How to Turn Bad Credit Into Good Credit in 60 Days

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Key takeaways

Consistency and discipline are crucial for improving your credit score quickly and effectively.
Utilize tools like secured credit cards, credit-builder loans, and rent reporting services to enhance your credit profile.
Always pay your bills on time, maintain a low credit utilization ratio, and keep old accounts open to ensure continuous improvement.

Your credit score affects so much of your financial life. The terms of your mortgage, financing your car, or even if you’re approved for the apartment you want. So much is impacted by your score. When you have bad credit, it can be difficult to get good interest rates and terms, so you end up paying more than you should. It’s not fair.

While it can be tough to improve your credit rating, it’s not impossible. There are actually ways to boost your score fast with a little effort and discipline. And the good news is, the lower your credit score, the more dramatic the results.

Here’s how you can turn bad credit into good credit in as little as 60 days and keep it that way.

What determines your credit score

Understanding what determines your credit score is the first step in effectively managing and improving it. Your credit score is calculated based on several key factors:

Payment history (35%): This is the most significant factor. Timely payments on your credit accounts, including loans and credit cards, positively impact your score. Late payments, defaults, and bankruptcies negatively affect it.
Credit utilization (30%): This is the ratio of your current credit card balances to your credit limits. Keeping this ratio below 30% is ideal for a healthy score.
Length of credit history (15%): The longer your credit history, the better. This includes the age of your oldest account, the age of your newest account, and the average age of all your accounts.
Credit mix (10%): A diverse range of credit types, such as credit cards, mortgages, and installment loans, can positively influence your score.
New credit (10%): Opening several new credit accounts in a short period can be considered risky and may temporarily lower your score.

By understanding these factors, you can take strategic actions to enhance your credit score over time.

10 Steps to improve your score

1. Check your credit report

Check your credit report to find out what you’re doing wrong. You are entitled to a free credit report from each of the three major credit bureaus—Experian, Equifax, and TransUnion—once a year through AnnualCreditReport.com.

Reviewing your credit report allows you to identify any errors or inaccuracies that could be negatively affecting your score. Disputing these errors with the credit bureaus can lead to corrections and an immediate boost to your score.

Thoroughly checking your report also helps you detect signs of identity theft or fraud early, enabling you to take swift action to mitigate any damage.

Understanding what’s in your credit report also provides insight into the factors influencing your score. See if you have a lot late or missed payments or if your utilization rate is too high. Spotting negative marks on your report lets you know what you need to change about your behavior.

2. Pay off your debt

Paying off your debt should be at the top of your list. Tackle your debt using either the avalanche method, where you pay high-interest debt first, or the snowball method, where you pay the smallest debts first. It’s essential to find the method that works best for you.

If you need the motivation of quick wins, go with the snowball method. If you can be more disciplined and want to save money on interest, then the avalanche method is for you.

Whatever you do, try to pay more than the minimum required, as this will accelerate your progress and reduce the overall interest paid. By consistently chipping away at your debt, you not only improve your credit utilization ratio but also demonstrate responsible financial behavior, both of which can significantly boost your credit score.

3. Keep your credit utilization low

Credit utilization refers to the amount of available credit you are currently using and is the second biggest factor in calculating your credit score. To improve your credit, ensure you use less than 30% of your credit limit on any card; the lower, the better. High credit utilization can signal to lenders that you are over-reliant on credit, which can negatively impact your score.

To manage this, you can pay down your balances, ask for higher credit limits, or strategically spread your spending across multiple cards. As soon as your credit card reports a lower balance to the credit bureaus, you will see your score improve.

Regularly monitoring your credit utilization and making timely payments can help maintain this ratio, ultimately leading to a better credit score.

4. Don’t close old accounts

One common mistake people make when trying to improve their credit score is closing old accounts. It sounds good but keeping your old credit accounts open can positively impact your credit score.

The length of your credit history accounts for a significant portion of your credit score, and older accounts help to extend this history. Maintaining old accounts can also lower your credit utilization ratio, as closing them reduces the total available credit you have.

Even if you’re not using an old card frequently, consider making small purchases and paying them off to keep the account active.

The exception is if the account comes with a lot of fees. Then it may be better to close the account, save money, and take the hit to your score.

5. Ask for a higher credit limit

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Requesting a higher credit limit on your existing credit cards can significantly improve your credit score by lowering your credit utilization ratio. When your credit limit increases but your balance remains the same, your utilization decreases, which positively impacts your score.

To do this, contact your credit card issuer and inquire about a limit increase. Be prepared to explain your reasons for needing a higher limit, such as your commitment to improving your credit score and your responsible credit habits. It’s also helpful to highlight any positive changes in your financial situation, such as increased income or reduced debt.

A higher credit limit not only helps your credit utilization but also provides a buffer for emergencies, offering more flexibility in managing your finances. Regularly reviewing and requesting higher limits as your financial situation improves can be a strategic move to maintain and boost your score.

6. Become an authorized user

Becoming an authorized user on a family member or friend’s credit card with a good credit history can be a quick way to boost your credit score. When added as an authorized user, their account appears on your credit reports, and you benefit from their positive payment history and higher credit limit. This can significantly improve your credit score without you needing to use the card.

However, it’s important to choose someone who manages their credit responsibly, as any negative actions on their part, such as missed payments or high balances, can also affect your credit score. Ensure clear communication and mutual understanding about the arrangement to avoid any potential issues.

7. Add to your credit mix

Credit scoring models take into account the variety of credit types in your profile, which is known as your credit mix. Having a diverse range of credit accounts, such as credit cards and installment loans, can positively impact your score.

To improve your credit mix, consider taking out a small loan you can afford or applying for a new credit card. These financial products can help diversify your credit portfolio and demonstrate your ability to manage different types of credit responsibly.

Be careful, though, and don’t take on debt you can’t afford.

8. Apply for a secured credit card

Applying for a secured credit card can be a powerful step towards improving your credit score. Secured credit cards require a security deposit, which typically serves as your credit limit. This reduces the risk for the lender and makes it easier for individuals with poor credit to get approved.

Using a secured credit card responsibly—by making small purchases and paying off the balance in full each month—helps build a positive payment history, which is crucial for boosting your credit score.

Many secured credit cards report to all three major credit bureaus, ensuring that your responsible behavior is recognized. Additionally, some secured credit cards may offer a pathway to upgrade to an unsecured card after demonstrating good credit habits over time.

By using a secured credit card wisely, you can gradually build your credit, demonstrate to lenders that you can manage borrowing responsibly, and pave the way for better financial opportunities in the future.

9. Take out a credit builder loan

Credit builder loans are another credit building tool. Unlike traditional loans, a credit builder loan is designed specifically to help individuals establish or rebuild their credit. When you take out a credit builder loan, the borrowed amount is held in a secure savings account – you don’t get the cash right away. Instead, you make regular monthly payments towards the loan. These payments are reported to the credit bureaus, helping to build a positive payment history. Once the loan is fully paid off, you receive the funds minus any interest or fees.

This process not only helps you establish a track record of on-time payments but also demonstrates your ability to manage installment credit responsibly. Plus, you’re forced to build up savings.

Credit builder loans are often available from community banks, credit unions, and online lenders. By making consistent, timely payments, you can significantly improve your credit score.

10. Get credit for rent and utility payments

Your on-time rent and utility payments can instantly boost your credit score, but you need to take the right steps to set it up. Find a company that reports rent and utility payments to all three credit bureaus – Experian, Equifax, and TransUnion. Plenty of companies also report subscriptions, phone bills, streaming services, and more. You then get credit for bills you’re already paying on time.

Setting up these services is straightforward, and the benefits can be substantial. By demonstrating a consistent record of on-time payments, you show lenders that you are reliable and financially responsible.

What makes a good credit score

A good credit score is considered to be 670 or higher on the FICO score range or 661 and higher on the VantageScore model. Both models range from 300 to 850. Scores in the good range indicate to lenders that you are a reliable borrower who is likely to repay loans on time. This, in turn, increases your chances of securing loans and credit with favorable terms.

Bottom line

Improving your credit score takes time, patience, and discipline. While significant progress can be made in as little as 60 days, achieving an excellent credit score may take longer.

It’s essential to stay committed to your financial goals and maintain consistent efforts in managing your credit responsibly. Regularly monitor your credit score, pay your bills on time, keep your credit utilization low, and avoid closing old accounts unnecessarily. By adhering to these practices, you’ll gradually see improvement in your credit score.

Over time, your hard work will pay off, opening up access to better financial opportunities, such as lower interest rates, higher credit limits, and more favorable loan terms. Remember, a good credit score is a valuable asset that can lead to a brighter financial future and greater financial stability. Stay focused, be patient, and continue to make smart financial decisions.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

2. Paycheck Advance is an earned wage access service and is not a loan or credit product.

3. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and/or Cross River Bank, Member FDIC. The Current Visa® Debit Card, which may be issued by Choice Financial Group and/or Cross River Bank, and the Current Visa® secured charge card, which is issued by Cross River Bank, are all issued pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. A Current debit account is required to apply for the Current Visa® secured charge card. Independent approval required.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Debit card: Fees may apply, including out of network cash withdrawal fees, third-party fees, cash load fees, inactivity fees, account closure fees, international transaction fees, replacement card fees, express mail fees and escheatment fees. Build Card: Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

6. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

7. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

8. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

9. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC.

10. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank.

11. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

12. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Eligible Direct Deposits into your Current Account over the preceding 35-day period and fulfill other requirements subject to Current’s discretion. Negative balances must be repaid within 60 days of the first Eligible Transaction that caused the negative balance. For more information, please refer to Fee-free Overdraft Terms and Conditions. Individual Current Accounts only.

13. For eligible customers only. You may earn Points in connection with your Build Card purchases at retailers whose merchant code is classified as: Dining (e.g., restaurants) and Groceries (e.g., supermarkets) and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. Points will expire 365 days after they settle. For more information (including specific eligibility criteria), please refer to the Current Points Terms and Condition.

14. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

15. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. No minimum balance required. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. To earn a Boost rate of 4.00%, the sum of your Eligible Payroll Deposits over a rolling 35-day period must be $500 or more, with at least one Eligible Payroll Deposit equalling a minimum of $200. For more information, please refer to Current Boost Terms and Conditions.

16. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

17. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

18. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

19. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

20. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

22. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

23. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

24. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

25. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

26. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

27. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

28. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

29. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

30. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

31. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

32. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

33. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

34. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

35. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

36. Tipping or not tipping has no impact on your eligibility for SpotMe®.

37. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

38. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

39. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

40. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

41. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

42. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

43. Not affiliated with Empower Annuity Insurance Company of America (www.empower.com). Not everyone will qualify. Offers range from $10-$300 for first-time customers; $10-$400 for all others. Offers are based on our eligibility requirements and can go up with on-time payments. In Feb 2025, the average offer was $95 for first-time customers; $187 for all others. Instant delivery is optional—see fees in Empower’s Terms. Empower offers a 14-day trial for first-time customers followed by an auto-recurring $8/month subscription fee. Cancel anytime.

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Elise Banham

Elise Banham is a financial writer at Moneyfor, specializing in credit building, budgeting, and personal loans. She joined the team in 2020 after writing for outlets including The Seattle Times, MarketWatch, and Bankrate. Earlier in her career, she worked as a content strategist for a San Francisco-based fintech startup.

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