
Are you looking for the fastest way to increase your credit score?
If you are here, I am sure you can agree that credit scores affect your daily life. They are important in determining everything from getting approved for a loan, your interest rates on loans, mortgages, cars, credit cards, and one of the biggest issues today, getting a job.
I was in my early 20’s when I applied for Delta Airlines. I was hired under a conditional offer, and that was to pass the credit check. I spent weeks going through their testing and interviews, just to be informed that I will not be able to continue with my employment. I was not hired because I was over $7,000 in debt. I was devastated. I needed a job, I deserved a good-paying job, but they denied me because of my credit score. At the time, I had student loans on my credit report and a credit card.
How did they expect a fresh out of college, single mother to have A1 credit, and no money to pay down my debt?
Well, that is why I am writing this. To save you from going through the heartache that I have been through.
If you need a boost, like yesterday, then this article is for you. If your credit score is lower than a 700 and you are trying to refinance, buy a home, or car, this is for you. If you want to build your credit, keep reading, this will help you too.
I have put together a few steps you can take to raise your credit score. Before we dive in, let us go over the factors that make up your credit score:
Payment History (35% of credit score)
Credit Usage (or, Credit Utilization Ratio) (30% of credit score)
Credit Age (15% of credit score)
Account Mix (10% of credit score)
Credit Inquiries (10% of credit score)
Keep in mind, credit repair is not a magic trick. Just like money is not falling off the trees, and you can’t call your boss and tell him to advance your check without putting in the work. Some steps provide results quicker than others. You won’t see results overnight; give it three months or so for the changes to begin affecting your score positively. There are some instances you can get a rapid score, for ex: getting a mortgage. That may be the only time you will see a quick result within 48 hours. And that option is based off the mortgage company.
CHECK REPORT
Before you can fix your credit, you need to know what is being reported. If you can find errors, you can dispute them and have them removed. Over 50% of people have errors on their reports.
Could you be one of them?
Many of the clients that I worked with have not checked their reports in over a year. When we pull their reports, they are surprised at what is showing on their credit report.
If you have not checked your score, you can request a full credit report at AnnualCreditReport.com from each of the three credit reporting companies:
Equifax
Experian
TransUnion
By law, you are entitled to one free report every 12 months.
When you examine your report, you are looking for accounts that show late payments or unpaid bills. If that information is inaccurate, the report should tell you where to send a dispute.
You may also want to sign up for a free account with Credit Karma which will give you an idea of where your credit scores are. Credit Karma should be used as a guide and may not reflect your true score that mortgage companies and loan companies may see.

PAY DOWN BALANCES
Keep your balances low. During my home search, I was trying to be approved, so that I could make a decent offer. One of the things, I had to do was pay down one of my credit cards. I paid about $200 on the one card and brought my utilization down to below 10%. The company did a rapid check and my score was raised over 100 points. I was approved for more money than the mortgage company offered originally. This is one way to raise your score. However, everyone’s issue is different. If you are utilizing less than 10% of your card and you pay it down, you may not see a huge change. If you are utilizing 50% or more, you will see a big difference in your score. Also, depending on when the creditors report your changes could affect your chances if you need a boost right away. For example: if you pay on the 11th and the creditor reports on the 2nd, it will not reflect the changes until the next month. Most creditors report monthly. It is good to know when they report, in the event you must make an extra payment. Which brings me to another point.
If you spent more than you can afford to pay back before your due date, always pay the minimum payment. If you have extra money to put towards your bill, pay it immediately. The more you pay down on your revolving debt, the lower your utilization rate will be.
For example, if you have a $1,000 credit limit and a $500 balance, your credit utilization is 50%. If you have maxed out that $1,000 limit, your utilization is 100%.
INCREASE CREDIT LIMIT
If you have a good track record in paying your credit card bill on time and not carrying a large balance for too long then you can ask for an increase on your current credit card or open a new card. The key is the more available credit you have, the lower your credit utilization.
If you want to open a new credit card, do your research. Apply around the same time, that way your inquiries will not be affected. For example: if you apply for 3 credit cards this month, do not wait 3 months later, and try to apply to 3 more credit card companies. Try to apply around the same time, within the 30 days. If possible, apply to the card companies that do a soft pull, that way it does not affect you until you accept their offer.
Caution: Do not get greedy and apply to too many companies at one time. That could cause a red flag to be placed on your report. Select the card that is right for you. Read the small print. Some cards have strict terms, some have rewards, and others may have an annual fee.
If you decide to open a new card or ask for an increase be sure that you are set and can show stability, because asking for an increase when you keep high balances can cause you to have a decrease. Not using your card enough can cause a decrease. And the credit card companies do not have to tell you when you have been decreased. Also, if you do not have a lot of credit accounts open, don’t open too many too rapidly. Opening too many at once will lower your score and it’ll take a year to fall off your report.
AUTHORIZED USER
You can be added to someone else’s account. Of course, you will need to find someone who loves you very much and is responsible for his or her money. They will add you to their account as an authorized user. The point is not for you to use their credit card but to benefit from their use. The account will show up on your credit report. Your credit report will reflect the primary cardholder’s on-time payments and credit utilization rate. As a result, your credit score will increase. Many parents do this with their children or spouses with their significant others.
SECURED CREDIT CARD
Another method to build credit from scratch is by using a secured credit card. You will have to put money on the card upfront. Your deposit is the same as your credit limit. This type of card can be used like a normal credit card. When you pay your monthly payment that will help your credit score increase.
Choose a secured card that reports your credit activity to all three credit bureaus.
DO NOT CLOSE
If you close a credit card it can negatively affect your utilization rate and cause a lower score. Keep the card open and use it often. What I suggest to my clients is to use the card for gas or small purchase items. That way you can pay back in full and on time.
MIX IT UP
Having a variety of credit types is not the biggest factor in your credit score increase. But it does make you look good. A few years ago, I did not have a variety of different credit types. I paid off my car and only had my student loans and a credit card. I was shopping for my home and I wanted to have a better chance of getting the most money that I could be approved for. So, I bought a new car, with a low-interest rate. Paid that up for about a year and then, applied for my mortgage. If you are in the process of buying a home now, don’t choose this option. This worked for me because I was not in a rush and had no intentions on applying for anything big anytime soon.
If you are considering having a blend of revolving and installment credit; you can get a small personal loan, that will cover your installment credit and or other secured credit lines that will help with the revolving credit.
My mother always told me, do not put all your eggs in one basket. That goes for credit too. You want to have a balanced blend of investments to show a healthy financial history and that you are responsible. Would you loan money to someone, who you see always late paying rent but has the latest handbags or sneakers?
PAY ON TIME
Making on-time payments is 35% of your credit score. Missing old payments do not impact your score, as it would missing a current payment. If you are going to be late, make sure that you negotiate with the creditor or set up a payment arrangement.
Late payments can stay on your credit reports for seven years. I know stuff happens and if you are not financially where you want to be you may have to rob Peter to pay Paul.
If a creditor contacts you and informs you that they will send your account to collections in X amount of days, don’t ignore them. Arrange to pay up if you can and ask if the creditor will consider no longer reporting the missed payment to the credit bureaus.
Delinquent accounts do hurt your score. Fortunately, the impact of a missed payment fades over time.
If you are having trouble paying everything on time, prioritize your bills with our free budget worksheet.

CREDIT BUILDER CARD
If you have not yet built a credit score, it can be frustrating to be turned away by lenders for having no history.
How are you supposed to get a decent rating without anyone giving you credit, right?
One thing you can do is apply for a Platinum MasterCard® Secured Credit Card.
The First Premier Platinum Mastercard is a full-feature Platinum MasterCard® with a credit line based on a security deposit rather than on a credit score. You post a security deposit to establish your credit line and that deposit serves as collateral for your obligations on the secured credit card account. The card is designed to advance the accumulation of new information in a credit file by reporting account activity to all three of the major national credit bureaus every month. And because it’s a full-feature Platinum MasterCard®, the card provides the protection, convenience, and prestige of the worldwide MasterCard® system.
GOODWILL
If you have recent late fees, you can contact the creditors and ask for a goodwill gesture. If they accept, they will drop the late payment on your credit report. Otherwise, those late payment notifications will stay until the loan is paid off and closed for good.
Okay, let’s recap. When it comes to improving your credit score, what worked for one person, may not work for you.
You CAN increase your credit score. It is not hard to do and will not require a lot of capital. I have helped people fix their credit for years. I help people achieve the financial goals that allow them to live the life they've always wanted, and to live the life they deserve.
When you want to boost your credit score, there are two basic rules you have to follow:
First, pay your bills on time and in full. Second, keep your credit card balances low.
If you need help restoring your credit, request your free consultation today! Call or text "Repair" 470-407-1026.
Do you want to be financially debt-free, want to learn how to manage your money more effectively and take control of your financial future? Sign up for our Pay What You Want Budget to Bucks ecourse.
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