A good credit score can open doors to better interest rates, easier loan approvals, and even lower insurance premiums. On the flip side, a weak score can hold people back financially, making everyday decisions like buying a car or refinancing a home more difficult. Many clients know they should aim higher, but the question is how. Improving your credit score isn’t about overnight tricks—it’s about consistent, strategic steps that add up over time.

Understanding Credit Scores

Before getting into the nitty gritty of different strategies to bring up your credit score, it’s important to know what makes up a credit score in the first place. Payment history is the largest factor, followed by credit utilization, length of credit history, types of credit, and recent inquiries. Each element plays its part, and ignoring even one can drag the overall score down.

Paying Bills on Time

You can’t go back in time and change your payment history. But you can make sure that all your future payments reach your creditors before or on their due dates. Even one missed payment can linger on a credit report for years. Setting up automatic payments or reminders through a bank or budgeting app can prevent slip-ups. Be careful if you use bank-supported bill payment apps. These often send checks by mail, which can be delayed for an astoundingly long time. If you’re really committed to making sure your payments get to their destination on time, consider paying creditors online from their own website or even paying in person at utility companies. 

Lowering Credit Utilization

Credit utilization measures how much of your available credit you’re using. High balances relative to credit limits can signal financial strain to lenders. Ideally, individuals should keep their utilization under 30%, but lower is better. Paying down balances, requesting a higher limit without increasing spending, or spreading expenses across multiple cards can all help reduce this ratio. It’s tempting to dip into extra credit when you see something that’s a “great deal,” but waiting until you have the cash in the bank to pay for it will support your long-term credit goals much better.

Managing Debt Strategically

Carrying multiple debts not only hurts utilization but also creates a juggling act that can easily lead to accidentally missed payments. Strategies like the snowball method—paying off smaller debts first for momentum—or the avalanche method—targeting higher-interest accounts to save money—can help clients take control. Consolidation loans may also make sense, but only if they lead to steady repayment, not more borrowing.

Building and Maintaining Credit History

Length of credit history makes up a smaller percentage of the score, but it’s still meaningful. Closing old accounts, even those no longer in active use, can shorten the average history and reduce available credit. Instead of shutting down older cards, it may be smarter to leave them open with minimal activity, ensuring they continue to reflect positively on the report. Basically, if it’s not hurting your credit, leave it alone.

Diversifying Credit Types

Credit scoring models reward consumers who can responsibly manage different forms of credit, such as credit cards, car loans, and mortgages. That doesn’t mean opening unnecessary accounts, but it does mean recognizing that a healthy mix signals reliability. For example, someone with only revolving credit might benefit from responsibly managing an installment loan. Just beware that installment loans usually come with exorbitant interest rates—especially for someone with less than ideal credit. If you have any doubt whatsoever that you’ll be able to pay it down within a month or two, steer clear.

Checking Reports for Errors

Credit reports aren’t flawless, and errors can drag down a score unfairly. Reviewing reports from the three major bureaus—Equifax, Experian, and TransUnion—at least once a year can catch mistakes. Disputing incorrect late payments or accounts that don’t belong to the individual can result in quick improvements. Since clients are entitled to free annual reports, there’s no reason to skip this step. Consider signing up for a paid credit monitoring service if you’re interested in keeping a closer eye on your scores. This kind of service lets you check in every day if you want, and it can also provide insight into the kinds of credit activities that raise and lower scores.

Using Tools to Build Credit

For those with thin or damaged credit files, specialized tools can help. Secured credit cards, for example, require a deposit but build a record of responsible use. Some services also allow rent and utility payments to be reported to credit bureaus, adding positive history that might otherwise go unrecognized.

Practicing Patience

Credit scores don’t rise overnight. The best improvements happen steadily, through responsible habits that compound over time. Trying to “game” the system with quick fixes often backfires, while consistent steps like reducing debt, paying on time, and monitoring reports lead to lasting gains.

Why It Matters

A stronger credit score goes beyond securing a loan. It can mean lower interest rates, better terms on insurance, and even stronger bargaining power in negotiations. Over time, those savings add up, making credit health a crucial part of personal financial planning.

Taking the Next Step

Improving a credit score is less about mystery and more about discipline. By focusing on the areas that matter most—timely payments, debt management, and smart credit use—clients can put themselves on a path toward long-term financial stability.

For those who feel overwhelmed, this is where a CPA can step in. Reviewing financial habits, creating a debt payoff plan, and providing accountability are all ways professionals can guide clients through the process. Better credit not only improves immediate opportunities but also supports broader financial goals, from buying a first home to planning for retirement.

In the end, building a stronger credit score isn’t just about numbers—it’s about options, security, and peace of mind. Taking consistent steps today paves the way for a more flexible tomorrow, and with the right plan, that future is well within reach.

by Kate Supino