How to Raise Credit Score 100 Points in 30 Days?
You never know when you might need to borrow money to pay for emergency expenses or significant debts. Plus, to get a sizable financial product, consumers must have excellent credit scores. Hence, such credit ratings need time to build and a reasonable strategy.
And what if you need money as soon as possible but have a terrible credit score? Is it possible to raise in 30 days, or is it just a myth? BadCreditCashASAP answers all your questions about raising the credit scores and looking good in the lenders’ eyes.
Table of Contents
- Is It Realistic to Improve Your Credit Score with 100 Points?
- What May Affect Your Credit Score?
- Tip 1: Decrease Your Credit Utilization Ratio
- Tip 2: Discuss Late Payments Forgiveness
- Tip 3: Get Rid of Credit Report Errors
- Tip 4: Try Authorized Usage of Someone Else Credit Card
- Tip 5: Use Utility Payments & Rent Bills to Improve Your Credit Mix
- Tip 6: Learn All About Your Credit Score
Is It Realistic to Improve Your Credit Score with 100 Points?
Everybody knows that credit building takes time because it is complex and depends on many factors. Each factor has a certain percentage in calculating the credit rating. But we will speak about this later in the article.
Meanwhile, some lenders or credit unions advertise that it is possible to raise your credit score by 100 points overnight or within several days. It is not valid! For example, if you have errors in your credit report, it might take several weeks to solve them and quickly boost the credit score with a maximum of 10 points. On-time payments also influence your credit positively, but it takes time to report the payments to those three credit bureaus and tell them you are a disciplined borrower.
John Ulzheimer, a nationally recognized expert on credit reporting, credit scoring, and identity thefts, says that there is no secret to raising your credit overnight. However, you may ask “how much will my credit score go up?”. Before giving you the answer, let’s check the factors that significantly lower or improve your credit score.
Tip 1: Decrease Your Credit Utilization Ratio
After you’ve understood all the factors that influence your credit background, it is time to learn how to raise your credit score at this point. The first is to lower your credit utilization ratio. Here are three options you may choose from:
Solution 1: Don’t use all your credit limit
Even if you have an enormous positive balance on your credit cards, try to use only up to 30% of your credit limit. It will help you save money on interest rates and cut unnecessary expenses. If consumers need more money, they may ask the credit card issuer to increase their credit limits and use the available credit line. But the issuer might see your credit limit increase as a sign that you can’t manage your credit card payment. So, a credit line increase should be your last resort when having no other option.
Solution 2: Open a new credit card
Applying and opening a new credit card is also a part of the strategy. It may decrease your credit utilization ratio by several points and increase your credit score quickly. For example, if you open a new credit card with a high credit limit and use only 30%, your credit utilization ratio drops by several percent.
Plus, consumers may choose a secured card that works similarly as an unsecured one. But the issuer might require a deposit equal to the credit card limit. A secured credit card may raise your credit in the long term but try not to set a higher credit limit in order to avoid excessive debts.
Solution 3: Take a personal loan to pay off the debts
One of the most widespread solutions on how to increase credit score to 800 is taking credit card debt consolidation loans like personal loans. If you have only credit cards, this personal loan helps you pay all your outstanding loans with a single payment. Then you’ll be committed with a single monthly payment. This option fits perfectly when a consumer has too many credit cards and can’t manage all the payments. If you choose this option, consider that credit line increase can’t be used as a solution for paying the debts.
Solution 4: Avoid paying your credit accounts in collections.
Usually, a collection agency doesn’t take out your account from your credit report and it can impact your credit score. So, ask the agency to remove the collection account from your borrowing report.
Tip 2: Discuss Late Payments Forgiveness
Repaying all your debts, including car loans and mortgages, on time is 35% of consumers’ FICO scores. If you have missed payments, call your issuing financial institution (at the end of the billing cycle) and solve this problem by paying the credit card debt. Your late payments will cost you a certain fee or a penalty APR.
Also, you may ask them not to report this late payment to those three major credit bureaus. This practice is permitted once or twice only for loyal customers. If you are a newbie borrower, they might wait 30 or 60 days before reporting such a problem to credit bureaus. In this period you can pay your debts on time.
To avoid a late payment or a forgiveness request, you may set automatic payments for your cash deposit. It will help you lower your credit usage in the long term.
Tip 3: Get Rid of Credit Report Errors
Errors on credit report considerably influence your credit rating. That is why financial experts recommend consumers check their credit reports at least once a year. Typically, customers have the right to one free credit report per year from each credit bureau Transunion, Equifax, Experian. They offer free credit scores at Annualcreditreport.com.
Due to the pandemic, Americans may check their credit reports weekly from April 2021. If they spot something wrong with their free credit score, they can dispute credit report errors to the Consumer Financial Protection Bureau. According to credit statistics from 2021, 68% of complaints were about credit report errors spotted by Americans. Reported problems will be solved in one or two days depending on their difficulty. Some cases could need at least 30 days to make a full investigation on borrowers’ credit reports.
Tip 4: Try Authorized Usage of Someone Else Credit Card
If you can’t qualify for your card, become an authorized user of someone else’s credit card balances. Their excellent credit may help you build your credit fast but in the long term. Their on-time payments, low credit card limit, and low credit utilization ratio will play a significant role in building your credit. But there is always a risk. If the person pays late or exceeds the credit limit, it will affect your credit too. So, choose someone you trust and improve your credit score fast by becoming an authorized user of their credit card.
Tip 5: Use Utility Payments & Rent Bills to Improve Your Credit Mix
Americans can add their monthly utilities and rent payments to their credit scores. But remember that only consistent two-year payments will count. Link your bank account to reporting services, and they will report your paying bills to credit bureaus. Experian may help you in this matter. This credit bureau helps Americans build their credit scores in time by linking all the monthly payments to one report.
Tip 6: Learn All About Your Credit Score
Maybe it should be the first tip on how to improve your credit score in 30 days. First, you should understand how your credit is calculated. It works due to an algorithm created by FICO (Fair Isaac Corporation) – a credit bureau that scores the creditworthiness of Americans.
So, your FICO score is calculated by the following percentage:
- 35% – payment history
- 30% – credit utilization rate
- 15% – length of credit history
- 10% – new revolving accounts
- 10% – credit mix
We’ve already discussed each of these metrics and their roles in your credit score. But how about the exact figures? What is considered a bad or good credit score? FICO algorithm says that:
- A good credit score is considered above 720;
- Fair credit ranges between 620 and 679;
- Terrible go down from 579.
So, is it possible to raise your credit with 100 points or not? Follow our tips and rely on credit repair companies.
If a consumer needs to raise their credit scores by 100 points, we suggest they start the process as soon as possible. Nobody knows how long it takes for a credit score to go up. It will take time and effort to improve their credit legally and create a good credit image in front of lenders’ and credit bureaus’ eyes.
There is no secret to creating a positive credit history unless you travel in time and make other choices. If you need credit counseling, don’t hesitate to contact a financial expert like BadCreditCashASAP. Find out all about reaching a reliable lender that works with bad credit borrowers.