How to Raise Your Credit Before Applying for a Loan

A higher score can mean the difference between a denial and an approval, or between two interest rates. Start at least three months before you apply.

Days 1–15: know where you stand

1. Get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com.
2. Check every account: names, balances, late payments, accounts you don’t recognize.
3. Check your score through your bank or card issuer.

Days 15–45: fix what’s wrong

4. Dispute errors with each bureau that shows them, online or by mail, with copies of proof. Bureaus generally must investigate within about 30 days.
5. Bring late accounts current. One payment can stop the damage from growing.
6. Contact collection agencies to confirm debts are yours before paying. Get any agreement in writing.

Days 15–90: lower your utilization

7. Pay credit card balances below 30% of each limit, ideally under 10%.
8. Pay before the statement closing date so lower balances are reported.
9. Don’t close old cards; their age and limits help you.

Throughout: avoid new damage

10. Don’t open new credit right before a loan application.
11. Set up automatic minimum payments so nothing is late.
12. Keep personal and business spending separate.

Federal debt and taxes

Delinquent federal debt, like unpaid taxes or a defaulted government loan, can block SBA eligibility. Set up a payment plan with the IRS or the agency before applying.

Be careful with “credit repair” companies

You can dispute errors yourself for free. Companies cannot legally charge you before they perform services, and no one can legally remove accurate negative information.

Then read what credit score you need and business vs personal credit.

Frequently asked questions

How fast can I raise my credit score?

Lowering card balances can help within one or two billing cycles; fixing errors takes about a month per dispute; rebuilding history takes longer.

Should I pay a credit repair company?

You can dispute errors yourself for free. No one can legally remove accurate negative information.

Should I close old credit cards before applying?

No. Older accounts and their limits usually help your score.