How to Raise Your Credit Score From 500 to 700 Fast in 2026 (Step-by-Step USA Guide)

Improving a credit score from 500 to 700 may sound impossible — but in the USA, it can absolutely be done with the right strategy. Millions of Americans recover from bad credit every year, and 2026 will be even easier because lenders and scoring models (FICO & VantageScore) are placing more weight on payment history, credit utilization, and responsible credit-building activity.

This guide is written for people who:

• Have a 500–599 (bad) credit score
• Were denied for loans or credit cards
• Want fast improvement within 45–120 days
• Live in the USA and want a roadmap for real results

In this complete step-by-step guide, you’ll learn exactly how to raise your credit score from 500 to 700 fast — using methods that actually work in 2026.

Why Your Credit Score Is Low (500–599 Range)

Before fixing your credit score, understand what pushed it down. A score around 500 usually means you had one or more of these issues:

• Missed payments (30–90 days late)
• High credit card balances
• Maxed-out cards
• Collections or charge-offs
• Too many recent credit applications
• No active positive accounts

But here’s the good news: each of these problems has a fix. Once you follow the steps below, your score can rise faster than you expect — even if you’ve struggled for years.

Step 1: Fix All Payment Issues Immediately (Most Important!)

Payment history makes up 35% of your FICO score. If you're late, behind, or have unpaid accounts, your score cannot rise. So this is the first step to move from 500 toward 700.

✔ Catch Up on All Missed Payments

If you’re behind on payments:

• Pay the overdue amount
• Call the lender and request a “goodwill adjustment”
• Ask if they can remove the late mark after you pay

✔ Set Up Automatic Payments

Use auto-pay for credit cards, loans, utilities, and subscriptions. This prevents future late payments — the main cause of credit damage.

Related helpful guide: 12 Ways to Improve Your Credit Score in 30 Days

Step 2: Lower Your Credit Utilization (The Fastest Score Booster)

Your credit utilization (how much of your available credit you are using) accounts for 30% of your FICO score. High utilization is the #1 reason people stay stuck at 500.

Here’s what works instantly:

• Pay credit card balances down to under 30%
• For faster improvement, aim for 10%
• Call your credit card company and request a credit limit increase
• Avoid using your card until your utilization resets

Example:

• Your credit limit = $1,000
• Your current balance = $900
• Your utilization = 90% (very bad)

If you pay it down to $100, your utilization becomes 10% — this alone can increase your score by 40–80 points within weeks.

Step 3: Add a Secured Credit Card (Guaranteed Approval)

If your score is 500–580, most unsecured cards will deny you. Instead, use a secured credit card — these report to all 3 bureaus (Equifax, Experian, TransUnion) and help you gain 30–90 points quickly.

Recommended secured cards:

• Discover it® Secured
• Capital One Platinum Secured
• Chime Credit Builder Card
• OpenSky® Secured Visa

Use your secured card like this:

• Spend small amounts ($20–$40)
• Pay in full every month
• Keep utilization under 10%

This creates perfect payment history — a powerful factor for raising your score fast.

Step 4: Remove Collections the Smart Way

Collections can crush your credit score. But in 2026, removing them is easier:

✔ Method 1: Pay-for-Delete

Call the collection agency and say:

“If I pay this account, will you remove the negative item from my credit report?”

Most agencies agree because they want payment.

✔ Method 2: Dispute Incorrect Information

• Date is wrong
• Balance is incorrect
• Not your account
• Duplicate reporting

File disputes with:

• Experian
• Equifax
• TransUnion

If the company cannot validate, the item must be removed.

Step 5: Add “Credit Hacks” That Raise Your Score Faster

✔ Become an Authorized User

Ask a family member with good credit to add you to their card. You don’t need the physical card — their perfect history boosts your score instantly.

✔ Use Experian Boost

It lets you add:

• Utility bills
• Phone payments
• Streaming subscriptions

This can add 10–25 points.

✔ Use Self Credit Builder Loan

This is an easy credit-building tool that adds installment history to your report.

Step 6: Build a Strong Mix of Credit

Credit mix makes up 10% of your score. To go from 500 to 700, you need:

• 1 credit card
• 1 installment loan
• 1 positive long-term account

Step 7: Avoid These Mistakes That Keep You at 500

Even if you follow everything else, these mistakes can stop your progress:

• Opening too many new credit cards
• Missing even one payment
• High utilization over 50%
• Co-signing loans for others
• Applying for loans when your score is still low

Staying disciplined for 60–120 days is the biggest key to going from 500 to 700.

Step 8: Track Your Score Weekly (Not Daily)

Credit scores update every 30 days, sometimes sooner. Checking every day will only stress you out. Use:

• Experian app
• Credit Karma (TransUnion & Equifax)
• Your bank’s credit monitoring

Look for these improvements:

• Late payments removed
• Collections updated
• Utilization dropping
• New positive payment history

How Long Will It Take to Reach 700?

Here’s the average timeline:

• 30 days: +40 to +80 points
• 60 days: +70 to +120 points
• 90–120 days: +120 to +200 points

If you stay consistent, reaching a 700 credit score in 3–6 months is absolutely possible.

You can also read: How to Build Credit Fast Using Secured Credit Cards

Final Thoughts

Raising your credit score from 500 to 700 fast is not magic — it’s a predictable process based on how credit scoring works. Focus on:

• Perfect on-time payments
• Low utilization
• Healthy credit mix
• Removing negative items
• Building new positive history

If you follow this roadmap for the next 90 days, your credit score will rise — and you’ll finally gain access to lower interest loans, better credit cards, apartment approvals, and overall financial freedom.

You’ve got this — 700 is closer than you think.