Your credit score is a powerful tool that helps you access better loan rates, easier approvals, and more financial opportunities. The higher your scores—ideally in the high 700s and above—the greater your borrowing power.

Building a credit history and improving your score takes time and effort. Below, we’ll provide tips to raise your credit score, putting you on the path to a more secure financial future.

Key Considerations

Your credit score is a reflection of your financial responsibility, directly impacting your ability to access credit.
Timely payments and smart credit management are crucial for rapid credit score improvement. Regularly checking your credit report for errors can also help protect your financial standing.
Building good credit isn't an overnight process—steady, smart financial habits will pay off.

What factors influence your credit score?

Credit scoring systems like FICO® Score and VantageScore® weigh your financial habits to create a three-digit number that lenders use to assess your creditworthiness. FICO® Score is more common. The following considerations can help promote healthy financial habits and improve credit scores fast.

Payment history: Whether you’ve paid your past credit accounts on time.
Amounts owed: The amount of available credit you are using.
Length of credit history: How long you've had your credit accounts.
Credit mix: The different types of credit accounts you have.
New credit: The frequency of credit inquiries and new account openings.

How can timely payments improve your score?

Tip: Make on-time payments consistently.

Payment history is the biggest factor influencing your credit score, making up 35% of your FICO score. This means that paying your bills on time, every time, is the single most effective tip to raise your credit score. Even one late payment can cause your score to drop significantly.

FYI: Setting up automatic payments with each card company can help ensure you don’t miss a due date that could hurt your score.

What is credit utilization and why does it matter?

Tip: Reduce what you owe to keep your credit utilization low.

Credit utilization strategies are essential for a healthy credit score. This refers to the amount of credit you're currently using compared to the total amount of credit you have available. For example, if you have a credit card with a $20,000 limit and a balance of $7,000, your utilization is 35%. Experts generally recommend keeping this ratio at around 30%.

Decreasing your credit card balances shows potential lenders that you're responsible with credit. By actively managing your balances and paying down debt, you can significantly improve your score.

Instead of making just one payment per month, consider multiple payments throughout the month to keep your credit utilization low. If your balance is lower at the time your statement is issued, it will be reflected in your credit report.

FYI: If you have a history of on-time payments and responsible credit use, or your income recently increased, you may be able to ask your card issuer to increase your credit limit. A higher credit limit can help lower your credit utilization rate, and in turn, improve your score.

How does checking your credit report help? 

Tip: Regularly check your credit reports for errors and dispute inaccuracies.

Regularly checking credit reports for errors is a vital step in maintaining good financial health. Your credit report contains detailed information about your borrowing history, and mistakes can happen. Monitoring your report ensures you are alerted to any potential fraud. It also helps you understand what triggers fluctuations and know when you might qualify for better offers.

Register with a service like Credit Karma to monitor your credit score and accounts. Checking your own credit score is considered a “soft credit check,” which doesn’t impact your score. You can also request one credit report a week for free from each of the three main credit reporting agencies: Equifax, Experian, and TransUnion.

If you find an error, you can dispute it by contacting the reporting company online, by phone, or by mail, and providing documentation that supports your dispute.

What role does credit history length play?

Tip: Keep older accounts open and diversify your credit portfolio responsibly.

You may feel inclined to close accounts you aren’t using, but it’s actually beneficial to keep older accounts open. This is because closing inactive accounts can increase your credit utilization rate and shorten your overall credit history—two things you want to avoid to maintain a healthy score.

When building credit history, keep your oldest accounts open as long as you can. Using an old card for small balances (that you pay off in full when it’s due) helps it remain active and contribute positively to your score.

If you pay rent, consider using rent reporting services as a way to establish a credit history. Companies like RentReporters or Experian Boost can report your monthly rent payments to the credit bureaus, allowing you to build credit on payments you're already making.

FYI: Keeping accounts open can also help add to your credit mix. If you only have one type of credit in your file, adding a different type of account could improve your credit mix and help you build a more diverse credit history over time.

How can BHG assist in your credit improvement journey?

With on-time payments and credit utilization being two of the most significant factors that affect your credit score, paying off high-interest debt can be a way to improve your score faster.

BHG offers personal loans for debt consolidation that help you manage existing obligations more effectively. Our personal loans are tailored to your needs, with amounts up to $250,000¹ and flexible terms of up to 10 years.^1,2

Here’s how BHG can help:

A way to compare offers without hurting your credit score³: Our initial review process does not affect your credit score, allowing you to check your eligibility for loan offers and estimate your payment using a soft credit inquiry.
The ability to leverage earnings: When reviewing a loan application, we consider both your credit score and income. Higher earners may also be able to secure financing with BHG, even if their debt-to-income ratio is elevated.
Flexible terms and predictable payments: We can offer extended repayment options, keeping your monthly payments manageable. A good score can also qualify you for lower, fixed rates, saving you interest over the life of the loan.

Plus, making consistent on-time payments on credit products like personal loans can actually improve your score over time.

Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.

How to improve credit score FAQ

What is the fastest way to raise my credit score?

While credit score improvement timelines vary, some of the fastest ways to raise your credit score include paying down high credit card balances to reduce your credit utilization, addressing any overdue payments immediately, and disputing any errors on your credit report. Generally speaking, taking a score from good to excellent can take months, if not years, of steady, responsible credit management.

Can paying off debt lower my credit score?

While paying off a loan or credit card often helps improve your credit score, it’s possible that you could see your credit score drop temporarily after fulfilling your payment obligations. Typically, the long-term impact of paying off debt is positive. For example, if you pay off a loan and it closes, your credit mix may change, or your length of credit history might shorten if it was one of your oldest accounts. However, the benefits of being debt-free and improving your credit utilization generally outweigh any minor temporary dips.

How often should I check my credit report?

The three national credit reporting agencies—Equifax, Experian, and TransUnion—now let you check your credit report at each of the agencies once a week. You can request free copies of your report at AnnualCreditReport.com. Reviewing your reports at least once a year, and ideally every few months, is good practice to ensure accuracy and monitor your credit health.

Does closing a credit card affect my score?

Yes, closing a credit card can negatively impact your credit score. This is because closing an account reduces your total available credit, which can increase your utilization ratio. It also shortens the average age of your credit accounts, which impacts your credit history length.

It's generally advisable to keep older, well-managed accounts open, even if you don't use them frequently. However, closing the account might be a smart move if the card has high annual fees or poor terms that outweigh the benefits, making it easier for you to accumulate debt that you can’t pay off.

How long do negative marks stay on my credit report?

Most negative information, such as late payments, defaults, or accounts sent to collections, can remain on your credit report for up to seven years from the date of the first missed payment. Bankruptcies can stay on your report for up to 10 years. While their impact lessens over time, these marks can damage your credit score and affect your ability to obtain new credit.

Not all solutions, loan amounts, rates or terms are available in all states.

¹ Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

² Personal Loan Repayment Example: A $59,755 personal loan with a 7-year term and an APR of 17.2% would require 84 monthly payments of $1,228.

³  There is no impact on your credit for applying. For personal loans, a complete credit history, which will appear as an inquiry on your credit report, will be performed upon acceptance and funding of the loan and may impact your credit.

Annual percentage rates (APRs) for BHG Financial personal loans range from 11.96% to 27.87%, with terms from 3 to 10 years.

Consumer loans funded by Pinnacle Bank, a Tennessee bank or County Bank. Equal Housing Lenders.

No application fees, commitment, or impact on personal credit to estimate your payment. 

For California Residents: BHG Financial loans made or arranged pursuant to California Financing Law license - Number 603G493.

If you’re feeling weighed down by credit card debt, you’re not alone. High interest rates can feel like an uphill battle, making it easy to fall behind and tough to catch up.

Understanding how to pay off credit card debt is the first step toward taking control of your debt and reclaiming your financial well-being. Here are a few practical strategies to eliminate credit card debt.

Key considerations

If you have a significant amount of high-interest debt and a good credit score, a debt consolidation loan can be a viable option for paying off credit card debt. For smaller debts, a balance transfer card could help you tackle debt faster.
If not consolidating or using a balance transfer card, set a goal and a budget for repayment; targeting one debt at a time using the snowball or avalanche method can help reduce your balances methodically.
Gradually exceed monthly minimum payments whenever possible to decrease your total interest over time. Even small extra payments can make a big difference in your credit card debt over the long term.

Why is credit card debt hard to pay off?

U.S. credit card balances have surpassed $1.21 trillion, according to the Federal Reserve, driven partially by high APRs.

Credit card debt is difficult to overcome. Even if you don’t make additional purchases, the interest compounds. Only paying the minimum each month means you will carry the debt from month to month, increasing your debt as you accumulate interest charges.

For example, if you’ve amassed $50,000 in credit card debt on a card with a 23% APR, you could pay up to $11,500 per year in interest. Without a plan in place to address the debt proactively, it can become a significant burden.

To start, pay as much as you can toward the debt. Some common ways to do this effectively and consistently include using the debt snowball or debt avalanche method.

What is the debt snowball method?

If you have balances on multiple cards, one of the best strategies to eliminate credit card debt is the snowball method. With the debt snowball method, you pay off the card with the smallest balance first before moving on to the next largest one.

This method is a good choice if you can’t afford to make large monthly payments but want to proactively chip away at your debt. Once you pay off a card, you'll redirect the funds you were using for that payment to your next card balance. You'll continue to do this until you’ve tackled each debt.

Here’s how it looks in action, using the following credit card balances as an example:

Credit card 1: A $5,500 balance and an APR of 16%
Credit card 2: A $2,000 balance and an APR of 20%
Credit card 3: A $10,000 balance and an APR of 23%

Using the snowball method, you’d focus on the second card on this list first because it has the lowest balance ($2,000). Once cleared, you’d move on to the next highest card balance ($5,500) before addressing the third card with a $10,000 balance.

Remember to make minimum payments on all other cards in the meantime; missing any minimum payment can hurt your credit score.

What is the debt avalanche method?

Attacking debt using the debt avalanche method involves paying off the account with the highest interest rate first, regardless of the balance. It can take a while to make progress on —especially if the balance on that card is excessive—but you’ll save money on interest in the long run.

The avalanche method may be a better strategy for you if you can confidently afford a bigger payment and want to pay less in interest while you work to become debt-free.

Here’s how debt avalanche looks in action, using the same credit card balances from above as an example:

Credit card 1: A $5,500 balance and an APR of 16%
Credit card 2: A $2,000 balance and an APR of 20%
Credit card 3: A $10,000 balance and an APR of 23%

Using the avalanche method, you’d tackle the third card first because it has the highest APR (23%). You’d focus on the second card next—APR of 20%—even though it has a lower balance, before moving on to the first card with the lowest APR.

Again, it’s important to focus on making every payment on time to protect your credit score and avoid tacking on additional late fees. It can take a while to knock out the first debt, so patience and consistency is key.

How can debt consolidation help? 

Consolidating personal credit card debt FAQs

Consolidating personal credit card debt can simplify your finances by combining multiple debts into a single monthly payment with more manageable interest rates. In the long run, this can save you from spending more money than you anticipated or previously agreed to on in-terest payments in the future.

Personal debt consolidation can impact your credit score differently depending on the method chosen. For example, applying for a new loan or credit card for consolidation may result in a temporary dip in your credit score due to inquiries, changes in credit utilization, and your his-tory using credit-based financial products. However, making timely payments on the consoli-dated debt can positively affect your credit score by demonstrating responsible financial man-agement.**

Yes, personal debt consolidation can be applied to various types of debt, including personal loans, medical bills, and student loans, in addition to credit card debt. Consolidating multiple debts into a single payment can streamline your repayment process and make it easier to man-age your finances overall.

With highly specialized financing options for accomplished professionals, BHG Financial offers personal loans up to $200K¹ to use as you need them. With repayment terms that last up to 10 years,^1,2you can fully bring your financial plan to action by consolidating your personal debts into a simple and affordable monthly payment to help you achieve financial peace of mind sooner rather than later.

Our payment estimator can help you see your personalized estimate quickly, and our dedicated concierge service team can serve your needs every step of the way.

Debt consolidation involves combining multiple credit card debts into one new account or loan and using it to pay off your existing debts. In many cases, consolidation can save you money because the new product may come with a lower interest rate than the ones attached to your cards. Consolidating debt also simplifies the repayment process because you only need to manage one monthly payment.

Some of the most effective credit card consolidation strategies include using a debt consolidation loan or a balance transfer credit card. The best way to pay off credit card debt will depend on the amount of debt you have, your credit history, and your income level.

If you have a significant amount of high-interest debt and a respectable credit score, a lower-rate personal loan for debt consolidation can be a viable option. Debt consolidation loans, like the ones offered by BHG Financial, have flexible repayment terms1 that help keep your monthly payments low.

Do balance transfers help pay off debt faster?

Transferring your balance from one credit card to another can help you pay your debt faster, as long as the new card comes with a lower rate. If you transfer your balances to a new card with a lower APR, you can allocate a greater portion of your future payments to paying down the principal instead of the interest.

That said, there are a few things to know about the timing of balance transfer credit cards:

You can apply for a balance transfer card in a matter of minutes, but the actual transfer can take anywhere from a few days to several weeks, depending on the credit card company. During that time, you’ll still have to make any payments you owe to your original card company.
Make sure you understand how long the introductory rate lasts, whether there’s a transfer fee, and what the regular rate will be after the promotional period. Introductory rates typically run for a period of six to 18 months, and if you can’t pay off your balance in full, the new rate may be higher than the rate on your old card.

If you worry it may take longer than the intro period to pay off your debt, consider transferring your balance to a debt consolidation loan. BHG offers fixed, affordable payments with terms up to 10 years.^1,2 Plus, dedicated loan specialists provide a concierge loan experience, guiding you through the loan process.

Source: Bankrate, Investopedia - Accessed on 3/14/25
¹ Terms subject to credit approval upon completion of an application. Loan sizes, interest rates, and loan terms vary based on the applicant's credit profile.

How to pay off credit card debt FAQ

Should I pay off my credit card debt or save first?

It usually makes sense to pay off your debts before saving money, especially if you have high-interest debt. This is because the high interest rates on your accounts will often cost more than the money you can save. For this reason, any money you can afford to save is better allocated to paying off your high-interest debt so that it doesn’t continue to compound.

How can negotiating with creditors reduce my debt?

If card issuers are willing to consider negotiating your credit card debt, you may be able to set up a payment plan, pay off the cards for less than what you owe, or agree to a forbearance. However, there are definite drawbacks to negotiation, as these solutions negatively impact your credit score.

Can I pay off credit card debt without hurting my credit score?

Absolutely! Any moves you make to pay your monthly balances on time can help build a solid payment history and, in turn, improve your credit score. Plus, reducing your credit card balances will lower your credit utilization ratio.

Are debt relief programs worth it?

Debt relief (debt settlement) programs offered by for-profit companies should be viewed as a last resort, and only after you’ve exhausted options for consolidation. Debt relief companies can fast-track getting out of debt, but they often charge high upfront fees, and the process could hurt your credit score. Watch for scams and make sure you understand the potential fees before handing over your finances to a debt relief company.

What if I can't afford minimum payments?

Many creditors are willing to work with you if you cannot afford to pay the monthly minimum payment. Call the company as soon as possible to see what you can work out. If getting a debt consolidation loan isn’t an option for securing a lower minimum payment, you can contact a credit counseling agency, which will help you organize a debt management plan to pay down your debts. Debt relief programs could be considered as a last resort, as they come with drawbacks and can charge exorbitant upfront fees.

How BHG can help you pay off debt faster

At BHG Financial, we believe financing should fit seamlessly into your life and goals. That’s why we offer personal loans tailored to your needs, with amounts up to $200,000¹and flexible terms of up to 10 years.^1,2 Consolidate your high-interest debt with a BHG loan designed to help you move forward confidently.

Plus, you’ll enjoy dedicated, U.S.-based concierge service that works around your schedule—because your time is valuable. Ready to see what’s possible? Use our quick and easy payment estimator to get your personalized loan estimate in just seconds.

How to Improve Your Credit Score: Essential Tips for 2025

Key Considerations

What factors influence your credit score?

How can timely payments improve your score?

What is credit utilization and why does it matter?

How does checking your credit report help?

What role does credit history length play?

How can BHG assist in your credit improvement journey?

How to improve credit score FAQ

What is the fastest way to raise my credit score?

Can paying off debt lower my credit score?

How often should I check my credit report?

Does closing a credit card affect my score?

How long do negative marks stay on my credit report?

Key considerations

Why is credit card debt hard to pay off?

What is the debt snowball method?

What is the debt avalanche method?

How can debt consolidation help?

Consolidating personal credit card debt FAQs

What are the benefits of consolidating personal credit card debt?

How does personal debt consolidation affect your credit score?

Can I consolidate other types of debt besides credit cards?

How BHG Financial can help you consolidate personal credit card debt

Do balance transfers help pay off debt faster?

How to pay off credit card debt FAQ

Should I pay off my credit card debt or save first?

How can negotiating with creditors reduce my debt?

Can I pay off credit card debt without hurting my credit score?

Are debt relief programs worth it?

What if I can't afford minimum payments?

How BHG can help you pay off debt faster

How does checking your credit report help? 

How can debt consolidation help? 