Most of us tend to care about our credit scores when we need to apply for an auto loan, a mortgage, or a personal loan.
When you have a healthy credit score, lenders will let you borrow money at a more affordable rate.
If you are looking to improve your credit score in 90 days, here are some easy and effective ways to increase your credit score in 90 days:
Check Your Credit Score and Credit Report
One of the best steps you can take to improving your credit score quickly is to get your credit score and report.
When you see your report, look for any negative entries that look incorrect.
Over 1 in 5 Americans has an error in their credit report, so it’s vital that you check your score.
If you find an error in your credit report, submit a dispute with the credit bureau right away.
The credit bureau legally has only 30 days to respond. You can get access to your credit score here.
A single error on your credit score could lower your score by 100 points or more and cost you thousands in extra interest charges.
Contact Your Creditors
If you have a delinquent account on your credit report that’s casting a shadow on your score, it’s time to clear it up once and for all.
Find the creditor for the delinquent account and offer to pay off a portion of the balance in exchange for having it removed off your credit report.
Most creditors would rather have some money in their pocket rather than none.
If the creditor accepts, ensure you receive some form of confirmation, whether an email or a confirmation number.
Be sure to also get the name and employee ID (if applicable) of the person you spoke to.
If the debt is already in collections, the chance of you getting it removed off your credit report becomes much harder unless there is an error in the report.
You can also ask for something known as “Goodwill Deletion”, which is simply a letter sent to the creditor asking them to kindly remove the delinquency from your account.
Understand Credit Utilization
Most industry experts agree that consumers should only utilize about 30% of their available credit.
If you are above this mark consistently, ask your creditor for a higher credit limit.
This, in turn, will reduce your utilization ratio which accounts for 30% of your total credit score.
If you are unable to get a credit limit increase, be careful of putting future purchases on plastic.
Credit card utilization accounts for 30% of your total credit score, so utilizing your credit properly can improve your credit fast.
For example, if you have a credit card with a credit limit of $1,000, you should not use more than $300 of your available credit. 30% x $1,000 gives you $300.
You can use this formula to find out exactly how much you of your available credit you can utilize:
.30 x Your Credit Limit = Amount You Should Utilize
Hop on Another Credit Card
If you need a credit boost, becoming an authorized user on another person’s credit card is a sure fire way to increase your score.
Essentially, you will ask a close family member or friend with good credit to be an authorized user on their account.
You do not even need to use the credit card the card company will mail you.
As long as the main account manager pays their balances on time, you will experience an increase in your score.
However, if this person begins to default and miss payments, that will hurt your score as well.
It’s best to ensure that the person you get an authorized user account with has a history of on-time payments.
Rebuilding your credit from the ground up can be a daunting task, but the benefits of a healthy credit score are unmeasurable. Overall, there are many ways you can increase your credit score in 90 days, but these tips will be enough to give your score the boost it needs.
If you have less than perfect credit and don’t know where to go, CrediReady can help. Our trusted network of credit repair experts can boost your score and help you qualify for the credit you need. Take a moment to fill out our free no-obligation credit repair inquiry form and start fixing your credit today!