Your credit score is the key to financial freedom. It can have a ripple effect in other aspects of your life, whether that's getting into a new home or planning a vacation using travel rewards.
According to FICO, the data analytics firm whose credit scoring methodology is used in 90% of lending decisions, a good credit score falls between 670 to 739. Hit that sweet spot(or higher) and you could qualify for mortgage refinancing, a cash-back credit card, a lower rate on a car loan, and more.
Below, CNBC Select shares three easy ways to boost your credit score.
Get a credit-building card
If you have bad credit or no credit, there are credit cards that can help you build a positive credit history.
Secured credit cards extend a line of credit, charge interest and may even offer rewards. But unlike traditional credit cards, many don't have credit score requirements. In exchange, they require a security deposit to ensure the issuer is protected if you don't make a payment.
With the Discover it® Secured Credit Card, cardholders earn 2% cash back at gas stations and restaurants, (up to $1,000 each quarter) and unlimited 1% cash back on all other purchases. As a welcome bonus, Discover will match all the cash you've earned after the first 12 months.
There is a $200 security deposit but no annual fee or foreign transaction fees. After seven months from account opening, Discover will review your account to see if you can transition to an unsecured card.
Discover it® Secured Credit Card
On Discover's secure site
Rewards
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.
Welcome bonus
Discover will match all the cash back you've earned at the end of your first year
Annual fee
$0
Intro APR
N/A on purchases
Regular APR
28.24% Variable
Balance transfer fee
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
None
Credit needed
New / Rebuilding
*See rates and fees,terms apply.
Read our Discover it® Secured Credit Card review.
If you want a card for building credit but don't want to pay a deposit, Chase Freedom Rise℠ is an unsecured credit card with no annual fee and a minimum $500 credit limit. Cardholders earn 1.5% cash back on all purchases plus a one-time $25 statement credit after setting up automatic payments within the first three months of account opening.
You also get free access to your credit score and, after just six months, Chase will evaluate your account for a credit limit increase. Bumping your available credit and leaving it untouched improves your credit utilization ratio, which is responsible for 30% of your FICO score.
Chase Freedom Rise℠ Credit Card
Rewards
Earn unlimited 1.5% cash back on every purchase
Welcome bonus
Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account.
Annual fee
$0
Intro APR
N/A
Regular APR
26.99% variable APR
Balance transfer fee
5% or $5 of each transfer, whichever is greater
Foreign transaction fee
3% of the amount of each transaction in U.S. dollars
Credit needed
New/Rebuilding
Terms apply. Information about the Chase Freedom Rise℠ Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
Sign up for a credit monitoring service
Even if you don't make any missteps, your credit score could take a beating if there are errors on your credit report or you fall victim to identity theft. That's why credit monitoring services can be valuable — they can alert you about potential fraud or even just unusual activity.
Experian IdentityWork℠ Premium uses data from all three credit bureaus to notify users about changes to your FICO score and personal information,new inquiries and accounts and other suspicious activity. It will also work to scrub your details from people-finder sites and notify you if your information appears on the dark web.
Membership comes with dedicated fraud resolution support and up to $1 million in identity theft insurance.
Experian IdentityWorks℠
On Experian's secure site.
Cost
Basic: Free; Premium: 7-day trial, after $24.99 per month; Family: 7-day trial, after $34.99 per month
Credit bureaus monitored
1-bureau credit monitoring, alerts and reports: Experian, with Basic plan only and 3-bureau credit monitoring, alerts and reports: Experian, Equifax and TransUnion®, with Premium and Family plans only
Credit scoring model used
FICO® Score 8, with all plans
Dark web scan
Yes, with all plans
Identity theft insurance
Yes, up to $1 million with all plans
Terms apply.
*Identity Theft Insurance underwritten by insurance company subsidiaries or affiliates of American International Group, Inc. (AIG). The description herein is a summary and intended for informational purposes only and does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for terms, conditions, and exclusions of coverage. Coverage may not be available in all jurisdictions.
Get credit for paying your bills on time
Paying your bills on time is always a good idea, but many of them don't get reported to credit reporting agencies. *Experian Boost™ is a free feature that links your rent, phone, internet, utility andstreaming services to your Experian credit report. Only positive payments to these accounts are registered, so if you slip up it won't hurt your credit score.
According to Experian, users who received a boost to their credit score reported an average 13-point increase.
Experian Boost™
On Experian's secure site
Cost
Free
Average credit score increase
13 points, though results vary
Credit report affected
Experian®
Credit scoring model used
FICO® Score
Results will vary. See website for details.
How to sign up for Experian Boost:
- Connect the bank account(s) you use to pay your bills
- Choose and verify the positive payment data you want added to your Experian credit file
- Receive an updatedFICO® Score
Learn more about eligible payments and how Experian Boost works.
Bottom line
If your credit score isn't where you'd like it, it's not that hard to give it a boost. A credit-building credit card can raise your score while offering rewards, and Experian offers products that can monitor your credit report and get you credit for paying your rent and utilities on time.
Compare offers to find the best loan
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Catch up on CNBC Select's in-depth coverage ofcredit cards,bankingandmoney, and follow us onTikTok,Facebook,InstagramandTwitterto stay up to date.
Subscribe to the CNBC Select Newsletter!
Money matters —so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.Sign up here.
*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
For rates and fees of the Discover it® Secured Credit Card, clickhere.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
