What's the quickest way to improve your credit score?

If you're planning to apply for a mortgage, car loan, credit card, or even rent an apartment, you might be wondering: what's the quickest way to improve your credit score?

The honest answer is that there's no overnight fix. Your credit score is designed to reflect your borrowing habits over time. However, there are several steps that can help improve your score faster than others, especially if your score has dropped because of high credit card balances or missed payments.

In this guide, we'll explain what actually works, what takes the longest, and how Canadians can start building a stronger credit history.

Can you improve your credit score quickly?

Yes, but it depends on what's affecting your score.

Some actions can have an impact within a few weeks, while others may take several months or even years. The timeline depends on factors like:

• Your current credit score

• Your credit history

• Whether you've missed payments

• How much debt you're carrying

• How often your lenders report information to the credit bureaus

If your credit score is being held back by high credit card balances, you could see an improvement relatively quickly after paying them down and your lender reports the updated balance.

If your score is low because of missed payments or collections, rebuilding your credit will usually take longer.

The quickest ways to improve your credit score

Here are some of the fastest strategies that may help improve your credit score.

1. Lower your credit utilization

If you only do one thing to improve your credit score, this is often the best place to start.

Credit utilization is the percentage of your available revolving credit that you're using. For example, if your credit card has a $5,000 limit and you've charged $4,000, your utilization is 80%.

In general, lenders like to see utilization below 30%, and even lower can be better.

If you can pay down your balances before your credit card issuer reports them, you may see your score improve after the new balance appears on your credit report.

2. Always pay your bills on time

Your payment history is one of the most important factors that affects your credit score.

Making every payment on time helps build a positive credit history. If you've missed payments in the past, consistently paying on time going forward is one of the best ways to rebuild your score.

Setting up automatic payments or reminders can help ensure you never miss a due date.

3. Check your credit report for errors

Mistakes happen.

It's worth reviewing your credit report regularly to make sure all the information is accurate. Look for things like:

• Accounts that don't belong to you

• Incorrect late payments

• Accounts that should have been closed

• Incorrect personal information

If you spot an error, contact the credit bureau and the lender to have it investigated.

You can check your credit report and monitor your credit score for free through Borrowell.

4. Avoid applying for too much new credit

Every time you apply for certain types of credit, the lender may perform a hard credit inquiry.

One inquiry usually has only a small impact, but applying for several loans or credit cards in a short period can temporarily lower your score and make lenders think you're relying heavily on credit.

Only apply for new credit when you genuinely need it.

5. Keep older accounts open

The length of your credit history also plays a role in your credit score.

If you have an older credit card with no annual fee, keeping it open can help preserve the average age of your accounts and maintain your available credit.

Of course, if keeping an account open makes it tempting to overspend, closing it may still be the better financial decision.

6. Catch up on overdue accounts

If you've fallen behind on payments, bringing your accounts back into good standing can help stop further damage to your credit.

While previous late payments may remain on your credit report for several years, getting current on your accounts shows lenders you're managing your debt responsibly today.

Can paying off debt improve your credit score?

Yes, but it depends on the type of debt.

Paying down credit card debt often has the biggest short-term impact because it reduces your credit utilization.

Paying off installment loans, such as personal loans or auto loans, is still financially beneficial, but it may not improve your credit score as quickly because utilization isn't calculated the same way.

How long does it take to improve your credit score?

Everyone's situation is different, but here's a general timeline:

The key is consistency. Small positive actions repeated over time generally produce the best long-term results.

Can you build your credit if you have a limited credit history?

Yes.

If you're new to credit or don't have many accounts, adding positive information to your credit report can help establish your credit history.

Build credit with Borrowell Credit Builder

If you're looking for a way to establish or strengthen your credit history, Borrowell Credit Builder can help.

Credit Builder is designed to help eligible Canadians build payment history by making regular monthly payments that are reported to Equifax Canada. As with any credit-building product, making your payments on time is essential.

For people with limited credit history or those rebuilding after financial setbacks, it can be a useful tool for developing positive credit habits that reflect on your credit report.

Get credit for paying rent with Borrowell Rent Advantage

Rent is often the biggest monthly expense for Canadians, but traditionally it hasn't helped build credit.

With Borrowell Rent Advantage, eligible renters can have their on-time rent payments reported to a major Canadian credit bureau. This allows regular rent payments to contribute to building credit history, helping your monthly housing payments work a little harder for you.

If you already pay rent every month, it could be an opportunity to strengthen your credit profile while making payments you're already budgeting for.

What won't improve your credit score overnight?

Many people search for quick fixes, but unfortunately these common myths won't deliver instant results:

• Paying someone to "erase" bad credit

• Closing all your credit cards

• Applying for lots of new credit to increase your available credit

• Ignoring old debts because they're "too old to matter"

Improving your credit score takes time, and there's no legitimate shortcut that removes accurate negative information from your credit report.

The bottom line

The quickest way to improve your credit score is to focus on the factors you can control today. Paying down credit card balances, making every payment on time, avoiding unnecessary credit applications, and reviewing your credit report for errors can all help move your score in the right direction.

If you're looking for additional ways to build positive credit history, products like Borrowell Credit Builder and Borrowell Rent Advantage can help eligible Canadians add positive payment information to their credit profile over time. While neither is an instant fix, they can become valuable parts of a long-term strategy for building healthier credit.

Remember, improving your credit score isn't about finding a shortcut. It's about consistently demonstrating responsible credit habits that lenders can trust.