3 Reasons Your Credit Score Isn't Rising

You're probably aware that the higher your credit score is, the more likely you are to get approved for a loan or credit card when you apply. And a higher score could lead to a more favorable borrowing rate.

But what if your credit score just isn't budging, despite your best efforts to boost it? If your credit score seems stuck, these could be some of the reasons why.

1. You're only making your minimum credit card payments

You may know that paying bills on time is important to raise your credit score. And it may be that you're paying your credit cards on time every month by making your minimum payments.

But one thing you may not realize is that if you owe a lot of money on your credit cards relative to your total spending limit, your credit score might get stuck in less-than-favorable territory even if you're making those payments on time. 

So take a look at what you owe on your cards. If it's more than 30% of your total spending limit, that may be the reason why your score isn't rising. And if that's the case, it may be time to focus your efforts on whittling your balances down.

2. There's a mistake just sitting on your credit report waiting to be corrected

You might assume that the reporting bureaus that put together credit reports are super thorough in gathering financial information on you. And to be fair, they certainly try.

But you may be surprised to learn that a whopping 20% of credit reports are said to contain errors. And if yours contains a mistake that paints you in a less favorable light, it could be why your credit score isn't rising.

The solution? Get a free copy of your credit report from AnnualCreditReport.com and check it carefully for errors. Pay attention to things like delinquent debts that may not actually be delinquent, or accounts that are delinquent but aren't actually yours.

Credit bureaus are obligated to investigate once you alert them to a mistake. So definitely take that step if you want to see an increase in your credit score.

3. You have a major black mark on your credit report that will take time to disappear 

In some situations, a lack of progress on the credit score front may be due to a factor beyond your control. Let's say you fell victim to foreclosure last year when you lost your job and couldn't pay your mortgage for an extended period.

A foreclosure will generally stay on your credit report for seven years. And while the extent to which it hurts your credit score will likely wane over time, if that foreclosure is fairly recent, you may be stuck in unfavorable credit score territory for a while. 

You should do whatever you can to boost it in that situation, whether by keeping your credit card balances to a minimum or resolving to pay bills on time. But in some scenarios, it might just take time before your credit score can rise substantially.

Having a credit score that doesn't seem to want to increase can be frustrating. So take the time to try to figure out why that is. That way, you can act accordingly.