According to Experian, a 575 FICO credit score falls into the poor credit range. This signals high risk to most lenders, often resulting in higher borrowing costs and tighter repayment terms. This score usually reflects past credit challenges, such as missed payments or high credit usage, which can limit financial flexibility. 

However, it’s not a permanent roadblock—improvement is absolutely possible. With consistent, responsible financial habits and a proactive approach, individuals can raise their score and gradually unlock better loan options, lower interest rates, and greater borrowing power.

Here are five steps to help improve a 575 credit score and build long-term financial stability:

1. Check Your Credit Report for Errors

A credit score of 575 may not necessarily be caused by irresponsible spending or financial mismanagement. It may simply result from incorrect or outdated information on your credit report. Errors such as misplaced late payments, unverified debts, or fraudulent activity can unfairly lower your score. 

To identify and dispute such inaccuracies, request your credit reports, which are free once a year, from each of the three major credit bureaus, namely Experian, Equifax, and TransUnion. Once you have them, carefully review each section. Look for discrepancies in payment history, account balances, and personal information. If you spot an error, file a dispute with the bureau online or by mail immediately. 

2. Pay Bills on Time

Payment history accounts for 35% of your FICO credit score. This makes it one of the most influential factors in determining your financial credibility. In other words, lenders view consistent payment behavior as a strong indicator of financial responsibility. In contrast, late payments, even just occasionally, are considered “score killers,” according to MyFICO.  

A reliable way to improve your payment history is by setting up automatic payments for recurring expenses such as loans, credit cards, and utilities. This helps ensure on-time payments, which play a major role in boosting your credit score. 

If automation isn’t feasible, using calendar reminders or budgeting apps can help you stay on top of due dates. In cases where payments become difficult, reaching out to lenders early can make a difference—many are willing to discuss payment plans or offer deferment options to help you avoid delinquency and protect your credit profile.

3. Reduce Credit Utilization 

Next to payment history, credit utilization is the second most influential factor. It refers to the percentage of your available credit that you’re using and accounts for 30% of your FICO credit score. Generally, the higher your credit utilization (typically above 30%), the lower your credit score. This is because excessive borrowing often signals financial risk to lenders. 

Aim to use less than 30% of your total credit limit. If you carry high balances, start by paying more than the minimum each month to reduce debt faster. If needed, consider balance transfer options with lower fees to help manage repayments without accumulating additional fees. You can also request a credit limit increase, but be sure to avoid increasing your spending when your limit goes up.

4. Avoid Applying for Too Many New Accounts

Each time you apply for new credit, lenders run a hard inquiry, which temporarily lowers your score. That means multiple inquiries, especially within a short period, can signal financial distress. For lenders, this suggests that a borrower is a “high-risk” borrower. Consequently, they may offer less favorable terms to compensate for the perceived risk. 

Before applying for credit, research lenders carefully to avoid unnecessary applications. Consider pre-qualification options as well. Many lenders provide prequalification options that allow individuals to assess their chances of approval without affecting their credit score through a hard inquiry. This approach helps borrowers make informed decisions while preserving their credit.

If you need new credit, it’s recommended to space out applications over several months rather than applying all at once. 

5. Use Credit-Building Tools

Another way to avoid multiple inquiries and improve your overall credit score is to build your credit history. One effective method to do this is by using credit-building tools. As the name implies, these tools are specifically created to support individuals in establishing or rebuilding their credit profiles. They offer structured, low-risk opportunities to demonstrate responsible borrowing habits and improve creditworthiness over time.

They can also help establish positive financial habits while strengthening your credit profile over time. 

One example of such tools is secured credit cards. These require a refundable deposit that acts as your credit limit, which can demonstrate responsible borrowing. Similarly, credit-builder loans allow borrowers to make fixed payments toward a loan held in a savings account. In most cases, these loans help establish a strong payment history and, over time, improve good credit scores. 

The Path to a Stronger Credit Score

Improving your credit score requires consistency, patience, and wise financial decisions. Stay committed to responsible credit management, and over time, you’ll see meaningful improvement in your score and overall financial well-being. If you’re unsure about the best strategies for your situation, consider seeking professional financial advice to make informed decisions and avoid costly credit score mistakes.