If you’re looking for ways to raise your credit score 100 points or more, there are many helpful tips out there – but how do you know which ones will work best?
The truth is that building a strong credit history can be simple. Oftentimes we over complicate it by focusing on the wrong things.
Let me show you five steps to raising your score and improving other aspects of life in general with increased financial stability!
Why raising your credit score is important
Your credit score can be a game changer in your life. It’s more than just a number, it’s how you’re judged by the banks and other financial institutions.
The higher your number, the more likely you can land a low interest rate and successfully apply for financing on bigger purchases such as cars or houses.
Your credit score dictates the interest rate you pay for loans so raising your credit score by 100 points can make a big difference to your finances.
The average car finance deal varies between 3% and 14%. If you are going to finance a car, a 3% deal could mean saving thousands of dollars compared to the poor 14% rate.
With all the financial “gurus” and their different ideas, it’s easy to understand how people can get confused about credit.
Raising your score might seem confusing if you don’t know where you’re starting or what direction you’ll be heading in!
what is your starting credit score? check your credit report
The first step to improving your credit score is getting a good grasp on what it actually looks like. Sites like Credit Sesame are great for looking up how you’re doing at the moment.
But when looking at things from a more long-term perspective, say wanting to buy a house one day soon. You’ll need something with slightly better accuracy than just the snapshot provided by Credit Sesame or similar.
Get a free copy of your credit report every year on annualcreditreport.com. As an added bonus, reviewing it can help you catch signs of identity theft early and save yourself from future problems.
Your credit score does not define you. As hard as this may be to believe now, even those who start out with bad scores can see their numbers climbing up into the 800+ range after a year or two.
Whether you’re starting out with bad credit or want your score improved over time, there is potential for improvement. So don’t give up if yours isn’t where you need it yet!
5 easy steps to help you raise your credit score by 100 points
1. Create your credit score improvement goal
Set a goal to improve your credit score by 100 points (or whatever improvement goal you are aiming for).
You can often achieve this in less than a year, with a little time and effort. If you have collections that are hampering progress, don’t worry – there may still be ways to remove them.
If you want a credit score improvement, then make it happen. Write your goal down somewhere and include it in as many places that are meaningful to you as possible. Add your credit score goal to a vision board or phone wallpaper.
You can’t focus on and manifest something that’s not within reach. Along with working hard to improve your credit score, start visualizing it as happening!
If you can’t envisage a higher credit score happening how is that supposed to occur? Hint: It won’t. Knowing you are capable of achieving the goal for this credit rating makes up half the struggle.
2. Write letters and call people to improve your credit score
Write letters (type and email is fine), to the main credit bureaus and request that your collections be deleted from your credit report.
Send a letter to each of the companies you owe money to as well. If you have a debt of $10,000, it is possible that you can negotiate to only pay off half, or less depending on circumstances. If you don’t ask, you don’t get!
Here’s a 5 minute job that can help. Pop over to experian.com/boost and link your bank account. In most cases, people can get an instant credit boost just for proving they are paying their utility bills each month.
And the part I like best? Experian doesn’t report negatively if you didn’t make a payment, it actually boosts your score.
Even if these improvements only boost your credit score by 20 points, small tricks like this will add up along the way and make a big difference.
3. Pay your bills
Moving forward, set up reminders to pay your bills. If you don’t have them on auto-pay already, make sure that they are set and then follow through with paying yours bill every month without exception!
One late payment can drop your credit score by more than 40 points so it’s important not to let any of these slip past due dates!
If your finances are a struggle right now then please read my other blog posts about building an emergency fund and finding flexible work from home jobs. In my opinion, the easiest way to pay down debt is to make more money. After all your paycheck only stretches so far.
The faster you can pay your debt off, the more money you’re going to save in interest. And the quicker you’ll boost your credit score and with more money left in your pocket.
4. Don’t be afraid of credit cards
People who struggle with debt often believe that the best way to fix it is by avoiding all credit cards. This can be a smart strategy initially if you have had problems in the past, but some credit cards can help you repair your credit without the worry of slipping back into old ways.
Secured credit cards can be an especially good option if you’re afraid of overspending. They can help teach more responsible spending habits.
If you’re in the right mindset, a credit card won’t tempt you to spend. You can set it up on auto-pay for something cheap like Netflix, and pay the balance off in full each month.
Put the card away (some people suggest freezing it!) or have your spouse hold onto it if you think you could be tempted to spend more. For most people, utilizing credit in a planned and responsible way is the easiest path to buying a home.
Related post: What To Do When Credit Card Debt Becomes A Problem
Further credit card options
After you get your feet wet with a secured card, I would encourage you to look into other options for credit cards. Many people use Credit Karma for credit card options.
There are a lot more options than Credit Karma suggests so don’t always listen to them. They make money from referrals which might not always be in your best interest (they do offer good advice though!).
Open a credit card that doesn’t charge an annual fee, use it for one or two bills each month and collect airline miles while building your credit score, all without paying any fees!
5. Be Credit responsible
If you’re afraid of being irresponsible with your credit card, set it up for ONE bill (only) on auto-pay every month. Set an automatic payment from your bank account to the credit card each month so that the payments are met consistently and responsibly.
This way you can reassure yourself that you aren’t spending more money. You’re spending the same amount of money (it’s one of your regular bills remember) but by a different payment method.
The bonus is that you can be earning points/air miles and building a positive history at the same time.
If you’re really worried about flashing that plastic, cut it up or hide it from yourself. Or, as I mentioned before, you can freeze it in a tray of water.
Credit cards are a fantastic way to spend responsibly WHEN you get the hang of it. You could consolidate all your bills onto one credit card and start collecting points or airline miles for every purchase.
This can save you money in addition to building up a good credit score with them too!
How to raise credit score 100 points in 30 days?
getting a copy of your credit report is the first step. If you’ve got negative accounts then this is where you can improve your credit score fast. Dispute these negative accounts with the credit bureaus and if successfully removed, they could potentially raise yrou credit score 100 points overnight.
Is 100 points realistic?
If your credit reports have errors on it then increasing your credit score by 100 points is very realistic. If your credit score is already high then it might take longer or be less realistic.
How long to raise credit score 100 points?
It’s all about what your starting score is and how quickly you take the steps outlined above. If you throw yourself into disputing all negative accounts and writing to negotiate your debts can all help make a difference quickly.
How can I raise my credit score by 100 points in 5 months?
Pay all your bills on time. Prove you are credit worthy by successfully managing a credit card where you pay it off in full every month.
How fast can I get my credit score up 200 points?
you might not need to! The first step is to check your credit reports to see what your credit score is. If you are already nearing 700, raising your credit score by 200 points might not be fast at all.
If you have errors on your credit reports and you get them corrected then your credit fil could improve quite quickly.
How to raise your credit score 100 points in 30 days, 3 months or a little longer
Everyone’s credit score and situation is different but rest assured raising your credit score is within your reach. Increasing your credit score 100 points isn’t difficult, these 5 easy steps will help you achieve this in as little as 30 days.
We often think of credit scores as being a delicate matter which we have no control over. In reality you can improve your financial standing and credit score by taking a few simple steps.
With a little patience, determination and effort you can make significant progress in the right direction in the next few months.
Start taking back control of your money by grabbing your copy of the Money Saving Starter Guide today.
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Last Updated on 10th November 2021 by Emma