3 Ways to Boost Your Credit Score in 2023

All of these could go a long way.

What can a higher credit score do for you in the new year? A lot, actually.

Not only might a higher credit score make it possible to qualify for the best credit card offers out there (you know, the ones with those amazing rewards programs), but it might also make it so you're eligible for the lowest borrowing rates available. And if you're planning to apply for a larger loan, like a mortgage, in 2023, shaving even a tiny bit off of your loan's interest rate could result in a bunch of savings over time.

Now you should know that credit scores range from 300 to 850, and that once your score reaches the 800 mark, you're pretty much set when it comes to borrowing options. In other words, with a credit score of 800 or above, you're in a very strong position to not only qualify for a loan, but to snag a competitive interest rate on it. So there's no need to stress yourself out to raise your score from, say, an 820 to an 840.

But trying to raise your score from a 750 to an 800 makes sense, as does trying to take a score in the mid- or upper 600s and get it into the 700s range. And here are a few ways to go about that.

1. Pay all bills on time

Your payment history carries more weight than any other individual factor when calculating your credit score. So if you're able to pay every bill you receive in 2023 on time, you might see your credit score improve in the course of the year.

2. Lower your credit utilization ratio

If you have no idea what a credit utilization ratio is, you're probably not alone. And it's not a super complicated concept. It's basically a measure of how much of your available credit you're using at once. If you have a total spending limit of $10,000 across your different credit cards, and you're carrying a $4,000 balance all-in, that puts your utilization at 40%.

A credit utilization ratio above 30%, however, can bring down your credit score. So to lower that ratio, you have a couple of options.

First, you could pay off some existing credit card debt. But if you don't have the money to do so, you can instead try getting your total credit card limit raised.

The latter may be an easier route to take, but be careful. If you raise your total spending limit but keep charging more expenses against it, you're not going to get ahead. Rather, your goal should be to raise your spending limit but make sure your total balance doesn't grow.

3. Correct errors on your credit report

Your credit report might contain an error you don't know about. And that error could be dragging your credit score down.

If you can't remember the last time you checked your credit report, or if you know for a fact that you've never done so, add that to your list of early 2023 tasks. Credit reports are actually free on a weekly basis in 2023, so if you spot an error and work to get it fixed, you'll have an easy time pulling your credit report to follow up.

A higher credit score could make you a stronger borrowing candidate in 2023. And these moves could be your ticket to a higher score well before the end of the year.