A higher credit score can help you qualify for better car loans, lower interest rates, and easier approvals when financing a vehicle. If you’re working on rebuilding your credit or improving it quickly, there are proven steps you can take to boost your score in weeks or months.
This guide covers the fastest and most effective ways to improve your credit score, whether you’re looking to buy a car, secure a loan, or just strengthen your financial standing.
How Credit Scores Are Calculated
Before improving your credit, it’s important to understand what factors influence your score.
Your credit score is based on the following:
- 35% – Payment history (on-time vs. late payments)
- 30% – Credit utilization (how much credit you’re using vs. available credit)
- 15% – Length of credit history (how long your accounts have been open)
- 10% – Credit mix (variety of accounts like loans, credit cards, mortgages)
- 10% – New credit inquiries (recent applications for new credit)
By focusing on these factors, you can make quick improvements to your credit score.
1. Make On-Time Payments Every Month
- Late payments negatively impact your score more than anything else.
- Set up auto-pay or payment reminders to avoid missing due dates.
- If you’ve had late payments in the past, start paying on time now—positive history builds over time.
2. Pay Down Credit Card Balances
Your credit utilization ratio (how much credit you use compared to your limit) makes up 30% of your score. Keeping it under 30% is ideal, but under 10% is even better.
Ways to lower your credit utilization:
- Pay more than the minimum payment on credit cards.
- Spread your debt across multiple cards rather than maxing out one.
- Ask for a credit limit increase (as long as you don’t increase your spending).
3. Dispute Credit Report Errors
Errors on your credit report can drag down your score unfairly.
Check your credit report for:
- Incorrect late payments
- Duplicate accounts
- Accounts that don’t belong to you
To dispute errors:
- Get a free credit report from AnnualCreditReport.com.
- Contact Experian, Equifax, and TransUnion to dispute mistakes.
- The credit bureau must investigate and correct any inaccuracies.
4. Become an Authorized User on Someone Else’s Credit Card
- If you have a family member or friend with good credit, ask them to add you as an authorized user on their credit card.
- Their positive payment history and low utilization will help improve your score.
- You don’t need to use their card—just being listed can boost your credit history.
5. Get a Credit-Builder Loan or Secured Credit Card
If you have bad credit or no credit, consider:
- Credit-builder loans – These small loans help establish payment history.
- Secured credit cards – Require a deposit but build credit like a normal card.
Use them responsibly by making small purchases and paying off the balance each month.
6. Reduce Hard Inquiries (Limit New Credit Applications)
Each time you apply for credit, a hard inquiry is placed on your credit report, which can temporarily lower your score.
- Avoid applying for multiple loans or credit cards at once.
- Only apply for credit when necessary.
- If shopping for an auto loan, keep applications within a 14-day period—credit bureaus count multiple loan inquiries as one if done in a short timeframe.
7. Settle Old Debts and Collections
If you have accounts in collections, paying them off can increase your credit score, but only under the right circumstances.
- Negotiate with collection agencies – Ask them to remove the debt from your report if you pay it off.
- If the account is older than 7 years, it should be removed automatically.
8. Keep Old Credit Accounts Open
Your credit history length affects 15% of your score. The longer your accounts have been open, the better.
- Even if you don’t use an old credit card, keep it open to preserve your credit history.
- Closing old accounts reduces your total available credit, which can hurt your score.
9. Use Experian Boost to Get Credit for Utility Payments
Experian Boost is a free tool that adds your phone, utility, and streaming service payments to your credit report, helping improve your score.
- If you pay your bills on time, you can see an instant increase in your Experian credit score.
- It won’t impact Equifax or TransUnion, but even one higher score can help with approvals.
10. Pay Off Small Debts First (Debt Snowball Method)
- Paying off small debts improves your credit utilization and payment history.
- The debt snowball method helps build momentum—paying off small balances first gives you motivation to tackle larger ones.
How Long Does It Take to Improve Your Credit Score?
- 30 Days: Small improvements by lowering utilization and disputing errors.
- 3-6 Months: More significant increases by making on-time payments and reducing debt.
- 1 Year: A major credit score boost if you pay off collections, keep accounts open, and maintain low balances.
Final Thoughts: Build Your Credit for a Strong Financial Future
A higher credit score means better loan terms, lower car payments, and more financial opportunities. Whether you’re preparing to buy a car or secure a loan, following these steps can help you boost your credit fast.
If you’re looking for credit-friendly auto financing, check out our Buy Here Pay Here dealership options today!
