Will a 20-Point Increase in My Credit Score Make a Difference?

The quick answer? It could.

Your credit score is a number you may not put much thought into until you're ready to apply for a loan. But if a loan or credit card application of yours is denied, that might inspire you to check out your score -- and find ways to improve it if it could use some work.

Of course, boosting a credit score is something that can take time. Your payment history, for example, carries more weight than any other when calculating your credit score. And it can take time to establish a solid history of paying bills in a timely manner.

That's why you may not go from a credit score of, say, 600 to a 700 or 750 in just weeks. Rather, it could take months. And you may find that your credit score rises slowly while you're working to boost it.

But in some cases, even a modest increase could go a long way when it comes to your credit score. So if the idea of raising it by 100 points or more at a time seems daunting, focus on a smaller increase, like a 20-point boost. Even that sort of lift might make a nice difference.

What could a 20-point boost improvement do for you?

If your credit score is already very high, then a 20-point increase may not do much. Any credit score of 800 or above is considered excellent, according to Equifax. So if your score rises from an 810 to an 830, chances are, it won't make much of a difference, because you'll probably qualify for most loans or credit cards you apply for with an 810.

Similarly, if your credit score is a 500, which is poor, raising it to 520 may not help so much. Unfortunately, you'll still be left with a score that might make it difficult to borrow when you need to.

But let's say your credit score is a 720. Raising it to a 740 bumps it up from the "good" category, as per Equifax, to "very good." Furthermore, you'll usually need a minimum credit score of 620 to qualify for a conventional mortgage loan. So raising your score from a 605 to a 625 could spell the difference between being able to borrow to buy a home versus being denied.

Do what you can to raise your credit score

Boosting a credit score takes work, but there are steps you can take to make it happen. First, check your credit report and make sure it doesn't contain errors that might present your borrowing history in a less favorable light. If you have a late payment on your credit report that's not correct, getting it removed could help your score rise.

You can also boost your credit score by paying all bills on time. It will take a series of timely payments to have an impact, but in time, you should see a difference.

Finally, try to pay off some existing credit card debt if you're carrying a balance that's high relative to your total credit limit. Doing so could lower your credit utilization ratio, which is another measure used to calculate your credit score.

The higher your credit score, the more borrowing options you have. But don't stress if your score doesn't jump by 100 points overnight. You might see it rise slowly and steadily, and that's to be expected.