3 ways to boost your credit score before the end of the year


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Although you don’t have much time, you can still boost your credit score before the end of 2022.

Key points

  • A higher credit score could lead to more affordable borrowing options.
  • There are steps you can take to quickly raise your credit score.
  • You can pay off some of your existing credit card debt, request a credit limit increase, and check your credit report for potential errors that could lower your score.

At this point, many people start thinking about their year-end goals and taking steps to achieve them. You may have certain goals that you want to check off your list, such as increasing your savings account balance or finally move to open a brokerage account in which to invest. But you may also want to see your credit score increase before the end of 2022.

But generally, it takes time to boost your credit. The reason? The factor that carries the most weight when calculating this number is your payment history, which indicates when you pay your bills. And it can take months to establish a more favorable payment history than you have now.

But that doesn’t mean you don’t have options to boost your credit score over the next two months. Here are some steps you can take to increase that number before the end of 2022.

1. Pay off some existing credit card debt

You owe money on your credit card? Paying off some or all of your balance could have a positive impact on your credit score.

Another important factor that goes into this number is your credit utilization rate, which measures how much of your total credit you are using at the same time. The less balance you have on your credit cards compared to your total spending limit, the higher your score is likely to increase.

2. Ask for a spending limit increase on a long-standing credit card account

Paying off credit card debt isn’t the only way to lower your credit utilization rate. Another option is to request an increase in the spending limit. And if you have a credit card that you’ve had for a long time and your payments are up to date, your issuer may be willing to increase your spending limit. Likewise, if your income has increased since you first applied for your credit card, you can list that as the reason for a spending limit increase.

3. Check your credit report for errors

Credit report errors are quite common. If your report contains an error that works against you from a credit perspective, it could end up lowering your score. That’s why it’s a good idea to check your credit report for errors and fix harmful errors.

Let’s say your credit report lists you as a delinquent on a debt you settled years ago. If you manage to fix this error, it could cause your credit score to rise quite quickly.

You should also know that you are entitled to a free copy of your credit report each year from each of the three major credit bureaus – Experian, Equifax and TransUnion. And thanks to a special program set up during the pandemic, weekly credit reports are now free until the end of 2023.

An improved credit score could open the door to many borrowing opportunities in 2023. If you take these steps, you could see your score increase before the end of 2022.

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