Which action can help improve a low credit score quickly?

Paying off outstanding debts is an effective action for quickly improving a low credit score. When you reduce the amount of debt you owe, particularly high-interest and revolving debts like credit card balances, you positively impact your credit utilization ratio, which accounts for a significant portion of your credit score. A lower credit utilization ratio indicates to lenders that you are effectively managing your credit, making you a less risky borrower.

Additionally, paying debts on time and reducing overall debt levels reflects financial responsibility. This is crucial, as payment history is also a key component of the credit scoring model. Resolving outstanding debts can lead to prompt improvements in your score, as credit reporting agencies update their records and reflect these changes.

Engaging in actions like opening multiple credit accounts or applying for more credit cards can lead to hard inquiries on your credit report, which can temporarily lower your score. Closing old credit accounts might reduce the length of your credit history, another important factor in determining your credit score. Therefore, focusing on paying off debts is the most straightforward and effective strategy for quickly boosting a low credit score.