5 Easy Hacks To Give Your Credit Score a Boost Before 2025
Written by
Martin Dasko
Edited by
Cory Dudak
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According to Experian data, the average credit score for Americans in 2023 was 715, and 71.3% had a good credit score. With inflation bringing up the prices of everyday expenses for the last few years, it’s more important than ever that you watch your credit score so that you don’t end up with a poor one that makes it difficult to get a loan or forces you to spend more on interest payments.
With the year coming to an end, you’ll want to do your best to finish with a strong credit score. Here are five easy hacks to boost your credit score quickly so you can tackle 2025 with financial confidence.
1. Get Aggressive About Paying Down Debt
“Your credit card utilization ratio is one of the most significant factors affecting your score,” said Joe DiSanto, a financial advisor and the founder of Play Louder. “For example, if you have four credit cards with a combined credit limit of $20,000 and you’ve used $18,000 of that, your utilization ratio is at 90%. Ideally, you want to keep this ratio at 25% or lower, as a high utilization ratio can negatively impact your score.”
Experts generally agree that paying down credit card debt and any outstanding balances is one of the fastest ways to boost your score. Your payment history makes up 35% of your credit score, while your amounts owed impact 30%. This means that promptly making your payments and getting serious about your debt will help you in a few ways.
“Paying off debt not only improves your credit utilization, but helps you avoid paying extra on interest,” said April Lewis-Park, a certified credit counselor and seasoned financial educator with Consolidated Credit. “If you’re having trouble making a budget that prioritizes paying off debts, or if your interest rates are so high you’re not making a dent in your debt, consider reaching out to a certified non-profit credit counseling agency.”
Your goal for the rest of the year should be to focus on trying to pay down your debt so that you can give your credit score a boost and save money on interest payments in 2025.
2 Set Up Autopay for Bills
You don’t want to miss payments, as payment history makes up 35% of your credit score. Lewis-Park warned that even a single late payment can impact your score. This is why setting up autopay is an easy step in ensuring you can focus on improving your credit score heading into 2025. This easy hack will only take a few minutes to setup, and you won’t have to worry about making the frustrating mistake of missing a payment.
3. Limit New Credit Applications
“Every credit inquiry can cause a small dip in your score,” remarked Lewis-Park. “Only apply for credit when you truly need it and try to space out applications.” Since new credit accounts for 10% of your credit score, you don’t want to start applying for any loans or credit cards as you focus on boosting your score. This is an easy hack to apply because you can prioritize paying off your current cards instead of looking into new ones.
4. Review Credit Report for Inaccuracies
“Check your credit reports from all three major bureaus for any errors, like old or incorrect balances,” advised Chris Rivera, a CPA and founder of The Ecommerce Accountants. “Dispute inaccuracies right away to clean up your report.”
Disputing mistakes can help you improve your credit score because you could have negative items removed that have been hurting your credit history. For example, you could find out that a credit card or a cell phone provider marked a payment late even though you made it on time. In a more drastic example, you could find out that you’ve been a victim of fraud and someone has taken out a loan under your name.
The FTC suggests visiting AnnualCreditReport.com to obtain a free copy of your credit report and review it for mistakes and inaccuracies. If you notice any errors, you should contact the credit bureau and the business that provided the issue to get it removed from your credit history. Checking your credit report once yearly will help you stay on top of your finances by ensuring that everything’s accurate.
5. Don’t Close Old Accounts
“Closing an account reduces your available credit, which can increase your utilization ratio,” noted DiSanto. “If the card you close is your oldest one, it also shortens your credit history, which can lower your score.”
Keeping older accounts open can help increase the average age of your credit, which is a factor in your score. Those accounts contribute to a solid credit history even if you don’t use them. You’re better off keeping that old account open until you notice your credit score has increased.
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