Your credit report displays your credit scores, and to boost your credit score, you must reduce your debt balance and address anything that may leave a negative impact on your credit report. Negative reports include late payments, missed payments, or any criminal records in your name.
In case of any negative items, your credit score will be lower. If your credit score goes down, it will affect your interest rate for loans as well as your mortgage loan.
Therefore, you must boost your credit score quickly. There are certain ways to raise your credit score by 100 points in 30 days, and this post covers them.
“Understanding the specific circumstances as to what is impacting your score is your first step in understanding how to quickly increase your credit score,” Jim Triggs, president, and CEO of the nonprofit credit counseling agency, Money Management International.
Boost Your Credit Score to 100 point – Steps Followed
When you want to boost your credit score, there are certain steps you need to follow to get quick results.
Some steps include:
- Get a Credit-Builder Loan.
- Review Credit History Length.
- Minimize Hard Inquiries.
- Improve Your Debt Ratio.
- Become an authorized user.
1. Get a Credit-Builder Loan
Credit-builder loans are provided by credit unions and have fixed monthly payments. When you make payments through your credit builder loan, it gets reported to the credit bureaus and helps to boost your credit score.
You must make your payments on time while using your credit-builder loan because you are handling your credit account independently. The credit scoring models will decide your payment history on your credit reports.
2. Review Credit History Length
15% of your credit score makes the credit history length. When you want to boost your credit score quickly, your credit history must be long.
When your credit profile is low, then the lenders will have less information to decide if you are good at managing credit. So, while checking your credit report for errors, take a look at the credit history length too.
Maintain your credit history and do not close all your unused cards, because your history will look longer.
3. Minimize Hard Inquiries
Hard inquiries will have a minimal impact on credit scores. When you apply for a personal loan, then there is a hard inquiry that will reduce your credit score.
Fortunately, the hard inquiries will fall from your credit report after two years. Similarly, whenever the creditor or the lender looks at your credit report, it results in a hard inquiry.
That does not mean that you should not take loans because of hard inquiries. It will take at least a month to approve your loans after you apply for them. You must search for lenders who approve your application quickly so that you may quickly boost your credit score.
4. Improve Your Debt Ratio
When your debt ratio is low, it shows that you are good at managing your debts and lenders are more likely to approve your loan. The debt ratio is linked with your credit score, which makes up 30% of your credit score.
When your debt-to-income ratio is low, it proves that your debt repayment history is good.
5. Become an Authorized User
Being an authorized user on a credit card will not have a huge impact on your credit score, but it helps in increasing your credit history. You also get experience handling credits when you become an authorized user.
Once you become an authorized user for an account, the credit bureaus must be notified about that. When your authorized user is not mentioned on your credit reports, it will not help you improve your credit history.
You will boost your credit score when you are capable of managing your own credit, and as an authorized user, you understand how to handle credit card loans and money management.
When you are trying to improve your credit score, you must follow some good credit habits. If you follow the steps of this article, you will see the scores rising by 100 points in 30 days.
Try to avoid the negative items on your credit report by checking your credit report so that you will find any errors that might bring your credit score down.
After viewing your credit report, you will get to know what must be fixed. When you want to improve your credit scores, you must hire our legitimate credit repair company. We offer free consultations regarding any clarification from the information we’ve presented and will answer any questions you may have.