DISCLOSURE: This post contains affiliate links from one or more of our advertisers. We may receive compensation if you decide to make a purchase and sometimes if you just click on a clink at no additional cost to you. Please read both our Affiliate Disclosure and Advertiser Disclosure for more info.
How To Improve Your Credit Score Quickly
How to improve your credit score is at the top of everyone’s agenda these days. Just as important is how to protect your credit during Covid-19 The major factor that will improve your score quickly is credit utilization. Before we get into improving your credit, let’s take a minute and break down what your credit consists of.
Your credit score—a simple three-digit number that lenders use to decide if you are creditworthy. Essentially lenders need to know how likely you are to repay your loan if they were to grant you credit for a credit card, car loan, mortgage, etc., It is a critical factor in your overall financial health. People with higher scores, tend to pay their loans back. The higher your scores the better chance you have of qualifying for loans and credit cards at lower interest rates. The lower your scores, the less likely you will qualify for loans and credit cards; if you do qualify, they will be at higher interest rates nine times out of ten. Having good credit saves you money in the long run.
Your credit history may not be perfect and it may not be what you desire, you’re not alone. Nearly a third of Americans have a credit score lower than 601 — the distinction between bad and fair credit— as reported by Experian. According to a report by the Consumer Financial Protection Bureau, one in ten Americans has no credit score or history.
The reality is that your score won’t improve until you address the issues and get started on improving your score. You can increase your scores by taking a few steps such as simply PAY YOUR BILLS ON TIME and PAYING DOWN DEBT. We know that is easier said than done.
Steps To Improve Your Credit Score
- Pay your bills on time
- Make multiple monthly payments
- Ask for a credit limit increase
- Become an authorized user
- Keep credit cards open
- Dispute credit report errors
- Use a secured credit card
- Mix up your credit types (Installment, revolving, mortgage)
Pay Your Bills On Time
The best strategy that you can implement is to pay your bills on time. Late payments are sinful when it comes to the impact that they will have on your credit scores. Late payment history is the biggest factor that impacts your score.
If you have a 30-day late payment, reach out to the creditor and see if they will do a goodwill removal; if not do what you need to do to get back on track and make your payment on time
Make Multiple Monthly Payments
Have you heard of micro-payments? Micro-payments are small payments made throughout the month. Instead of making one monthly payment on your credit card, consider making weekly payments that equal up to your payment amount at the minimum
Making multiple payments helps with credit utilization. You will want to keep your credit utilization below 30% at all times. 10% is even better.
Ask For A Credit Limit Increase
If your credit limit is increased (do not charge more onto your card) and you do not make any additional charges, this will help your credit utilization ratio, which in turn will improve your credit score. Ask if you can obtain an increase without the creditor doing a hard credit inquiry which could result in your score dropping down a few points.
Here is a list we have compiled of some short-cuts that will help to increase your credit score rapidly. It is up to you to implement them.
Become An Authorized User
Take advantage of someone else who has great credit and become an authorized user on their credit card. Make sure that you select someone that is responsible and doesn’t max out their credit cards. A friend or family member would be advisable. The individual does not have to give you access to the actual card.
Keep Credit Cards Open
Under no circumstances should you close a credit card. Yes, you want to pay your card down, but do not close the card. Closing a card will impact your overall credit utilization, which may lead to a lower score.
Dispute Credit Report Errors
An oversight on your credit report could be costing you critical points that you need. Make sure that you pull a copy of all three of your credit reports from all three credit bureaus; Equifax, Transunion, and Experian. You are entitled to a free report every 12 months from each of the credit bureaus. AnnualCreditReport.com is where you may request those reports.
Look for inaccurate late payments or negative information that should have fallen off the report. Once you have identified these errors, dispute them to have them removed. Credit bureaus have 30 days to investigate and respond. Take advantage of any one of the top Credit Repair Services to jumpstart the process.
Use A Secured Credit Card
Another option for building or improving existing credit is to obtain a secured credit card. A secured credit card is usually based on the cash deposit that you put down vs your credit score. No one will know that you have a secured credit card as it reports to your credit reports in the same manner as an unsecured credit card
What Is Considered a Good Credit Score?
According to the Fair, Isaac, and Company (FICO), the creator of the three-digit score used to rate your borrowing risk, the higher the number, the better your credit score. The FICO score ranges from 300-850. MyFICO.com says a “good” credit score is in the 670-739 score range.
Mix Up Your Credit Types
Your credit score is a compilation of the various types of credit you have. Improving your score requires that you have different mixes of credit. If all you have is credit cards, consider getting an installment account. The three bureaus want to see a combination of credit that is reflective of revolving credit, and installment credit.
Quick Credit Boost
Experian Boost
Click Here to join Experian Boost™At the top of the list is Experian Boost™ it’s a relatively new product that enables you to add utility and cell phone bills to your credit profile.
Self Lender
Whether you need to establish credit from scratch or are rebuilding credit with a specific goal in mind, the Self Credit Builder Account can be a good option for those seeking to boost their credit scores
Get Started today by clicking here for Self Lender
Rent Reporter
RentReporters can help you use rent payment reporting to build credit with credit bureaus and Increase your credit score.
Take Advantage of Rent Reporter and click here to join today
How To Improve Your Credit Score Quickly
Related Credit Posts
About The Author
Marvette Critney
Marvette Critney is a Real Estate Broker in Metro Atlanta, GA, a Credit Expert, and the founder of 750 Credit Score Blog Resource Site, and the well-known blog site Brag Differently. Her credit advice and knowledge have helped hundreds to become homeowners. She is recognized as a leader in her field. Read more.