The Best And Fastest Way To Raise Your Credit Score

By: Frank Makrides

Updated on October 20, 2020

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In this article, I’m going to share with you the best and fastest way to quickly raise your credit score. If you’re building credit for the first time or you’re looking to repair your credit, the simple steps below will help get you that higher credit score fast.

Getting better terms and lower rates of interest on credit cards and loan products are only possible when you have a good credit score. Your score affects some of the biggest life decisions that you will make like making any major purchases, like financing a home and a car. In fact, it is known to even affect if you can get a job and what you pay on your monthly bills as well. Thus, boosting up your credit score is a must nowadays.

Make sure your money management is in order

It is critical that your financial foundation is in order prior to fixing your credit. It is assumed at this point that your personal finance, budget and debt situation are in order or at least on track. If not please click on the above links for all of my articles, free tools and information to get you going.

Establish a credit baseline

The first thing you need to do is get a clear understanding of what your credit score is and what is on your credit report. There are tons of free resources out there that can help you do this today. By far the best company out there to monitor your credit can get your credit report for free is Credit Karma. If you haven’t done so already, stop what you’re doing and open an account up with Credit Karma. I have a link for them below.

#1 Rated For Free Credit Reports & Credit Scores

Monitoring your credit score on an ongoing basis is part of your ongoing journey to financial wellness. The best company out there for this is Credit Karma. You can access your credit score and credit report anytime you need it. I continue to use Credit Karma to this very day. The best part of all is that it’s free. If you haven’t signed up already go do it today.

Try Credit Karma

With Credit Karma, you can check your current credit score and they will provide you some tips, tricks and ideas for free to help you immediately improve it if needed. Make sure you have active lines of credit open like credit cards and the like. Also, verify that you have nothing in collections and no late payments showing up on your credit report. If you happen to find any errors in your report you can either dispute them or request they be removed in writing. If you want to learn more about how to get your credit report for free, check out my YouTube video below.

Click on the link to the free “Credit Reports and Credit Scores” guide from the Federal Reserve.

The step before opening a starter card if needed - using a credit builder account

One sure method to help you build your credit score if you can’t qualify for a starter credit card is to use a credit-builder account. These accounts are basically installment loans that allow you to build a positive payment history. During this process as your credit score increases, you can then proceed to apply for that starter credit card. Self is our recommended partner for credit builder accounts. The best part of Self is that you don’t even need a credit score to get started. All of your positive payment history is reported to the three major credit bureaus as well. Remember to open that starter card while you still have a credit-builder account still open because closing the account could temporarily negatively affect your overall credit score. Once you’re done simply close the account and you will get your money back minus any fees incurred in the loan process. It’s that simple. Check out the link below to Self.

#1 Rated For Building Credit While Saving Money

Self is helping thousands of people begin their financial journey with a Credit Builder Account. Building a financial foundation is a daunting task for most people. They strongly believe that a customer’s success is tied to a variety of factors. They are known for their amazing customer experience through honesty, their technology, and a great dedicated team.

Try Self

Using secured or starter credit card

One of the best and fastest ways to boost your credit score is by using a secured credit card. It will be backed up by a cash deposit. You need to pay upfront the deposit and the amount of the deposit is mainly the same as your credit limit. They are used as you would use a normal credit card and the on-time payments will help you to boost your credit report. Here it should be mentioned that you need to choose such a secured card that reports your activity to the different credit bureaus.

An even better way to improve your credit is using a starter credit card. This uses a true line of credit in your name to help you build your credit rating. There are typically minimum requirements to apply and it is recommended that you attempt a true credit card first prior to using a secured card. If for some reason you don’t qualify for a starter credit card then go for the secured type.

Please check out our #1 rated recommended partner below for a premium starter credit card for building your credit.

#1 Rated Premium Credit Card For Credit Building

Jasper, the premium Mastercard, issued by WebBank, member FDIC, is more than just a credit card-it’s a credit-building partner, The Jasper Mastercard is especially helpful for customers who are new to credit in the U.S., such as young adults who have recently started their professional lives and expatriates who have recently relocated to the U.S. for work.

Try Jasper Mastercard

Paying bills on time

If you’re paying your bills late, then no strategy will be able to boost your credit score. This is because payment history happens to be one of the biggest factors in the overall calculation of your credit score. Late payments often stay on your credit report for around up to 7 years. So, if you have missed a payment by 30-days or more, then it will be best to call the creditor as soon as possible. Make arrangements to make the remedy the late payment and ask the creditor to no longer report the missed payment to the different credit bureaus. Even if the creditor does not agree to this, it is worth getting current on your account as soon as possible. An account marked delinquent every month will affect your score negatively. However, the impact of a missed payment will fade over time. Do everything you can today to start showing positive credit behavior to start repairing the previous damage that has been done.

Making frequent payments

Often known as micropayments, if it is possible do make small payments throughout the month. This method will help you to keep your credit card balances down. Making these multiple payments in a single month all throughout works on a credit factor known as credit utilization. Credit utilization simply refers to the amount of the line of credit you’re consuming at a given time. For example, if you have a total revolving line of credit of $1000 and you’re consuming $900 worth of it, you have a 90% utilization rate. You want to keep your credit utilization rate as low as possible in the credit repair process. Anything 30% or lower will help you boost your credit score. Anything above that could potentially have a negative impact on your credit score. So chipping away at your revolving debt will have a major impact on your score as it helps to keep the credit utilization rate low.

Increasing your credit limit

There are two ways by which you can increase your credit limit. Either open a new credit card or ask for an increase to your line of credit on your current credit card. If the overall available credit limit is higher, then your credit utilization rate will be lower as long as you are not maxing out your card every month as long as your revolving balance stays the same. Do your research before opening a new credit card. Make sure your card issuer can provide you with a higher limit without a hard inquiry as it can drop your scores a few points temporarily.

Credit report errors

Most people are not aware of the fact that a mistake in their credit report might be the reason why their score is low. Thankfully, you are entitled to a free credit report once a year from the three major credit bureaus through annualcreditreport.com.

Take advantage of the free Credit Karma app to keep on top of the progress on your credit reports (with at least two of the major bureaus for free). With Credit Karma, you can request those reports as often as you want, check the reports to spot mistakes and track updates to the mistakes you find. Some common mistakes may be negative information that is too old to be listed or payments marked as late when you have made the payment on time. You need to dispute the errors in order to get them removed. Within 30-days the credit bureaus will investigate and respond back. Use the link below for a free sample letter for disputing errors on your credit report.

Click on the link to the free “Sample Letter for Disputing Errors on Your Credit Report” from the Federal Trade Commission (FTC).

Becoming an authorized user

If you have a relative or a friend with a high credit limit or with a long record of responsible credit card use, then ask him or her to add you to their card as an authorized user. There is no need for the account user to let you use the card. There is also no need to even share the account number details. As long as you are added as the authorized user you can enjoy the benefit it has to offer. This tip is perfect for those who have a little recent credit experience. The impact it will have on your score is significant. Besides getting lower credit utilization, you can enjoy an improved credit file. You will even potentially get longer credit history as well.

Try to avoid closing your credit cards

Closing a credit card can hamper your credit profile. When your overall credit utilization is calculated, with a closing credit card you will lose that card’s credit limit which will result in a low score. Thus, it is advisable that you keep the card open and use it only occasionally so that the issuer won’t be able to close it. I recommend that you charge your card every 6 months to keep it active. Any purchase will keep the line of credit open and healthy for your overall credit score.

Summary

There you have it, these were some of the best ways to raise credit score fast. Don’t sweat it as if you are struggling with a low credit score, then you are better positioned to make gains than a person with a strong credit history. Follow these tips to ensure at least a 100-point boost in just a few months or even sooner.

Please share your thoughts below on raising your credit score. If you have any tips and strategies you would like to share, I would like to hear them.

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Frank Makrides

Is a former financial technology industry executive, licensed realtor, real estate investor, an award-winning speaker, has been published, holds multiple patents and is passionate about all things personal finance and entrepreneurship. He is also a proud husband and father of 2 amazing children.