Build Your Credit Fast

Is it realistic to increase your score by 100 points? You can increase your credit score by up to 100 points by following tips such as making multiple payments on your credit cards each month and rectifying any errors on your credit report.

Here are some strategies to quickly improve your credit:

1. Pay Credit Card Balances Strategically

The portion of your credit limits you’re using at any given time is called your credit utilization. A good guideline is to use less than 30% of your limit on any card, but lower is better. The highest scorers tend to have credit utilization in the single digits. You want to make sure your balance is low when the card issuer reports it to the credit bureaus because that’s what is used in calculating your score. A simple way to do that is to pay down the balance before the billing cycle ends or to pay several times throughout the month to always keep your balance low.

⦁ Impact: Highly influential. Your credit utilization is usually the second-biggest factor in your credit score; the biggest factor is paying on time.

⦁ Time commitment: Low to medium. Set calendar reminders to log in and make payments. You may also be able to add alerts on your credit card accounts to let you know when your balance hits a set amount.

⦁ How fast it could work: Fast. As soon as your credit card reports a lower balance to the credit bureaus, that lower utilization will be used in calculating your score.

2. Request a Higher Credit Limit

When your credit limit increases and your balance remains the same, it reduces your overall credit utilization, which can positively impact your credit score. If your income has increased or you have a longer positive credit history, you have a good chance of getting a higher limit.

Before making this request, plan how you will maintain your spending habits and avoid maxing out the extra available credit. If higher limits may tempt you to overspend, this strategy may not be the best for you.

⦁ Impact: This can have a significant impact as credit utilization is a major factor in credit scores.

⦁ Time commitment: Low. Contact your credit card issuer to inquire about a higher limit. Check if it’s possible to avoid a “hard” credit inquiry, which could temporarily lower your score by a few points.

⦁ How quickly it could work: Quickly. Once the higher limit is reported to credit bureaus, it will lower your overall credit utilization—as long as you don’t use the extra credit.

3. Become an Authorized User

If a relative or friend has a credit card account with a high credit limit and a good history of on-time payments, ask to be added as an authorized user. The account holder doesn’t have to allow you to use the card or give you the account number for your credit to benefit.

Ensure that the account reports to all three major credit bureaus (Equifax, Experian, and TransUnion) for the best effect; most credit cards do.

⦁ Impact: This can have a potentially high impact, especially if you have limited credit history. The impact will be smaller for those with established credit who are trying to offset missteps or lower credit utilization.

⦁ Time commitment: Low to medium. You’ll need to have a conversation with the account holder and agree on whether you will have access to the card and account or simply be listed as an authorized user.

⦁ How quickly it could work: Quickly. As soon as you’re added and the credit account reports to the bureaus, the account can benefit your credit profile.

4. Pay Bills on Time

It’s crucial to pay your bills on time to improve your credit. Late payments can negatively impact your credit score and stay on your credit reports for up to seven years. If you miss a payment by 30 days or more, contact the creditor right away. Try to make the payment as soon as possible and ask if the missed payment can be removed from your credit report.

Even if the creditor doesn’t agree, bringing the account current as soon as possible is essential. Late payments have a significant impact on your credit score as your payment history is a key factor in credit scoring systems.

To prevent missed payments, set up account reminders and consider automatic payments to cover at least the minimum amount due. The time it takes to see improvement in your credit score varies depending on the number and recency of missed payments as well as the severity of the delinquency. However, the impact of delinquent payments lessens over time and adding positive credit accounts can help speed up the process.

5. Remove Any Derogatory Marks

A mistake on one of your credit reports could be lowering your score. To quickly improve your credit, dispute errors on your credit report and hire a reputable credit repair company.

You can receive free weekly reports from each of the three major credit bureaus.

Visit AnnualCreditReport.com to request these reports and check for mistakes such as payments marked late when you paid on time, someone else’s credit activity mixed with yours, or negative information that’s too old to be listed anymore.

⦁ Impact: The impact varies, but it could be significant if a creditor is reporting that you missed a payment when you didn’t.

⦁ Time commitment: It may take a medium to high amount of time. Requesting and reading your free credit reports, disputing errors, and tracking the follow-up all require time. However, the process is worthwhile, especially if you’re trying to build your credit before a significant event such as applying for a large loan. If you’re planning to apply for a mortgage, make sure to resolve disputes well in advance.

⦁ How fast it could work: The speed varies. The credit bureaus have 30 to 45 days to investigate and respond. Some companies claim to be able to dispute errors and quickly improve your credit, but it’s important to proceed with caution and hire the right credit repair company.