How to raise your credit score 160 points in 30 days

Good credit is the gateway to financial power — from lower mortgage rates and cheaper car insurance to premium rewards credit cards and nicer apartments.

But many Americans are mystified by their three-digit FICO score.  

“I think a lot of people see it as a black box,” said Jenny Groberg, CEO of accounting platform BookSmarts. “Numbers go in and come out, but it's kind of like, ‘What is it?” 

Your credit score is calculated using five key metrics, some weighted more heavily than others.

• Payment history (35%): The largest chunk of your credot score is based on how good you are about making on-time payments to your credit cards, store cards, loans, mortgage and other accounts.
  
• Credit utilization (30%): Your credit utilization rate is the amount of credit you're using compared to your total available credit limit.
  
• Length of credit history (15%): This segment reviews to how long your accounts have been open, their average age, the age of your oldest account and how long it's been since you opened a new account.
  
• New credit (10%): This portion is composed of the number of newly opened accounts and recent inquiries related to credit applications.
  
• Credit mix (10%): The variety of credit products you have, including credit cards, installment loans and mortgages.

If you need to raise your score quickly, Groberg suggests focusing on the two biggest factors, payment history and credit utilization.

“They account for 65% of your credit score,” she said, “so those are the things I would try to hit first.” 

How much you can move the needle and how quickly depends on various factors, including how much debt you're carrying and how quickly the credit bureaus update your account. But Groberg gave us tips that could raise someone's credit score by as much as 163 points in just about a month.

Groberg’s first bit of advice is to get a copy of your credit reports and go over them with a fine-tooth comb, looking for errors, outdated negative items or signs of fraud. 

“You're looking to see if everything on there belongs to you,” she said.  

According to a 2024 Consumer Reports study, nearly half of consumers who reviewed their credit reports found at least one mistake. Roughly a quarter of them found errors that could negatively impact their score. 

You can get free copies of your reports from all three credit bureaus (Experian, TransUnion and Equifax) once a year by going to AnnualCreditReport.com.  Many banks and credit card companies provide their customers with free credit reports, as well.

If you notice anything amiss, file a dispute right away: Getting an incorrect negative item taken off your report can increase your credit score by as much as 20 points.

A credit bureau has 30 days to investigate your claim and another 5 days to notify you of the results.

If you don't have the time or inclination to do it yourself, a credit repair service will work to correct any mistakes or fraudulent items on your credit report on your behalf. A subscription to Credit Saint also comes with a score tracker, unlimited challenges and creditor intervention letters.

Paying off your balances and reducing your debt load is the fastest way to boost your credit score.

“Say your credit cards are maxed out and you’re using more than 90% of your credit line,” Groberg said. “If you paid off your balance in full, it could raise your score 60 to 100 points.”

Paying on time is just as important as paying in full, she added. 

“You're really going to increase your score by making payments before the closing date on your statements,” said Groberg.

Missing a payment can adversely affect the largest segment of your credit score: Payment history. 

Groberg suggests setting up autopay on all your credit card accounts, ideally so that the funds are received three business days before their closing dates.  

The second largest segment of your credit score comes from credit utilization, or the amount of credit you are using compared to your total credit limit. 

You don't want to use more than 30% of your total credit limit on any given card, Groberg said. If your limit is $10,000, for example, don’t let the balance get over $3,000, even if you plan to pay it all off on time. 

“It makes the credit card companies nervous when you're using the full amount of your credit limit,” Groberg said. “They're scared you're not going to pay in full.”

A high credit utilization rate will negatively impact your score. If you need to lower yours and you don’t have the funds to pay down your card, try asking your credit card company to raise your limit.

As long as you don’t spend the additional credit, a higher limit will shrink your credit utilization rate. 

“That's a pretty low-hanging fruit that's not going to ding your credit,” Groberg said. “If you're able to get a higher limit on your card and don't increase your spending, you could see a 10 to 30 point increase.”

You can be approved for a higher credit limit in as little as 30 seconds. 

Credit reports reflect information on your revolving lines of credit and installment loans, including credit cards, car loans and mortgages. 

If you have a thin credit history, though, you can goose your score by providing the bureaus with proof of your on-time payments for utilities, car insurance, rent, even streaming services. 

Experian Boost® is a free service that reports on-time bill payments to Experian. eCredable, a paid service, does the same with TransUnion.

According to Experian, users enjoy an average increase of 13 points to their FICO® Score 8.

Most credit card issuers provide free credit score access to their cardholders, although they rarely offer information on both FICO and VantageScores from all three bureaus.

American Express: FICO score from Experian.

Bank of America: monthly FICO score from TransUnion

Citi: FICO score from Equifax

Wells Fargo: FICO score from Experian

CreditWise from Capital One and Chase Credit Journey offer free VantageScores from TransUnion, as well as dark web surveillance and alerts about your Social Security number. Experian's free credit monitoring service provides your Experian FICO score.

At CNBC Select, we work with experts who have specialized knowledge and authority based on relevant training and/or experience. For this story, we interviewed Jenny Groberg, CEO of accounting platform BookSmarts. 

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

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*Results will vary. Not all payments are boost-eligible.  Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost®. Learn more.