15 Moves to Make Now for a Better Credit Score by the End of the Year

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.