auto loan
• Other small installment accounts

HELOCs count as revolving credit, and using more than 30% of your HELOC limit can reduce your score.

6. Dispute Errors on Your Credit Report

Primary keywords: credit report errors, dispute process, Experian, TransUnion, Equifax

Mistakes can harm your credit for years if left uncorrected.

• File disputes using CFPB or FTC guidance.
• Provide supporting documentation.
• Creditors must respond within 30 days and resolve within two billing cycles.

Note: Mortgage lenders cannot use reports showing “Account in Dispute,” so resolve disputes early.

7. Always Pay at Least the Minimum Payment

Primary keywords: minimum payments, avoid late payments, auto-pay

• Paying less than the minimum due counts as a late payment.
• Set up automatic payments for recurring bills to prevent accidental missed payments.

8. Maintain 5–7 Major Bank Credit Cards

Primary keywords: number of credit cards, bank credit cards, long-term credit health

For strong long-term credit:

• Keep balances at 5%–10% of your limit.
• Maintain long-standing cards for 5–10+ years.
• Limit new accounts and avoid unnecessary inquiries.

9. Build Long-Term Credit Relationships

Primary keywords: credit age, credit anchors, long credit history

Consumers with excellent credit often have at least one bank card with 20–30 years of clean history.
If you’re early in your credit journey:

• Open a major bank card
• Link it to your checking account
• Use and repay it responsibly

10. Avoid Store Credit Cards

Primary keywords: store cards, low credit impact, inquiries

• Store cards have lower scoring value than traditional bank cards and often come with higher interest rates and lower limits. Only open store accounts when absolutely needed.

11. Limit Hard Inquiries (Credit Pulls)

Primary keywords: hard inquiries, credit checks, mortgage inquiries, FICO scoring windows

• Mortgage and auto inquiries within 30 days count as one.
• Inquiries stay on your report for two years.
• Limit to seven or fewer per year whenever possible.

12. Set Up Auto-Pay for Fixed Bills

Primary keywords: avoid missed payments, automated payments, credit protection

• Put fixed expenses — mortgage, utilities, insurance — on automatic payment to prevent late pays.

13. Rehabilitate or Consolidate Defaulted Student Loans

Primary keywords: student loan rehabilitation, student loan consolidation, credit improvement

• Defaulted federal student loans can be rehabilitated or consolidated, restoring the account to good standing and improving your credit.

14. Stop Applying for Credit at Least One Year Before a Mortgage

Primary keywords: preparing for home loan, credit stability, mortgage readiness

Give your credit profile time to:

• Age
• Stabilize
• Reduce inquiries
• Build history

This is especially important for Washington and Seattle-area homebuyers preparing to qualify for financing.

Additional Credit-Building Tips

Secondary keywords: budgeting, debt reduction, credit counseling

• Review your budget regularly to free up funds that can reduce debt.
• Lower balances = lower utilization = higher scores.
• Tools like Advantage Credit’s Wayfinder can identify targeted steps to boost your score.
• For debt counseling, contact the National Foundation for Consumer Credit at 1-800-388-2227.

Final Thoughts: Building Strong Credit in 2025

Strong credit opens the door to better financial opportunities. By managing balances, paying bills on time, protecting long-term accounts, and staying proactive, you can steadily build and maintain a stronger FICO score. These steps help prepare you for major financial goals, including homeownership.

If you'd like help reviewing your credit, preparing for a home loan, or exploring financing options, I’m happy to assist.