If you’re someone with a low credit score, opportunities for loans and other important investments are hard to get.
With that said, there are a number of ways to raise your credit score quickly. Improving your score will increase your credit line and make you seem more desirable to lenders.
There are ways to earn up to 100 points within a short period of time. Check out these tips on how to raise your credit score in no time!
1. Pay bills on time
Paying your bills on time will greatly boost your credit score. Late payments can stay on your credit history for up to 7 years…which will make for poor credit history.
This will have the BIGGEST impact on your score. Paying bills on time is the biggest factor considered by both FICO and VantageScore when calculating your credit score.
Try setting up account reminders, calendar notifications, or an automatic account withdrawal to help with this.
2. Pay credit card balances strategically
Improving your credit score can be as easy as paying off your credit debt!
A good guideline to go by is this: Do not use more than 30% of your credit utilization. Basically, the lower the percentage, the better. The highest scorers shoot for less than 7% utilization.
Your main goal should be to keep your balance low by the time the billing cycle ends and card issuers send in their reports to the credit bureaus.
This can look like you making small payments throughout the month or paying a big amount before the end of each cycle. Both options will help keep your balance minimal.
This is one of the quickest ways to lower your score. As soon as credit bureaus receive a lower credit report from issuers, you will see your score change almost immediately!
3. Ask for higher credit limits
If your limit is raised while your balance stays the same, your credit utilization will lower. This in return, can raise your score.
If your income increases steadily while having a solid credit history, your chances of getting a higher limit is strong.
This is the second biggest factor credit bureaus take into consideration. This means the impact of having a higher credit limit highly influential to your score.
Asking for a higher credit score takes little to no time at all too! Simply call your credit card issuer and ask.
4. Dispute credit report errors
As crazy of an idea as this sounds, mistakes happen. Errors on credit reports are not uncommon and can be the cause of your credit score being low.
Each month, you have the freedom to ask for copies of your credit report. Most major credit bureaus will give you a copy for no additional charge either.
Once you get a copy, check for payment dates being shown as late when you paid on time or another person’s credit activity getting mixed up with yours.
This may take some time to do, but the benefit could be a major boost to your credit.
5. Use a secure credit card
Another way to repair and boost your score is by using a secured credit card.
These types of cards are supported by cash deposits where you pay them upfront. You use it the same way as a normal credit card, and paying bills on time will have the same effect.
This is a great option for either someone new with credit or someone in need of rebuilding theirs.
Boost Your Score Now!
Most think raising their credit score is nearly impossible. However, by simply trying out these 5 tips, you’ll see a drastic improvement in yours within as little as 30 days.