Can You Increase Your Credit Score by 100 Points in 3 Months?

For most people, raising their credit score by 100 points in a month is not a realistic goal. However, if you take the right steps, such as paying bills on time, eliminating consumer debt, avoiding large balances on credit cards, and maintaining a combination of secured and unsecured loans, it is possible to see an increase in your credit score in a matter of months. While there are no shortcuts to building a strong credit history and rating, there are some steps you can take that can provide you with a quick boost in a short time. In fact, some consumers may even see their credit scores increase to 100 points in 30 days.

One of the best ways to improve your credit score is to identify and dispute any inaccuracies on your credit reports. Adding a new line of credit can also help if you can't quickly pay off existing credit card debt. If your score is low due to lack of credit history or you're just starting out, your score can improve in a few months. Whether you increase your credit limit or pay off a debt, this should help improve your credit utilization rate.

In the real world, secured credit cards are a valuable tool that you can use to increase your credit when you otherwise couldn't. Knowing what steps to take to improve your credit rating and be a responsible borrower can increase your chances of increasing your credit rating by 100 points or more. This type of card requires you to deposit a deposit as collateral, but it can help you rebuild your credit by reporting your positive payment history to the credit bureaus. There's also an annual fee associated with most secured credit cards, but this is a small price to pay for the opportunity to build a credit history.

Anything that appears in the collections will reduce your credit, but if you pay it off you can ask the collection agency to remove it from your credit report (there are three: Experian, Transunion and Equifax). The fastest way to increase your credit rating is to reduce the amount of revolving debt (which are generally credit cards) you have. Payment history represents 35% of your score, so making payments on time will improve your rating while late or missed payments can have a negative effect. A former intern of mine was able to increase his credit score by 100 points with a secured credit card.

Credit bureaus like to see a mix of revolving and installment loans such as mortgages or car loans. The fact that the rules governing credit ratings barely recognize an achievement of this magnitude only shows that these ratings are flawed and based on irrelevant information when determining “good” or “excellent” ratings.