Low Credit Score? Here’s Exactly How To Fix It in 90 Days
A low credit score can feel like a financial dead end, affecting everything from loan approvals to insurance rates and even rental applications. But while some credit problems take years to overcome, others can be addressed surprisingly quickly. The key is knowing which factors are dragging your score down and focusing on the changes that can make the biggest difference.
If you're looking for a 90-day fix for your credit score, MoneyLion has a five-step plan for you to follow.
Step 1: Start by Identifying What’s Actually Hurting Your Credit Score
Many consumers assume debt alone is the reason their score is low, but experts say several factors could be working against them simultaneously.
The most common culprits include missed payments, high credit card utilization, recent delinquencies, collections accounts and applying for multiple new credit lines in a short period, according to Bob McKay, president and certified credit union executive at Together Credit Union.
While some consumers focus on paying down debt balances to improve their credit scores, McKay said many "typically ignore payment history and other credit usage metrics, which can sometimes move faster than just the balance."
Many consumers assume that low credit scores are all about negative information, “but I find that many of my clients aren't thinking about adding positive information,” said Todd Christensen, an accredited financial counselor (AFC) at MoneyFit and author of "Everyday Money for Everyday People."
Step 2: Lower Your Credit Utilization
If you're hoping to see meaningful progress in just three months, utilization is likely your biggest opportunity, McKay explained, “because it updates regularly as lenders report current balances."
Aim to get utilization under 30%, though under 10% helps more, said Josh Katz, a certified public accountant (CPA) and founder of Universal Tax Professionals.
"The best way is paying down balances, obviously, but here's the trick people miss — pay before the statement closes, not before the due date. The card reports the statement balance, so if you pay early, a lower number gets reported," Katz said.
Step 3: Check Your Credit Reports for Errors and Dispute Them Quickly
One of the fastest ways to improve a credit score is correcting inaccurate information. Unlike rebuilding credit habits, which takes time, removing erroneous negative marks can produce immediate results.
Christensen recalled working with a client who had an inaccurate collection account balance on their credit report.
“When he disputed it, the dispute was settled within three days, bumping his score from the 670 range up to 750."
And Katz had a client who was “convinced his score was wrecked by overspending." However, it turned out that his score was actually being upended by an auto-loan showing a balance despite being paid off. After one dispute, the error was removed and his credit score recovered.
"You can't fix what you haven't looked at," Katz said, so, if you're looking for a way to raise your credit score quickly, be sure to thoroughly check your credit report for errors.
Step 4: Build a Streak of On-Time Payments
While utilization can move your credit score quickly, payment history remains the foundation of a strong credit score. While a single on-time payment does not erase previous delinquencies, McKay said, “a chain of on-time payments can begin improving a credit profile relatively quickly." It’s often just a matter of patience and consistency.
Christensen noted that among the more than 130 factors in the FICO 8 model, on-time payments remain among the most influential.
Step 5: Avoid the Credit Repair Mistakes That Can Backfire
When people get serious about improving their credit, they sometimes make moves that accidentally make things worse. A common mistake Christensen sees people make is closing old accounts, which can increase utilization and reduce available credit.
"You lose the available credit and the account age both, so utilization spikes and your history shortens," Katz said.
Consumers should also be cautious about chasing quick fixes. As Christensen noted, "Credit scores attempt to predict future credit-related behavior based on recent past credit-related behavior."
Your credit is based on long-term patterns not a snapshot, yet the experts agree that 90 days is enough time to make meaningful progress if you’re intentional about it.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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