How Long Will It Take Me To Improve My Credit Score By 100 Points
The time it will take to improve your credit score depends on several factors, including the issues that lowered your score in the first place.
Some of these issues, such as a high credit utilization rate, can be fixed almost immediately. Others, such as negative marks from late payments, will remain on your credit report for up to seven years, no matter what you do . 16
Ask A Friend Or Family Member To Co
Your friend or family member would have to take a risk in order to co-sign on a loan for you. Co-signing means the friend would take responsibility for your full amount of debt if you failed to pay.
Youll need a co-signer who has a credit profile strong enough to get approved for the loan.
Getting a personal loan or credit card account on the strength of your co-signers credit history and then keeping the account in good standing yourself can help your credit score tremendously.
What My Improved Credit Score Allowed Me To Do
In August of 2011, I had to purchase a car so I could switch jobs.
When I filled out the credit application to see if I qualified for lower financing rates, my credit score came back as 731.
In other words, I raised my credit score from 621 to 731 in just five months!
This is a very big deal because, at 621, I would have been denied a loan for the car, or would have had an interest rate that exceeded 9% on the auto loan.
Since I chose to get a secured credit card, I was able to take the car loan on my own and qualify for the low rate of 3.99% financing.
The difference in the loan between the two interest rates would be $750 over the life of the loan, far surpassing the cards annual fee, and the opportunity cost of my secured credit card holding my $1,100 for five months.
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What I Learned From Being Denied For Credit Cards
When I was finally prepared to get a credit card on my own, none of the banks I applied to would give me a chance.
It went like this: I am unemployed, have no credit history, and have a couple of thousand dollars in college debt that I will have to start paying on in the next year or two.
Not exactly a winning pitch to convince someone to give you a line of credit! Two banks denied me, but one banker was kind and shared some info that has helped me raise my credit score over 100 points in the past five months.
First, I should stop trying to apply for credit cards that would get denied. His reasoning was simple: when you apply, they do a hard credit check which, in turn, can lower your credit score even more.
His second piece of advice was to get a secured credit card.
How To Maximize The Benefits Of Your Secured Credit Card
When I first checked my credit score with MyFICO in March of 2011, it was sitting at 621.
I set up my new secured credit card with a credit limit of $1,100. The credit limit should be a function of what cash you have, and also what you plan on using the credit card for.
According to many bankers and friends I talked to, you should try to run a 75% utilization rate on your credit card to maximize your potential to raise your credit score.
So, if you only spend around $300 a month, you should give your secured credit card a $500 down payment so that you are utilizing your credit rather than having a $1,000 dollar limit and only spending $300.
My expenditures were approximately $700 dollars a month so the $1,100 dollar limit fit my needs.
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Pitfalls To Avoid When Working On Your Credit Scores
When it comes to building credit, its easy to get overly focused on ways to raise your credit scores fast. The truth is that building credit takes time. So take a step back and make sure your strategy doesnt do more harm than good.
Here are a few donts to keep in mind.
- Dont apply for a bunch of new credit cards just because you want to increase your credit utilization. Even though this might help lower your credit utilization ratio, it could also make you look like a risky borrower thanks to the new hard inquiries on your reports.
- For the same reason, dont take out a loan just to improve your credit mix. Only apply for a new loan if you actually need it.
- Dont carry a balance on your credit card just so you can build credit. Carrying a balance can lead to unnecessary interest charges, and it might actually hold your scores down by increasing your credit utilization ratio.
- Dont cancel your credit card after you pay it off unless you have a good reason to do so. Closing your credit card will hurt your length of credit history, so its better to leave it open, even if youre not using it anymore. Of course, if having a card tempts you to spend more, or it comes with an expensive annual fee, you might want to rethink this conventional wisdom.
Create Your Credit Score Improvement Goal
Set a goal to improve your credit score by 100 points .
You can often achieve this in less than a year, with a little time and effort. If you have collections that are hampering progress, dont worry there may still be ways to remove them.
If you want a credit score improvement, then make it happen. Write your goal down somewhere and include it in as many places that are meaningful to you as possible. Add your credit score goal to a vision board or phone wallpaper.
You cant focus on and manifest something thats not within reach. Along with working hard to improve your credit score, start visualizing it as happening!
If you cant envisage a higher credit score happening how is that supposed to occur? Hint: It wont. Knowing you are capable of achieving the goal for this credit rating makes up half the struggle.
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Whats The Fastest Way To Add This Type Of Credit To Your Credit Report
The fastest way to get this type of credit on your report is by obtaining whats known as an authorized user account. This means that youll become a secondary account holder on someone elses credit card.
First, youll need to determine who will be willing to place you as an authorized user on their account. For this to be MOST effective, you need to have the same last name and mailing address as the primary account holder. Otherwise, this technique will be limited in its impact. So, if you have a brother, sister, father, mother with your last name, living at your address, then talk with them and see if theyd be willing to help.
Ask them to add you onto their unsecured credit account with the highest credit limit, and you should be looking good in no time flat!
What Affects Your Credit Score
To better understand how to raise your credit score, you need to know what affects it. Your FICO score is based on five factors with the following weights:
- Payment History : This is based on your on-time payments. A single late payment can bring it down, and the more late payments you have, the worse it will be.
- This figure compares the amount that you borrowed compared to how much available credit you have. So, if you keep your credit card balances low, you will have a good score. If your cards are maxed out, you will have a poor score.
- As the name implies, this is how old your credit history is. It is typically measured as an average of account ages.
- This score will be better if you have more than one type of credit. For example, credit bureaus want to see installment loans and revolving credit .
- New Credit : If you have recently opened a lot of credit cards or loans, this score will be worse. It also looks at hard pulls, as those typically indicate you are looking for a credit card or loan.
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How To Raise Your Credit Score 100 Points In 30 Days 3 Months Or A Little Longer
Everyones credit score and situation is different but rest assured raising your credit score is within your reach. Increasing your credit score 100 points isnt difficult, these 5 easy steps will help you achieve this in as little as 30 days.
We often think of credit scores as being a delicate matter which we have no control over. In reality you can improve your financial standing and credit score by taking a few simple steps.
With a little patience, determination and effort you can make significant progress in the right direction in the next few months.
Start taking back control of your money by grabbing your copy of the Money Saving Starter Guide today.
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Increase Your Credit Limits
If youre having trouble paying down balances, you can also decrease your utilization rate by increasing your credit limit.
However, some card issuers may use a hard inquiry to review your credit when you make a request. This could hurt your credit score, especially if there are several hard inquiries from new accounts and requests.
The impact of a single hard inquiry may be offset by the score increase from your lower utilization rate.
However, because of the potential score drop, it may be better to begin by focusing on lowering your reported balances.
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Tips That Can Help Raise Your Credit Scores
Because , building credit takes time. Depending on your individual situation, there may be ways to raise your scores quickly like paying down all your debt in a very short span of time. But if youre starting out with bad credit, even a drastic measure like that may not have the immediate effect youre looking for. No matter what, the most impactful thing you can do for your credit is to create some consistent habits. Here are some tips that can help you raise your credit scores over time.
What Can You Do With A Credit Score Increase Of 100+ Points
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A jump of 100 points might be enough to bump a credit score up from the below average range into the average/fair range. Thats a critical jump, because it could make you eligible for an unsecured card, which is a vital step in your personal credit recovery journey. It would put you well on your way to qualifying for other financial milestones like a mortgage or a line of credit. You might even be eligible for more rewards-rich credit cards and for lower interest rates on loans.
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Keep Your Credit Information Up To Date
Another good strategy for how to raise credit scores involves updating credit card companies with any increases in your income. Higher income improves your ability to make payments on time, according to lenders. Informing lenders of your higher income makes it easier for them to grant you a credit line increase, which in turn increases your available credit, decreases your DTI ratio and can raise your scores.
How To Raise Your Credit Score By 100 Points
At a glance
If youre hoping to improve your credit score by 100 points, there are a few methods you can try. Some are fairly quick and easy, but most will require time and effort.
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Get Late Payments Removed
Before disputing late payments you should contact your creditors and tell them you have a late payment on your credit report on your account and you believe its inaccurate. They may remove it as an act of goodwill for customers who have been with them for awhile.
I had a creditor remove a late payment from my credit report by calling and coming up with an excuse for why it was late. They removed it as an act of goodwill because I had been a customer for several years. If that doesnt work, you can start disputing it with the three major credit reporting companies.
I had four late payments with two different creditors at one point. I contacted the creditors and got one removed and disputed the other 3 with the Credit Bureaus. I was able to get another one removed, and my credit score jumped up by 84 points.
Add Utility And Phone Payments To Your Credit Report
Typically, payments such as utility and cellphone bills wont be reported to the credit bureaus, unless you default on them. However, Experian offers a free online tool called Experian Boost, aimed at helping those with low credit scores or thin credit files build credit history. With it, you may be able to get credit for paying your utilities and phone bill even your Netflix subscription on time.
Note that using Experian Boost will improve your credit score generated from Experian data. However, if a lender is looking at your score generated from Equifax or TransUnion data, the additional sources of payment history wont be taken into account.
There are also services that allow rent payments to be reported to one or more of the credit bureaus, but they may charge a fee. For example, RentReporters feeds your rental history to TransUnion and Equifax however, theres a $94.95 setup fee and a $9.95 monthly fee.
How much will this action impact your credit score?
The average consumer saw their FICO Score 8 increase by 12 points using Experian Boost, according to Experian.
When it comes to getting your rent reported, some RentReporters customers have seen their credit scores improve by 35 to 50 points in as few as 10 days, according to the company.
Here Are 10 Ways To Increase Your Credit Score By 100 Points
Check Your Credit Score
There are several places you can get your credit score, including from most if youre a customer and sites like Credit Karma and Credit Sesame. Depending on which range youre looking at, credit score ranges can vary, but they generally look like this:
Candice Elliott has been a freelance writer specializing in personal finance since 2013. She learned to manage her money the hard way after moving to New York City and living paycheck to paycheck for years. She wants to help others avoid the money mistakes she made while providing easy and actionable advice in an entertaining way. Candice believes that personal finance information should be inclusive of everyone because a solid financial base is the foundation for a successful life. Candice now lives in New Orleans where she admits she spends more than she should on restaurants because the food is as good as youve heard.
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Sign Up For Free Credit Monitoring
Whether its with Credit Karma or someone else, keeping a close eye on your credit is essential. Signing up for credit monitoring can help alert you to important changes in your credit, so that you can check for suspicious activity. Fraudulent activity can weigh down what could be an otherwise good credit score, so its important to dispute any details you identify as inaccurate. If the credit bureau rules in your favor, the fraudulent activity will be removed from your credit report, which can help raise your credit scores.
How To Clean Up Your Credit Report Using Donotpay
If you want to clean up your credit report but don’t know where to start, DoNotPay has you covered in 3 easy steps:
You can also check out our other credit products, including Credit Limit Increase, Get My Credit Report, Keep Unused Cards Active, and more!