14 Ways to Improve Your Credit Score

Jamia Kenan (apartments.com) • February 2, 2021

Credit is one of the most important factors in your financial life, so having a high credit score has its advantages. Although you can rent an apartment with a low credit score, working towards a higher score will help you in the long run. There are some key concepts you should know about credit to help you increase your score. Here are some tips to help you earn a higher score so you can be accepted to the apartment of your dreams.

WHAT IS A CREDIT SCORE?

A credit score is a three-digit number on a scale between 300 and 850, with 850 being the best score. Banks, credit card companies, and other entities that you conduct business with use credit scores to determine the likelihood a person will pay back a loan or pay a bill. When property managers or landlords screen tenants, they use credit scores to help them determine if someone will be a reliable tenant who pays rent on time. The higher your score, the more likely you are to qualify for loans, credit cards, and lower interest rates, along with several other advantages.

Typically, a minimum score of 600 or above is required for most apartment communities. However, if you have a lower score, don’t worry! What is considered a “good score” varies depending on where you apply for an apartment. Paying a larger security deposit, getting a cosigner, and providing references can help you secure an apartment if you have a low credit score or zero credit.

HOW ARE CREDIT SCORES CALCULATED?

There are three federal credit bureaus that calculate and report credit scores: Equifax, Experian, and TransUnion. Each bureau has its own algorithm used to compute scores, so you actually have three separate credit scores. Each company uses similar factors to calculate a score, but the degree of how much each factor affects your score varies. Here are some factors that are used to calculate a credit score:

Payment history on loans, credit cards, and other bills
Credit utilization ratio (how much debt you owe compared to your amount of available credit)
Credit mix (types of credit accounts you have)
Credit age (how long you have had accounts open)
How often you apply for new credit

Since calculating credit scores is complex, it’s good to understand which financial habits will positively or negatively impact your credit. For example, paying bills on time and keeping a low credit card balance can help lead to a higher credit score.

TIPS TO IMPROVE YOUR CREDIT SCORE

Improving credit takes time. It can take months or years to get your desired score, but there are small steps you can take that will help you in the long run:

1. Check your credit scores online

Begin by checking your current credit score online. You can use a free credit score service or purchase scores from the three bureaus. Some banks also provide customers with credit scores, which are listed on bank statements or an online portal. When you receive your scores, you’ll also get information about which factors are impacting your score the most. Recognizing the factors will help you develop a plan and determine what changes need to be made.

2. Check credit reports and dispute errors

A credit report is a record of your credit history. The report details how and when you pay your bills, the amount of debt you owe, and how long you have been managing credit accounts. Since credit reports are used to compute credit scores, it’s important to review them for inaccuracies that will drag your credit score down.

Get credit reports from all three credit agencies so you know where you stand across the board. Verify that the information from each account is correct. If you find an error, dispute the issue with each agency to ensure the change is made everywhere. Requesting a credit report won’t negatively impact your score if you order directly from the credit bureaus. You can also use an authorized company that can provide credit reports to consumers like AnnualCreditReport.com, which is jointly operated by TransUnion, Equifax, and Experian. Federal law requires each of the credit bureaus to give a free credit report every 12 months if requested. From now until April 2021, you can order free weekly credit reports on AnnualCreditReport.com. Try to make a habit of monitoring your credit regularly so you can spot errors before they can drag your score down.

3. Pay bills on time

Past payment history is one of the biggest factors used when calculating credit scores and is seen as one of the best predictors of future financial behavior. Paying a bill late or settling a loan account for a lower amount than you initially agreed will negatively impact your credit. Late and missed payments can be viewed on your credit report for seven years. Even if you finish paying off a collection, the account will not be removed from your report for seven years. Paying just a few days late can do some damage to your score as well. All bills including rent, utilities, loans, and credit card bills should be paid on time, all the time for your credit score to increase. Landlords are interested in finding reliable tenants who will pay on time, so keep that in mind.

You can use calendar reminders or automatic payments to help make sure bills are paid on time every month. If possible, charge all your monthly bill payments to a credit card. This strategy simplifies paying bills and will help improve your score because you’ll be using a credit account that is managed appropriately. Remember to pay the balance in full each month to avoid interest charges.

If you don’t have the best payment history, don’t fret! Older late payments will have less effect on your score than more recent bills. If you’re behind on payments, work to bring those accounts current gradually over time. The sooner the debt is paid, the sooner your score can increase. In some circumstances, if you miss a payment by 30 days or more, you can contact the creditor and set up a payment arrangement and ask for the missed payment to not be reported to the credit bureau. If you are struggling, seek financial assistance from a credible source.

4. Pay off debt and keep credit balances low

This is where the credit utilization ratio comes into play. Credit utilization is the amount of overall used credit compared to the amount of available credit. Credit utilization is another large factor in credit score calculations. A lower ratio is an indicator that a person knows how to successfully manage credit and doesn’t max out credit cards. Essentially, you want to keep all of your credit balances low because a high outstanding balance can negatively impact your score.

It’s recommended to keep your balance at 30 percent or less of your total line of credit, especially if you find you can’t always pay your bill in full each month. If you want to help your utilization ratio and increase your credit score even more, work towards having 10 percent or less. To calculate the credit utilization ratio, total debt is divided by total available credit. Here’s an example using a single credit card:

You have a credit card with a $7000 credit limit and a $3,000 balance.

3000/7000 = .428, or 43%

With this credit card, your credit utilization ratio is too high. You would need to pay more than the balance to be on track, or have other credit cards that allow for your overall credit utilization ratio to be lower. Try to keep your balances low, try only using credit cards for smaller items that you know you will be able to pay off each month.

5. Work towards a good mix of credit

Credit mix is another common factor used to calculate a credit score. Managing different kinds of credit accounts shows you can manage different types of debt at the same time. If you don’t have a diverse credit portfolio, don’t go out and apply for more credit. Having a less diverse portfolio will not make your scores go down but obtaining more types of credit over time (along with paying each account on time) will help increase your score.

The goal is to strike a balance between revolving credit and installment credit. Installment credit includes a loan where you agree to borrow a set amount and you agree to pay a monthly payment until the debt is paid off. Mortgages, student loans, personal loans, and auto loans are examples of installment credit.

Unlike installment credit, revolving credit does not have a set end date or balance. Revolving credit requires a minimum payment every month. Customers can pay more than the minimum, but it’s not required. Credit cards like bank cards and retail cards are the most common types of revolving credit.

Whether you have a good credit mix or not, consider what debt you already have and create a plan that works best for you. If you only have credit cards, it might help to get a small loan, but if you just applied for something that required a hard inquiry, it might be best to wait it out.

6. Don’t close unused credit cards or accounts

Even if you don’t use a credit card or account anymore, keep it open. Credit history length is an important factor when calculating scores. Remember the older the credit age, the better the score. Closing an account could also increase your credit utilization ratio. If you close an account, the amount of available credit will lower, raising your utilization ratio, and increasing your credit score.

As long as you’re not paying too much in annual fees, keeping an old credit card open is a great strategy to build your score. Make sure to use the card every now and then, just so the company won’t close the account. If you have delinquent accounts or collection accounts, before you apply for new credit, work towards paying the past due amount, and then try to pay on time in the future. These negative accounts will not erase from your report, but it will help in the long run.

7. Apply for new credit only as needed

Although it is good to have a diverse credit portfolio, avoid opening too many accounts in a short amount of time just to have a better mix of credit. A quick buildup of credit accounts can look risky, especially for new credit users. When applying for a new line of credit, a hard inquiry is required. A hard inquiry, also called a “hard pull,” will be listed as a negative change in your credit report. Although it fades over time, too many hard inquiries could lower your score. Unnecessary credit could also tempt you to overspend and gain more debt, harming your score.

Hard inquiries can stay on your credit report for two years, so it’s important that you know your credit score before applying to apartments. Property managers and landlords use hard and soft inquiries, depending on their leasing process.

8. Consider getting a secured credit card

Managing a credit card properly is a great way to build up your credit. Someone with zero credit history is seen as a higher risk than a credit user who has managed their account responsibly. A secured card is just like a regular credit card, but the card is backed by a deposit that is paid upfront. The deposit amount is typically the same as your credit limit. You make payments monthly like with a regular card, but if you fail to pay the bill, the credit company could keep your deposit. Try to find a secured card that reports to all three bureaus so you can ensure your score goes up everywhere. Whether shopping for a secured card or a traditional credit card, be sure to pay attention to the interest rates and any fine print.

Keep in mind that although a new credit card can increase your credit mix and lower your utilization rate, the application will also result in a hard inquiry on your credit report. Beware that your score might look like it decreased, but over time it will move back up.

9. Become an authorized user

Becoming an authorized user is a great strategy for people who have zero or little credit history. Having someone with great credit add you as an authorized user will add to your credit file, lengthen your credit history, and lower your utilization ratio. If you’re too timid to ask a relative or close friend to add you as an authorized user, note that the account holder doesn’t have to let you use the line of credit regularly or give you access to the account.

10. Ask for a credit increase

If you love to shop, don’t use this method! Raising your credit limit on one or more of your credit cards will lower your utilization score, as long as your balances don’t increase as well. The higher the limit, the lower the ratio. If you have missed payments, asking for a credit increase isn’t recommended. The credit card company could see it as a sign of a financial crisis, which will hurt your score.

11. Find out the reporting date

You can pay off your balance each month, but if the payment is received after the credit card company reports to the bureaus, your balance could appear as high, which will harm your utilization ratio and negatively impact your score. Ask the company the deadline for reporting and pay the bill before the closing date, so your balance can appear low and ultimately boost your score.

12. Use a credit monitoring service

There are several credit monitoring services you can use to keep an eye on your credit. A credit monitoring service will alert you to any changes in your credit report and provide a monthly credit score from at least one federal credit agency. Some banks provide all customers with credit monitoring, but there are also services that are free or charge a small fee. Credit monitoring can also help prevent identity theft and fraud. If you see an unfamiliar new credit account opening, you can report the fraud.

13. Avoid making large purchases

This tip might seem like a no-brainer but buying expensive items with a credit card is a mistake many people make. If you make a purchase with your credit card that you won’t be able to pay back at the end of the month, the interest will pile up quickly, placing you further in debt. Remember one of the main methods to improve credit is paying the bill on time (or before the reporting period). If you plan to carry a balance each month, avoid using your credit card. If an emergency arises and you must use your card, split the bill and make two payments that month, if possible.

14. Seek financial advice if you’re having trouble improving your credit

If you’re struggling with improving your credit score, there is help available. Seeking assistance will not negatively impact your score. Start by contacting your credit card company. Some credit card companies have credit card hardship programs and will lower the interest rate or waive fees for customers.

Consider reaching out to a credit counselor. There are multiple credible credit counseling services out there. Some are non-profits and are free to use, but there are also services that charge a small fee. A credit counselor can help develop a Debt Management Plan (DMP) and negotiate to reduce monthly payments. You can learn more about finding a credible credit counselor from the National Foundation for Credit Counseling.

WHEN WILL MY CREDIT SCORE IMPROVE?

Since credit is complex and various risk factors impact credit reports and scores, you can’t accurately assume the exact time your score will increase. The time required to build your credit depends on the negative information listed on your credit report including hard inquiries, late payments, collections, and bankruptcy. Hard inquiries will stay on your report for two years while other items like delinquency will be listed for seven years. Bankruptcy will remain for 10 years. Essentially there is no shortcut for improving credit. Beware of anyone who claims they can improve your credit in a very short amount of time!

Improving credit might seem overwhelming, but it doesn’t have to be. If you need help, don’t hesitate to set up an appointment with a credit counselor. Continue learning about the risk factors and identify which ones are negatively impacting your score so you can take appropriate action. Have patience and practice good credit management and your credit scores will improve over time.

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Mortgage Rates Just Saw Their Biggest Drop in a Year

By KCM • September 17, 2025

Mortgage Rates Just Saw Their Biggest Drop in a Year You’ve been waiting for what feels like forever for mortgage rates to finally budge. And last week, they did – in a big way. On Friday, September 5 th , the average 30-year fixed mortgage rate fell to the lowest level since October 2024. It was the biggest one-day decline in over a year. What Sparked the Drop? According to Mortgage News Daily, this was a reaction to the August jobs report, which came out weaker-than-expected for a second month in a row. That sent signals across the financial markets, and then mortgage rates came down as a result. Basically, we're seeing signs the economy may be slowing down, and as certainty grows in the direction the economy is going, the markets are reacting to what is likely ahead. That historically brings mortgage rates down. Why Buyers Should Pay Attention Now But this isn’t just about one day of headlines or one report. It’s about what the drop means for you. This recent change saves you money when you buy a home. The chart below shows you an example of what a monthly mortgage payment (principal and interest) would be at 7% (where mortgage rates were in May) versus where rates roughly are now: Compared to just 4 months ago, your future monthly payment would be almost $200 less per month. That’s close to $2,400 a year in savings. How Long Will It Last? That really depends on where the economy and inflation go from here. Rates could drop lower, or they could inch up slightly. So, make sure you’re connected with a good agent and trusted lender. They’ll keep a close eye on inflation indicators, job market updates, and reactions to upcoming Fed policy to gauge where mortgage rates may go from here. But for now, focus on this. While no one can say for sure where rates are headed, the fact that rates broke out of their months-long rut is a good thing. If you’ve been feeling stuck, this could make the start of a new chapter. As Diana Olick, Senior Real Estate and Climate Correspondent at CNBC, says: “Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.” And that’s gives you more reason to hope than you've had in quite some time. Bottom Line This is the shift you’ve been waiting for. Mortgage rates just saw their biggest decline in over a year. And if rates stay near this level, it could make a home you couldn’t afford just a few months ago feel possible again. What would today’s rates save you on your future monthly payment? Let’s connect so you can find out.

Should You Still Expect a Bidding War?

By KCM • September 16, 2025

Should You Still Expect a Bidding War? If you’re still worried about having to deal with a bidding war when you buy a home, you may be able to let some of that fear go. While multiple-offer situations haven’t disappeared entirely, they’re not nearly as common as they used to be. In fact, a recent survey shows agents reported only 1 in 5 homes (20%) nationally received multiple offers in June 2025 . That’s down from nearly 1 in 3 (31%) just a year ago – and dramatically lower than in June 2023 (39%) (see graph below): This trend means you should face less competition when you buy. That gives you more time to make decisions and the ability to negotiate price or terms. It Still Depends on Where You’re Buying Of course, national trends don’t tell the full story. Local dynamics matter, a lot. This second graph uses survey data from John Burns Research & Consulting (JBREC) and Keeping Current Matters (KCM) to break things down by region to prove just how true that is. It shows, while the share of homes getting multiple offers has dropped pretty much everywhere, some areas are still seeing more offers than others: In the Northeast, 34% of homes (roughly 1 in 3) are still receiving multiple offers. That’s more than the national average. But in Southeast , that number drops to just 6%. What’s behind the difference? In general, the areas still seeing bidding wars tend to have lower-than-normal inventory . That imbalance between buyers and available homes keeps pressure on prices and competition. But markets with more listings are seeing conditions cool – and that means fewer bidding wars. Sellers Are More Flexible Than You Might Think Here’s another shift to show you just how much things have changed. According to a Redfin report, almost half of sellers are offering concessions, like covering their buyer’s closing costs or dropping their asking price to get their house sold. That’s a clear sign this isn’t the same ultra-competitive market we saw a few years ago. Back then, sellers rarely compromised. And buyers often waived their inspection or appraisal to try to make their offer stand out. Now, things are different. But again, how often this is happening is going to vary based on where you’re looking to buy. And that’s why you need a local agent’s expertise. Bottom Line If concerns about bidding wars have been holding you back, it may be time to take another look. Nationally, competition is down. In some markets, it’s down significantly. And with more sellers offering concessions, buyers today have more power and flexibility than they’ve had in a long time. Want to find out what the market looks like where you’re buying? Let’s connect.

History Shows the Housing Market Always Recovers

By KCM • September 15, 2025

History Shows the Housing Market Always Recovers Now that the market is slowing down, homeowners who haven’t sold at the price they were hoping for are increasingly pulling their homes off the market. According to the latest data from Realtor.com, the number of homeowners taking their homes off the market is up 38% since the start of this year and 48% since the same time last June. For every 100 new listings in June, about 21 homes were taken off the market. And if you’ve made that same choice, you’re probably frustrated things didn’t go the way you wanted. It’s hard when you feel like the market isn’t working with you. But while slowdowns can be painful in the moment, history tells us they don’t last forever. History Repeats Itself: Proof from the Past This isn’t the first time the housing market has experienced a slowdown. Here are some other notable times when home sales dropped significantly: 1980s: When mortgage rates climbed past 18% , buyers stopped cold. Sales crawled for years. But as soon as rates came down, sales surged back, and the market found its footing again. 2008: The Great Financial Crisis was one of the toughest housing downturns in history. Sales and prices both dropped hard. Still, sales rebounded once the economy recovered. 2020: During COVID, sales disappeared overnight, and many people had to put their plans on hold. Yet the recovery was faster than anyone expected, with a surge of buyers re-entering the market as soon as restrictions eased. The lesson is clear: no matter the cause, the market always rebounds. Today’s Situation: Where We Stand Now Over the past few years, home sales have been sluggish. And one big reason why is affordability. Mortgage rates rose at a record-breaking pace in 2022, and home prices were climbing at the same time. That combination put buying out of reach for many people. And when demand slows, home sales do too. The Outlook: Why Things Will Improve But here’s the encouraging part. Forecasts show sales are expected to pick up again moving into 2026. Last year, just about 4 million homes sold (shown in gray in the graph below). And this year is looking very similar (shown in blue). But the average of the latest forecasts from Fannie Mae , the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) show the experts believe there will be around 4.6 million home sales in 2026 (shown in green). And a big reason behind that projection is the expectation that mortgage rates will come down a bit, making it easier for more buyers to jump back in. That means what’s happening now is part of a cycle we’ve seen before. Every slowdown in the past has eventually given way to more activity, and this one will too. Just like the 1980s, 2008, and 2020, today’s dip in home sales is temporary. What That Means for You If you’ve paused your moving plans, you did what you thought was right. Your frustration is valid. But it’s also important to remember the bigger picture. Housing slowdowns don’t last forever. That’s where your local real estate agent comes in. Their job is to keep a close eye on the market for you. When the first signs of a rebound appear, they’ll help you spot the shift early so you can relist with confidence. Bottom Line If today’s housing market feels stuck, remember it’s never stayed down for good. Slowdowns end, activity returns, and people get moving again. So, let’s connect, because when the next wave of buyers shows up, you won’t want to miss it. As activity picks up again, will you be ready to put your house back on the market, or do you need to move sooner?