NEW YORK — As August 2025 unfolds, new credit scoring changes make it an ideal time to boost your credit score, a critical factor for securing loans, credit cards, or better interest rates. With updates to the Fair Credit Reporting Act and the rollout of the FICO 10T model, which emphasizes the last 24 months of credit activity, consumers can take actionable steps to improve their financial standing, according to ElitePersonalFinance. Here’s how to raise your credit score effectively this month.
First, prioritize on-time payments, which account for 35% of your FICO score. “Even one late payment can drop your score by 100 points,” warns John Webb, a credit expert at Experian. Set up automatic payments for credit cards and loans to avoid misses, especially since recent late payments weigh heavier under FICO 10T. Next, keep credit utilization below 30%—ideally 10%—of your available limit. Paying down high balances can yield results in as little as 30 days, per 360lending.ca.
Key strategies for August 2025 include:
- Check Your Credit Report: Review reports from Experian, Equifax, and TransUnion for errors. Dispute inaccuracies, especially medical debt, which is removed from reports as of March 17, potentially boosting scores by 20 points.
- Leverage Experian Boost: Add on-time rent, utility, or streaming payments to your Experian report to enhance your score, a growing trend in 2025’s AI-driven scoring models.
- Limit New Credit Applications: Avoid multiple hard inquiries, which can lower your score. Use “soft” eligibility tools to find suitable credit offers without impacting your report.
Additionally, registering on the electoral roll can confirm your identity to lenders, boosting your profile, per The Independent. For those with thin credit files, services like Experian Boost or AI-powered apps like Dovly.ai can incorporate alternative data, such as rent history, to strengthen scores. “Consistency is key,” notes a Credit Sesame expert, emphasizing that steady payments and low balances drive long-term gains
With medical debt now excluded from reports, affecting 15 million Americans, and AI models factoring in utility payments, August 2025 offers a unique window to improve your score. Monitor progress with free tools like Credit Karma and stay proactive to navigate the evolving credit landscape.
Source: ElitePersonalFinance
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