Why Your Credit Score Isn’t Going Up – And How to Fix It 

One important aspect of your financial life is your credit score. Your credit score determines whether you are approved for loans, rent agreements, or even jobs. If you have been trying to improve your credit score, but don't see any improvement, it can frustrate and confuse you.

You're not the only one wondering, "Why doesn't my score go up?" This blog will explore the most likely reasons why your credit score is stuck, and provide practical solutions to help you get that 100-point boost you want. Read more about how to bring up credit score 100 points.

How credit scores work

It's important to know how credit scores work before you can understand why your score hasn't moved. Five elements are used to determine FICO scores.

• Payment history (35%), which includes your history of timely payments 

• Credit Usage (30%)- The percentage you are using of your credit limits compared to the total.

• Credit History Length (15%)- How long have you had credit accounts?

• Credit mix (10%) A combination of revolving credit cards and installment loans

• New credit (10%): How frequently do you submit an application for new credit? 

All of these factors play a part in how lenders evaluate your creditworthiness, and they can help you understand what is holding back your score. check your personal finance score.

There are a few common reasons why your credit score isn't improving.

1. High Credit Utilization

A sizable portion of your credit limit may have a detrimental effect on your score even if you make your payments on time. Credit experts suggest that you keep your credit utilization under 30%. A maximum of 10% is the ideal.

2. Paying late or missing payments

A single late payment will have a significant impact on your credit score, and it can take several months to repair. The primary determinant of your credit score is your payment history. Consequently, it's critical to regularly make on-time payments. 

3. Your credit report may contain errors

Credit report mistakes are more common than people realize. According to the Federal Trade Commission (FTC), one out of five consumers has a mistake on their credit report. These errors can keep your credit score from increasing. Be sure to review your reports regularly at AnnualCreditReport.com and dispute any inaccuracies.

4. Close old credit accounts

Closing older credit cards can lower your credit score and reduce the age of your credit. It's better to keep older accounts open unless there is a compelling reason, such as a high annual charge.

5. You can't get too much credit

Every time you apply to a new loan or credit card, an inquiry is made on your report. A high number of inquiries within a short time period can affect your credit score and give lenders the impression that you are a risky borrower.

6. Lingering Negative Marks

Charge-offs and collections are examples of negative things that may appear on credit reports. Bankruptcies and bankruptcy records may also remain for up to 10 years. These old issues may continue to affect your credit score, even if you are managing it well.

What to Do - Steps for Action

Pay All Bills On Time

You can use automatic payments or reminders so that you don't miss any due dates. Your payment history becomes better with each timely payment you make.

Lower Your Credit Utilization

Reduce your credit card utilization rate by paying down your balance or requesting a higher credit limit. Spreading the balance across several cards is another option.

You can dispute errors on your credit report

You can file a dispute directly with each of the major credit bureaus. These are Equifax, Experian and TransUnion. The majority of disputes are resolved in 30 days.

Don't take on unnecessary new credit

Applying for new credit should only be done when it is absolutely required.  New hard inquiries can temporarily lower your credit score and slow progress.

Be Patient and Consistent

Credit improvement doesn't happen overnight. You must maintain good behaviors if you want to see a noticeable improvement in your credit score.

Bonus Tips to Boost Your Credit Score by 100 Points

• How to become an authorized user of a family member's card

• To repair or improve your credit history, apply for a secured credit card.

• Consider a credit-builder loan to demonstrate repayment behavior

• Instead than paying the minimum amount due on your credit card, make smaller payments.

• Keep a good mix of credit types.

Final Thoughts

When your credit score doesn't rise, it's simple to become stuck. Once you've identified the problem, whether it's a high utilization rate, a poor payment history or an error in your report, you can take action to correct it.