5 Ways to Boost Your Credit Score in 2024

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Want better credit in the new year? Read on to see how to get it. 

Your credit score tells lenders how much of a risk they’re taking when they loan you money. It’s in your best financial interest to raise that number as high as possible.

The average U.S. credit score is 714. And while that’s by no means a poor score to have, boosting it to the upper 700 range or beyond could put you in a better position to snag more competitive interest rates when you apply for things like auto or personal loans.

Also, certain credit card offers are reserved for borrowers with top scores. If you want to snag perks like sign-up bonuses and extra cash back, a higher score could open the door to more opportunities.

Now, one thing you should know is that boosting your credit score is something that might take time. But if you start making these moves in early 2024, your score might be much higher by the end of the year.

1. Pay your bills on time

Your payment history carries more weight than any other factor when calculating your credit score. So to that end, aim to pay every bill on time.

To increase the chances of that happening, set as many bills as you can on autopay so human error doesn’t cause you to be late and get a black mark on your credit report. Also, do your best to keep some cash in an emergency fund. That way, you’ll be less likely to pay a bill late due to a lack of money.

2. Pay off your holiday credit card debt as soon as possible

If you’re coming away from the holiday season with a pile of credit card debt, you’re no doubt in good company. But the sooner you pay off that debt, the sooner you might see a nice jump in your credit score.

Your credit utilization ratio is another important factor that’s used to calculate your credit score. And it speaks to the amount of revolving credit you’re using at once. Lowering your credit card balances will lower your utilization, potentially leading to a higher score.

3. Get a credit limit increase

Paying down some of your credit card debt could shrink your credit utilization ratio. But actually, raising your credit limit could have the same effect.

It’s better to work on paying down your balances to limit the amount of interest you’re racking up. But if you’re eager to raise your credit score, then asking for a credit limit increase may be a more expedient way to go about things. Your credit card issuers may be willing to give you an increase if you can show proof of a higher income since the time of your initial application.

However, be careful with that higher limit. If you start using it, you may not help your credit score at all. If anything, you might only drive yourself further into debt.

4. Check your credit report for errors

Your credit report is a snapshot of your borrowing history. And you’re entitled to a free copy of it every week.

If you want your credit score to increase in 2024, make a point to access your credit report and review it for errors. This isn’t necessarily something you have to do every week, but it could be a good idea to check your credit report every three months or so.

5. Avoid new credit card applications

When you apply for a new credit card, a hard inquiry is done on your credit report that has the potential to lower your score by a handful of points. This isn’t necessarily a big deal if you have great credit and are happy with your score.

However, if you’re specifically looking to raise your score, then avoiding new credit card or loan applications for a period is a good bet. And if you do feel compelled to apply for a new credit card in the new year, try to limit yourself to just one.

A higher credit score could open the door to more affordable borrowing opportunities. Take these steps so you end up looking at a higher number by the end of 2024.

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