How to Improve Your Credit Score

Want better loan rates, stronger credit card offers, and more financial flexibility? It all starts with your credit score.  
 
Your credit score plays a huge role in your financial life. The higher it is, the more options you tend to have when it comes to borrowing, refinancing, or just planning ahead. The good news? You’re not stuck with your current credit score. With the right steps, you can start making improvements—sometimes sooner than you’d think. 

That’s where Arkansas Federal Credit Union comes in. Through Digital Banking, you can access Credit IQ, a free tool that lets you keep an eye on your score, check your credit report, get tailored tips to help you make progress, and so much more. 
 
Start monitoring your credit with Credit IQ now. 

What is a Credit Score? 

Before we jump into how to improve your credit score, it helps to understand what it actually is. 

A credit score is a number, typically between 300 and 850, that shows how likely you are to repay borrowed money. It’s calculated based on the information in your credit report and is used by lenders, landlords, and even some employers. 

Here’s a quick breakdown of what goes into your score:

Credit Score Factor	Weight
Payment History	35%
Credit Utilization (Amounts Owed)	30%
Length of Credit History	15%
Credit Mix	10%
New Credit/Inquiries	10%

By understanding which parts carry the most weight, you can strategically focus on areas that will make the biggest impact when trying to improve your credit score. 

 
Want to dive deeper? Check out our post on the difference between your credit report and credit score. 
 
Let’s break it down a little more:

• Payment History (35%). Making on-time payments is the single biggest thing you can do to raise your score. 
• Length of Credit History (15%). The longer your accounts are open, the better. 
• Credit Mix (10%). Having a mix of credit types (credit cards, loans, etc.) shows you’re good at managing different kinds of debt. 
• New Credit (10%). Applying for too much new credit at once can hurt your score in the short term. 
• Credit Utilization (30%). This is how much of your available credit you’re using. Aim to use less than 30% of your total limit. Here’s an example: 

Credit Limit	Balance	Credit Utilization	Notes
$10,000	$3,000	30%	Recommend maximum utilization
$10,000	$1,000	10%	Lower utilization can help boost score

Want to know how to drastically improve your credit score? Focus on the first two: making payments on time and keeping balances low. 

How to Get Your Credit Score 

There are a few free ways to check your credit score: 

• Credit IQ: Arkansas Federal’s free credit monitoring system for all members accessible through Digital Banking.  
• AnnualCreditReport.com: Get a free copy of your credit report from each of the three major credit bureaus once a year.  
• After a data breach: If your information is ever involved in a data breach, you might qualify for an extra free credit report. These details are often included in the information you receive, so it’s worth taking a closer look.  

What is a Good Credit Score?  

Here’s how credit scores are typically rated:

Score Range	Rating
800-850	Excellent
740-799	Very Good
670-739	Good
580-669	Fair
Below 580	Poor

So, how fast can you improve your credit score? That depends on your unique situation. Some improvements, such as lowering your credit utilization, can show results in as little as 30 days. Others, like building a longer credit history, take six months or more. 

Ways to Improve Your Credit Score 

If you’re wondering how to improve your credit score, here are some steps that might help: 

• Educate yourself. Knowing what affects your score can help you make smarter decisions. 
• Monitor your score regularly. Tools like Credit IQ make it easy to track progress and spot changes. 
• Make all payments on time. Even one missed or late payment can cause your score to dip.  
• Pay down credit card balances. Using less of your available credit can give your score a lift.  
• Keep accounts open. Even if you don’t use them, older accounts show a longer credit history, which helps your score. 
• Diversify your credit. Having a mix of different types of credit, like installment loans and credit cards, can help.  
• Limit new applications. Too many credit inquiries in a short amount of time can lower your score temporarily.  
• Dispute errors. Check your credit report for mistakes and fix them.  
• Increase your credit limit. If you can avoid spending more, increasing your credit limit can help with credit utilization.  

What Doesn’t Impact Your Credit 

Let’s bust a few myths while we’re here:  

Check out more common credit card myths here.  

Open an AFCU Account 

Working on your credit score can feel overwhelming, but you don’t have to figure it out on your own. Arkansas Federal has your back with simple tools and real support to help you along the way. 

Whether it’s a low-rate credit card to help build your score or Credit IQ to keep an eye on your progress, we’re here to make the process easier—and a lot less stressful. 

Stop by your local branch or call us at 800.456.3000 today for your complimentary financial checkup and tips. We’ll help you find smart, personalized ways to keep moving forward.