6 things to do to improve your credit score in 2024

02.01.2024 - 16:25 / thepointsguy.com

When it comes to your financial persona, there are few metrics more important than your credit score. This number can influence not only your ability to get approved for top travel credit cards but also the interest rate you pay on a mortgage, your ability to obtain an auto loan and a host of other aspects of your life.

If you've made a New Year's resolution to improve your credit score in 2024, here are some strategies to successfully do just that.

Before getting into these tips, let's start with a quick overview of just what constitutes your credit score. Right off the bat, it's important to note that there are two main credit scoring models: VantageScore and FICO.

While there are a few minor differences between the two, they both attempt to numerically measure the same thing: your trustworthiness as a borrower.

A lower score indicates a higher risk of defaulting on a loan, thus lowering the amount of money or credit a financial institution is willing to lend you (or lowering the chances of you being approved for a loan at all). A higher score, on the other hand, indicates that you're less likely to default and thus able to handle larger loan amounts and smaller fees.

Both scores fall on the same scale (300-850) and use the same general criteria:

By paying close attention to these five items — especially the first two — you can be well on your way to improving your credit score.

Related: Your next credit card approval is in the hands of these three agencies

One of the most important things you should do is review your credit report for inaccurate information.

According to a study conducted by Consumer Reports, about a third of consumers found an error on their credit reports. In many cases, these errors aren't malicious (e.g., identity theft) but rather inaccuracies related to similar names or other simple mix-ups.

Fortunately, there's a federally documented process for removing these errors. This article from the Federal Trade Commission provides full details of these steps, including how to request your free credit report every week.

Once you've identified an error, submit a dispute letter directly with the credit reporting company; you can use the FTC's sample for inspiration. The bureau must investigate the complaint, typically involving going to the organization that provided the disputed information.

If this doesn't get you anywhere, the next step is to contact the information provider directly with your complaint; again, the FTC provides a sample dispute letter for this purpose. Be detailed but concise, and include copies of any documentation that supports your dispute.

While this process can be time-consuming, cleaning up your credit report to be clear of all inaccuracies is an important