Ways To Raise Your Credit Score By 100 Points.
Having a low credit score can affect you in a number of ways. We all know it makes borrowing more difficult if not impossible.
A low credit score can also cost you money. If you borrow you will pay higher interest rates because of a low credit score. Also, insurance companies may charge you a higher rate if your credit score is low. When you sign a lease or sign up for utilities you could be required to pay a higher deposit than if your credit score were higher.
So for all of these reasons and more it pays to work on your credit score and keep it as high as possible. If you have a lower score than you want, the good news is that the lower your score the easier it is to make a significant improvement quickly. Take a look at this idea that could help you raise your score faster than you think!
Can you improve your score by 100 points?
Is a 100-point improvement realistic? Rod Griffin, director of public education for credit bureau Experian, says yes.
“The lower a person’s score, the more likely they are to achieve a 100-point increase,” he says. “That’s simply because there is much more upside, and small changes can result in greater score increases. It’s harder to improve scores when you already have a strong credit history.”
If you’re tracking efforts to improve your score, Griffin says, remember that there are many types of credit scores. Make sure you’re checking the same score through the same company each time.
And bear in mind that there are no overnight fixes for bad credit. Time can erase many negatives on your credit report — but only if you make smart choices in the meantime.
Pay your bills on time, all the time
If you’re among the 5% of people with serious errors on your credit report, fixing them may give your score a big boost. But if you’re not?
“After checking for errors, look for any accounts that might be past due,” advises Bruce McClary, spokesman for the National Foundation for Credit Counseling. “Payment history accounts for more than a third of the credit score, so keeping accounts up to date is vital in order to maintain the healthiest rating.”
Bringing an account up to date won’t undo the damage from past late payments, so it’s still important to pay your bills on time. Late payments stay on your credit report for seven years, and the more recent the delinquency, the worse it is for your credit scores.
“A single skipped payment can knock more than 100 points off a good credit score,” Weston says. “The formulas don’t really distinguish between a bill you can’t pay and one you forgot to pay.”
– via NerdWallet
Another Sure Way To Raise Your Credit Score
Here is a look at one of the common reasons people’s credit score is lower than it should be and how to fix it.
The rules of the credit game change from time to time. Understanding the rules and following them is the fastest and best way to raise your credit score.
If you are like many people you think having credit cards and paying the bills on time is enough to build a good credit score. Think again! Find out what could be pulling your credit score down without you even knowing it!
The rule of thumb says you can tap 20 to 25 percent of available credit before you risk hurting your credit score. Experian, one of the credit raters, or bureaus, found that millennials (19 to 34 years old), who use bank cards1 less than previous generations, nonetheless use an average of 43 percent of available credit. Gen Xers (35 to 49) use an average of 41 percent. Those 50 and older tap just 25 percent of the credit limit on their bank cards.
Even if you don’t carry a balance, your score may be dinged if you use a lot of your available credit. Most card issuers report balances to credit bureaus around the close of the billing cycle, before you pay your bill.
“That’s what trips people up, especially people who might be using credit cards for everything, so they can get rewards points,” Detweiler said…
Lowering your utilization rate can give your credit score a healthy boost. Detweiler once paid off a large balance she had on a card as a result of a rental property transaction; her score jumped 60 points. “It’s one of those things that can actually be a quick fix to your credit score, and there aren’t a lot of those,” she said.
Better still, if your usage is high one month, pay off the balance five days to 10 days before the close of your card’s billing cycle. You want to have your payment credited before the balance is reported to the credit bureaus.
– via Bloomberg.com
Have you ever tried to raise your credit score?