Even if you are one of the few who take pride in their impeccable credit score, anyone and everyone can benefit from our 9 fastest ways to increase your credit score by 100 points. The truth is, more often than not are people reluctant to share their score, and not because it is considered to be personal information (honestly, who doesn’t like to toot their own horn a bit when they are above average in anything?), but because they are simply embarrassed by that three-digit number.
Anyone who knows anything about credit and even those that have struggled with trying to raise their credit score can tell you: it’s a lot easier to hurt your credit score than to help it! With so many different variables that can have a negative effect on your credit score stacked up against what little you can do to actually significantly increase it, odds are the small mistakes you are making completely outweigh the steps you are taking—if any—to accumulate a higher, more satisfying number.
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Although maintaining an exceptional credit rating can seem like a grueling chore, it can have an efficacious effect on certain aspects of your lifestyle. For instance, it can affect whether or not you are approved for a loan to use for something like buying a house, car, or even starting a business. In addition to the possibility of your credit alone making you incapable of getting a loan for these necessary items, it can also keep you from being able to finance these necessities, as well. Thinking about trying to land a good financial aid or a government job? Well, be sure to check your credit! While any job pertaining to finances and government tends to require a credit check as part of the hiring process, more and more employers are jumping on the bandwagon with this and run credit checks on potential employees.
Needless to say, it is definitely a good idea to start building credit as soon as possible and to even teach your teens to be responsible with their credit, as well! Either, to follow in your footsteps the path to a sterling credit score, or maybe to take a better path to ensure they don’t make the same mistakes you may have. Regardless, 6 Easiest Prepaid Debit Cards to Get For Teens is a good read to help you get them started, and you may even pick up a few ideas right here with the 9 fastest ways to increase your credit score by 100 points! But regardless of your age and credit, it would be smart to start applying all the items on our list to your routine, or at least as many as possible. In doing so, you can get your credit score in tip-top shape in no time, and will have no trouble maintaining a score that you can be proud of.
9. Fix Errors on Your Credit Report
This simple, but often overlooked option could be a gem! Mistakes are likely to happen in any situation. What’s not to say there isn’t one lurking on your credit report? Check your credit and get a copy of your report! We can’t stress enough how much staying on top of your score can help you in the long run. Once you obtain a copy of your report, simply look for any errors and see how to correct them. You could even find that you have an active credit card that you don’t even own! So, without a doubt make knowing your credit score a top priority.
Aside from finding mistakes, you could even notice a pattern. Say you’ve kept a decent credit score until the loss of a job or possibly an illness that got you an enormous hospital bill that you’re having trouble paying off. It is possible that you speak with a creditor to work something out. That person will also see the pattern and best-case-scenario depending on your situation that particular debt or dispute could be erased from your credit altogether!
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8. Set Your Bills to Auto-pay
Even though this one on our list of fastest ways to increase your credit score by 100 points, has its pros and cons, ultimately making sure your bills get paid is your number one priority. Now, you don’t want to go setting all your bills up for auto-pay and then chance overdrafts on your account or using up too much of your given credit limit. Pick a few bills that you always have the money ready for and be sure to keep the money in your account for them if you are using a debit card. Aside from it being less of a hassle, you’ll skip out on those nasty late fees that only seem to put you back further.
7. Don’t Max-Out Credit Cards
Whether or not you know you are able to pay off your credit card debt, people often use them like they’re going outta style! Don’t! Maxing out your credit card looks bad on your behalf, even if you are able to keep up with the monthly payments. If you find that you do it often and can make the payments each month, then hey!—just raise your credit limit! But don’t spend more, now that you have more to play with. No wonder this is on our list of fastest ways to increase your credit score by 100 points, right?
6. Try to Get One or More Credit Cards
We are continuing our list of fastest ways to increase your credit score by 100 points with the number 6 – if by some miracle you don’t already own a credit card, it would be in your best interest to try to get at least one. Even with poor credit, there are options out there if you find it hard to get a traditional credit card. A secured credit card could be a better option in this situation. It’s not as convenient as a traditional card, as it has its limitations, but it’s a start! Once you have a card, use it responsibly—or better yet—hardly at all! The less you use your card, the easier it is to make your payments, and it actually looks better on your part that you’re not using constantly using all your credit.
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5. Do Not Close Out Existing Credit Card Accounts
We repeat! DO NOT! Close out your credit card accounts! “This doesn’t make sense. Aren’t my credit cards my biggest downfall?” We get that it appears as though these little pieces of plastic are just plain evil, but if you have an active account and cancel, or even without an account, your available credit will be less than that of what it is with an active credit card. Having less credit available to you looks bad to a credit bureau, so instead only use it for certain things like a bill or your coffee in the morning—something already in your budget; and if you really can’t stand the sight of it… you could just shred it up and burn it! Just so long as it stays active.
4. Pay Debts Directly to Creditor
Obviously, you are in debt if you are trying to significantly increase your credit score. Your debt will eventually be sold to a collection agency. Now you owe THEM money! And since they paid your debt, they expect more than what they paid for it, so you end up paying interest. Not the best case, but you can always try to get back in touch with the original creditor to see if you can negotiate something. You want to be paying the creditor directly—NOT the collection agency, so don’t ever get to the point where they are not willing to work with you and sell your debt to an agency! And now, let’s see the top three fastest ways to increase your credit score by 100 points
3. Take Out a Loan With Your Bank or a Credit Union
Chances are, you have a bank account. Hopefully, you’ve been banking with the same folks for a while. You could try to take out a small personal loan with them, or even a credit union. Notice how we said “small”? The idea is to borrow an amount you would have no trouble paying back. Heck, you could even use the borrowed money to pay back your loan! All you’re really doing here is making sure the payments are met and this will give your credit a boost. It’s actually, one of the fastest ways to increase your credit score by 100 points! If that doesn’t work, you may have better luck financing something from a local department store. Often times, places like that are more lenient when accepting applicants, but you tend to pay a bit more for what you’re getting.
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2. Pay Your Bills on Time
While paying your bills on time alone will not increase your credit score, whatsoever, missing even one bill can dramatically decrease your score. Even as much as that 100 points you’re after. So, making sure that your bills are paid on time is only going to help you in the long run. Additionally, you can pay bills twice a month! Instead of waiting until the last minute to pay your bills in full, you can opt to break it down into two smaller payments as opposed to one lump sum. Credit card companies, especially like this trick! And now, let’s see the number one in our list of fastest ways to increase your credit score by 100 points.
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1. Become an Authorized User
Okay, so this one’s not the most practical if you’ve been known to have a patchy financial history, but it’s worth a shot! Becoming an authorized user on someone else’s existing credit card account is as easy as finding someone you trust and who, obviously trusts you to add you to their account. This doesn’t mean that they hand you over their credit cards! They’re simply letting their credit card company know that you have permission to use their card. You work something out with them on how much you can use when you will pay yadda-yadda and make sure you stay true to your agreement! We’re sure we don’t have to mention, but we will anyway, be sure that the owner of the credit card account has good credit! If their credit score looks a lot like yours, then this isn’t going to help anybody, but depending on how good their credit is and if they can add you onto multiple accounts, this could be one of the best and ffastest ways to increase your credit score by 100 points!
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