5 Ways To Instantly Improve Your Credit Score

credit scores • Mar 06, 2025

Many business owners have been denied business loans, including former federal programs like the EIDL loan, because they did not meet the typical minimum credit score (often around 570). Other government and private sector loans and home mortgages have similar requirements. If you need to improve your credit, either for personal or business reasons, here are five ways to do it.

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Factors That Determine Your Credit Score

The three major credit monitoring companies calculate your credit score slightly differently, but five factors go into your credit score. Around 35% of your credit score is made up by your on-time payment history, 30% is from credit utilization, 15% is based on the age of your credit, 10% is based on the type of credit, and 10% is from hard inquiries. Here are five ways to build your credit.

1. Become an Authorized User

Since the age of your credit is one of the factors that determine your score, becoming an authorized user on someone else's account can be beneficial. You don't even need to use the card, simply tapping into a longer credit history (as long as it's in good standing) can help improve your own. Several major credit card companies still support this in 2025, including Capital One and Discover, though policies vary. Not all issuers report authorized user data, so be sure to check first.

2. Keep All Accounts Open

Another way to increase your credit score is to keep your credit cards open. If you no longer wish to use a particular card and it doesn't have an annual fee, don't close it. Keep it open and make a small purchase every so often so your creditor doesn't close the card due to inactivity. The longer you can keep an account open, the better it reflects on your credit history.

3. Decrease Your Credit Utilization

Decreasing your credit utilization means you either need to increase your available credit, or reduce your debt. To increase your available credit, you can request a credit limit increase or apply for a zero-fee credit card. Just be mindful not to apply for too many cards at once.

Most scoring models still treat multiple hard inquiries for mortgages, auto loans, or student loans within a 30-day period as a single inquiry. However, credit card applications are treated separately, so spacing them out is important. Increasing your credit limit while keeping your balances low lowers your utilization and boosts your score.

4. Make Your Payments On-Time

Making timely payments is generally the most impactful thing you can do to improve your credit, since payment history is the largest scoring factor. Enroll in auto-pay to avoid missing due-dates, even if you can only make the minimum payments.

If you've fallen behind, make a payment as soon as possible. In some cases, you can also contact your lender to request removal of a late payment from your report (a goodwill adjustment).

5. Use Experian Boost

Experian Boost still allows users to connect utility, phone, and some streaming service payments to their Experian credit report. These aren’t traditionally reported to credit bureaus, but if you consistently pay on time, it can help boost your score — especially if you have a thin credit file.

Building Credit Opens Up More Funding Opportunities

If your credit score is preventing you from obtaining a home mortgage or business loan, it's critical to start improving it as soon as possible. By becoming an authorized user, keeping your accounts open, decreasing your credit utilization, making on-time payments, and using Experian Boost, you'll be on your way to a stronger credit profile.

📌 Pro-tip: Interested in getting help improving your credit score and getting funding ready? Check out Skip's 1-1 membership options.