How to Boost Your Credit Score By 100 Points In 30 Days
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Boost Your Credit Score By 100 Points In 30 DaysBoost your credit scores for easy loan approvals with better interest rates. Credit consumers would have come across this statement quite often. High credit scores show the creditworthiness of the applicants and increase their opportunity of securing loans. 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.
Why Boost Your Credit ScoresAs credit score is the widely used metric to evaluate the credit worth of the customer, it becomes very necessary to maintain good credit scores. Good credit scores increases the chances of loan approval and that too with low interest rates.
What Is Credit Score?Credit score is a three digit number that ranges from 300 to 900. The credit bureaus like Experian, Equifax, and TransUnion make use of users financial information to evaluate their creditworthiness. Regular and timely payments of the monthly installments can boost customers credit score considerably.
Factors Affecting FICO ScoresLet us understand the parameters that are considered in credit score calculation.
|Payment history||On time payments||Timely payments will increase the chance of loan approvals.||35% of credit score|
|Amounts Owed||Debt owed by the applicants||Lesser the amounts owed, easier the approvals.||30% of credit score|
|Length of Credit History||How long applicants maintain their credit accounts.||Longer credit history will help with better credit scores.||15% of credit score|
|Credit Mix||Types of credit||A record of multiple types of credit will increase the credit score.||10% of credit score|
|New Credit||Number of new credits||Lesser number of new credits will increase the chances of loan approvals.||10% of credit score|
Boost Your Credit Score to 100 point – Steps FollowedWhen 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.
Get a Credit-Builder LoanCredit-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.
Review Credit History Length15% of your credit score makes the credit history length. When you want to boost your credit score quickly, your credit history must belong. 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.
Minimize Hard InquiriesHard 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.
Improve Your Debt RatioWhen 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.
Become an Authorized UserBeing 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. Also Read:
- How to Increase Credit Score Fast with Timelines?
- How Soon Credit Score Improve Your Bankruptcy?
- Why Is My Credit Score Low After Getting Credit Card?
- How Long Does Credit Repair Take?
- Why Maximum Credit Score is 850?
Frequently Asked Questions
How can I boost my credit score in 30 days?Becoming authorized is one of the simple ways to boost your credit score in 30 days. Here are a few other ways to improve your credit score,
- If you have a late or missed payment, resolve them soon.
- Paying big debt.
- Resolve your consumer debt.