In the land of credit scores, FICO rating is king. Many of us, in one of these fine days, have done something in the heat of the moment that adversely affected their credit rating. Now you may find your head spinning on how to minimize that negative impact.
Well, is there anything you can do to raise it quickly?
Your credit score tells whether you are good at borrowing money and paying it back. All in all, having a healthy score is always good. One thing to remember here is that good credit scores follow good financial habits. In its turn, saving and planning will do far more for you than a good credit score. Yet, if you’re still thinking about ‘How to increase my credit score?’, the time is now.
How Do You Get Your Credit Score Up?
Imagine you found the house you’ve always dreamed of, but there’s a major impediment that stops you from being happy. What have you forgotten? You haven’t achieved that 100-points increase in your credit score.
Don’t want to let someone else get that deal? And you shouldn’t. But how to increase credit score by 100 points? How long will it take to raise it? Well, this is hardly a secret that it won’t happen instantly. At this point, you need to focus on the below-mentioned factors to boost your credit score immediately.
1. Check for errors in your credit report. It may sound weird, but about 5 percent of consumers have errors in their credit reports bad enough to hit the price for a financial product or insurance, claims the Federal Trade Commission.
Don’t let that happen to you. As you see, it’s in your own interest to check your report for mistakes as it can get it for free every 12 months. Mistakes happen, your task is to fix these foul-ups as quick as possible. Once you do it right, expect to see the increase in your credit score fast.
2. Set reminders to repay on time. To help you avoid missing out on your payment’s debt, schedule payments in advance. It’s a good idea to set reminders for yourself so you don’t miss a payment. You can also set up an alarm or date reminder on your smartphone or in whatever program you use to keep track of calendar dates and appointments. No matter the tool, be sure to give yourself plenty of time to calculate and transfer funds.
3. Clean all credit cards. Considering that your payment history is a long-term behavior that can forecast future long-term one, cleaning your credit card balances makes sense. Once you do it right, it signifies this long-term behavior that can help boost your credit rating. So, no regrets, they won’t cut it.
4. Try maintaining a healthy credit mix. Want to raise your credit score a nudge? Think on your feet. Having a mix of credit can be that little bit bump that can up your rating from good to an excellent one. Even being considered only 10 percent of your FICO score, your credit mix can be the strategy to try.
5. Avoid taking multiple loans at a time. As a good rule of thumb, try to repay the current debt before you apply to get another one. This way, you’ll keep your credit score from getting low. Don’t show your cash hiccup. Avoid applying for multiple credit accounts in a short period. Instead, paying successfully one debt gives a boost to your credit score.
How Long Does It Take to Increase Credit Score?
As far as you may know, consumer credit scores range from 300 to 850. In case a borrower doesn’t quite qualify, there are ways on how to boost that rating.
Well, one thing to remember here is that it doesn’t happen overnight. Usually, it takes 3 – 12 months to raise your credit score but you need to be smart and patient to do the trick.
Most lenders and creditors ask for the credit reports on a monthly basis that’s why it’s simply next to impossible to move your rating up in a day or two.
How long to increase credit score by 100 points? Well, 3 – 6 months would be your most instant result.
Forget all the fancy tricks or credit secrets that promise your score to jump overnight. You won’t see immediate results, don’t even expect. One thing to remember here is that the lower your credit score, the more likely you are to achieve a 100-point increase, Rod Griffin says, director of public education for Experian.
Both time and good credit habits can help you establish a solid payment history and what’s more important to get access to more favorable options to borrow money. Indeed, a combination of careful planning and smart interventions can give you a boost you need to raise your credit score 100-200 points. Just keep your eyes open, or else you bound to fail.
Ways to Increase Credit Score up to 100-200 Points
- Make payments on time
You’ll be surprised how much making payments on time can help improve your credit score. Want to get that 100-points increase quicker? Then, don’t shy away from paying more than the minimum amount required. This could be one of the most huge benefits to your rating.
Whether you know it or not but your payment history is the most influential factor that hits your score. Without a doubt, things happen and circumstances can cause you to fall behind on certain payments. But it’s in your own interest to keep an eye on that one or two missed payments before it started affecting your credit.
One thing to do now is to focus on getting 100% debt free. At the end of the day, you’ll see that boosting your credit score is not that all difficult.
- Take care of your credit utilization ratio
So, make all your payments on time and in full as expected. The thing is that this fact alone won’t get you in the high 700s. Even if you pay your balance off on time, one thing you’ve likely missed is your credit utilization ratio. Let’s make it clear, often you pay your bill on the closing date on your account, right? By doing so, you underestimate how much it affects your ratio.
Your ratio is a balance between the amount of credit you’ve used compared to the amount of credit available. Ideally, your best ration should be not less than 30 percent, says Bruce McClary, spokesman of the National Foundation for Credit Counseling. Simply put, lower balances relative to your limits is better.
Now you know how to increase your credit score to 800. Of course, keeping your ratio under 10 percent will do the trick. If possible, pay your bills before the closing day. This assumes you have the money to pay off your expenses. As a result, the lower your ratio, the higher your score is.
If you have balances on more than one card, make a smart move. Bump up your score by paying down the card with the higher balance. Why? Well, the answer is obvious, before raising your credit rating, the FICO score looks at each card’s ratio. So, make sure you take care of your ratio on the card with the higher balance first.
- Consider yourself a level-headed person with an upward-trending rating
Then trying to raise your credit limits looks like a sensible idea. Indeed, this option is great for those only who doesn’t struggle from overspending. So, before you ask for an increase, make sure that your financial situation looks stable.
What will you get? Once your credit limits on the card with the higher balance goes up, your utilization ratio becomes more pleasing. As it goes, the higher the limit, the lower your ratio. Still looking for ways on how to increase credit score with a credit card? Once you can raise your credit limits, expect a boost is score rating.
What’s on Your Bucket List?
Finally found your dream house but can’t get a big enough loan to buy it? While some people need to boost the credit score to 100 points, the needle might be slower moving for others.
Looking for ways on how to increase your credit score quickly? The time is now. No matter why you need to raise your credit rating, learning how to build credit history can mean the difference in your life. So, it’s enough wasting time because delays kill. Start improving your rating right away and you’ll see that the wealth-building increases rather quickly.
So, are you ready for that 100-point increase?