Posted on October 31, 2025

Reading time: approximately 5 minutes

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A good credit score can open doors to numerous housing opportunities, from securing a rental property to buying a home. Whether you're a first-time renter, a homeowner, or simply trying to improve your financial situation, understanding how to improve your credit score is crucial. In this post, we’ll walk you through practical steps to boost your credit score, increase your chances of qualifying for better housing, and ultimately ensure housing stability.

Improving your credit score doesn’t happen overnight, but with consistent effort, you can see positive results. Let’s dive into the steps that will help you raise your score and improve your housing opportunities.

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Understand What Impacts Your Credit Score

Before you can improve your credit score, it’s essential to understand how it’s calculated. Your credit score is determined by several key factors:

Payment History (35%): This is the most significant factor, reflecting whether you’ve paid your bills on time. Late payments, defaults, and bankruptcies can negatively affect your score.
Credit Utilization (30%): This measures how much of your available credit you’re using. Ideally, you should use less than 30% of your credit limit.
Length of Credit History (15%): The longer you’ve had credit accounts open, the more favorable it is for your score. Older accounts contribute positively.
Types of Credit Used (10%): A mix of credit types, such as credit cards, mortgages, and installment loans, can help improve your score.
New Credit (10%): Applying for several new credit accounts in a short period can lower your score. It’s best to limit the number of credit inquiries.

Understanding these factors will guide your efforts to improve your credit score, ensuring that you're working on the right areas.

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Check Your Credit Report Regularly

The first step in improving your credit score is to check your credit report regularly. You can request a free credit report once a year from each of the three major credit bureaus: Equifax, Experian, and TransUnion. Reviewing your credit report allows you to:

Spot errors: Sometimes, mistakes are made on your credit report, such as payments marked late or accounts that don’t belong to you. Disputing these errors promptly can prevent them from harming your score.
Understand your standing: Knowing where you stand gives you a clear picture of your credit health and the areas you need to improve.
Monitor progress: By tracking your credit report, you’ll be able to see how your efforts to improve your score are working over time.

Make it a habit to review your credit report regularly and dispute any inaccuracies to ensure that your credit history is accurately represented.

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Pay Your Bills on Time

One of the simplest and most effective ways to improve your credit score is by paying your bills on time. Your payment history has the largest impact on your score, so missing payments can significantly lower your chances of securing housing.

To ensure timely payments, consider these strategies:

Set up automatic payments: Automating bill payments for utilities, credit cards, and loans can help you stay on track.
Create reminders: Use a calendar, phone alarm, or budgeting app to remind you of upcoming payment deadlines.
Prioritize payments: If you’re struggling to make payments, prioritize your bills based on due dates and amounts owed.

If you’ve missed a payment or two in the past, don't be discouraged. It may take some time to recover, but making timely payments consistently will gradually improve your credit score.

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Reduce Your Credit Utilization Rate

Credit utilization is another significant factor affecting your score. This refers to the percentage of your available credit that you’re using. The lower your credit utilization, the better your credit score will be. Aim to use no more than 30% of your credit limit on any card. If your credit utilization rate is too high, here’s what you can do:

Pay down existing debt: If you have high balances on your credit cards, work on paying them down to reduce your utilization ratio.
Request a credit limit increase: If your current credit utilization rate is high, one solution is to ask your credit card issuer for a credit limit increase. This will give you more available credit, which can lower your utilization ratio. Just be cautious of using the extra credit.
Avoid maxing out your credit cards: Try not to charge up to your credit limit. Keeping your balance well below the limit will positively affect your score.

Reducing your credit utilization will not only improve your credit score but also show lenders that you're capable of managing your finances responsibly.

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Avoid Opening New Credit Accounts

While it might be tempting to open new credit cards or take out new loans, frequent applications for new credit can hurt your credit score. Each time you apply for credit, a "hard inquiry" is recorded, which temporarily lowers your score. Therefore, it’s essential to limit the number of credit inquiries:

Think before applying: Consider whether you really need a new credit account before applying. If you’re in the process of improving your score, avoid opening any new accounts.
Consider prequalification offers: Some lenders provide prequalification offers that allow you to check your eligibility without impacting your score.

While it’s important to avoid opening unnecessary new accounts, maintaining existing ones and using them wisely will help strengthen your credit profile.

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Settle Outstanding Debts and Collections

If you have accounts that have gone into collections, settling or paying off those debts can significantly improve your credit score. Collections accounts can remain on your credit report for up to seven years, so it's essential to address them as soon as possible. Here's how to deal with collections:

Negotiate with creditors: Contact your creditors or the collection agency to settle the debt. In some cases, they may be willing to accept less than the full amount owed.
Request "pay for delete": When settling a collection, ask the creditor if they will remove the collection account from your credit report upon payment. While this isn't guaranteed, it’s worth asking.
Monitor your progress: Once you’ve settled a debt, ensure that it is reflected on your credit report as "paid" or "settled."

By addressing outstanding debts, you can stop them from negatively impacting your credit score and improve your chances of securing better housing.

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Avoid Closing Old Credit Accounts

If you're trying to improve your credit score, don’t close old credit accounts, even if you’re not using them. Closing an account reduces your available credit and can increase your credit utilization rate. Furthermore, the length of your credit history is a significant factor in determining your score.

Keep old accounts open: Keep old, inactive accounts open, especially if they have a long history. This will positively impact the length of your credit history.
Use credit occasionally: If you have old accounts that aren’t used often, consider using them occasionally for small purchases. Just ensure that you pay off the balance in full each month.

Keeping your old accounts open can contribute positively to your credit score by improving both your credit history length and utilization ratio.

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Work With a Credit Counselor or Financial Expert

If you're overwhelmed with managing your credit, working with a credit counselor or financial expert can be a helpful step. These professionals can provide personalized advice and help you develop a strategy to improve your credit score. Look for nonprofit credit counseling agencies that offer affordable or free services.

Review your financial situation: A counselor can help you review your budget, debts, and spending habits to find ways to improve your credit.
Debt management plans: If necessary, they can set up a debt management plan (DMP) to help you pay off your debts faster and more efficiently.

Having professional guidance can help you stay on track and accelerate your progress toward a better credit score.

Improving your credit score is a gradual process, but with consistent effort and the right strategies, you can increase your chances of securing better housing opportunities. From paying bills on time and reducing credit utilization to addressing outstanding debts and avoiding unnecessary new credit, every step you take will help you reach your goals.

If you need assistance with housing resources, financial literacy, or would like to schedule a consultation, don’t hesitate to get in touch with us today via email stacy@noir-realty.com. We are here to help guide you through the process and provide you with the tools and support you need to make informed housing decisions.

Remember, improving your credit score may take time, but every small effort you make will bring you closer to your goal of housing stability and financial success. Start today!

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