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.

< Older Post Newer Post >

Share this post

The Real Reason Some People Are Still Moving Right Now

By KCM • June 14, 2026

The Real Reason Some People Are Still Moving Right Now You may be telling yourself you’re going to wait to move – maybe you’re hoping mortgage rates will come down, prices will fall, or the market will feel a little easier. And honestly? A lot of people feel that way right now. But here’s what some are starting to realize. Waiting doesn’t usually fix the thing that made you want to move in the first place. Your family still desperately needs more room. Your empty nest still feels too...empty. Your parents or grandparents still need you to live closer. You just got married... or divorced. Your vision of retirement has you living somewhere else. Eventually, life can reach a point where waiting feels harder than moving. That’s why some people are still deciding to buy right now, even in today’s market. Not because conditions are perfect . But because the life changes behind their move never really went away. And maybe that’s exactly where you are too. If so, you’re certainly not alone. The Real Reasons People Move Data from the National Association of Realtors (NAR) shows 1 in 5 buyers last year said they felt like they had to purchase a home at that time, no matter the market. That's an important reminder right now. Sure, the dollars and cents of your move have to make sense for you. But big life changes happen whether mortgage rates and home prices are high, low, or somewhere in between. And those big life events happen more than you may think. NAR says roughly 22.5 million people experience major life changes in a typical two-year span (see graph below): These are exactly the kinds of things that can change how much space you need, where you want to live, or what kind of lifestyle makes sense now. Chen Zhao, Head of Economics Research at Redfin, explains: “Life doesn’t stand still—people get new jobs, grow their families, downsize after retirement, or simply want to live in a different neighborhood.” And that’s what makes waiting so hard. Every month you spend hoping the market changes is another month living in a house that no longer works for your life. It’s stressful to feel stuck. And that feeling usually doesn’t disappear. There May Be More Opportunity Than You Think But while affordability is still a challenge, there may still be a way for you to make your move. The number of homes for sale has been growing for 4 straight years (see graph below). That means more homes to choose from and, in some markets, more room to negotiate than buyers had just a few years ago. That doesn’t mean moving is suddenly easy. But it does mean some buyers are finding ways to make a move work. So, if you’ve been putting your plans on hold, maybe the question isn’t just: “What’s the market doing?” or “When will it get better?” Maybe ask yourself this, too: “Can I still live where I'm at right now and make it work?” If the answer to that second question is “no,” it may be worth having a conversation about what your options look like today – despite where rates or prices are. You could find your move is still possible after all. With more homes for sale, there’s a better chance to find one that fits your life (and your budget) right now. Bottom Line Life changes. Priorities shift. Families grow. Kids move out. Careers evolve. And eventually, the house you’re in may stop fitting the life you’re living. If that’s been weighing on you lately, let’s talk through what your options could realistically look like today, no matter where rates or prices are. Life can’t always wait for perfect market conditions. Maybe you don’t have to either.

The Truth About Affordability Today

By KCM • June 12, 2026

The Truth About Affordability Today Let's be real with each other for a second about affordability. Because you deserve someone who will be honest and transparent about what’s going on, especially if you’ve got a move on your mind. Here’s the full picture of what’s happening and why. The good – and the bad. So, you know what it truly means for your move. Because while rates are certainly a big part of affordability, they’re not the only factor at play. Mortgage Rates Have Been Rising After a year or more of rates trending down, they’ve started to climb again . And, if you’re looking to buy, that’s not what you want to see. But it has happened. And here’s why. Uncertainty is the enemy of mortgage rates. And with lingering global uncertainty, ongoing tensions in the Middle East, and inflation refusing to fully cool off, there’s a lot that’s having an effect on rates. Colin Robertson, Founder of The Truth About Mortgage, put it plainly: "You can't have $100 a barrel oil and not expect inflation to rise, which translates to higher bond yields and mortgage rates." Take a look at the graph below. It uses data from Mortgage News Daily to show just how much all of those factors have had an impact: It’s a pretty sharp contrast from where we’ve been, in a relatively short window. And it's probably making you wonder: Should I just wait this out? Will rates fall when the uncertainty eases ? It's possible. But it all depends on how the ongoing geopolitical conflict plays out and whether inflation continues to run hot afterwards – and for how long. Rates probably aren't heading down until both of those things improve. And even when that does happen, experts agree rates likely won’t be dramatically lower – maybe in the low to mid-6s. That's the reality, and it's worth knowing. So, should you wait for lower rates? The general consensus is, if you can afford to buy and you find a home you like, it’s still worth it. Because no one knows for sure when rates will start to come back down – and how long do you really want to put your life on hold? Wages Are Outpacing Home Prices You've probably heard that inflation is making everything more expensive, and there's no shortage of headlines about the cost-of-living outpacing paychecks. It's a legitimate concern. And maybe you’re feeling the pinch yourself. But here's what doesn't make the headlines. It's not all bad news. Data from the Federal Reserve Bank of Atlanta and Redfin shows wages have actually been growing faster than home prices. Recently, wages have been increasing at around 4% year-over-year. And home price growth is closer to 2% year-over-year. As a buyer, you want your income to rise faster than prices because that helps make your purchase more manageable financially, and it quietly chips away at the affordability challenge over time. That’s exactly what we’re seeing lately. And every little bit is going to help. A big reason wages have been gaining ground on home prices? Home prices have actually stayed pretty steady. Existing Home Prices Have Held Steady Check out the graph below. It shows home price data from the National Association of Realtors (NAR) over the past 4 years. Notice anything? There's been no dramatic runup, and no crash either. Just relative stability and slow growth: Part of what's keeping prices this stable is that buyers finally have more choices . That means less competition, more negotiating power, and more time to find the home that actually fits your life, not just the one you had to grab before someone else did. And that gives you a chance to hopefully find something that works for your budget, even with today’s rates. At the same time, you're not losing ground pricewise while you take time to make a careful decision. Bottom Line Yes, rates have been volatile, and global instability is keeping them from settling down anytime soon. There’s no sugar coating that. But the full picture of affordability is more nuanced than the headlines suggest. Want to run the real numbers for your situation? Let's talk. Reach out and let's set up a quick, no-pressure conversation.

Data Says Home Sellers over 70 Are Losing Money. Here’s How to Avoid That

By The Lighter Side of Real Estate • June 11, 2026

It’s startling enough when you turn 50 and the AARP invitations start showing up in your mailbox offering you a free tote bag and discounts on river cruises. At one point in time that may have been an acceptable age to start making someone feel like they’re getting older, but in this day and age, even turning 70 doesn’t feel “old” the way it once did. So if you came across this CNBC article suggesting there is evidence that people over 70 often receive lower prices for their homes compared to younger homeowners, it might be something you’d prefer to ignore or dismiss. But according to research done by the Center for Retirement Research at Boston College, once sellers reach that age, they start getting lower sale prices for their houses compared to sellers in their 40s and 50s. That doesn’t mean people suddenly lose the ability to make smart decisions once they turn 70, nor should anyone take this as some kind of insult. People are living longer, healthier, more active lives than ever before, and many homeowners are simply staying in their homes much longer than previous generations did. But it probably is worth taking a look at some of the reasons this may happen when it does, so you can be aware of them and better prepared to make smart decisions whenever the time comes to sell your own home. The House Slowly Becomes “Good Enough” One challenge that can happen after living in a home for decades is that you slowly stop noticing certain things. The worn carpeting. The faded paint. The outdated light fixtures. The cabinet doors that don’t quite close correctly anymore. The “junk drawer” that somehow became an entire junk room. It’s easy to get used to the things around your house that could impact how much buyers are willing to pay for it. How to avoid it: This doesn’t mean you need to do a complete renovation and update your entire house. But before listing your home, ask a trusted friend, family member, or real estate agent to walk through the property with completely fresh eyes. Even small cosmetic improvements, minor repairs, decluttering, and fresh paint can sometimes make a much bigger impact than sellers expect. The “Easy Sale” Can Sound Really Appealing After decades of homeownership, the idea of cleaning, preparing for showings, keeping the house spotless, and dealing with moving logistics can feel exhausting. That’s one reason quick cash offers and off-market deals can sometimes become especially tempting for older homeowners. And nowadays, those opportunities seem to come from everywhere. Investors. “We buy houses” companies. Random phone calls and mailers. Neighbors. Family friends. Even family members themselves. And to be fair, sometimes accepting less money actually does make sense depending on the situation. Maybe the house needs major updates or repairs you simply don’t want to deal with. Maybe avoiding months of preparation and stress is worth something to you. Maybe you genuinely want to help a child, grandchild, or someone close to you by giving them an opportunity to buy the home. There’s absolutely nothing wrong with any of those decisions. The important thing is simply making sure you fully understand what you may be giving up financially in exchange for the convenience, simplicity, or generosity involved. How to avoid it: Even if you ultimately decide to sell privately or accept a direct offer, it’s still smart to understand what your home could realistically sell for on the open market first. Having a trusted third party help you evaluate the offer, the buyer, and the overall situation can help ensure you’re making a fully informed decision rather than one based solely on pressure, urgency, or emotion. It May Feel “Wrong” to Make So Much on Your House For some older homeowners, one of the biggest surprises can simply be how much their home is actually worth. If you bought your house decades ago, today’s prices can sometimes feel almost ridiculous. You may look at what buyers are paying and think, “There’s no way this house should cost that much.” Many homeowners remember when the idea of paying today’s prices for an average home would have sounded completely unrealistic. So when it comes time to sell, some sellers may just feel like the buyer shouldn’t have to pay so much for their home. Of course, if you deliberately want to give someone a deal—whether it’s family, friends, or simply because it feels like the right thing to do—that’s completely your choice. But it’s important to remember that real estate is ultimately a supply-and-demand market, and buyers themselves determine value every single day through the prices they are willing to pay. How to avoid it: Before making decisions based on what you think your home should be worth, get a thorough market analysis from an experienced real estate agent who understands your local market. Even if you ultimately choose to price aggressively, sell privately, or give someone a break on price, you’ll at least be making that decision from a fully informed position. The Takeaway: A recent study found that homeowners over the age of 70 often receive lower prices for their homes compared to younger sellers. The good news is that many of the reasons behind that are likely avoidable once you know what to watch out for. Whether it’s getting fresh eyes on your home before listing it, understanding what your house could realistically sell for on the open market, or simply slowing down and gathering advice from trusted friends, family members, or a local real estate agent before making major decisions, a little preparation can go a long way.