8 Ways to Boost Your Credit Score

Some tactics get quick results. Others pay off over time.

- Lisa Gerstner

Is your credit score in the doldrums—or has it taken an unexpected turn south? You may be able to give it a quick lift, depending on why it’s sagging. We’ve outlined several ways to elevate your credit score, from actions that can produce fast results to good habits that pay off over time. With a score of about 700 or higher (standard FICO and VantageScore credit scores range from 300 to 850), you’ll typically qualify for lower rates on mortgages and other loans.

1. Pay down credit card debt. If high card debt is weighing on your score, paying off all or most of it in one swoop could give your score a quick and significant boost. That’s because a key component of your score is your credit-utilization ratio—the amount you owe on your credit cards as a proportion of your card limits. Utilization is calculated for individual cards and in the aggregate for all your card accounts. The lower your utilization, the better. According to FICO, consumers with scores of 800 or higher use an average of 7% of their credit limits.

Don’t have enough cash lying around to make a big payment? One strategy is to transfer the debt to an installment loan—say, a personal loan—or a homeequity line of credit. Such debts aren’t a factor in utilization. Plus, the presence of the loan or HELOC on your credit report could improve your mix of credit, which accounts for 10% of a FICO score.

It’s a good idea to leave a credit card account open even after you stop using it. When you close a card, its credit line no longer factors into your utilization—so if you have balances on other cards, your utilization ratio could climb.