Improving your credit score by 100 to 150 points in 90 days is possible, depending on your credit history. If you've just come out of bankruptcy and your score is 450, it will take much longer. While there are no shortcuts to building a strong credit history and credit 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.
The difference between a person with a score of 780 and a score of 680 is that a score of 780 has no late payments, while a person with a score of 680 may have a 30-day delay in the last year or a 90-day delay 2 years ago. It's important to note that not all credit scores are the same and that they fluctuate from month to month, depending on the credit bureaus that lenders use and how often lenders report account activity. The impact that a line of credit increase could have on your credit rating depends largely on the increase you receive. Sometimes, your credit rating can be affected because something ended up in your credit reports that shouldn't have been there.
Adding new types of debt to your profile, such as personal loans or car loans, will give you a healthier credit mix and increase your credit score. One way is to open a secured credit card, giving preference to a card that behaves like an unsecured card with its credit limit at all three agencies. If your score is low because you don't have much credit history or you're just starting your credit-building process, your score can improve in a matter of months. A quick way to reduce your credit card debt to zero and increase your credit utilization rate could be achieved by paying it off with the proceeds from debt consolidation or a personal loan.
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 even more. If your credit cards haven't been active in the past six months, charge a small amount to the credit card. Every month you pay your card bill on time will increase your credit score, so establish a routine and you can increase your creditworthiness quickly, as long as you can avoid skipping a credit card payment. If you can negotiate an increase in your credit limit with a gentle consultation, you'll instantly lower your revolving balance ratio (the revolving balance divided by your credit card limits).
That said, don't apply for several new sources of credit at once, as it doesn't look good in the eyes of credit issuers. By making the effort to pay off your outstanding balances, you'll help use your credit and, therefore, improve your credit rating. Credit scores go up and down depending on the content of your credit report, so adding positive information to your report will offset negative entries and increase your score.It's important to remember that improving one's credit score takes time and effort. However, if you follow the steps outlined above and remain disciplined about paying off debt and making payments on time each month, it is possible to see an improvement in as little as 90 days.