Start with these fundamental strategies that have the biggest impact on your credit score.
Payment history is the #1 factor affecting your credit score. Set up automatic payments to never miss a due date.
Use less than 30% of your available credit. Lower utilization shows lenders you manage credit responsibly.
Review your credit report annually for errors. Dispute any inaccuracies with the credit bureaus immediately.
Length of credit history matters. Keep old accounts open even if you don't use them regularly.
Follow these evidence-based strategies to systematically rebuild your credit.
Payment history accounts for 35% of your credit score. Even one late payment can significantly damage your score. Set up automatic payments or calendar reminders to ensure you never miss a due date.
Credit utilization (the amount you owe vs. your credit limit) makes up 30% of your score. Aim to keep balances below 30% of your limit, or pay them off entirely each month.
Each credit application creates a hard inquiry on your report, which can temporarily lower your score. Only apply for credit when necessary and space out applications.
Having different types of credit (credit cards, auto loans, installment loans) shows you can manage various accounts responsibly. An auto loan can help diversify your credit profile.
Mistakes on your credit report can unfairly lower your score. Review your report from Equifax and TransUnion annually and dispute any errors you find.
If someone with good credit adds you as an authorized user on their account, their positive payment history can help boost your score.
Here's what to focus on at each stage of your credit rebuilding journey.
Getting approved for an auto loan—even with bad credit—can actually help improve your credit score over time. Here's how:
There's no quick fix for bad credit. Legitimate credit improvement takes 6-12 months of consistent positive behavior. Be wary of companies promising instant credit repair—they're often scams.
The most important factor is making all payments on time, every time. One missed payment can undo months of progress. Set up automatic payments to protect your progress.
Check your credit score monthly using free services like Credit Karma or Borrowell. Seeing your score improve will motivate you to keep up the good work.
Get approved for an auto loan today and start building positive payment history. We report to all major credit bureaus, so every on-time payment helps improve your score.
Want to avoid credit checks while rebuilding? Check out our No Credit Check financing options that won't impact your credit score.