How to Actually Increase Your Credit Score (What Works, What Doesn’t, and Why It Matters)

If getting out of credit card debt is about stopping the bleeding, increasing your credit score is about rebuilding strength.

And despite what ads and “quick fix” credit companies promise, raising your score isn’t complicated—but it does require understanding how credit really works.

This guide breaks down:

• What actually impacts your credit score

• What lenders care about most

• Step-by-step actions that truly move the needle

• Why a strong credit score matters when borrowing money—especially for a home

First: How Credit Scores Are Really Calculated

Most lenders use some version of the FICO score, which is made up of five main factors:

1. Payment History (≈35%)

This is the biggest factor.

• On-time payments help your score

• Late payments, collections, charge-offs, and bankruptcies hurt it

• Even one 30-day late payment can drop a score significantly

What to do:

• Set every account to auto-pay at least the minimum

• Never miss a payment—even by one day

• If you’ve missed payments before, consistency over time is the cure

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2. Credit Utilization (≈30%)

This is the second-largest factor and one of the fastest ways to raise your score.

Credit utilization =
Balance ÷ Credit limit

General guidelines:

• Under 30% utilization = good

• Under 10% utilization = excellent

• Over 50% = score killer

Example:
If you have a $10,000 limit and carry a $6,000 balance, that’s 60% utilization—even if you pay on time every month.

What to do:

• Pay balances down, not just on time

• Spread balances across cards instead of maxing one

• Ask for credit limit increases (without increasing spending)

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3. Length of Credit History (≈15%)

This looks at:

• How long your oldest account has been open

• The average age of all accounts

What to do:

• Avoid closing old accounts—even if you don’t use them

• Keep your oldest cards open and in good standing

Closing an old card can lower your score, even if you’ve “paid it off.”

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4. Credit Mix (≈10%)

Lenders like to see you can manage different types of credit:

• Credit cards (revolving)

• Auto loans, student loans, mortgages (installment)

What to do:

• Don’t open unnecessary loans just to improve mix

• Over time, a healthy blend develops naturally

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5. New Credit Inquiries (≈10%)

Every hard inquiry causes a small, temporary dip.

What to do:

• Avoid applying for multiple cards or loans at once

• Space out applications

• Don’t open new accounts right before applying for a mortgage

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What Actually Raises Your Credit Score (Step-by-Step)

Here’s what works—no gimmicks:

Step 1: Make Every Payment On Time

This alone fixes more credit issues than anything else.

Consistency beats perfection. One year of on-time payments can outweigh years of past mistakes.

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Step 2: Lower Credit Card Balances

This is often the fastest improvement lever.

• Pay cards below 30% utilization

• Target under 10% if possible

• Focus on revolving balances first

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Step 3: Stop Closing Accounts

Even paid-off cards help your score by:

• Increasing available credit

• Preserving credit age

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Step 4: Avoid “Credit Repair” Shortcuts

Be cautious of:

• Disputing accurate information

• Companies promising overnight jumps

• “Credit piggybacking” schemes

If the information is accurate, time and behavior—not disputes—are what fix credit.

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Step 5: Monitor Your Credit Reports

Check all three bureaus:

• Experian

• Equifax

• TransUnion

Look for:

• Errors

• Incorrect balances

• Accounts that should be marked “paid” or “closed”

Fixing legitimate errors can provide real gains.

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How Long Does It Take to Increase a Credit Score?

It depends on what’s hurting it.

• High utilization: 30–60 days once balances drop

• Late payments: 6–24 months of consistency

• Collections: Varies—impact fades over time

• Thin credit file: Gradual, steady growth

There is no instant fix—but there is predictable progress.

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Why Your Credit Score Matters When Borrowing Money

This is where it all comes together.

A strong credit score impacts:

• Whether you get approved

• Your interest rate

• Your monthly payment

• Your buying power

• How much cash you need upfront

Even Small Score Differences Matter

The difference between:

• A 620 score and a 720 score
  can mean tens of thousands of dollars over the life of a loan.

Higher scores typically mean:

• Lower interest rates

• Lower PMI or mortgage insurance

• Better loan programs

• More negotiating leverage

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Credit Score & Home Buying: What Lenders Look For

While programs vary, here’s a general snapshot:

• 580–620: Limited options, higher costs

• 640–680: More flexibility, improving terms

• 700–740: Strong approval odds, competitive rates

• 740+: Best available pricing and loan programs

Your score doesn’t just affect approval—it affects how expensive borrowing is.

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Final Thought: Credit Is a Tool, Not a Judgment

A low credit score doesn’t mean you’re bad with money.
It means your credit habits need structure and time.

The good news?
Credit scores are earned, not fixed.

And with the right steps, almost anyone can improve theirs—and put themselves in a far stronger position when it’s time to borrow, invest, or buy a home.

How to Get Out of Credit Card Debt (and Why It Matters Before Buying a Home)

The first step to getting out of credit card debt isn’t paying more — it’s clarity.

Before shopping balance transfer cards or throwing extra money at random payments, you need to know exactly what you’re dealing with. Debt feels overwhelming when it’s vague. Once it’s defined, it becomes manageable — and for future homebuyers, this step is especially important.

Your credit card balances and interest rates directly affect your credit score, debt-to-income ratio, and mortgage approval terms. If buying a home is on your radar in the next 6–24 months, how you handle credit card debt now can make a major difference later.

Step 1: Get Clear on Your Credit Card Debt

This is where real progress starts.

Write down every credit card you have, including:

• Current balance

• Interest rate (APR)

• Minimum payment

• Due date

Put everything in one place — a spreadsheet, notebook, or budgeting app. The format doesn’t matter. Seeing the full picture does.

Most people stay stuck in debt because they don’t know their numbers. When debt lives only in your head, it feels emotional and overwhelming. When it’s written down, it becomes strategic and solvable.

Clarity replaces anxiety with control.

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Step 2: Reduce the Interest (This Step Is Huge)

Interest is what keeps people in credit card debt longer than they should be.

Once you know your rates:

• Look for balance transfer cards with low or 0% introductory APR

• Call your current credit card company and ask for a lower interest rate

That phone call works more often than people expect, especially if you’ve been a consistent payer. A reduced APR means more of your monthly payment goes toward the balance — not interest.

For future homebuyers, this step matters because lower balances and faster paydowns improve your credit utilization, one of the most important factors in your credit score.

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Step 3: Attack the Balances With Intention

Now it’s time to move with a plan.

Choose a payoff strategy you can stick to:

Snowball Method

• Pay off the smallest balance first

• Builds momentum and confidence

Avalanche Method

• Pay off the highest interest rate first

• Saves the most money long-term

Both methods work. The best one is the one you’ll actually follow consistently.

Automate your payments, pay more than the minimum whenever possible, and as each card is paid off, roll that payment into the next balance.

Debt doesn’t disappear from motivation.
It disappears from strategy + consistency.

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Action Steps You Can Take This Week

If this feels overwhelming, keep it simple. Here’s a realistic starting plan:

This week:

• List all credit cards, balances, APRs, and minimum payments

• Identify your highest interest rate card

• Make one phone call to request a lower APR

This month:

• Choose a payoff method (snowball or avalanche)

• Set up automatic payments

• Stop using cards you’re actively paying down

Over the next 3–6 months:

• Watch balances drop

• See credit utilization improve

• Build momentum and confidence

Small, repeatable actions beat perfect plans every time.

Why This Matters If You Want to Buy a Home

Many buyers don’t realize how closely credit card debt is tied to home affordability.

High balances can:

• Lower your credit score

• Increase your debt-to-income (DTI) ratio

• Reduce how much house you qualify for

• Increase your mortgage interest rate

On the flip side, paying down credit cards — even without paying them off completely — can raise your credit score and improve loan options faster than most people expect.

I’ve seen buyers improve their buying power significantly just by getting strategic with credit card debt before applying for a mortgage.

If homeownership is a goal, the best time to prepare your credit isn’t when you start house hunting — it’s months earlier.

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You Don’t Need Perfection — You Need a Plan

You don’t need to be debt-free overnight.
You don’t need to overhaul your entire life.
You don’t need to do everything at once.

You need a clear plan you can repeat.

Clarity leads to momentum. Momentum leads to options. And options are what put you in the strongest position when you’re ready to buy a home.

If you’re thinking about buying in the future and want guidance on how your credit and debt impact your buying power, that conversation should happen before you start scrolling listings.

Louisiana Real Estate Market Outlook 2026: What Buyers & Sellers Need to Know Right Now

 As we move into January 2026, the housing market looks very different than it did just a few years ago. The chaos of bidding wars, record-low rates, and lightning-fast sales has faded — but that doesn’t mean opportunity has disappeared.

Instead, we’re entering what many analysts are calling a market reset: more balanced, more predictable, and more strategic for both buyers and sellers.

Here’s what that means specifically for Louisiana, and how to navigate the current environment whether you’re buying, selling, or simply watching the market.

The Big Picture: A More Stable National Market in 2026

Nationally, the housing market is no longer defined by extremes.

• Mortgage rates are expected to remain relatively stable, hovering in the mid-6% range rather than swinging wildly.

• Inventory is slowly improving, but not flooding the market.

• Price growth has cooled to modest, sustainable levels instead of double-digit annual increases.

This stability is important. It allows buyers to plan and sellers to price realistically — something the market hasn’t allowed in quite some time.

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What’s Happening in Louisiana Right Now

Louisiana tends to behave a bit differently than hotter coastal markets, and that’s actually a strength in 2026.

Home Prices

Prices across much of Louisiana have remained steady with slight upward pressure, particularly in desirable school districts and suburban areas like:

• Baton Rouge & Ascension Parish

• Prairieville / Dutchtown

• Lafayette & Youngsville

Instead of rapid appreciation, we’re seeing normal, healthy growth — which reduces risk for buyers and keeps sellers competitive.

Inventory & Days on Market

Homes are taking longer to sell than during the peak frenzy years, but this isn’t a bad thing.

• Buyers have more time to evaluate homes.

• Sellers must prepare and price correctly.

• Well-positioned homes still sell — just not overnight.

Affordability Still Matters

Louisiana remains more affordable than many states, but higher mortgage rates still affect monthly payments. That’s why strategy matters more than ever in 2026.

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What This Market Means for Buyers

If you’re buying in Louisiana in 2026, you’re in a stronger position than buyers have been in years — if you approach it correctly.

Key Buyer Takeaways

• Negotiation power is back: Price reductions, seller credits, and concessions are more common.

• Pre-approval matters: Not just for confidence, but to act quickly on the right home.

• Overpaying is avoidable: With slower appreciation, the numbers matter more than emotion.

• Location still wins: School zones, commute times, and resale potential remain critical.

This isn’t a “rush or miss out” market — it’s a “buy smart and buy right” market.

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What This Market Means for Sellers

Sellers can still succeed in 2026 — but the strategy has changed.

Key Seller Takeaways

• Pricing accurately is crucial: Overpricing leads to longer market time and weaker offers.

• Condition matters again: Buyers are choosier and less forgiving.

• Presentation is a must: Clean, staged, and well-marketed homes stand out quickly.

• The first 30 days are critical: That’s when buyer interest is highest.

Homes that are priced correctly and marketed professionally are still selling — often faster than expected.

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Is 2026 a Good Year to Buy or Sell in Louisiana?

The honest answer: Yes — if you have a plan.

This market rewards:

• Buyers who focus on long-term value, not hype

• Sellers who understand current demand and price strategically

• Homeowners who want clarity instead of guesswork

It’s no longer about timing the market — it’s about understanding it.

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Why Local Expertise Matters More Than Ever

Online estimates and national headlines don’t tell the full story in Louisiana.

Neighborhood-by-neighborhood differences, school districts, flood zones, insurance considerations, and buyer demand all play a role in real value — and those nuances don’t show up in a Zestimate.

A local, data-driven approach is the difference between:

• Overpaying vs. buying smart

• Sitting on the market vs. selling efficiently

Final Thoughts

The Louisiana housing market in 2026 is calmer, more balanced, and more strategic than it’s been in years. That’s good news — but only if you know how to navigate it.

Whether you’re thinking about buying, selling, or just want clarity on where the market is headed, having the right information makes all the difference.

If you have questions, want a custom market breakdown, or need help deciding your next move, I’m always happy to help — no pressure, just real insigh