Woman checking her credit report on a paper copy and on computer screen. Concept:How to improve your credit score
Sean Salas
By: seansalas
Read in 20 minutes

How to Improve Your Credit Score

Knowing how to improve your credit is crucial if you want to get loans or credit cards. Don’t wait to work on your credit score until after a rejection. Your credit score is a crucial number for your present and your future.

It doesn’t matter if you want to improve your credit to get a loan or you just want to have a good score; in this article, you’ll learn how to improve your credit score.

credit report with a poor score

It’s very important to keep a healthy personal score, but don’t forget your business score too. Here’s how to build credit for your small business.

How to Increase Your Credit Score: Why does this matter?

You may wonder, “Why do I need a good credit score?”

Maybe right now, you don’t really need to have a credit history; perhaps you’re not even thinking about how to improve your credit score. But at some point, you will be faced with a fantastic opportunity, and you might not be able to access it due to the lack of good credit.

What if you need to lease a car or apply for a loan or credit card to finance your business?

You’ll realize that your credit score is low, and lenders won’t let you borrow money or offer you lower terms and rates. You’ll miss out on the amazing opportunities that’ll allow you to grow your business.

Amazingly, improving your credit score can save you hundreds or thousands of dollars for the typical auto loan or credit card. For a business owner, a good credit score can save you tens of thousands of dollars in interest rates on long-term loans.

What if you could boost your personal credit score by 60 points in 60 days?

Wouldn’t you be all in and ready to take steps to make positive changes in your credit score?

Credit score table: risk and interest rates

Before we get started, here is the perceived risk by lenders for different credit score bands to underwrite an unsecured business loan:

Benchmark level measure. Set of gauge score with red, green and yellow tables. concept: how to improve your credit score

Credit Score BandRiskAnnualized Interest Rates
721 and aboveLow Risk6% to 12%
681 to 720Low to Medium Risk12% to 19%
641 to 680Medium Risk19% to 25%
600 to 640Medium to High Risk24% to 60%
599 and belowHigh Risk40%+
No Credit ScoreMedium to High Risk25% to 60%

As you can see, a good credit score will help you get better interest rates because lenders will see you as less risky.

A personal credit score can be just as important as a business credit score when applying for a business loan.

businessman changing credit score

19 Tips on How to Improve Your Credit Score

How can I raise my credit score in 30 days?

How can I raise my credit score by 100 points?

How can I raise my credit score by 50 points fast?

Can I increase my credit score by 60 points in 60 days?

If you have any of the questions above, the following tips and techniques will help you improve your credit score as fast as possible and in as many points as possible.

1. Report Your Rent

Do you think the only way to build credit history is by accessing credit?


If you rent property, there’s a very good chance that your property manager doesn’t report your rent to the credit bureaus. In our experience, when Camino Financial members begin to report rent, their credit scores swing up above 50 points in a few weeks!

When learning how to improve your credit score, the trick is to be proactive when reporting your rent directly to the credit bureaus. The cheapest way to do so is to reach out to your property manager and credit bureaus. The fastest way is to work with rent reporting agencies that already work with the credit bureaus.

Experian shares how you can report your rent.

2. Get a Secured Credit Card

A secured credit card is not the same thing as a prepaid debit card, and it’s definitely not the same as an unsecured credit card.

Secured vs Unsecured Credit Cards: Learn the Difference

You open a secure credit card with a bank or credit card provider that requires a refundable security deposit, usually starting at $200. Annualized Percentage Rates (APRs) vary with these types of credit cards ranging from 9.99% to 18.95%. This is an effective way to build credit, especially when you don’t have a credit history or bad credit.

If you don’t have a credit history, you may qualify for an unsecured credit card that does not require an initial deposit.

Don’t open a ton of lines at the same time. It’s normal to be gung-ho and open a ton of credit card accounts, but that’s not a good idea!! The credit bureaus will penalize your credit score if you request credit from too many creditors within a short period of time. Please take our advice. Start with one credit card and build it from there.

3. Purchase Electronics with Installment Payments

Purchase an electronic device (or another hard good) on an installment basis. Camino Financial doesn’t recommend this for people who already have a credit history, but it can be a great way to build credit when you don’t have a credit history.

How is this different from getting a credit card?

Rather than opening a credit card at the point of purchase, you can pay off purchased electronics in installment payments. Buying on a credit card can hurt your credit if it means you need to exceed 30% of the credit limit (see Tip #8). However, paying an installment loan builds your credit.

So make sure that whatever you purchase has installment payments, and verify that the retailer reports these payments to the credit bureau. See Tip #6 below on how to get a copy of your credit report.

4. Pay Your Bills on Time

This important tip on how to improve your credit score prevents your personal credit score from taking a nosedive. Bottom line: make sure you make timely payments to creditors.

Lenders know you’re creditworthy and reliable when you pay your debts on time. They don’t want to see notations on your credit report that you fail to pay utilities, your cell phone bill, rent, and other financial obligations. Consider setting up automatic payments or getting smartphone alerts, so you always pay your bills on time.

See these other recommendations on how to pay off debt quickly.

woman calculating her credit score

5. Consolidate Credit Card Debt into an Installment Loan

If you already have credit cards and exceed your 30% credit card limit capacity, you need to evaluate options to consolidate credit card debt into a single installment loan.

Finding lenders comfortable with refinancing your credit card debt is easier said than done; a personal loan could be the answer.

Or, if you have business debt, a small business loan might be what you need!

Apply For A Business Loan!


6. Request Your Credit Report Regularly

You can request a free credit report from one of the three main credit bureaus, use Credit Karma, or have a representative from your bank request the report. By getting a credit summary, you’re able to spot inaccurate information and take steps to correct those discrepancies.

Plus, after implementing these tips on how to improve your credit score, you can see how those changes made a positive impact.

7. Keep Credit Trade Lines Open As Long As Possible

The credit bureaus reward consumers for having credit lines available over a long period. This demonstrates to them that you have a track record of maintaining a long-lasting relationship with a creditor rather than accumulating delinquencies where you’re forced to close accounts with creditors.

Credit bureaus use trade lines to calculate a borrower’s credit score by reviewing credit limits, length of time credit was extended, and the payment history. Your payment status indicates whether you make timely payments.

8. Never Exceed 30% of Credit Capacity

As a rule of thumb, you should never exceed 30% of the credit card limit.

The moment you start exceeding this credit limit, having a credit card will actually hurt your credit rather than help build it. When you exceed 30%, it’s a red flag to the credit bureaus that you don’t have a healthy credit utilization ratio (debt owed relative to credit limits).

Camino Financial recommends staying within 5% to 30% of your credit card limit. This helps you build credit and get your score up. In some instances, your credit score gets a boost very quickly when it’s the first time you’ve established credit history.

credit cards icon

9. Get a Higher Credit Limit

Maybe you can’t use less than 30% of your credit. Does that mean you won’t be able to improve your credit score?


A good way to fix this is getting a higher credit limit, but for this one to work, you can’t actually spend the newly available credit, as tempting as it may seem.

10. Pay Off Credit Card Balances Each Month

Now that you have a credit card, you may think: it’s time to buy stuff on credit.

Not necessarily.

You should use your credit card to make purchases but always pay off the balance at the end of the month to build credit. Not only do you avoid paying interest, but you establish a positive payment history demonstrating that you know how to manage debt. Here you can learn how to make the best use of your credit card to increase your credit score.

11. Learn When your Credit Card Reports Payment History

Sometimes, when your financial institution reports your credit card’s payment history is not the same as your due date.

Why does this matter? Because it gives a better impression if you have no due balance (because you just paid) vs. having a big balance (because it’s still not your due date).

By knowing when your payment history is reported, you can make sure your balance is low to give a better impression.

12. Make More Than One Payment Each Month

In certain situations, this can help you increase your credit scores because you keep a low credit card balance at all times.

Maybe your bank or financial institution doesn’t have an exact date when your payment history is reported. Then you need to find a way to keep your balance low for a longer time.

You could make more than one payment each month.

young people shaking hands with a banker

13. Limit the Number of Credit Applications You Complete

Every time you fill out an application for credit, creditors make requests call hard inquiries or hard pulls. These credit checks affect your credit score and remain on your report for two years.

On average, each hard inquiry can reduce your credit score by 5-10 points. Therefore, too many inquiries cause your credit score to plummet, so you could pay higher interest rates for loans and credit cards.

In a worst-case scenario, a lender could reject your request for credit.

When you apply for a loan with Camino Financial, we do a soft pull of your credit that doesn’t affect your credit score at all.

Get Approved For A Loan Today


14. Open a Checking Account

If you’ve never established credit, open a checking or savings account with a local bank.

Doing so won’t build credit, but it does put you in a better position with the financial institution to get a loan or apply for a credit card. They can see that you know how to handle money when you make deposits and withdrawals without overdrawing your accounts. Once you get a loan and start repaying debt, you begin establishing a credit history immediately.

Read this article to know the best business checking accounts available in the market.

15. Make Sure Unpaid Debts Aren’t Sent to a Collection Agency

Work closely with lenders when you have a financial crisis and can’t make payments. When you’re upfront about your situation, most likely, they will work with you to set up a different payment plan. It’s in their interest to do so because most collection agencies settle unpaid accounts by decreasing the debt.

credit score on a smartphone screen

16. Increase Your Income

A higher income causes your debt-to-income ratio to decrease. This helps make a favorable impression on lenders when a borrower is about to receive a salary increase or a large bonus. Getting a raise may even put you in a position to apply for a larger loan amount.

17. Don’t Close Paid-Off Credit Cards

Don’t close a credit card account simply because you don’t use the card. Even if you aren’t using credit on unused cards, the available credit counts toward lowering your credit utilization ratio mentioned in Tip #8. So, as a strategy on how to improve your credit score, keep those accounts open!

18. Set Up Emergency Funding

Having a nest egg to fall back on is a good idea. Instead of maxing out your credit cards when unforeseen expenses crop up, you can dip into savings. Start building up this account as soon as possible. Even if you can only contribute $25-$50 a month, that’s a place to start.

19. Don’t Rely on Just One Type of Credit

Your credit score is a mix of many different things: it’s not just your credit card utilization, but business loans, mortgages, car loans, etc.

If you can afford a new type of credit, having a diverse credit mix (and paying everything on time) can help your credit score be healthier.

How fast can you raise your credit score?

You can definitely start improving your credit score as fast as 30 or 60 days (depending on what steps you’re taking to improve it), but how quickly you build it also depends on your initial score.

If you have a bad score, it might take you considerably longer to get your credit score to an ideal place.

But if you follow the above tips, you’ll definitely be on your way to a better score.

Learn more about how long it actually takes to build credit

excellent credit score

Camino Financial Small Business Loans Help You Build Credit

This article on how to improve your credit score quickly not only opens doors to borrow money but gives you hope for your financial future. You can follow the 15 easy tips above on how to improve your credit score.

But, did you know Camino Financial small business loans build credit?

Camino Financial doesn’t require collateral, and we have limited restrictions on fund usage. We also are more flexible and have fewer requirements than traditional banks.

Applying for a Camino Financial small business loan will help you’ll boost your credit score in record time and be closer to achieving your financial goals for you and your business.

Get Approved For A Loan Today



How to improve my credit score?

The best thing you can do is follow all the tips that we shared in this article. Some of them are:

  • Pay all your debts on time
  • Don’t apply for several loans at the same time
  • Report your rent

What is the highest credit score?

The personal credit score goes up to 850 points.

What is a good credit score?

A score of 660 is considered good and can help you get approved for many different financial products. If you have a lower score, you should start working on it ASAP.

Can a loan help me improve my credit score?


A loan is a great tool to improve your credit score, as long as you make your monthly payments on time.

At Camino Financial, we have already helped many business owners improve their scores. We also work with people without a credit history (and, depending on your case, we can approve your loan even if you have bad credit). That’s why we are one of the best options for small businesses.

Apply now!



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