A “fair” credit score might get you approved for loans or cards, but it often comes with higher interest rates and fewer perks. 

A good credit score opens doors to:

• Lower interest rates on mortgages or car loans

• Better rewards programs on credit cards

• Easier approval for rentals without security deposits

For example, upgrading from fair (580 - 669) to good (670 - 739) could save thousands in interest over the life of a mortgage. 

But, improving your credit score from fair to good isn’t just about numbers—it’s about building habits that set you up for long-term financial success. 

Here in this post, we will shed light on the most effective ways to raise your score from fair to good in 2025. 

#1. Become a Credit Report Detective: Check for Errors

Just like any report card, sometimes there can be mistakes. 

So, check your credit reports from all three national credit bureaus: Experian, TransUnion, and Equifax. 

You can get these for free. Why is this so important? Because inaccurate information can drag your score down without you even knowing it. Incorrectly reported personal information or derogatory marks are among the top signs you require professional credit repair.

Keep a sharp eye out for things like:

• On-time payments reported as late or missed: This is a big one because your payment history is the single greatest factor influencing your credit scores. A misreported late payment can have the same negative impact as a real one. If you spot an error, dispute it with the credit bureau. They'll investigate with the lender, and you might need to provide proof to get it removed.

• Misreported collections: Do you see a collection you don't recognize? It could be an error or even a sign of fraud. Unfounded collections can definitely hurt your score. Contact the company that reported it and dispute it. If you suspect fraud, report it to the authorities.

• Negative entries past their expiration date: Generally, negative stuff (except for Chapter 7 bankruptcy, which can stay for 10 years) should disappear from your report after seven years. If you see something older, dispute it.

• Any suspicious activity: Unfamiliar accounts or inquiries for credit you didn't apply for? This could be a sign of fraud and can damage your score. Confirm it's not yours, dispute it with the credit bureau, and report it if needed.

Real-life Impact

Let's say you find a wrongly reported late payment from two years ago. 

Getting this removed can immediately increase your credit score. 

You might even qualify for a credit card with a 0% introductory APR. This will save you hundreds of dollars in interest.

Need Help Disputing Derogatory Items?

Credit repair is a process you can handle on your own, but it often requires significant time and effort. 

Many people find the process confusing, especially when dealing with derogatory items like late payments, charge-offs, or collections. 

If you’re feeling overwhelmed, you might want to consider hiring a reputable credit repair company like AMERICA CREDIT CARE.

Experienced professionals in credit repair specialize in disputing inaccurately reported derogatory items. They use advanced tools, industry expertise, and proven strategies to help achieve better results for their clients. 

These companies work on your behalf to challenge errors and inaccuracies in your credit report that could be unfairly lowering your score.

When choosing a credit repair service, it’s important to ensure the company complies with the Credit Repair Organizations Act (CROA). 

This federal law protects consumers by requiring transparency in credit repair services and prohibiting misleading claims or upfront fees. 

#2. Keep Old Accounts Open (Yes, Even That Dusty Card)

The overall length of your credit history makes up 15% of your FICO score.  Closing old accounts can shorten this history and hurt your credit score.

So, try to keep older accounts open and active by making small purchases periodically to maintain your credit score. 

Even if you don’t use that college-era card, you can simply stash it in a drawer. For annual fees, you can always call and downgrade to a no-fee card instead of closing.

Real-life Impact

If you close a 10-year-old account, it could reduce the average age of your accounts significantly. This will lower your score even if everything else stays the same.

Closing an old credit card account can also shrink your total credit limit and hence, result in higher credit utilization.

#3. Be Smart with Your Plastic: Don't Max Out in 2025

Do not max out your credit cards if you want to improve your credit score from fair to good in 2025. Keep in mind that your credit utilization rate is a major factor in your credit score.

When you use a high percentage of your available credit, it signals to lenders that you might be overextended.

Try to keep the balance on each of your credit cards well below its limit (preferably below 30%). Many credit card issuers offer account alerts that can notify you if your balance exceeds a certain percentage of your limit. Use these tools to your advantage to raise your credit score from fair to good.

Real-life Scenario

Are you constantly using a large portion of your available credit during the billing cycle? Even if you pay your bill in full each month, it can still negatively affect your score. 

Consider making multiple smaller payments throughout the month to keep your utilization low. 

Besides helping increase your score, this can be the difference between qualifying for a premium rewards credit card with great perks and settling for a basic one.

#4. Be Selective: Limit New Credit Applications This Year

Every time you apply for new credit, lenders make a hard inquiry on your credit report. These inquiries, along with how recently you opened new accounts, contribute to about 10% of your FICO Score.

So, be mindful of when you apply for new credit or you will end up sabotaging your efforts to raise your credit score from fair to good. Apply for new credit only when you genuinely need it.

Before applying, see if the lender offers prequalification, which uses a soft credit check that won't affect your score. Soft inquiry tools can help preempt a hard inquiry.

At times, your credit report may have incorrectly reported credit inquiries. 

If that is the case, AMERICA CREDIT CARE can work on your behalf to dispute and remove such negative items. A successful dispute can raise your credit score by a few points in a short timeframe.

Real-life Example

You can make a single hard inquiry (if you must). This will typically only cause a small, temporary dip in your score (less than five points).

If you submit multiple applications in a short period, it can can have a severly negative impact on your score. This is especially true for credit cards.

What if you need to get a loan to buy a house or a car?

Well, if you're shopping around for major loans like a mortgage or auto loan, newer FICO Score versions often treat multiple inquiries within a short timeframe as one inquiry.

#5. Mix It Up: Maintain a Variety of Credit Accounts

Did you know that the types of credit you have and how well you manage them make up about 10% of your credit score? This is known as credit mix and it can help achieve your target of having a good credit score in 2025. Lenders like to see that you can handle different kinds of credit responsibly. 

Example

Your credit mix (to help raise your score from fair to good) may include: 

• Installment loans (like car loans or mortgages with fixed monthly payments) 

• Revolving credit (like credit cards where you borrow against a limit and repay with a minimum payment)

But, don't rush to open new accounts just for the sake of having a mix. 

Taking on too much new debt too quickly can actually hurt your score. 

Let your credit mix develop naturally as you need different types of credit for your financial goals. If you’ve just begun, a starter credit card and perhaps a credit-builder loan can be a good start.

Real-life Impact

If you currently only have credit cards and you responsibly manage a small personal loan for a necessary purchase, this could slightly improve your credit mix over time. 

It will potentially give your credit score a small boost when you later apply for a mortgage.

#6. Use Extra Funds to Reduce Debt

Use your tax return, annual bonus, or any unexpected money to pay down debt in 2025. Extra income from a side hustle can also be directly applied to reducing your debt.

Consolidating debt (paying down balances that you have struggled to pay off) by using extra funds can reduce your credit utilization ratio. This in turn will increase your credit score within a month or two.

#7. Ask for a Credit Limit Increase

You can increase the limit on an existing credit card in 2025. This will help reduce your utilization rate without having to pay down balances immediately.

How It Works

Let’s say you currently have a credit card with $5,000 limit and a $2,000 balance. This puts your credit utilization ratio at 40%. It’s certainly hurting your score. Lenders also see a high utilization ratio as risky.

You can raise the limit to $10,000. This will help reduce the utilization to 20% - a key improvement if you’re aiming to climb from a fair score (580 to 669) to a good score (670 to 739) this year. 

#8. Become an Authorized User

Do you have a loved one with very good (740 to 799) or exceptional credit (800 to 850)? 

Can they shoulder some responsibility to be your cosigner? 

You can become an authorized user on their account. Their positive payment history will reflect on your report. 

This strategy can help you quickly raise your score in a relatively short timeframe.

Example

Being added to a family member’s card with a $10,000 limit and no balance could lower your overall utilization rate and improve your score within months.

#9. Become a Payment Pro: Pay All Your Bills On Time

Your payment history makes up a whopping 35% of your FICO® Score. It is so important because lenders want to see that you're reliable when it comes to repaying your debts. 

The simplest and most effective way to steadily improve your credit score from fair to good is to never be more than 30 days late on a debt payment. 

Missing your due date by even a day might incur a late fee, but your credit score isn't typically affected until you're 30 days late.

How to Make Sure You Pay Your Bills On Time to Improve Your Score in 2025: 

• Set up reminders: Use your phone, calendar, smartwatch – whatever works for you.

• Use account alerts: Many lenders and credit card issuers offer tools that remind you when a payment is due and even let you pay directly from the alert.

• Automate payments: Set up automatic payments for at least the minimum amount due on your accounts.

Real-life Impact

Let’s say you’re paying off a $500 credit card bill. Missing just one payment could drop your score by 50–100 points. 

Consistent on-time payments build a positive track record. Over time, this could be the key to getting approved for a mortgage with a significantly lower interest rate. This can help you save tens of thousands of dollars over the life of the loan. 

#10. Pay Down High-Interest Debt First

If you’re juggling multiple debts, focus on paying off those with the highest interest rates first (the avalanche method). This reduces the overall cost of borrowing and improves your debt-to-income ratio.

Example

Let’s say you have two credit cards—one with a $1,000 balance at 20% interest and another with $500 at 15%. Paying off the higher-interest card first saves money and helps lower your total debt faster.

#11. Use Experian Boost or Rent Reporting Services

Tools like Experian Boost allow you to add utility, rent, and even streaming service payments to your credit report. 

While not all scoring models consider these payments, they can still make a difference when lenders review your full report.

Final Thoughts: Stay Consistent and Patient

Improving your credit score requires time, discipline, and a commitment to responsible financial practices. Avoid falling for quick-fix schemes or services that promise instant results, as these are often scams and can do more harm than good.

Besides cultivating responsible financial habits, you may also consider seeking professional assistance to repair your credit. 

Reputable credit repair companies, such as AMERICA CREDIT CARE, can provide valuable support, especially in cases where your credit report contains inaccurately reported derogatory marks.