How do I raise my credit score quickly?
You’ve put in the hard work. You know your credit fundamentals.
You’ve been paying your bills on time, monitoring your credit activity and ensuring that you are not applying for more credit than you can handle.
But while you are seeing some progress over time, your credit scores are rising far too slowly.
You don’t have bad credit, it is just OK, but you have a ways to go before you achieve the credit scores that will make you happy. Sound like you?
So what can you do to raise your credit scores quickly?
Here are 5 things you can do to raise your credit scores quickly, with results typically within 30 – 45 days:
1. Piggybacking on someone else’s credit. If you have a relative who is close to you that has good credit, you can ask them if you can be added to one of their credit cards as an authorized user.
It is better to be directly related to that person (spouse, parent or child), but you don’t necessarily have to be. The three credit bureaus may not report if you are not a legitimate authorized user in some cases, but if you have permission, it should be okay. Why the potential issue? See #2.
2. Renting tradelines. While I am not necessarily recommending this technique due to the potentially unethical nature of renting tradelines, I believe we all should know what options are available to us, no matter how bad they are. You might not do it if you know what someone else has at stake.
I am sure you have heard of individuals with bad credit paying anywhere from $800 – $1500 and suddenly coming away with excellent credit. How do they do it?
Identity theft is rampant in our society. It is one of the fastest growing crimes in America, with millions of identities stolen per year.
So what about credit card theft? Millions of credit cards have RFID chips and allow you to swipe your card with only a tap to the reader for speed and convenience.
This video by ABC News: Nightline shows credit card skimming – theft that occurs in the blink of an eye using a credit card machine to steal your credit card information (that any person can purchase from eBay, by the way) in broad daylight, surrounded by other people, or even in your gas pump.
With this in mind, you can “rent a tradeline” by paying to become an authorized user on a stranger’s credit card – usually just before they close it – and long enough to get excellent credit by being an authorized user on their card.
Sound crazy? It’s true.
Most people don’t know that their identity has been stolen for 4 months after it has happened.
If you have been a victim of credit card theft, I have some great tips for how you can protect yourself in another one of my posts.
If you are still interested in renting tradelines, because it is possible that someone with excellent credit is renting their impeccably good name out to people with terrible credit (just highly unlikely), you can find out more on renting tradelines by doing a simple search online. (I won’t encourage that you do it by posting it here).
3. 2% Utilization. How low can you go? Many of us get credit cards with the purpose of spending, but if you get a credit card with the purpose of boosting your score, you want as little spending as possible.
How about keeping your bill at around $10 each month? I know, you’re probably saying that you’re already making minimum monthly payments, but this isn’t the same thing. Keeping your utilization low by paying off your entire balance each month may boost your credit scores by 100 points in 6 months. Utilization, on time payments, and age of credit history are the top three factors that effect your credit scores most.
4. Diversify the types of credit that you use. Different credit types in your credit profile will help you to create a portfolio, and the better your portfolio looks, the higher your credit score will be.
Some examples of different credit types are auto loans, mortgages, furniture financing, secured or unsecured credit cards, and secured or unsecured loans.
5. Get a loan. There are two types of loans: Secured and Unsecured.
A secured personal loan is a great choice to help you boost your credit score even further.
Unsecured loans are what most people apply for. Unsecured credit cards require application and fees as well. The bank puts up all of the risk and provides a line of credit for you to use after you apply and they determine you are qualified by your FICO score and possibly income factors. There can be fees associated with using an unsecured loan that are explained to you when you apply. If you don’t pay the loan back, they have to cover all of the costs of not getting their money back.
Secured loans are established when you tell the bank that you’re willing to absorb all of the risk for a line of credit. Secured credit cards function similarly. What does that mean? You use cash, your car or something else of value to secure your line of credit so that they can get their money back if you don’t pay. You can create a secured loan for as little as $300 in most cases, so check with your local bank or credit union.
Using these techniques will guarantee higher credit scores in the next 30 – 90 days without as long of a wait as it would take for you just to pay your bills on time over the next 6 months with minimal credit accounts.
What techniques have YOU used to raise your credit scores quickly? Tell me in the comments below.
If you are interested in starting the approval process off with raising your credit scores for free, I invite you to take my free, four-part, Dispute Letter Mastery Course.
In this course, you will learn how to update your personal information, dispute information that has errors, and delete negative information in order to raise your credit scores 50 – 75 points in only 45 – 60 days. A boost like this can really make a difference in your interest rates, and it is all free.