It is possible to raise your credit score 100 points overnight!
All you need is the right information and some determination.
Credit scores are very important because it will determine your financial future.
A high credit score will get you the best interest rates and the best loans.
A low credit score can mean that you won’t be approved for a loan or you will have to pay a high interest rate.
There are several things that you can do to improve your credit score in 30 to 60 days.
Keep reading to learn how you can raise your credit score fast.
How Is Your Credit Score Calculated?
Either FICO or VantageScore is the most commonly used credit score system in the United States, but each of these credit scoring models calculates your score differently.
FICO scores are designed to help potential lenders determine how trustworthy you are based on five factors: payment history, credit utilization ratio (how much debt is owed compared with how much available credit is available), length of credit history, new credit and types of recent loans.
VantageScore was designed to benefit banks by increasing acceptance rates for applicants who might otherwise be turned down because they do not meet normal criteria.
VantageScore offers better scores for riskier borrowers than FICO does which helps banks stay within regulatory thresholds set by Federal Reserve guidelines.
The secret behind both systems? They both use the same data, but weighted differently.
Your credit score is also based on your credit utilization ratio.
This is the amount of debt you have compared to the amount of available credit you have.
Experts recommend that you keep your credit utilization ratio below 30%.
For example, if you have $5,000 in credit card debt and $25,000 in available credit, your ratio is 20%.
How Quickly Does Your Credit Score Update?
Your credit score is updated as soon as a lender reports changes to your credit report.
Your score is automatically updated each time you get a new credit card or loan, or if there are changes in your good standing with previous lenders.
This means that the next time you need to apply for a car loan, mortgage, or any other type of credit, you have an accurate report on file that benefits you.
Why Is It Important to Raise My Credit Score?
You might be wondering why it is so important to raise your credit score.
A high credit score can help you get better interest rates on loans and other types of credit card offers.
A lower credit score could mean you will have to pay a high interest rate.
What’s even worse is that many lenders will not offer you a loan at all if your credit score is low.
Credit scores are also important because they predict your future ability to pay off debt or other payments.
Follow the steps below to find out how you can raise your credit score in just thirty days.
14 Easy Ways to Raise Your Credit Score by 100 Points or More
Are you ready to start improving your credit score?
Below are some easy ways that you can raise your score by 100 points or more in just thirty days.
1. Review Your Credit Report
The first step is to order a copy of your credit report from one of the major credit bureaus (TransUnion, Equifax and Experian) and review it for errors by making sure that the information is correct.
If there are any mistakes on your credit report, you need to dispute them by contacting the credit bureau.
2. Dispute Errors
If you find any errors on your credit report, you need to dispute them.
You can do this by contacting the credit bureau.
It will take some time for the credit bureau to investigate and resolve your dispute.
Once the credit bureau has verified the information, they will update your credit report.
3. Pay Your Bills on Time
The next step is to make sure that you are paying your bills on time.
If you pay them late, it will hurt your credit score just as much as if you had missed a payment.
An easy way to ensure that you are on top of your payments is to set up automatic online bill payments.
This way, you can be sure that your bills are paid on time without forgetting.
4. Limit Your Credit Inquiries
When you apply for a new credit card or loan, or sign up for a new line of credit, you are asking the lender to check your credit.
Each time this happens, it looks like you are taking on more debt which will make your credit score go down.
You can avoid this by limiting how much you use your credit in a short period of time.
You can also ask the lender to only check your credit report in “soft” mode, or when you really need the credit.
This will help keep your credit score from dropping.
By limiting the number of credit inquiries on your credit report, you can help improve your score within just a few months.
5. Increase your Credit Limit
If you have a high credit limit, it will help improve your credit score.
This is because it will bring down your credit utilization ratio.
You can ask your credit card company to increase your limit, or you can get a new credit card with a higher limit.
6. Ask for Late Payment Forgiveness
If you have missed a payment, many lenders will give you the option of asking for late payment forgiveness.
This can help improve your credit score by showing that you are trying to rectify the situation.
You can usually get this type of forgiveness if you have missed a payment but have never applied for late payment forgiveness before.
7. Check up on your outstanding debts
You should also keep track of your outstanding debts and make sure that you are paying them down.
The lower your debt-to-income ratio, the better your credit score will be.
You can use a debt consolidation loan to pay down your high-interest debts and improve your credit score quickly.
8. Keep Credit Card Balances Low
If you have a high credit card balance, it will hurt your credit score.
This is because it will bring down your credit utilization ratio.
You can improve your credit score by keeping your credit card balances low.
You can also request credit limit increase on your credit cards.
9. Keep Old Credit Cards Active
If you close an old credit card, it will hurt your credit score.
This is because it will increase the average age of your accounts, and this is a factor that is taken into consideration when calculating your credit score.
You can keep your old credit card active by using it sparingly, or by transferring your balance to a new credit card.
10. Become an Authorized User
One way to improve your credit score is to become an authorized user on someone else’s credit card.
This will help improve your credit utilization ratio and bring up your credit score.
The best way to do this is to find someone who has a high credit score and good credit history.
If you can find someone who has a credit score of 800 or more, you will see the biggest improvement in your credit score.
11. Consider a Credit Builder Loan
A credit builder loan can help you improve your score in less than a year.
This type of loan is an installment loan that reports to the credit bureaus, so you can improve your score by making payments on time.
This will help you establish a good credit history and even qualify for better rates on mortgages, loans and credit cards in the future.
12. Take Out a Secured Credit Card
Secured credit cards work like any other credit card and offer the same benefits.
The difference is that they require you to deposit money into an account up front.
If you don’t pay your monthly credit card bill, the bank will take the money from your account.
This is called collateral and it helps ensure that the bank doesn’t loose any money on the deal.
Secured cards typically have low limits of $300 or $500.
13. Pay Full Balance Each Month
The best way to improve your credit score is by paying your bill in full and on time.
If you can’t pay in full, you should at least pay the minimum amount each month.
This will help you avoid late payments and delinquencies, which will hurt your credit score.
You should also try to keep your credit card balances low, so you don’t max out your cards.
If you can do all of these things, you will see a big improvement in your credit score in a short amount of time.
14. Sign Up for Credit Monitoring
Another way to improve your credit score is to sign up for credit monitoring. This will help you keep track of your credit score and credit history. It will also help you identify any errors or fraudulent activity.
Credit monitoring is free, and it will provide you with all of the information that you need to improve your credit score.
How to Raise Credit Score by 100 Points
I hope I’ve given you the tools you need to raise your credit score by 100 points.
By following these simple steps, and even improving your debt-to-income ratio, you can improve your score quickly.
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