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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Spring Sellers Have an Edge. Here’s Why.

By KCM • March 17, 2026

Spring Sellers Have an Edge. Here’s Why. Homeowners looking to sell usually want three things: plenty of interested buyers, strong offers, and a short timeline. Spring is the season that most often delivers all three. So, if a move has been on your mind this year, this is the window where momentum tends to work in your favor. Here’s what makes this season so powerful for sellers. 1. More Buyers Will Be Looking Typically speaking, in the housing market, there’s no more popular time to move than the Spring. Historically, data coming out of ShowingTime proves that’s when buyer activity peaks each year. Take a look for yourself (see graph below): And this year, there’s more than just the seasonal trend working in your favor. Mortgage rates are also sitting near 3-year lows – and that combination matters. More buyers + improving affordability = more eyes on your house . That doesn’t mean the market will return to the frenzy of the pandemic – far from it. But it does mean more buyers will be ready to re-enter the market. And that’s good for you. As Redfin says: “Homebuying demand is improving . . . and mortgage-purchase applications are sitting near their highest level in three years. . ." You should make sure your house is listed so you can take advantage of the uptick in demand. Because more activity means one thing: more opportunity to get a deal done. 2. You May Get More Offers With more buyer demand, it makes sense that you may get more offers on your house. And history shows that’s usually true. If we look at the data for the last three years from the National Association of Realtors (NAR), and take the averages for each month, it’s clear sellers in the Spring get more offers (see graph below): Now, don’t expect the excessive bidding wars that were so famous in 2020 and 2021. But it does mean, seasonality could help you out this Spring. As Realtor.com explains : “Spring typically brings out more buyers who are ready to make a move before summer. Listings see more views, showings, and offers during this season .” And that could be really good for your bottom line. 3. Homes Usually Sell Faster There’s one more predictable pattern that happens pretty much every Spring based on research from Realtor.com. Homes sell faster (see graph below): On average, homes sell 20 days faster in the Spring compared to the Winter. That’s almost 3 weeks shaved off your timeline. And that's a difference you can feel. Since homes have been taking longer to sell lately, listing your house during what’s usually the most active time of the year means you’re setting yourself up to move as quickly as possible. And isn’t that what sellers really want? The faster your home sells, the earlier you can move on to what’s next for you. If you’re eager to go on to your next chapter, need to downsize , or you’ve run out of space , Spring may be your best time to sell. Bottom Line Spring doesn’t guarantee a sale. Strategy still matters. But this season gives you something valuable: momentum. More buyers. More activity. More opportunity. The real question is: if you’re going to sell this year, why not do it when the odds are in your favor? Let’s talk about what selling this season could mean for your house and your timeline.

Are Home Prices Dropping? Here’s the Real Story.

By KCM • March 15, 2026

Are Home Prices Dropping? Here’s the Real Story. You’ve probably seen posts on social media talking about how “home prices are falling.” And when you see something like that, it’s normal to wonder: Is this the start of a crash? What does this mean for my house? Let’s clear this up right away. This is not a crash. And your home is not suddenly losing a lot of value. The National Story – Prices Are Still Going Up Here’s what often gets left out of what you’re seeing online. While some markets are experiencing slight declines, they’re the minority. Most places are still seeing prices rise or at the very least, hold steady. That’s why, at the national level, home prices are still rising, just at a slower pace. According to the National Association of Realtors (NAR): “Home prices continued to rise in the fourth quarter of 2025. National median prices rose 1.2% year over year to $414,900.” That’s not the rapid growth of a few years ago, but it’s not a downturn either. And just to really drive this home, here’s a look at the data from NAR at a regional level, so you can see that the negative narrative spun up online isn’t the whole truth (see graph below): Home prices are up (or at least holding steady) in the Northeast, Midwest, and South. The West has seen some small declines in certain markets, but “small” is the key word. There is no wave of falling prices across the country. Instead, there are just a few pockets adjusting after several years of what’s typically considered unsustainable or exponential growth. Yes, Some Markets Have Come Down, But Look at the Bigger Picture. Okay, but what about the places where prices have declined? According to ResiClub and Zillow, that’s not a cause for major concern. When you zoom out and look at those same markets over the past five years, the story changes (see graph below): In the areas with recent declines, home values are still significantly higher than they were just five years ago. That’s a direct reflection of how much home values have gone up. Online chatter tends to shine a spotlight on the few areas that are down. But the bigger picture shows most homeowners are still in a very strong position. Of course, every market, and every home, is different. But broadly speaking, home values are holding steady. And this isn’t a sign of widespread trouble in the market. Bottom Line Despite what you may be seeing online, home prices are rising or holding steady in most parts of the country. If you’re curious what your home is worth today, let’s take a look at the numbers together. Because context, and local expertise, matter more than what you’re seeing online.

The Hidden Advantage Repeat Buyers Have Right Now

By KCM • March 13, 2026

The Hidden Advantage Repeat Buyers Have Right Now What if you didn’t have a mortgage payment on your next house? It may sound a little unrealistic. But for a number of homeowners, it’s actually doable. Nearly 3 in 10 homes purchased today are bought in cash , according to the National Association of Realtors (NAR). That’s far more than the pre-pandemic norm (see graph below): So, how are so many buyers pulling that off? The answer is simple: home equity . Back in 2020-2021, mortgage rates and the number of homes for sale were both at all-time lows. And that combination pushed home prices up, fast. If you owned a home during that time, it likely gained significant value – maybe even enough to buy your next house in cash . NAR explains : “. . . rising home equity has armed many existing homeowners with the financial leverage to make cash offers , allowing them to convert years of price appreciation into immediate purchasing power.” Here’s why you may want to go that route yourself, if you have enough equity to do it. 1. Your Offer Becomes More Attractive Sellers value certainty. And an all-cash offer removes one of the biggest unknowns in a transaction: financing. As Rocket Mortgage explains: “ Cash offers are attractive to sellers. Sellers often prefer to work with cash buyers if they can because they don’t have to worry about a buyer’s financing falling through at the last minute.” In many markets, an all-cash offer can give you a serious edge. 2. You Can Close Faster And since you don't have to worry about underwriting, lender approvals, and loan processing, the time it takes to close shrinks. Cotality puts it this way: “Cash buyers have always enjoyed an edge over borrowers. They remove financing risk, reduce delays, and often close in days rather than weeks .” If the owner of the house you're buying is already under contract on their next home or they just need to move fast (like for a new job), that speed is a real draw. 3. You Won't Have Monthly Mortgage Payments When you buy in cash, you don’t have to finance your purchase. That means you don’t have to worry about what today’s mortgage rates are and you own the house outright from the day you close. And that’s a big deal. No mortgage. No monthly payment. Full ownership. That financial freedom opens the door for other big lifestyle benefits. Zillow explains: “Paying in cash means you own your home outright. This eliminates the need for monthly mortgage payments, freeing up your finances for other priorities like savings, travel, or home improvements.” 4. You May Get a Better Deal And here’s one more thing that surprises a lot of homeowners: cash buyers often pay less for the house. According to Cotality, all-cash buyers tend to spend roughly 9% less on the house than buyers who use a mortgage. That’s because some sellers are willing to accept lower offers to get a deal done quickly, with more certainty of closing, and fewer financing hoops to jump through. As Cotality explains: “From a seller’s point of view, a lower but reliable offer can feel preferable to a higher one that may collapse weeks later.” And that advantage grows with each passing year (see graph below): Is an All-Cash Move Realistic for You? Not every homeowner will buy their next house outright in cash. And that’s okay. But the bigger takeaway is this: the equity you’ve built may give you more options than you think. Whether that means downsizing and eliminating a mortgage entirely, or just relocating with stronger negotiating power, your current house may be what makes it possible. Bottom Line Before assuming you’ll need another traditional mortgage, it’s worth asking one simple question: How much equity do you really have? Because the answer might change what you thought your next move could look like. Curious what your home equity could do for you? Let’s run the numbers and see what kind of buying power you’re really sitting on.