How to Increase Credit Score by 100 Points in 30 Days

How to Increase Credit Score by 100 Points in 30 Days

By making some simple changes to your payment history and investigating what went wrong and correcting it, can easily increase your credit score and help you perform better easily and in just 30 days!

how to increase credit score by 100 points in 30 days

If there was anything more important in your financial life, it’s your credit score.

Credit scores influence what kinds of opportunities are available to you.

These include products and services, loans, and credit. It will also affect the interest rates that you can get for those loans and credit.

Basically, it can determine what you can and cannot do financially.

So it’s always in your best interest to get the best credit score that you can.

So we’ll take a look at how to increase credit score by 100 points in 30 days whatever your score is at the moment. 

Credit Score and How It Works

As you may already know, a credit score is a three-digit number that gives a numerical grade to how reliable you are as a borrower.

This number is between 300 to 850, with obviously 300 being the lowest number indicating that you are high risk while 850 lets people know that you are good with money.

It lets lenders know your ability to pay back loans and debt on time or if they would even get their money back.

It’s a risk assessment tool for lenders and is one of the most important factors of your financial life and stability.

The higher your credit scores, the more likely you can get a loan or credit card and get it with the best payment terms with low interest rates.

This means higher credit scores actually allow people to save because they are paying less for their loans and premiums.

First of all, let’s look into some basics of how the credit score is graded.

Basics of Credit Scores

So the credit score is a report or summary of your credit risk which is based on your current credit data and your history of borrowing.

The most common credit score is the FICO score. A good FICO score is around 670-739 with most Americans getting a 704 on average.

The scores are calculated from five categories that affect your credit history. 

  • Payment History (35%) – this refers to how you regularly pay your bills and whether or not you are paying them on time. 
  • Amounts Owed (30%) – this is based on how much credit and loans that you currently have outstanding. 
  • Credit History Length (15%) – how long you’ve had credit and how long you’ve been making payments can affect your credit negatively and positively.
  • Credit Mix (10%) – this is how diversified and how many credit items that you have currently like mortgages, credit cards, and loans
  • New credit (10%) – how often you open new credit accounts and receive credit inquiries. 

To get you started on how to increase credit score by 100 points in 30 days, here are some tips.

Tip 1: Get a Copy of Your Credit Report

The first thing you should do to get started is to get a copy of your credit report.

Remember that there are three credit bureaus, so you need to get a copy from each of them.

A free report can be obtained once a year from the government website www.annualcreditreport.com.

This report will let you see all the items affecting your credit scores.

how to increase credit score by 100 points in 30 days

Tip 2: Identify the Negative Accounts on the Report

Go through the entire report and look at all the items and highlight the ones that have a negative status.

By doing so, you know which line items you need to work on or improve on so that you can start improving your score.

Make sure to also double check your personal information such as your address, employer, and phone number.

It is best to focus on negative line items such as accounts in collection, late payments, and credit inquiries as these are the ones with the most negative effects on your credit score and likely the easiest to dispute as well.

And speaking of disputes…

Tip 3: Dispute Negative Items with Errors

Because the system of credit reporting is done through an automated system, there is some room for discrepancies.

For the most part, people usually just accept their credit scores without really checking if there are errors or not.

It is, however, highly recommended to dispute any errors you encounter.

The credit bureau will then launch an investigation and even contact your creditors to verify the account.

They will then have 30 days to send sufficient documentation to prove it or they will be required by law to remove the negative status.

Many people have even been able to remove 10 accounts from their report in 30 days just by reporting them.

The process of disputing is fairly easy as you can do it by mail, online, or by phone.

The easiest and fastest way to make a dispute is via phone as it will be addressed right away. 

Tip 4: Get Late Payments Disputed

how to increase credit score by 100 points in 30 days

Apart from errors, late payments can also be disputed. However, before you get them disputed, contact your creditor first.

If it’s truly an error, they can make the adjustments on their end.

However, in some cases, a creditor may decide to remove the late payment on your credit report as an act of goodwill.

This often can be awarded to long-time customers who have regularly made their payments.

However, if that doesn’t work, go ahead and report it to the credit bureau.

Make sure to exhaust all channels of dispute as a way on how to increase credit score by 100 points in 30 days.

These disputes can lead to a jump in your credit score of even 84 points according to one testimony.

Tip 5: Make Sure to Dispute Credit Inquiries

You may not know this but every time a credit score inquiry was made on your account, you will actually get points deducted and affect your score for up to 12 months.

A strong dispute with evidence can make the credit bureaus consider whether to include those inquiries or not.

It’s not very often they are removed, however, there is a distinct possibility of that happening. so it’s worth a shot. 

Other Tips Available

  • Make sure to pay down your credit card balances as soon as possible as it can affect up to 30% of your total score.
  • Don’t pay for accounts that are in collections unless they remove them from your credit report and dispute it as needed.
  • Have someone who has a good payment history add you as an authorized user on their credit cards so that their good payment history will also be attributed to you.
These and the earlier tips will help you how to increase credit score by 100 points in 30 days.

how to increase credit score by 100 points in 30 days

Final Thoughts

There are many ways on how to increase credit score by 100 points in 30 days but if you want to get better opportunities and better rates for credits and loans then you really need to work to improve your credit score.

By making some simple changes to your payment history and investigating what went wrong and correcting it, can easily increase your credit score and help you perform better easily and in just 30 days!

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Author: John Benares

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