Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: Today’s question comes from Andrea. She writes: My credit score recently took a hit. Any tips on boosting it?
A: Yes – and take a deep breath. A bruised credit score isn’t a life sentence. With a few simple moves, you can get things back on track. It may not even take as long as you might think.
First, understand what actually goes into your score (you can check out the factors here). When one piece slips, the whole score can wobble – but the fix is often easier than it looks.
Here are some of the best ways to give your score a boost:
Pay on time, every time: Payment history matters most. Set reminders or autopay and aim to pay your balance in full. Bonus move – pay mid-cycle, a week or so before your statement closes, so a lower balance gets reported to the credit bureaus.
Keep balances low: Your credit utilization ratio (what you’re using vs. what’s available) should ideally stay under 30% of your limit. That’s for each individual card and for all your cards combined.
Hit pause on new cards: Opening several new accounts in a short period can make lenders nervous and they may see you as a greater risk.
Don’t close old accounts: Longstanding cards can help your credit history and closing them can actually raise your utilization ratio.
Talk to your creditors: If a missed payment was a one-off, call and explain. If you’ve otherwise been a stellar customer, they may be willing to help – and even report your improvement to the credit bureaus.
If your score has really taken a nosedive, it might be worth talking to a not-for-profit credit counselor or a reputable credit repair company. Just be sure to do your homework and avoid any promises of instant fixes or guaranteed results.
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