4 tips to boost your credit score fast (2024)

When you have agood credit score, you can get better terms and lower interest rates on loan products and credit cards. But it's not always easy to just boost your credit score overnight. First, you need to consider why your score is low.

"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 nonprofit credit counseling agency Money Management International, Inc (MMI), tells CNBC Select.

Below, we get advice from Triggs and a couple other experts on how quickly your credit score can increase and tips for making it happen.

1. Pay down your revolving credit balances

If you have the funds to pay more than your minimum payment each month, you should do so. Chipping away at your revolving debt can have a major impact on your credit score because it helps to keep your credit utilization rate low.

"How quickly [your score can go up] depends on how quickly the individual creditors report the paid balance on the consumer's credit report." Triggs says. "Some creditors report within days of the payment, some report at a specific time each month."Credit card companies typically report your statement balance to thecredit bureausmonthly, but this could vary depending on your issuer. You can call or chat online with your card issuer to find out when they report balances to the bureaus.

The sooner you can pay off your balance each month the better. You can also make multiple payments toward your balance throughout the month so it is easier to track your spending, and it keeps your balance low. And although it helps to even pay off a portion of your debt, paying off the entire balance will have the biggest and fastest impact on your credit score.

2. Increase your credit limit

You can increase your credit limit one of two ways: Either ask for an increase on your current credit card or open a new card. The higher your overall available credit limit, the lower your credit utilization rate (as long as you're not maxing out your card each month). Before asking for a credit limit increase, make sure you won't be tempted to spend more than you can afford to pay off.

If you are considering opening a new credit card, do your research beforehand. How often you apply for and open new accounts gets factored into your credit score. Each application requires the card issuer or lender to pull your credit report, which results in a hard inquiry on your report and dings your credit score a few points.

"Usually the negative impact of those factors is much less than the benefit to your score of reducing your credit utilization ratio," Triggs says. Just make sure you don't apply to too many credit cards over a short amount of time and send a red flag to issuers.

It's more important now than ever to do your research before applying for new credit because issuersmay have stricter terms and requirements in wake of the economic fallout from coronavirus. Check to see what your credit score is beforehand.

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3. Check your credit report for errors

One way to quickly increase your credit score is to review your credit report for any errors that could be negatively impacting you. Your score may increase if you are able to dispute them and have them removed.

About 25% of Americans have an error on their credit reports, so it's important to take the time to review. Some common errors to look out for include fraudulent or duplicated accounts, as well as misreported payments.

"Most of the clients we meet with have not reviewed their report within the past year, and are often surprised by what we find to discuss with them," says Thomas Nitzsche, a financial educator at MMI.

You can get a free credit reportfrom the three majorcredit bureaus(Experian, Equifax and TransUnion) on a weekly basis by going toAnnualCreditReport.comnow through April 2021.

4. Ask to have negative entries that are paid off removed from your credit report

You may have a series of late payments on your credit report, or perhaps an old collection account that's since been paid off still shows up. If this is the case, ask to have them removed. (And if you do have a collection account that's unpaid, make this a priority. Unpaid collection accounts can negatively impact your score.)

This step may take more time and effort on your end, but it could be worth it. Triggs suggests speaking to the collections agency, debt buyer or original creditor (depending on who now services your account) to remove a paid-off account from your credit report.

"You'd most likely have better results using this method with collection agencies or debt buyers versus the original creditor," he says.

Try to convince them to not only show the account as paid, but to remove the account altogether, which could have a much bigger impact on your credit score. "Having even a paid collection account or paid charge-off on your credit report could deter creditors in issuing you future credit at all," Triggs says.

Bottom line

When it comes to improving your credit score, no there's noone solution that fits all.

"It's important to remember that every person's credit journey is unique," Beverly Anderson, president of global consumer solutions for Equifax. "So while there are many factors that apply to most consumers, they won't always impact everyone's credit scores in the same manner."

Don't miss:4 steps you can take now to help you clean up your credit report

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

4 tips to boost your credit score fast (2024)

FAQs

What brings your credit score up the fastest? ›

4 tips to boost your credit score fast
  • Pay down your revolving credit balances. If you have the funds to pay more than your minimum payment each month, you should do so. ...
  • Increase your credit limit. ...
  • Check your credit report for errors. ...
  • Ask to have negative entries that are paid off removed from your credit report.

What is the no 1 way to raise your credit score? ›

1. Make your payments on time. Paying your bills on time is the most important thing you can do to help raise your score.

What are five 5 tips for improving your credit score? ›

Here are five credit-boosting tips.
  • Pay your bills on time. Why it matters. Your payment history makes up the largest part—35 percent—of your credit score. ...
  • Keep your balances low. Why it matters. ...
  • Don't close old accounts. Why it matters. ...
  • Have a mix of loans. Why it matters. ...
  • Think before taking on new credit. Why it matters.

What are 3 ways to build your credit score? ›

There is no secret formula to building a strong credit score, but there are some guidelines that can help.
  • Pay your loans on time, every time. ...
  • Don't get close to your credit limit. ...
  • A long credit history will help your score. ...
  • Only apply for credit that you need. ...
  • Fact-check your credit reports.
Sep 1, 2020

What builds your credit score the most? ›

Paying your bills on time Is one of the most important steps in improving your credit score. Pay down your credit card balances to keep your overall credit use low. You can also phone your credit card company and ask for a credit increase, and this shouldn't take more than an hour.

How can I raise my credit score 100 points overnight? ›

10 Ways to Boost Your Credit Score
  1. Review Your Credit Report. ...
  2. Pay Your Bills on Time. ...
  3. Ask for Late Payment Forgiveness. ...
  4. Keep Credit Card Balances Low. ...
  5. Keep Old Credit Cards Active. ...
  6. Become an Authorized User. ...
  7. Consider a Credit Builder Loan. ...
  8. Take Out a Secured Credit Card.

What can I buy to boost my credit score? ›

Another way to build or rebuild your credit is with a secured credit card. This type of card is backed by a cash deposit. You pay it upfront and the deposit amount is usually the same as your credit limit. Then, you use it like a normal credit card, and your on-time payments help build your credit.

Should I pay off my credit card in full or leave a small balance? ›

It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.

What are the 5 C's of credit score? ›

Each lender has its own method for analyzing a borrower's creditworthiness. Most lenders use the five Cs—character, capacity, capital, collateral, and conditions—when analyzing individual or business credit applications.

What are the 5 C's of good credit? ›

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

What not to do when getting a credit card? ›

  1. #4: Don't miss a payment by more than 30 days. ...
  2. #5: Avoid cash advances. ...
  3. #6: Don't apply for too many new credit cards in a 6-month period. ...
  4. #7: Never open an account just because you received an offer. ...
  5. #8: Don't close old accounts. ...
  6. #9: Don't let accounts close to due inactivity. ...
  7. #10: Don't ignore fraud protection calls.

What bills build credit? ›

Paying utilities, rent and cell phone bills can help build credit if they're reported to the credit bureaus. If certain bills aren't reported to the credit bureaus, you can consider using a third-party service to report your payments.

What are the three C's of credit? ›

The factors that determine your credit score are called The Three C's of Credit – Character, Capital and Capacity.

How can I build my credit at home? ›

Here's a look at credit-building tools, and how to use them to earn a good credit score.
  1. Get a secured card.
  2. Get a credit-builder product or a secured loan.
  3. Use a co-signer.
  4. Become an authorized user.
  5. Get credit for the bills you pay.
  6. Practice good credit habits.
  7. Check your credit scores and reports.
Dec 18, 2023

How to get a 700 credit score in 30 days? ›

15 steps to improve your credit scores
  1. Dispute items on your credit report. ...
  2. Make all payments on time. ...
  3. Avoid unnecessary credit inquiries. ...
  4. Apply for a new credit card. ...
  5. Increase your credit card limit. ...
  6. Pay down your credit card balances. ...
  7. Consolidate credit card debt with a term loan. ...
  8. Become an authorized user.
Jan 18, 2024

How to get a 700 credit score in 2 months? ›

Pay on Time, Every Time

Your payment history is the most important factor in determining your credit score. Making on-time payments every month is crucial to getting your credit score above 700. If you have some late payments on your credit report, it may make it more difficult to build your credit score.

How to raise your credit score 200 points in 30 days? ›

How to Raise Your Credit Score by 200 Points
  1. Get More Credit Accounts.
  2. Pay Down High Credit Card Balances.
  3. Always Make On-Time Payments.
  4. Keep the Accounts that You Already Have.
  5. Dispute Incorrect Items on Your Credit Report.

How many points does your credit score go up each month? ›

It all depends on your unique situation and the specific actions you're taking to improve your credit. Realistically, you probably won't see your credit score increase by more than 10 points in a month.

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