How to Boost Your Credit Score By 100 Points Tonight

Michael Collins
January 25, 2021

Having a bad credit score can bar you from getting certain loans and credit cards. Further, the loans and credit cards you can get will be more expensive if you have a bad credit score. Making an effort to raise your credit score 100 points overnight can really help you get the debt that’s best for you. 

How is Your Credit Score Calculated?

Whether you like it or not, your credit rating  defines you to some extent. For loan agencies, credit card providers, insurance agencies, and even some landlords, one of the only ways they can gauge your trustworthiness is through the three-digit number that is your credit score. As such, your credit score can really dictate your access to debt and credit as well as having access to the best rates. Having a not so good credit score can really be a thorn in your side when it comes to these things. If you have a bad credit score, you have likely encountered the many obstacles that come with it and are hoping to change this. 

Wouldn’t it be nice if you could boost your credit score with a snap of a finger or with a few clicks of a button? If you are planning on applying for a loan or credit card, wouldn’t getting a nice boost to your credit score the night before really boost your chances that you get the debt you need? Obviously, the answer to these questions is yes. Unless you are a personal finance wizard and have a perfect credit score, a boost to your credit score can only help you. 

While it sounds like a dream come true, this is unfortunately not the reality of credit scores. Credit scores are made up of many complex, moving parts that go into creating your score. Further, credit scores usually don’t update immediately and tend to be updated monthly. This can make it difficult or even impossible to do one simple thing and have your credit score soar right away. 

Raising your credit score 100 points overnight sounds ideal but it simply is not realistic. However, there are many things you can do now to boost your credit that will make serious impacts on your credit score in just a few weeks. 

Let’s take a look at some of the things you can do to start boosting your credit score very quickly. 

Credit Score Makeup

Before we go into how to boost your credit score, it’s important to know what exactly makes up your credit score and how credit works. Having this knowledge will help you to make good decisions for your credit score down the road. Let’s get to it. 

  • Payment History (35%):  Your monthly payment history has the biggest weight on your credit score. Your payment history is simply the record of your past payments from any loan account or line of credit from the past 7 to 10 years. Above all, lenders want to see evidence of you paying back your debt. 
  • Credit Utilization Rate (30%): Credit utilization is how much of your credit line you use a month. Your credit utilization ratio is the percentage of this credit usage. If you are given $1,000 a month to use with your credit card and use $800, your credit utilization ratio is 80%. Lenders and credit bureaus want to see your credit utilization ratio be at 30% of your available credit per month or below. Using any more credit than this can actually hurt your score. 
  • Length of Credit History (15%): The longer you have had your credit account the better. If you’ve successfully been making payments for 10 years, your length of credit history looks much better to a lender than someone who has only had 1 year of credit history. Any credit history that is 7 years or more is good for your score. Consistency is key for lenders!
  • Credit Mix (10%): Your credit mix is made up of the different types of debt that you have taken on. Lenders want to see this mix be as diverse as possible. For example, if your credit mix only consists of credit cards, an auto loan lender might see this as a red flag, since you have not had any experience with any type of loan. 
  • New Credit (10%): Any recent loan or new credit account you’ve opened will impact your credit score. It’s better for your credit score if you don’t have many recent accounts opened. Remember that every time you seek new credit though, you get an inquiry on your credit score. A hard inquiry is a credit inquiry you get when seeking new loans or lines of your credit. These can lower your score anywhere from 5-10 points, so make sure you have less than 5 in any 6 month span. 

How to Improve Your Credit Profile

#1 Pay Off Your Delinquent Credit Card Balance 

Paying off delinquent accounts, or accounts where you have late payments of over 30 days, is one of the best ways to correct your credit score. Missing a payment by one day shouldn’t make a difference. However, if you have a payment outstanding for over a month your score will start decreasing. The longer it remains unpaid to the credit card company, the more it will hurt your credit score. Paying off delinquent balances from accounts like credit cards and loans will not only stop the bleeding, but can help to improve your score as well. 

Think about it; a credit card provider or other lender does not want to see that you have many payments that are late and still need to be paid. They will be more skeptical about lending their precious money to you if you still have credit card debt that needs to be paid off. They may not believe you will be focused on paying off their debt first if you have other, more pressing accounts that need to be paid off. 

To be most effective, pay off your smaller delinquent balances first. The fewer the delinquent accounts the better. Overall, pay off these delinquent balances if you can and your credit score should start to reflect your hard work. 

#2 Keep Credit Balances Below 30%

As we mentioned earlier, your credit utilization ratio actually has a pretty sizable impact on your overall credit score. Because of this, you should do everything in your power to improve it. One of the best ways to do this is to keep your credit utilization ratio under 30%. For example, if your monthly credit card limit is $1,000, do not use more than $300. Obviously, you are permitted to use the $1,000 but your credit score will increase over time if you do not use more than 30% of your credit limit. If you find that you really need to use over 30% of your credit every month, you could consider opening another credit card account. Splitting your credit over multiple accounts to allow you to stay under the 30% threshold could work in your favor, as long as you pay the balances successfully. 

Another way to spend under the 30% credit utilization ratio is to consider a credit limit increase.. By increasing your credit limit, you can spend the same amount on your credit card that you  normally do, while still maintaining a good credit utilization ratio. For example, if you spend $500 a month on your credit card and your credit limit is $1,000 your credit utilization would be 50%. If you increase your credit limit to $1,500 but still spend $500, your credit utilization is now 30%. 

To increase your credit limit, simply ask your credit card issuer or other lender to increase your credit limit. They are not required to, so you may get denied if you have been failing to make your credit card payments. However, if you have been a good borrower your provider should be willing to increase your credit limit. Do this successfully and your credit score will start to rise!

#3 Pay Your Bills on Time

This may sound elementary, but if you can’t pay your bills on time you’re going to have a hard time raising your credit score by 100 points. This is the number one concern of lenders and the best way to pay your bills on time is to get organized and set up automatic payments. The majority of the bills we receive are predictable and putting your utility bills, credit card bills, and car payments on automatic payment will assure you that you at least pay the minimum amount due and will save you time.

#4 Dispute Errors

While it may come as a surprise, credit bureaus as well as lenders both make mistakes when it comes to your accounts. Every month, lenders often report your successful or unsuccessful payments to the three credit bureaus. Many lenders are processing and reporting the information of thousands and thousands of accounts every month. As such, there is bound to be an error once in a while. Your lender might be continuing to report a payment as late or may not be reporting your successful payments. 

On the other hand, the credit bureaus may also be reporting information that is incorrect. They could be reporting balances that are not correct or could be providing inaccurate information about the status of some of your accounts. 

Regardless of who is at fault, remedying errors on your credit report is a great way to quickly improve your score. To see what errors there are, request a credit report from one of the three credit bureaus (you can get one free credit report from each credit bureau once a year). Scan through the various accounts in your credit report. If you find any errors, make note of it as well a s which lender it came from. 

If the error is stemming from the lender, call your lender and try to remedy the situation. Show what the error is on your credit report and ask that your lender provide the accurate information and update the information they send to the credit bureau. If the error is coming from the credit bureau, call the credit bureau and dispute the inaccuracy and ask them to right the wrongs you found on your account.  

Doing this will require you to dig through your credit report and may be time consuming, but it is surely worth it. Fixing errors is an immediate fix to your account that is sure to help boost your score once the errors are corrected. 

#5 Set up a Credit Monitoring Account

One of the best ways to stay on top of your credit score is to work with a paid or free credit monitoring system. Many financial organizations will offer complimentary credit monitoring services and you’ll want to use services that provide you with real-time alerts and free credit score tracking. If you see inaccuracies on your credit report these monitoring accounts will allow you to open online disputes immediately. Monitoring your financial accounts will allow you to detect possible fraud sooner and minimize surprises when you open your mail. Ideally every time your account balances change you should be notified and your monitoring system should keep track of your credit utilization ratio.

#6 Add Rent and Utility Payments 

Did you know that lenders aren’t required to report your payments to credit bureaus? Like lenders, landlords and utility companies are also not required to report your successful payments. While lenders almost always report your payments, landlords and utility companies don’t. However, if you contact your landlord and utility company and ask what they do, paying utilities and paying rent can build your credit score

Simply call up your utility company and landlord and ask kindly that they begin reporting your payments. If they agree, keep making payments and over time your score will go up. While this won’t boost your credit score overnight, it will allow you to build your credit history without taking on more debt. Keep in mind that just as a successful rent or utility payment can help you, so too can a late payment hurt you. 

#7 Open a Secured Credit Card

Did you know there are unsecured and secured credit cards? If you’re having a hard time getting a loan or opening up a traditional credit card you’ll want to look into a secured credit card. In the world of finance, secured debt is debt that is held with collateral. This means secured credit card holders have a lot at stake if they were to default. The most common forms of secured debt include mortgages and car loans, but secured credit cards also exist. These cards work in the exact same fashion as traditional credit cards, but users have to put down collateral or a security deposit to get issued the card. If you fail to pay your card payment the credit then has the ability to take your collateral or deposit.

#8 Become an Authorized User

Becoming an authorized user on someone else’s credit card may be one of the easiest ways to boost your credit score, but not everyone has this opportunity. You may become an authorized user on a business credit account where you are employed, but many times this requires a long employment history and close relationships with managers and/or owners. The most popular way young people become authorized users is by getting on their parent’s account. This tends to happen when young adults go off to college or begin to branch off on their own.

#9 Don’t Close Old Accounts 

While you may not want debt accounts looming over your head, you should not be closing your loan or credit card accounts right before you apply for a loan or credit card. Doing so will only hurt your credit score. If you do not see yourself opening an account for some time, closing a few accounts is acceptable. However, don’t hurt your credit score by closing an account right before your loan or credit card application. 

#10 Get a Credit Builder Loan with Possible

A great way to build your credit score is by getting a credit builder loan with Possible Finance. At Possible, we offer small loans of up to $500. Our loans are installment loans, which means that you pay back our loan in a series of four payments spread over the course of a month. Other loans of this size are usually part of the predatory payday loan industry where you need to pay back your loan by your next payday. To combat this industry, we created a product that is easier to pay back and does not put our customers further into debt like payday loan companies do. If you are struggling with paying back our loan, you can extend your payment date right within the app by up to 29 days. 

Our product isn’t simply a loan that is significantly easier to pay off. Our loan is a vehicle to create value and build credit history. Unlike the majority of payday loans, we report your successful payments to TransUnion and Experian. This means that as you pay back our loan, you build credit history. As a result, your credit score increases over time. We know that building credit is hard, especially if you have bad credit, so we do not conduct a credit check when you apply for a personal loan. 
If you are in need of some instant funding and want to build your payment history, Possible Finance is a great place to turn to. Interested in getting a loan? Download our app and get started!

Michael Collins

Michael has a passion for writing and has since brought that passion to Possible. He enjoys reading everything there is to know about film, sports, and finance. His studies in college allow him to be on the forefront of business knowledge so he can better inform his readers.

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