How to Improve Your Credit Score in 2026: What Moves It, How Fast, and What Changed for Mortgages

A credit score is a lender's shorthand for how likely you are to pay late. It affects the rate on a mortgage, a car loan, or a card, and sometimes insurance premiums and rental applications. The good news is that the things that move it are well documented and mostly within your control. The less good news is that the biggest negatives take years to fade.

The national average FICO score was 714 in FICO's March 2026 report, down slightly since 2023, largely because federal student loan delinquencies are being reported again; borrowers with new student loan delinquencies lost 62 points on average. At the same time, a record 48.1% of consumers had scores of 750 or higher. This guide covers what drives the score, what you can change quickly, the 2026 rule changes on medical debt and mortgage scores, and how to fix errors.

What goes into the score

FICO describes five categories:

Lenders use many versions. FICO 8 is still the most common for cards and auto loans, mortgages have long used older "Classic" FICO versions, and free apps often show VantageScore. The same file can produce scores tens of points apart depending on the model, so compare changes over time on the same model rather than chasing one number.

Fast changes: utilization and statement dates

Credit card utilization, your reported balances divided by your limits, is the part of the score you can change fastest, because scores look at the most recently reported balances. Lower is better, both overall and on each card, and there is no benefit to carrying a balance and paying interest.

The catch is timing. Most issuers report your balance to the bureaus around the statement closing date, not the due date. If you charge $8,000 on a card with a $10,000 limit and pay it in full by the due date, the bureaus may still see 80% utilization. Paying it down to $500 before the statement closes reports 5% instead. This matters most in the month or two before you apply for a mortgage or car loan.

Other quick moves:

• Ask for a credit limit increase on cards you have had for a while, and ask whether the issuer will do a hard inquiry first.
• Keep paid-off, no-fee cards open. Closing a card with a $5,000 limit when you owe $8,000 against $15,000 of total limits raises utilization from 53% to 80%.
• Pay down cards before a loan application, and avoid new card applications for several months before a mortgage.

Slow changes: late payments and collections

Payment history is the largest category. A payment is generally reported late once it is 30 days past due, and it can stay on your report for seven years; bankruptcies can stay for up to ten. The effect fades as the item ages and as you add on-time history.

• Set up automatic minimum payments on every account, then pay more manually.
• If you miss a payment by a few days, pay immediately; it usually will not be reported until it is 30 days late.
• If you have a long clean record and one late payment, a written "goodwill" request to the lender to remove it sometimes works. Lenders are not required to agree.
• For collections, paying does not remove the record under older scoring models, but newer ones (FICO 9, FICO 10, VantageScore 3.0 and 4.0) ignore paid collections. Get any agreement to delete an item in writing before paying.

If you are behind on federal student loans, contacting your servicer about an income-driven plan or rehabilitation before the account goes into default limits the damage.

Medical debt in 2026

Since 2023, Equifax, Experian, and TransUnion have voluntarily left off paid medical collections, medical collections under $500, and unpaid medical bills until they are a year old. The CFPB's rule to remove all medical debt from credit reports was vacated by a federal court in July 2025 before it took effect. About 15 states, including New York, California, Colorado, Illinois, and New Jersey, have their own bans. In October 2025 the CFPB issued an interpretive rule saying federal law generally preempts state credit reporting laws, but no court has struck down a state medical debt ban as of September 2026.

In practice: unpaid medical collections over $500 and more than a year old can still appear if your state has no ban, and they count against you under older FICO versions. FICO 9, FICO 10, and VantageScore 4.0 ignore medical collections entirely. Ask the provider for an itemized bill, financial assistance, or a payment plan before a bill goes to collections.

Mortgage scores changed in 2026

For loans sold to Fannie Mae and Freddie Mac, lenders can now choose Classic FICO or VantageScore 4.0 for each loan. FHFA started a limited VantageScore rollout in May 2026 and opened it to all approved lenders on September 9, 2026 (FHFA credit score page). FICO 10T has been approved but was not accepted for deliveries as of September 2026, and lenders still need reports from all three bureaus. HUD has said FHA will adopt both newer models.

VantageScore 4.0 and FICO 10T consider trended data, meaning whether your balances have been rising or falling over time, so paying down balances steadily in the year before applying can help under those models. Because lenders can now pick the model, ask which one they use and what your score is under it.

Why this matters: an illustration of a $400,000 30-year mortgage at 6.50% versus 7.25%, a gap of the size that can separate strong and fair credit tiers, is a payment of about $2,528 versus $2,729 a month. That is $200 a month, or about $72,000 over the life of the loan.

Rate shopping and new credit

FICO treats multiple inquiries for a mortgage, auto, or student loan within 45 days as one (14 days in older versions), and ignores those inquiries for the first 30 days. Credit card applications do not get this treatment. Inquiries stay on your report for two years but affect FICO scores for only one. Checking your own score or report never hurts it.

Checking and fixing your reports

You can get free reports from all three bureaus every week at AnnualCreditReport.com, the only site authorized by federal law for this. Check for accounts you do not recognize, late payments you did not make, wrong balances or limits, and duplicate collections.

To dispute an error, file with each bureau that shows it, and also with the company that reported it, including copies of statements or letters that support your claim. The bureau generally has 30 days to investigate, or 45 if you send more information during the process, and must correct or delete information it cannot verify (CFPB guide). Credit repair companies cannot remove accurate negative information, and they may not charge fees before performing their services.

A credit freeze, free at each bureau, blocks new accounts in your name without affecting your score. Lift it temporarily when you apply for credit.

Building credit from scratch

• Secured credit card. You deposit cash that becomes the limit. Choose one that reports to all three bureaus and has no annual fee, and keep the balance low.
• Credit-builder loan. A credit union or bank holds the loan amount in an account while you make payments, then releases it. Useful for adding installment history.
• Authorized user. Being added to a family member's card with a long history and low balance can help, as long as they pay on time. Their late payments can also show up on your report.
• Rent and utility reporting. Some services add these payments to your file. Many lenders' scoring models do not count them, so treat this as a supplement.

FICO generally needs at least one account open six months and some recent activity to produce a score. VantageScore can score thinner files.

A 90-day plan

1. Pull all three reports and dispute anything wrong.
2. Turn on autopay for at least the minimum on every account.
3. Find each card's statement closing date and pay balances down before it.
4. Ask for limit increases on older cards and keep no-fee cards open.
5. If you carry balances, make a payoff plan; our high-interest debt guide compares methods, and the debt consolidation guide covers loans that replace card debt.
6. Before a mortgage or car loan, avoid new applications and do your rate shopping within a short window.

Business owners building a separate profile can see our business credit guide.

This guide is for informational purposes only and does not constitute financial or legal advice. Scoring models, bureau policies, and regulations change; information is as of September 2026 and the mortgage example is an illustration. For help with debt, consider a nonprofit credit counselor.