8 Ways to Boost Your Credit Score
Kiplinger's Personal Finance|August 2019

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

Lisa Gerstner
8 Ways to Boost Your Credit Score

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.

Denne historien er fra August 2019-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 2019-utgaven av Kiplinger's Personal Finance.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA KIPLINGER'S PERSONAL FINANCESe alt
FREE HELP FOR COLLEGEBOUND STUDENTS
Kiplinger's Personal Finance

FREE HELP FOR COLLEGEBOUND STUDENTS

This program’s mentors assist applicants as they fill out the FAFSA, write essays and more.

time-read
2 mins  |
December 2024
WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS
Kiplinger's Personal Finance

WHAT YOU SHOULD KNOW ABOUT SPOUSAL IRAS

You typically need earned income to contribute to an individual retirement account, but a spousal IRA provides an important exception to this rule.

time-read
2 mins  |
December 2024
SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS
Kiplinger's Personal Finance

SELLING SHARES? HERE'S HOW TO MINIMIZE TAXES ON YOUR GAINS

ET'S say you've been regularly buying shares in a booming tech company over the past few years, but now you want to start taking some of those profits, perhaps to rebalance your portfolio.

time-read
5 mins  |
December 2024
Strategies for Novice Investors
Kiplinger's Personal Finance

Strategies for Novice Investors

AS part of a lifes kills program for young, single mothers, I was asked to teach a class on how to get on top of your finances.

time-read
3 mins  |
December 2024
ANSWERS TO YOUR 529 PLAN QUESTIONS
Kiplinger's Personal Finance

ANSWERS TO YOUR 529 PLAN QUESTIONS

Thanks to recent policy changes, families have more options for what to do with money sitting in these tax-advantaged accounts.

time-read
6 mins  |
December 2024
Rate-Cut Winners and Losers
Kiplinger's Personal Finance

Rate-Cut Winners and Losers

NOW that the Federal Reserve has cracked the interest rate ice, the next development will be to separate winners from losers.

time-read
2 mins  |
December 2024
SHOULD YOU BUY THESE RED-HOT FUNDS?
Kiplinger's Personal Finance

SHOULD YOU BUY THESE RED-HOT FUNDS?

Covered-call ETFs are popular but come with plenty of caveats.

time-read
6 mins  |
December 2024
DIVIDEND STOCKS ARE READY TO REBOUND
Kiplinger's Personal Finance

DIVIDEND STOCKS ARE READY TO REBOUND

Our favorite dividend payers are poised to benefit as falling interest rates lure investors back.

time-read
10+ mins  |
December 2024
IS A 55+ COMMUNITY RIGHT FOR YOU?
Kiplinger's Personal Finance

IS A 55+ COMMUNITY RIGHT FOR YOU?

These age-restricted developments appeal to older adults seeking abundant amenities and an active lifestyle.

time-read
8 mins  |
December 2024
AT LONG LAST, RATES ARE DROPPING
Kiplinger's Personal Finance

AT LONG LAST, RATES ARE DROPPING

Consider these portfolio moves now that the Federal Reserve has cut its benchmark interest rate.

time-read
4 mins  |
December 2024