{"id":2675,"date":"2025-05-14T21:05:28","date_gmt":"2025-05-14T21:05:28","guid":{"rendered":"https:\/\/www.sprucemoney.com\/resource-center\/?p=2675"},"modified":"2025-05-14T21:05:29","modified_gmt":"2025-05-14T21:05:29","slug":"how-to-improve-credit-score","status":"publish","type":"post","link":"https:\/\/www.sprucemoney.com\/resource-center\/building-credit\/how-to-improve-credit-score\/","title":{"rendered":"How to improve your credit score"},"content":{"rendered":"\n

So you\u2019ve checked your credit score<\/a> and are… ahem…less than thrilled with the results. It happens to the best of us, whether because of past financial hardship or a lack of credit experience. But now you\u2019re ready to take action and raise your score (high five!)<\/p>\n\n\n\n

Maybe you\u2019re figuring out how to raise your credit score fast so you can get a loan with a good interest rate, or perhaps you\u2019re thinking ahead and want to set yourself up for success in the future. Whatever the reason, your credit score is an important metric that has an impact on many aspects of your finances. Here\u2019s what it is, how it works, and what you can do to get those numbers where you want them to be.<\/p>\n\n\n\n

What is a credit score?<\/strong><\/h2>\n\n\n\n

Your credit score is a three-digit number, typically between 300 and 850. Among other factors, it reflects your credit history, and your track record of paying your debts. The score gives lenders an idea of how likely you are to make payments on time. Lenders use this information to make decisions about whether to extend credit, like a mortgage, credit card, or auto loan, and at what rates. For example, borrowers with higher scores are seen as more likely to pay their debts.<\/p>\n\n\n\n

Lenders are more likely to offer them credit\u2014and lower interest rates. They may see people with lower scores as risky and may be less likely to offer them credit.<\/p>\n\n\n\n

What is a good credit score? <\/h3>\n\n\n\n

A score of 670 to 739 is typically seen as good based on ranges cited by Equifax<\/a> and Experian<\/a>. TransUnion<\/a> cites a good range of 661 to 780. Anything above that level is very good or exceptional, and lower scores are considered fair or poor.<\/p>\n\n\n\n

If your score is on the low end, don\u2019t panic. The fact that you\u2019re seeking to improve your credit is a great sign, and this number isn\u2019t set in stone. Whether you\u2019re looking to improve your credit score to qualify for a large upcoming purchase on credit or to get a better interest rate, there are plenty of opportunities to improve your credit score.<\/p>\n\n\n\n

<\/a>How to raise your credit score<\/strong><\/h2>\n\n\n\n

As you learn how to raise your credit score, not only is it important to understand what is a good credit score<\/a>, it\u2019s also important to know how credit scores are calculated.<\/a><\/p>\n\n\n

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Here\u2019s how FICO, the credit score used by most lenders, calculates your credit score:<\/p>\n\n\n\n