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A healthy credit score can open doors for business growth—whether you’re applying for financing, securing better rates, or simply keeping your financial footing strong. But for many small business owners, a less-than-perfect personal credit score can be a major roadblock.
The good news? It can be improved with time, strategy, and the right steps. We’ll cover what you need to know to improve your credit, and offer you tips on what high-impact moves you can make to start boosting your credit score today.
Do personal credit scores impact business credit scores?
Personal credit scores do affect your business credit, especially early on. Many lenders use your personal credit to evaluate your ability to manage debt, and in some cases, they’ll require a personal guarantee. That means your business's financial behavior can also impact your personal credit.
As your business matures, strong business credit habits (like on-time payments and positive tradelines) reduce the weight of your personal score. You should always expect that small business lenders will check your personal credit score on loan applications, though, so it’s important not to lose sight of maintaining your personal credit health.
Want to learn more about personal credit scores vs. business credit scores? Read our guide.
Set realistic expectations about increasing your credit score fast
If you find yourself sitting in front of Google, searching “how do I raise my credit score in 30 days,” you’re not alone. Wanting to improve your credit score quickly in order to continue with your business goals is common. However, you will only become more frustrated if you have unrealistic expectations. There are often no overnight miracles when it comes to boosting your credit score. Many of the factors that determine your credit score rely on historical data. For example, payment history scoring can only improve with time.
However, there are strategic moves you can make over 3, 6, and 12 months that will create a noticeable bump in your overall personal credit score. By focusing more narrowly on high-impact changes to the factors that weigh heavily on your credit score, you can see noticeable improvements within 6 months.
Your starting credit score matters
Another factor to consider in how fast your credit score can improve is the score you’re starting with. Credit score ranges will have an impact on how fast your credit score can realistically improve in a short window.
If your score starts in the low 500s, aggressive action—like reducing debt and fixing errors—can lead to 50–100 point gains within six months. If you’re starting in the 600–700s, changes may be more gradual (e.g., 20–50 points) as your profile nears the top tier.
We’ll break down some realistic moves to improve your credit score fast in the next section.
Your timeline to better credit: what to do in the next 3, 6, and 12 months
If your goal is to boost your credit score quickly, you’ll want to start with the actions that will have the most impact based on how credit scores are calculated and your starting credit score.
What to focus on in the first 3 months
At this stage, focus on quick wins that move the needle fast: reduce utilization, make consistent payments, and correct any errors.
What to focus on in the next 6 months
At this stage, you can build on your previous moves by introducing new strategies to build depth and a healthy mix into your credit profile.
What to focus on in the next 12 months
At this stage, you will focus on long-term gains through consistency and diversification.
Assuming you take these actions at each stage of the timeline, and then continue applying best practices from each stage while building on the prior period's progress, these are the score improvements you might see after 12 months.
7 ways to improve your credit score
Regardless of your credit score or desired timeline for improvement, these tactical tips will help you improve your credit score, especially when combined consistently over time.
1. Pay every bill on time
Impacts: Payment History (35%)
Payment history is the single most important factor in your credit score. It shows that you can handle debt and be trusted to pay it back. When you miss payments by 30+ days, whether it’s a credit card, utility bill, or loan, it can have a negative effect on your credit report for 7 years, depressing your score. Paying your bills on time is by far the best thing you can do to rebuild less-than-stellar credit.
Tip: Set up automatic payments or calendar reminder alerts for minimums. Even one missed payment can cost you a lot of points if your score is already struggling.
2. Keep credit card balances below 10% of your limit
Impacts: Credit Utilization (30%)
While 30% is commonly advised, 10% or lower is the real sweet spot. Anything above 10% will chip away at that 30% of the overall credit score affected by credit cards:
- A 10−30% balance takes away up to 10%
- A 30–50% balance takes away 10−25%
- A 50−90% balance takes away 25–90%
Tip: If your card has a $5,000 limit, aim to keep the balance under $500 at any point in the billing cycle. This is because credit utilization resets monthly. A high balance—even if paid off later—can spike your usage rate temporarily and drag your score down.
What if you don’t have an active credit card?
Without recent revolving credit, you may be missing a huge portion of your score potential. If you’re consistently at a 0–7% balance-to-limit ratio, credit models may read that as inactive usage, not responsible credit behavior.
Additionally, it may be one of the best tools available for building a strong credit history, which is essential for achieving your business goals, such as securing financing.
3. Become an authorized user on someone's good account
Impacts: Length of Credit History (15%) + Credit Mix (10%)
Piggybacking on a well-managed, older account can give your score a boost, especially if your credit profile is thin or new. Have someone you know, such as a spouse or a family member, add you as an authorized user of their credit card. You’d have to ask the person to do this, and if they agree, they would add you, receive the credit card in your name linked to their account, and pass it off to you.
Some things to keep in mind: Just as you will benefit from the person’s good habits, that person can take a credit hit if you abuse the authorization you’ve been given, so treat it with respect (remember, they're still on the line for all charges). And don’t get yourself authorized on too many accounts. Credit agencies will flag that as you artificially raising your score.
Tip: Make sure the account has low balance and a long positive payment history. And it goes without saying, only piggyback with someone you trust, and who trusts you.
4. Dispute any errors on your credit report
Impacts: All score factors (depending on nature of errors)
According to the Fair Credit Reporting Act, your credit agency is required to show you your credit report at least once a year at no charge. Take full advantage of that right.
You may have credit dings you don’t know about or that don’t belong on your credit report. You have the right to challenge them and request they be removed.
Tip: Go through your credit report each year— and be thorough. Even a few inconsistencies can add up quickly and could be the difference between a red flag and a green light for funding.
5. Use existing accounts strategically
Impacts: Credit Mix (10%), Credit Utilization (30%), Credit History (15%)
Using dormant lines (like a personal line of credit or store card) can show active, responsible credit behavior—without opening new accounts.
Your credit history is an average of all your open and active credit accounts. A good credit history with credit—any credit—can positively impact your score. If you have a line of credit that you've not used, consider paying expected expenses with it and then paying back the line of credit with the money you already put aside in your checking account to pay those bills.
Do: Make small, recurring charges on your older cards to keep them active
Don’t: Open a new card just to get a discount or points. It lowers the average age of your accounts and causes a hard inquiry.
6. Limit hard credit inquiries
Impacts: New Credit (10%)
Applying for multiple credit cards or loans in a short period can lower your score—especially if you’re already rebuilding.
If you're thinking about applying for a new card and maintaining a low balance, proceed with caution: you won't want to apply for a lot of new credit at the same time. The reason for this has to do with “credit inquiries” or "credit checks" (also called a "credit pull"), which is the term used when a lender, broker, partner, or vendor checks your credit score.
A “hard inquiry” is what you want to avoid when trying to rebuild credit because each one negatively impacts your credit score. The less credit you apply for, the fewer hard inquiries your credit score will show.
Tip: Be strategic. Rate shop within 14–45 days if applying for loans (FICO treats this as one inquiry). Otherwise, space out applications and avoid “just browsing” preapprovals that trigger hard pulls.
7. Avoid spending behavior that signals risk
Impacts: Lender perception and soft underwriting
Some lenders use algorithms that analyze changes in your spending behavior. Large purchases (weddings, legal fees), sudden drop in payments, or maxing out credit cards can be red flags even if you pay on time.
Tip: Keep consistent, modest usage. Avoid signalling financial instability when you’re rebuilding credit.
Key Takeaways: How to Improve Your Credit Score
- Focus on what matters most. Your payment history and credit utilization make up 65% of your credit score—prioritize on-time payments and keeping balances low.
- Start where you are. The lower your starting score, the more dramatic gains you may see early on. But everyone benefits from consistent credit-building habits over time.
- Think in timelines, not overnight fixes. Small, strategic moves over 3, 6, and 12 months can lead to meaningful credit improvements—especially if you keep building on what’s working.
- Stay consistent. Credit improvement is a marathon, not a sprint. Monitor your progress, avoid setbacks, and stay focused on long-term financial health.