Having a good credit score is crucial for getting approved for loans and credit cards with favorable interest rates. But what if your credit score needs a boost? Raising your score by 40 points or more is possible with some strategic moves. Here’s how you can raise your credit score by 40 points or more, even in just a few months.
Check Your Credit Reports for Errors
One of the fastest ways to raise your credit score is to look for mistakes in your credit report. Experian, Equifax, and TransUnion are the three main credit bureaus that must give you a free credit report every year. Carefully read each report and question any wrong information, such as payments marked as late that you made on time. Fixing errors can improve your credit score rapidly. According to the FTC, you can get an extra 100 points if you fix a big mistake.
Pay Down Credit Card Balances
Your credit utilization ratio – how much of your available credit you’re using – accounts for 30% of your credit score. To raise your score, pay down balances to get utilization below 30%, or even lower. Pay extra before your statement closing date to lower the balance reported to the credit bureaus. As soon as the lower balance is reported, your score can increase.
Become an Authorized User
Ask a friend or family member with good credit to add you as an authorized user on their credit card. As an authorized user, the card’s payment history will be added to your credit reports, boosting your score, especially if you have little credit history. Just be sure they make payments on time and keep balances low.
Increase Your Credit Limits
Ask your credit card issuer for a higher credit limit This lowers your credit utilization since you’ll have more available credit Be sure you won’t be tempted to use the extra credit and make payments on time. Getting a higher limit without increasing your spending will boost your score.
Make Payments Twice Per Month
Paying bills on time is crucial for a good credit score. Make small payments twice per month instead of one big payment to ensure you never miss a payment due date. The extra on-time payments can increase your score. Automate payments for error-free payment records.
Use Secured Credit Cards
Secured cards require an upfront security deposit that serves as your credit limit The deposit lowers the issuer’s risk Secured cards are great for building credit through on-time payments if you can’t qualify for an unsecured card, Just be sure your credit limit is reported to all three credit bureaus,
Enroll in Credit Monitoring
Credit monitoring services will let you know whenever something changes on your credit report. This helps you keep your credit in good shape by letting you dispute mistakes and strange activity right away, before they do a lot of damage. The service won’t raise your score, but it will help you keep it safe.
Let Credit Age Naturally
Length of credit history accounts for 15% of your score, so avoid closing your oldest accounts if possible Having long-standing accounts demonstrates you can manage credit responsibly over time Opening many new accounts lowers your average account age, so apply for new credit sparingly.
Make Payments on Time
Your payment history has the most significant effect on your credit score at 150%. Set up automatic payments and reminders to make sure you never miss a due date. If you’re late on a payment, catch up and call the creditor to make the payment official. Avoid late payments to maintain and build your score.
You can raise your credit score by 40 points or more in just a few months if you use these tips together in a smart way. You have to be consistent and patient to improve your credit, but the benefits are well worth the work. Keep an eye on your score as you go so you can see how you’re doing and make changes as needed until you reach your score goals.
Pay bills on time
No strategy to improve your credit will be effective if you pay bills late. Late payments can stay on your credit reports for seven years.
If you miss a payment by 30 days or more, pay the outstanding balance immediately. Next, reach out to the creditor by phone or online chat and ask if they will consider no longer reporting the missed payment to the credit bureaus. Youre more likely to have success with this approach if this is a one-time occurrence and you have a record of on-time payments.
Even if the creditor doesnt agree to your request, it’s still important to bring your account up to date as soon as possible. Each month that an account is marked delinquent hurts your score.
SCORE IMPACT: Highly influential. Your payment history is the largest scoring factor in both FICO and VantageScore credit scoring systems.
TIME COMMITMENT: Low. Prevent missed payments by setting up account reminders and considering automatic payments to cover at least the minimum.
HOW FAST IT COULD WORK: This varies, depending on how many payments youve missed and how recently. It also matters how late a payment was (30, 60, 90 or more days past due). Fortunately, the impact of delinquent payments fades over time, and adding more positive credit accounts can help to speed that up.
Ask for higher credit limits
When your credit limit increases while your balance stays the same, it immediately lowers your overall credit utilization, which can improve your credit. If your financial situation has improved, such as an increase in income or more years of positive credit history, youre likely in a good position to request a higher limit.
However, before asking for a credit limit increase, plan how youll keep your spending habits steady and avoid using the additional credit. If those higher limits are a temptation, this might not be the best strategy for you.
SCORE IMPACT: Highly influential, because utilization is a large factor in credit scores.
TIME COMMITMENT: Low. Contact your credit card issuer to ask about getting a higher limit. See if its possible to avoid a “hard” credit inquiry, which can temporarily drop your score a few points.
HOW FAST IT COULD WORK: Fast. Once the higher limit is reported to credit bureaus, it will lower your overall credit utilization, provided you dont spend the additional available credit.
How to RAISE Your Credit Score Quickly (Guaranteed!)
FAQ
How can I Raise my credit score 40 points fast?
Many debt collectors will simply give up after receiving it. Here are six ways to raise your credit score 40 points fast: check for errors on your report, remove late payments, reduce credit card debt, become an authorized user, make payments twice a month, and build credit with your credit card.
How can I increase my credit score fast?
Here are six ways to raise your credit score by 50 points: Check for errors on your report. Remove late payments. Reduce credit card debt. Become an authorized user. Make payments twice a month. Build credit with your credit card. How can I boost my credit score fast?.
Can a credit card improve your credit score?
Failing to pay your dues would rack up late payment penalties and interest on dues, and wreck your credit score which would make getting fresh credit nearly impossible,” he adds. In this write-up, we will tell you how you can use a credit card to avoid falling into a debt trap and improve your credit score.
What brings your credit score up the fastest?
Keep paying your bills on time. In many credit scoring formulas, your payment history has the greatest effect on your overall credit scores. So, it’s critical to make payments on time.
How to raise your credit score 45 points?
You could elevate your credit score with tips such as making on-time payments, paying credit card bills more than once a month, becoming an authorized user and fixing credit report errors.
Can I go from a 500 to 700 credit score in 6 months?
How to Get a 700 Credit Score in 6 MonthsGet a line of credit. I recommend a secured credit card. Use your card for small purchases. Pay off your entire balance once you get your statement to avoid paying interest. After 6 on-time payments, you can check your credit score via creditscorecard. Don’t worry, it’s free.
How do I add 50 points to my credit score?
To raise your credit score significantly, make sure you always pay your bills on time, use less credit, and fix any mistakes on your credit report.