10 Proven Strategies to Improve Your Credit Score Before Applying for a Loan

When you apply for a major loan in 2026—whether it’s for a home, a car, or a business—your credit score is the primary gatekeeper. A higher score doesn’t just help you get approved; it can save you tens of thousands of dollars in interest over the life of a loan.

If you are planning to borrow money soon, use these 10 proven strategies to give your score a meaningful boost.

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1. Pay Down High Revolving Balances

Your credit utilization ratio—the amount of credit you use compared to your total limits—is a massive scoring factor (30% of your FICO score).

• The Strategy: Aim to keep your utilization under 10% for the best results, though under 30% is the standard recommendation.

• The Impact: Reducing a card balance from 90% utilization to 10% can sometimes jump your score by dozens of points in a single billing cycle.

2. Dispute Inaccuracies on Your Credit Report

Errors are more common than you think. A wrongly reported late payment or an account that doesn’t belong to you can drag your score down significantly.

• The Strategy: Download your free reports from AnnualCreditReport.com. If you find an error, file a formal dispute with the relevant bureau (Experian, TransUnion, or Equifax).

• 2026 Update: Newer regulations have streamlined the dispute process, often requiring bureaus to resolve simple errors within 30 days.

3. Use “Credit Boost” Services for Utility Bills

Traditionally, paying your phone, internet, or utility bills didn’t help your credit. In 2026, that has changed.

• The Strategy: Opt into services like Experian Boost or similar tools that allow you to link your bank account. These services identify on-time utility and streaming service payments and add them to your credit file.

4. Become an Authorized User

If you have a trusted family member with a long-standing credit card and a perfect payment history, they can help you “piggyback” on their success.

• The Strategy: Have them add you as an authorized user to their oldest account. You don’t even need to use the card; their history will be reflected on your report, instantly increasing your credit age.

5. Request a Credit Limit Increase

You can lower your utilization ratio without paying off debt simply by increasing your total available credit.

• The Strategy: Call your card issuer and ask for a credit limit increase.

• Warning: Ensure the issuer does a “soft inquiry” rather than a “hard pull,” as a hard inquiry can temporarily dip your score.

6. Keep Old Accounts Open

The length of credit history accounts for 15% of your score. Closing an old card you no longer use might seem like “cleaning up,” but it actually shortens your average account age.

• The Strategy: Keep your oldest cards open and active. Use them once every few months for a small purchase (like a coffee) to prevent the issuer from closing the account due to inactivity.

7. Diversify Your Credit Mix

Lenders like to see that you can handle different types of debt, such as revolving credit (cards) and installment loans (auto or student loans).

• The Strategy: If you only have credit cards, taking out a small credit-builder loan can improve your mix. However, only do this if you have at least 6 months before your major loan application.

8. Avoid “Hard Inquiries” Before Your Loan

Every time you apply for new credit, a hard inquiry is recorded, which can shave a few points off your score.

• The Strategy: Stop applying for new credit cards or other loans at least 6 to 12 months before applying for a mortgage or large business loan.

9. Time Your Payments Strategically

Most credit card issuers report your balance once a month on your statement closing date—not your due date.

• The Strategy: Pay off your balance before the statement closes. This ensures that the report sent to the credit bureaus shows a $0 or very low balance, even if you use the card throughout the month.

10. Handle Collections and Delinquencies

If you have accounts in collections, they are a heavy anchor on your score.

• The Strategy: In 2026, many scoring models ignore “paid” collections. Contact the agency to negotiate a “pay for delete” or simply pay the balance in full to remove the negative weight from newer scoring models like FICO 10T.