Whether you're planning to buy a home, finance a car, or simply improve your financial health, a better credit score can make a world of difference.
While major changes might take months or even years for severe credit issues, minor improvements can happen in as little as a few months if you take the right steps.
The good news? It's never too late to start making positive changes. By adopting these smart debt payoff strategies now, you'll set yourself up for success by late 2025.
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Make all your monthly payments on time
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Payment history is the single largest factor in determining your credit score. Ensure every payment is made before the due date — not just to avoid penalties but also to maintain a strong credit profile.
Set up auto-payments or payment reminders to keep things on track. Even one late payment can have a lasting negative effect on your score.
Keep your credit utilization below 30%
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Your credit utilization ratio, or how much credit you're using compared to your total limit, plays a huge role in your score.
Ideally, you want to try to keep this under 30%. For example, if your credit limit is $10,000, try not to carry a balance over $3,000. Lower utilization signals to lenders that you manage credit responsibly.
Review your credit reports for errors
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Errors on your credit report can drag down your score unfairly. It's crucial to carefully review them for mistakes like incorrect account statuses or unauthorized accounts.
If you dispute inaccuracies with the credit bureaus, you could get them corrected and potentially see a quick improvement. Regular checks can also help you spot identity theft early.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1 <p>Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.</p>
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
Don't close old credit accounts
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The length of your credit history contributes significantly to your score. Even if you no longer use an old credit card, keeping the account open can help maintain your average account age.
Close accounts only if they have high annual fees or pose security risks as an older account can serve as a stabilizing factor for your score.
Negotiate with debt collectors
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If you have accounts that are 90-120 days late, consider negotiating a settlement.
Just as long as you're being cautious when it comes to old debts outside the statute of limitations, that is, because contacting collectors could restart the clock. And, always get agreements in writing before making payments.
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Avoid applying for too much credit
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ALmost every time you apply for credit, a hard inquiry is added to your report, which can slightly lower your score.
Avoid unnecessary applications, especially if you're planning a major purchase down the line, and instead focus on building credit with your existing accounts instead. Spacing out credit applications can also help minimize the risk of being seen as financially overextended.
Become an authorized user on a trusted account
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If a family member or friend has a credit card with a long, positive history, ask if they'll add you as an authorized user. You'll benefit from their good credit habits, which can help improve your score over time.
Just ensure that they continue to make on-time payments, as any negative activity on the account will also affect you. This strategy can be particularly helpful for young adults or those rebuilding credit.
Use Experian Boost or other credit-enhancing tools
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Free tools like Experian Boost allow you to add payments for utilities, cell services, and even your streaming accounts to your credit report, which could provide a small score boost. These payments show consistent reliability, benefiting those with thin credit files, and may lead to noticeable improvements in a short time.
Pay down high-interest debts first
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Make paying down those debts with the highest interest rates your first priority. This method, also known as "the debt avalanche," can reduce the amount you'll pay in interest over time and frees up more money to tackle other balances, improving your credit utilization ratio faster. Paying down these debts can also reduce financial stress over time.
Earn cash back on everyday purchases with a debit card
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2 <p>See website for details.</p>
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
Learn more about the Discover Cashback Checking account
Open a secured credit card
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If your credit score is low or you lack a credit history, a secured credit card can be a great tool to rebuild. Secured cards require a deposit, usually around $200, which acts as your credit limit.
Use the card responsibly and your activity will be reported to credit bureaus, helping to build a positive history. Many issuers will allow you to upgrade to an unsecured card after consistent on-time payments.
Diversify your credit mix
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Your credit score benefits from having a mix of credit types, including installment loans (auto or personal loans) and revolving credit (credit cards).
If you currently only have one type of account, you may want to consider diversifying — but only if it aligns with your financial goals. A well-rounded credit profile may boost your credit score over time.
Reduce outstanding debt
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The less debt you owe, the better. Work toward paying off balances to reduce your overall debt load.
You might consider paying off your highest-interest debt first, to save money in the long run. Progress may take a few months to reflect on your credit report as lenders update balances, but the impact on your score will be worth it.
Settle delinquent accounts
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Delinquent accounts can weigh heavily on your credit. Consider negotiating a settlement with creditors since you may be able to negotiate a debt settlement that allows you to pay off your debt in one lump sum payment.
Once settled, the account will be marked as "paid" or "settled," which is better than "unpaid." Settling accounts shows lenders you're taking steps to resolve past financial issues.
Monitor your credit regularly
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Staying informed about your credit is crucial. Use free credit monitoring services to keep an eye on changes, new accounts, or potential fraud. This vigilance allows you to act quickly to resolve issues that could harm your score.
Not only that, but frequent monitoring helps you stay proactive rather than reactive.
Be patient and consistent
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Improving your credit score is a marathon, not a sprint. Consistently practicing good credit habits over time will yield results.
Significant improvements can take time, so stick with it and trust the process. Small, consistent actions can add up to major financial gains.
Bottom line
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Building a better credit score in 2025 is entirely possible with focus, discipline, and the right strategies. From making on-time payments to keeping your credit utilization low, these moves will set you on the path to financial success and help you crush your debt.
What steps can you take today to improve your credit and boost your bank account or help pay for your bills in the future? Start now, and you'll thank yourself by year's end.
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