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7 Ways You Can Increase Your Credit Score
- Jorge Diaz
- Jan 28
- 2 min read
Updated: 3 days ago
You Are Not Your Credit Score
Expert Insights By
Tony Tehfe, NMLS# 1177864 & Jorge Diaz, NMLS# 2693808
Meet the Experts
What is a Credit Score?
A credit score is a three-digit number (typically 300–850) that lenders use to predict repayment likelihood, calculated from your credit report's history of bills, debts, and credit usage. It is the gatekeeper to your financial opportunities.
1. Pay Off High Balances First
When improving your score, strategy matters. If you have several high-interest debts, focus first on the one with the highest interest rate (the "Avalanche Method"), then work your way down. This minimizes the total interest you pay over time.
Key Takeaway: Attack the highest interest rate to stop the bleeding.
2. Pay Bills On Time
Payment history accounts for 35% of your FICO score. Consistency is key; set up auto-payments for at least the minimum to ensure you never miss a deadline.
3. Resolve Collections
If an account goes to collections, pay it off immediately. Chase down the current collector and resolve the debt; a paid collection is always better than an unpaid one.
4. The Authorized User Strategy
Ask a trusted family member with excellent credit to add you as an authorized user. You "piggyback" on their history without needing to borrow money yourself.
5. Don't Cosign!
When you cosign, their debt becomes your debt. This increases your Debt-to-Income (DTI) ratio, limiting your own borrowing power for a home.
Limit Increase Hack
6. Open a Credit Card
Unlike fixed loans (closed-end), credit cards are "open-end" credit. Think of it as a trust agreement: the bank allows you to borrow up to a limit if needed. To build maximum trust, open the card but don't use it. Keeping the balance at zero shows lenders you can handle credit responsibly.
7. The Limit Increase Hack
If you have a card with a long history and a $10,000 limit but carry a $4,000 balance (40% utilization), you can ask for a limit increase. If raised to $15,000, your utilization drops to 26%. This gives your score a meaningful boost all without paying down a single dollar.
Closing Thoughts
"Credit scores aren’t permanent... life is long—you don’t need to solve years‑long problems in a day. At the same time, the years pass quickly, and if you don’t take action today, you can easily find yourself with the same dreams you had two years ago. Stay patient and relentless."- Jorge Diaz NMLS# 2693808
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